Name of the Project
Okiep Copper Project (OCP).

Location
Northern Cape, South Africa.

Project Owner/s
New Okiep Mining Company comprises Orion Minerals (56.25%) and the Industrial Development Corporation of South Africa, or IDC (43.75%).

Project Description
The OCP ground holdings of 641 km² covers the majority of the area where a total of 105-million tonnes is reported to have been mined in the district over the past 100 years.

A scoping study completed in May 2021 proposed a proof-of-concept-scale copper mining operation at the brownfield OCP, and confirmed that the project’s deposits have the potential to be mined at low cost using openpit and underground mining methods.

The outcome of the scoping study, based on five initial deposits (Flat Mines), supports the economic merit of developing a foundation-phase mining operation, while Orion conducts the required work and engineering studies to evaluate the potential to re-establish mining operations.

The life-of-mine for the proof-of-concept foundation phase is modelled for 12 years, during which concurrent exploration and mine expansion scenarios will be planned and potentially implemented.

The proposed foundation-scale mining operations could run at a design processing plant throughput of 780 000 t/y, resulting in 9 000 t/y of copper sold in marketable concentrates. This could potentially supplement the 23 000 t/y of copper production planned from Orion’s flagship Prieska copper zinc mine (PCZM).

Only mineral resources from the Flat Mines area of the greater Okiep Copper Complex are incorporated in the foundation-phase plan, leaving significant potential for future expansion scenarios to be considered.

Underground and surface mining methods will be used in conjunction with mineral processing using conventional froth-flotation concentration to produce the copper concentrates for export.

The proof-of-concept phase of the proposed operation targets the development of only those Okiep copper deposits for which Orion has verified and reported mineral resources during the early phase of the due diligence period. The milled production target comprises measured mineral resources of 33%, indicated mineral resources of 46% and inferred mineral resources of 21%.

Potential Job Creation
About 750 jobs are expected to be created.

Net Present Value/Internal Rate of Return
The scoping study for the project indicated a pretax net present value, at a 10% discount rate, of R1.9-billion and an internal rate of return of 44%, with a payback from first production of 3.25 years.

Capital Expenditure
Peak funding is estimated at R643-million in 2021 terms.

Planned Start/End Date
First production is possible within 16 months from the start of construction.

Latest Developments
Orion Minerals has raised A$3.6-million, or R44-million, through a share purchase plan (SPP) that closed on July 23. The offer was open to shareholders residing in Australia, New Zealand, South Africa, Germany, the Netherlands, Jersey, the UK, Mauritius and Singapore.

The SPP attracted strong support from shareholders in South Africa, where A$2.8-million, or R33.6-million, was raised.

The issue price of A$0.015, or R0.18, apiece, is the same price as that paid by investors under a recently completed placement, through which Orion raised A$7.7-million, or R92.3-million, which involved 513-million shares being issued to sophisticated and professional investors.

The combined $11.3-million proceeds of the fundraise and SPP will be used to develop the Prieska zinc and new Okiep copper mines.

Orion has reported that the bankable feasibility study (BFS) for the Okiep project is on track for completion this quarter. The BFS will underpin project finance and mine development.

Orion is still awaiting the approval of Okiep’s water-use licence before the project is fully permitted and mine development can start.

Some key recent results from diamond drilling under way, which has been executed to support the feasibility study, include 49 m of copper grading 5.05%, 9.27 m of copper grading 3.01% and 20 m of copper grading 4.99%.

Key Contracts, Suppliers and Consultants
ABS Africa; Falcon and Hume Attorneys Inc; ALS Chemex (core sample analysis); Discovery Drilling; Rados; Geolabs and Sound Mining.

Contact Details for Project Information
Orion Minerals, tel +27 11 880 3159 or email info@orionminerals.com.au.