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 mineral tenement holdings of 702 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 (LoM) 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
Not stated.

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 reported final assay results from diamond drill holes completed to test strike and down-dip extensions of the high-grade copper mineralisation at the Flat Mine South (FMS) deposit, part of the OCP, in December 2024.

The Flat Mines area and current drilling programme fall entirely within the fully permitted Mining Right NC10150MR.

Assay results received for diamond drill hole OFMSD083 at FMS returned a significant broad intercept of strong copper mineralisation at 40.52 m at 1.34% copper, including 18.52 m at 2% copper, confirming a 45 m strike extension to the west of the previously reported high-grade copper mineralisation.

Assay results received from diamond drill hole OFMSD082 returned a strong intercept well below previous drilling at 5.52 m at 1.86% Cu, 170 m down-dip of previously reported high-grade copper mineralisation.

A ground geophysical programme is in progress in the Flat Mines area using techniques not available to past workers, and is providing compelling indications of the potential for mineralisation analogous to the famous Carolusberg Deeps deposit at Okiep.

The positive results from ongoing exploration have resulted in a strategic decision to investigate changing the primary access and ore-handling strategy for FMS. 

Results of the updated engineering studies will be incorporated in the bankable feasibility study, now scheduled for release in January 2025.

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.