Name of the Project
Okiep copper project (OCP).

Location
Northern Cape, South Africa.

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

Project Description
A scoping study completed in May 2021 has proposed a proof-of-concept-scale copper mining operation at the brownfield OCP, and has 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, 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 project.

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 project has 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.

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

Latest Developments
A definitive agreement with the IDC has started a predevelopment funding arrangement for the Flat Mines Southern African Tantalum Mining area at the OCP. An initial A$1.9-million, or about R22-million, in funding is now expected during November.

The IDC funding of predevelopment will amount to A$3.1-million, or R35-million, and will be advanced to NOM on the same terms as the predevelopment funding of A$3.9-million, or R44-million, that Orion has already advanced to NOM.

“Orion, the IDC and Lulamile Xate’s BEECo all share a common vision to fast-track the feasibility studies, permitting and early development of the Flat Mines project at Okiep . . . to restart mining operations in this richly endowed copper district as soon as possible. The bankable feasibility study is . . . at an advanced stage and is expected to be completed and submitted for independent peer review in the first quarter of 2023,” Orion MD and CEO Errol Smart has noted.

Key Contracts, Suppliers and Consultants
ALS Chemex (core sample analysis).

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