Name of the Project
Okiep copper project (OCP).

Location
Northern Cape, South Africa.

Project Owner/s
Orion Minerals.

In August 2021, Orion exercised its exclusive option to acquire a controlling interest in the majority of the properties comprising the OCP.

Orion has also applied for additional prospecting rights to supplement the OCP mineral rights. The mineral rights are intended to be held by two newly formed Orion companies – New Okiep Exploration Company (initially 100% Orion) and the New Okiep Mining Company (initially 56.3% Orion and 43.7% Industrial Development Corporation (IDC). Both companies will, in future, include empowerment partners in compliance with Mining Charter 2018.

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 9 011 t/y of copper sold in marketable concentrates. This could potentially supplement the 22 000 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 by 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 production target is, therefore, supported by measured resources of 33%, indicated resources of 46% and inferred 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
South Africa’s IDC has indicated its intention to partner with Orion Minerals on the development of the Okiep copper project.

Orion is exercising its restructured option to acquire a controlling interest in the majority of properties comprising the Okiep project and is happy that the IDC will stay on as a partner.

Orion has said that the IDC’s input will help support and derisk the project for future funding propositions.

The IDC is a shareholder in Safta, and one of the suspensive conditions to the transaction requires the IDC to approve the Safta shareholder resolution regarding the deal, and become a party to the relevant transaction agreements pertaining to it.

New Okiep will remain a subsidiary of Orion and will, in future, include empowerment partners.

Meanwhile, Orion continues progressing due diligence work at the project.

By September, the company successfully completed a SkyTEM electromagnetic geophysical survey at the project, with initial results having confirmed new targets for follow-up exploration.

Orion plans to upgrade the Okiep scoping study to a feasibility study by early 2022.

Key Contracts, Suppliers and Consultants
None stated.

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