Name of the Project
Okiep copper project (OCP).

Location
Northern Cape, South Africa.

Project Owner/s
Orion Minerals.

In July 2021, Orion exercised its exclusive option to acquire a controlling interest in several 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, or 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 9 000 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 a 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
Orion Minerals announced encouraging results from its maiden drilling programme across the Koperberg–Carolusberg line of intrusions at the OCP at the end of April.

The Phase 1 exploration drilling programme on the Koperberg–Carolusberg line of intrusions was designed to twin, in-fill and expand known mineralisation intersected in historical drilling at the Koperberg West, Koperberg West Extension and Koperberg East deposits.

A total of 3 411 m of diamond drilling was completed in 25 holes, with 362 split core samples submitted to ALS Chemex for analysis.

The assay results confirmed historically reported drill results and highlighted the presence of significant shallow mineralisation.

Ten holes returned high-grade assay results with the best assays, including 7.76 m at 1.94% copper from 29.7 m; 4.1 m at 2.01% copper from 33.3 m in OKED064; and 9.02 m at 1.45% copper from 103.08 m, as well as 5.9 m at 1.86% copper from 103.08 m in OKWED068.

This is in addition to previously reported high-grade intersections of 10.36 m at 1.84% copper from 58.98 m in OKWD100; 5.71 m at 1.93% copper from 72.85 m in drill hole OKWD102; and 4.69 m at 2.05% copper from 49.22 m in OKWD105.

Orion notes that the bulk of the Koperberg high-grade intersections are less than 100 m below surface.

The maiden drill programme will be followed up with further infill and extension drilling to allow for future resource estimation.

Orion is also pleased with the results from the first hole at the Nous prospect, which was undertaken as a follow-up on targets identified from a SkyTEM survey.

The prospect – located about 5 km south-west of the historic Nababeep mine – encompasses two adjacent SkyTEM anomalies referred to as Target 3 and Target 4.

Both electromagnetic anomalies have associated magnetic anomalies.

Drill hole OND001 at Target 4 intersected 10 m at 0.67% copper and 0.07% nickel from 31.70 m, including 3.87 m at 0.93% copper and 0.07% nickel from 33.45 m.

Importantly, semimassive to massive pyrrhotite sampled in the hole assayed up to 0.40% nickel, indicating high nickel tenors in the pyrrhotite and the potential for strong nickel credits from mineralisation hosted in pyrrhotite-rich copper deposits in the OCP district.

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.