Orion Minerals on Tuesday announced an updated mineral resource for its Prieska project’s total deep sulphide resource, sending the company’s stock on the JSE up nearly 22%.
The junior, which is also listed on the ASX, reported a mineral resource of 28.73-million tonnes, grading 3.77% zinc and 1.16% copper for the Northern Cape-based base metals project,
A total of 18.51-million tonnes, grading 3.60% zinc and 1.17% copper, have been upgraded to the higher-confidence indicated category, which MD and CEO Errol Smart said exceeded Orion’s expectations.
The higher-confidence indicated component of the resource has increased from zero to 18.5-million tonnes… This very high conversion rate is testament to the exceptional quality and consistency of this deposit, and the indicated resource will now form the cornerstone of our bankable feasibility study due for completion in the second quarter of next year,” he said in a statement.
Errol added that the resource upgrade provided a strong foundation for Orion’s strategy to fast-track the development the base metals operation at Prieska next year.
The company is aiming to start production in 2021.
Its stock fetched 35c a share on the JSE on Tuesday.