Name of the Project
Okiep copper project (OCP).

Location
Northern Cape, South Africa.

Project Owner/s
Orion Minerals.

Orion signed an option in February 2021 to acquire a 56.25% interest in Southern African Tantalum Mining (Safta), which owns the Okiep copper complex, for A$7.5-million of initial purchase consideration, and a further A$8.5-million of additional consideration, subject to future exploration success.

Project Description
A scoping study has been completed for a proposed proof-of-concept-scale copper mining operation at the brownfield Okiep copper project, and has confirmed that the project’s deposits have the potential to be mined at low cost using openpit and underground mining methods.

The study has been completed as part of Orion’s due diligence programme under an option agreement to acquire the project.

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.

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
A$53-million.

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

Latest Developments
Orion Minerals has exercised its exclusive option to acquire a controlling interest in the majority of the properties comprising the OCP.

In addition to the OCP option acquisition, Orion has also applied for additional prospecting rights to supplement the OCP mineral rights.

The mineral rights holding of OCP is intended to be held by two newly formed Orion companies – the New Okiep Exploration Company, which will initially be 100%-owned by Orion; and the New Okiep Mining Company, which will initially be held 56.3% by Orion and 43.7% by the Industrial Development Corporation of South Africa. Both of these entities will, in future, include empowerment partners in compliance with Mining Charter 2018.

The OCP option has been restructured since the initial OCP option agreement was announced on February 2, with Orion now directly acquiring the assets held by Southern African Tantalum Mining, Nababeep Copper Company and Bulletrap Copper Company, rather than the entities themselves.

These entities hold the majority of the large, historical mines in this significant copper-producing district, which, up until 2003, produced more than two-million tonnes of copper metal over a 150-year period.

The mineral rights include numerous existing drilled copper orebodies with decline mine access and services in place.

In addition, Orion has also exercised its option to acquire the database owned by the O’Okiep Copper Company and its affiliates, including all historical mining and exploration records for the OCP covering more than 60 years of production history.

Meanwhile, since signing the OCP option agreement, Orion has undertaken extensive due diligence work at the project, including the completion of Joint Ore Reserves Committee-compliant mineral resource estimates for an initial six deposits, totalling 11.5-million tonnes with a grade of 1.4% copper for 159 000 t of contained copper.

In addition, Orion also completed a positive scoping study.

On that basis, Orion has exercised the option to complete the OCP acquisition, paving the way for it to start more detailed feasibility studies on a near-term production opportunity.

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.