Name of the Project
Prieska Copper Zinc Mine (PCZM).

Location
Northern Cape, South Africa.

Project Owner/s
Base metals explorer and developer Orion Minerals, through Prieska Copper Zinc Mine.

Following the quarter ended March 31, 2026, the Industrial Development Corporation of South Africa (IDC) agreed to convert its convertible loan facility into equity in Orion’s subsidiary, PCZM HoldCo. 

Orion announced on May 29, 2026, that the IDC had converted its R344.5-million convertible loan facility into equity in PCZM HoldCo, in accordance with the terms of the facility and implementation agreements. The IDC is now a 23.8% shareholder in PCZM HoldCo (giving the IDC an effective interest of 16.7% in PCZM), with a shareholder loan claim against PCZM HoldCo of about R272.4-million ($23.3-million). As a result of the conversion, the IDC has ceased to be a secured lender to the Prieska project and all security granted in connection with the facility agreement has been released.

Project Description
The Prieska Copper Zinc Mine is located on a significant volcanogenic massive sulphide deposit. The fully permitted mine last operated in 1991 and is one of the world’s top 30 volcanogenic massive sulphide base metal deposits, with recorded historical production of more than 430 000 t of copper and one-million tonnes of zinc from 46.8-million tonnes of sulphide ore milled.

PCZM contains a Joint Ore Reserves Committee-compliant mineral resource totalling 31-million tonnes at 1.2% copper and 3.6% zinc, including indicated resources of 20-million tonnes at 1.22% copper and 3.47% zinc and inferred resources of 11-million tonnes at 1.2% copper and 3.9% zinc. Probable ore reserves total 15.6-million tonnes at 1.1% copper and 3.1% zinc, resulting in 164 000 t of contained copper and 458 000 t of contained zinc.

A definitive feasibility study published in March 2025 confirmed the potential to develop a long-life, financially robust mining operation through a two-phase development strategy aimed at derisking the development pathway and fast-tracking value creation from a safe, modern, mechanised underground base metal mine.

The project has the potential to develop into a long-life operation with yearly steady-state production of 22 000 t of copper and 65 000 t of zinc. The planned operation starts with the Upper-Level, or Uppers, phase, which is based on mining near-surface supergene sulphide ore accessible from an existing decline. This phase will run for 4.3 years and will process ore at a rate of 240 000 t/y.

During the Upper-Level mining phase, pumping in the main shaft will be undertaken to dewater the mine, which is flooded from 265 m below surface. This will be followed by refurbishment of the main shaft and construction of the mining infrastructure required for the Deeps phase.

The Deeps phase is planned to start after mine dewatering, shaft refurbishment and construction of the mining infrastructure. Mining of the Deeps has a life-of-mine (LoM) from first production of 11 years and will overlap with the last 2.2 years of Upper-Level mining, resulting in a combined LoM of 13.2 years. Development and production mining at the Deeps will start in month 28 and build up over a further 27 months to a steady-state rate of 200 000 t a month, or 2.4-million tonnes a year.

Ore from the Upper-Level and Deeps mining areas will feed separate froth-flotation processing plants. The Uppers plant will produce a bulk copper concentrate with important gold and silver by-product credits, while the Deeps plant will produce separate copper and zinc concentrates, with small amounts of gold and silver recovered in the Deeps copper concentrate.

Potential Job Creation
About 200 to 300 jobs are expected to be created during the early mining phase and about 1 000 at full production.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$797-million, or R9.97-billion, and a pretax internal rate of return of 31%, with a payback of 5.8 years from the start of construction. The post-tax net present value is A$568-million, or R7.11-billion, and the post-tax internal rate of return is 26%.

Capital Expenditure
Total project capital expenditure, including contingency, is estimated at A$607-million, or R7.59-billion. Expenditure to achieve first concentrate production in the initial Upper-Level phase is estimated at A$49-million. The peak funding requirement is estimated at A$578-million.

Planned Start/End Date
First production from the Uppers Level is targeted for the end of 2027. 

First concentrate production from the Deeps is planned for month 42.

Latest Developments
Orion announced on October 19, 2026, that the $40-million Tranche A financing from Glencore for construction and startup of the Uppers had become unconditional, following the execution of the final concentrate offtake and intercreditor agreements, and satisfaction of all conditions precedent. First drawdown is expected by the end of October 2026, allowing for key development contracts, site mobilisation and construction activities to proceed.

The $210-million Tranche B for construction and startup of the Deeps remains conditional, including on the Deeps being fully funded and Glencore securing additional third-party funding to support its prepayments. Up to $50-million may be drawn early for Deeps early works, subject to conditions being fulfilled. 

Orion continues to engage with funding partners to secure the remaining financing required for the Deeps. The linked offtake arrangements cover 100% of Uppers bulk concentrates for five years, subject to a maximum of total Uppers production, and 100% of Deeps copper and zinc concentrates for a minimum of ten years.

Operational readiness, detailed engineering and development preparations have advanced. Finalisation of Tranche A will allow for the execution of selected development contracts and construction of the accommodation village to start.

Key Contracts, Suppliers and Consultants
Fraser McGill Mining & Minerals Advisory; METC Engineering; Gariep Mining and Exploration Services; Paterson and Cooke; Power Plant Electrical Technologies; Prysm; Professional Cost Consultants; Z Star Mineral Resource Consultants; P2 Mining, a division of Newrak; FlowCentric; EcoElementum; Sasol ENAEX; Solar Mining Services; Aquaplex; Partzone; Quebar; UMS Shaft Sinkers; LMMS Consultants; Practara Metals and Mining Advisory; Sound Mining; Torque Africa; Africa (appointed drilling contractor); ENPROTEC (20 000 t a month Uppers concentrator under a build, own, operate, transfer arrangement); and MDA Group.

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