Prieska zinc/copper project, South Africa
Name of the Project
Prieska zinc/copper project.
Location
Northern Cape, South Africa.
Client
Orion Minerals.
Project Description
The project aims to establish new mining operations at the Prieska copper mine, which has been closed since 1991.
A scoping study, released in December 2018, has confirmed the potential for the Prieska project to become a significant near-term, low-cost, zinc and copper concentrate producer while laying the foundations for future opportunities.
Phase 1 excludes any openpit mining and historical pillar extraction, and does not exhaust all known deposit extensions.
The study envisages a 2.4-million-tonne-a-year operation, producing about 70 000 t/y to 80 000 t/y of zinc and 22 000 t/y of copper concentrates.
The project is estimated to have an initial mine life of ten years.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 12.5% discount rate, of between A$400-million and A$440-million and an internal rate of return of 38%, with a payback of less than three years from first production.
Value
Between A$300-million and A$330-million will be required to complete the project.
Duration
Project construction is expected to start in the fourth quarter of 2019, with production expected to start in 2021.
Latest Developments
The Prieska project’s mineral resource, comprising indicated and inferred resources, has been increased to 30.49-million tonnes grading 3.7% zinc and 1.2% copper.
The total mineral resource follows the updated deep sulphide resource of 28.73-million tonnes grading 3.8% zinc and 1.2% copper, which underpinned the Phase 1 scoping study announced in December 2018.
The total mineral resource includes an updated mineral resource for the +105 m level openpit target, which was not included in the December 2018 scoping study.
While the +105 m level mineral resource will be included in the bankable feasibility study, which is due for completion in the second quarter of this year, this deposit will only be scheduled for mining as part of Orion’s Phase 2 operations later in the life of the project.
Key Contracts and Suppliers
Orion Mining, DRA Projects, Fraser McGill, METC Engineering, Precision Capital Development Services, Bluhm Burton Engineering, METS South Africa, ABS Africa, Z* Star Mineral Resource Consultants and the MSA Group (scoping study).
On Budget and on Time?
Too early to state.
Contact Details for Project Information
Orion Minerals, tel +27 11 880 3159 or email info@orionminerals.com.au.
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