Name of the Project
Prieska zinc/copper project.

Location
The project is located 270 km south-west of Kimberley, in the Northern Cape, South Africa.

Project Owner/s
Orion Minerals owns an effective 73.33% interest in the project through its subsidiary companies.

Project Description
The Prieska zinc/copper deposit has been recorded as one of the world’s top 30 volcanogenic massive sulphide deposits.

The project encompasses the historical Prieska copper mine, where mining ceased in 1989. The site was closed and rehabilitated in 1991, leaving behind a significant portion of the Copperton deposit.

Initial metallurgical testwork at the proposed project has yielded positive results, demonstrating Prieska’s potential to produce high-quality marketable zinc and copper concentrates.

The project has total mineral resources of 29.4-million tonnes for 1.13-million tonnes of zinc and 360 000 t of copper.

Orion intends to establish new mining operations to continue the extraction of the remaining deposit.

Orion MD and CEO Errol Smart has indicated that the project will likely comprise an openpit and underground operation, with the openpit to produce ore while the underground operations are dewatered and re-established.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
None stated.

Capital Expenditure
Not stated.

Planned Start /End Date
Orion Minerals aims to reopen the Prieska mine in 2020.

Latest Developments
Orion Minerals has identified numerous compelling targets for volcanic massive sulphide- (VMS-) style zinc/copper mineralisation and nickel/copper sulphide mineralisation within a 15 km radius of the Prieska deposit.

The company has done a 148 km² airborne electromagnetic survey over the area, which includes the Repli, Vardocube and Bartotrax prospecting rights, and identified multiple discrete anomalies in the dataset, which represent compelling follow-up drilling targets.

“These are significant results, as they show we are well and truly on track to unlock the broader potential of the Prieska project.

“VMS deposits generally occur in clusters in close proximity to one large or giant deposit and often comprise two or three medium-sized deposits and five or six smaller deposits,” Orion MD and CEO Errol Smart has said.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Orion Minerals, tel +61 3 8080 7170, fax +61 3 8080 7174 or email info@orionminerals.com.au.