Wrap Text
Positive Initial Results Received from Airborne EM Survey on the Areachap Belt, Northern Cape, South Africa
Orion Minerals NL
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
POSITIVE INITIAL RESULTS RECEIVED FROM AIRBORNE EM SURVEY ON THE AREACHAP BELT, NORTHERN CAPE, SOUTH AFRICA
- A 962km2 high power SkyTEM airborne EM survey commenced late November 2017.
- 1510 line km of flights covering 196km2 or approximately 20% of target area has been completed.
- Four primary and eleven secondary priority targets already identified.
- The area being surveyed covers a stratigraphic horizon with 98km combined strike of highly prospective paleo seafloor
known to host Zn-Cu VMS occurrences.
- The target horizon has not been subjected to modern geophysics and exploration since the 1980’s.
Orion Minerals NL (ASX/JSE: ORN) (Orion or the Company) is pleased to provide an update on its regional
exploration activities on the Areachap Belt, in South Africa. Production flights for the helicopter borne magnetic
and electro magnetic survey (AEM or SkyTEM) over the Masiqhame and Disawell Prospecting Rights commenced
in late November 2017 (Figure 1) (refer ASX release 16 November 2017). The survey is ongoing, with preliminary
results for magnetic and SkyTEM data from the first 1510 line km having been received and reviewed. The survey
is succeeding in acquiring high quality data and initial indications are positive for the identification of high priority
follow-up targets. Advanced processing is already underway and is expected to assist in target ranking and
identification of possible additional, more obscure, anomalies.
“Figures" referred to throughout this announcement can be viewed on the pdf version of the announcement, available on
the Company's website, www.orionminerals.com.au.
The survey is demonstrating the value of applying modern airborne electromagnetic (EM) methods, in order to
identify key follow-up targets. The Company intends to expand its activities to begin drill testing the highly
prospective paleo seafloor for Zn – Cu rich massive sulphide mineralisation in early 2018.
The Areachap Belt was the focus of only two short lived exploration booms in the 1970’s and early 1980’s
(following the discovery of the Prieska Volcanogenic Massive Sulphide (VMS) deposit by Anglovaal in 1968),
during which, many large exploration companies such as Anglo American, Newmont and Anglovaal were
successful in identifying several additional VMS and Ni-Cu occurrences. However, only a few of these VMS
occurrences were investigated in detail or below a depth of 300m below surface.
In recent decades, the geological understanding of the style of volcanogenic mineralisation found in the
Areachap Belt, has led to numerous global discoveries of clusters of massive sulphide hosted, base metal deposits
in “camps” surrounding known major deposits in volcanogenic belts similar to that of the Areachap Belt. The
geophysical exploration tools applied to achieve these discoveries have not yet been applied to the highly
prospective Areachap Belt.
Details of SkyTEM survey underway
The first flight block over the survey covering the Masiqhame Prospecting Right was completed on 6 December
2017. The SkyTEM survey is being flown with the highly innovative – SkyTEM312 high power technology for deep
target imaging. This high power system, with a peak moment up to 1,000,000 NIA, is optimised to provide an
exceptional depth of investigation due to the high moment mode with high current and low base frequency of
12.5 Hz.
Readers are invited to visit the Orion Minerals website (www.orionminerals.com.au) to view video imagery of the
SkyTEM survey currently underway.
SkyTEM production flights over Orion’s Masiqhame and Disawell Prospecting Rights commenced late in
November 2017. The survey is planned for completion in late January 2018. All data is being continually reviewed
and processed by Orion’s Perth based international expert consultants, Southern Geoscience Consultants.
Four primary (higher priority) and eleven secondary priority AEM anomalies are immediately apparent in data
reviewed to date (Figure 2). Encouragingly, nine of the anomalies are spatially associated with the interpreted
paleo sea floor. This stratigraphic location significantly elevates the potential of these anomalies to be associated
with VMS massive sulphide deposits. Encouragingly, the magnetic signature associated with the seafloor contact
is prominent in the high quality magnetic data reviewed and will provide a valuable additional tool in the
evaluation of the EM anomalies detected.
Orion plans to follow up selected anomalies with infill AEM and/or high powered ground EM. In addition to the
AEM data, the accompanying magnetic data will significantly improve understanding of the geology and
structure in this area of poor outcrop (Figure 3).
Orion’s Managing Director and CEO, Errol Smart, commented:
"The initial results from our advanced airborne survey are extremely encouraging and underscore the exceptional
geological potential of this geological belt. The results justify high priority follow-up work and also continued
application of these modern techniques, across the highly prospective Areachap Belt. We look forward to drill
testing the highest priority targets that we have established, in the new year, while continuing the high intensity
BFS work on the Prieska Zn-Cu Project.”
Errol Smart
Managing Director and CEO
14 December 2017
ENQUIRIES
Investors JSE Sponsor
Errol Smart – Managing Director & CEO Rick Irving
Denis Waddell – Chairman Merchantec Capital
T: +61 (0) 3 8080 7170 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: rick@merchantec.co.za
Media
Michael Vaughan Barnaby Hayward
Fivemark Partners, Australia Tavistock, UK
T: +61 (0) 422 602 720 T: +44 (0) 787 955 1355
E: michael.vaughan@fivemark.com.au E: orion@tavistock.co.uk
Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000
Competent Persons Statement
The information in this report that relates to Orion’s Exploration Results at the Areachap Projects complies with the 2012 Edition
of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and has been
compiled and assessed under the supervision of Mr Errol Smart, Orion Minerals Managing Director. Mr Smart (PrSciNat) is
registered with the South African Council for Natural Scientific Professionals, a Recognised Overseas Professional Organisation
(ROPO) for JORC purposes and has sufficient experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of
the JORC Code. Mr Smart consents to the inclusion in this announcement of the matters based on his information in the form
and context in which it appears. The Exploration Results are based on standard industry practises for drilling, logging, sampling,
assay methods.
Disclaimer
This release may include forward-looking statements. Such forward-looking statements may include, among other things,
statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and
results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates, and are or
may be based on assumptions and estimates related to future technical, economic, market, political, social and other
conditions. These forward-looking statements are based on management’s expectations and beliefs concerning future
events. Forward-looking statements inherently involve subjective judgement and analysis and are necessarily subject to risks,
uncertainties and other factors, many of which are outside the control of Orion. Actual results and developments may vary
materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place undue reliance
on such forward-looking statements. Orion makes no undertaking to subsequently update or revise the forward-looking
statements made in this release to reflect events or circumstances after the date of this release. All information in respect of
Exploration Results and other technical information should be read in conjunction with Competent Person Statements in this
release. To the maximum extent permitted by law, Orion and any of its related bodies corporate and affiliates and their
officers, employees, agents, associates and advisers:
- disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in
expectations or assumptions;
- do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the
information in this release, or likelihood of fulfilment of any forward-looking statement or any event or results expressed
or implied in any forward-looking statement; and
- disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for
negligence).
Appendix 1: The following tables are provided to ensure compliant with the JORC Code (2012) requirements for the reporting of Exploration Results from the
Masiqhame Project and Jacomynspan Project (Airborne electromagnetic and magnetic Surveys).
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques - Nature and quality of sampling (eg cut channels, random chips, or - Airborne electromagnetic and magnetic survey at 200m line spacing
specific specialised industry standard measurement tools appropriate and 800m tie line spacing carried out by SkyTEM Africa (Pty) Ltd
to the minerals under investigation, such as down hole gamma sondes, (SkyTEM).
or handheld XRF instruments, etc). These examples should not be taken - Geophysical equipment deployed from a loop underslung from an
as limiting the broad meaning of sampling. Airbus AS350 B3 helicopter.
- Include reference to measures taken to ensure sample representivity - Loop orientation is constantly monitored by two custom-designed
and the appropriate calibration of any measurement tools or systems Bjerre Technology inclination sensors.
used. - Electromagnetic measurements taken using SkyTEM Dual-Moment,
- Aspects of the determination of mineralisation that are Material to the Transient Electromagnetic (TEM) System, the 312HP system.
Public Report. - Magnetic measurements taken using Geometrics G822-A cesium
- In cases where ‘industry standard’ work has been done this would be vapour magnetometer.
relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m - Location of geophysical measurements determined using a Novatel
samples from which 3 kg was pulverised to produce a 30 g charge for OEMV-1 with DGPS post processing to ensure increased accuracy.
fire assay’). In other cases more explanation may be required, such as - Base station magnetometer installed to measure diurnal variations for
where there is coarse gold that has inherent sampling problems. use in data processing. Magnetometer used as base station is a GEM
Unusual commodities or mineralisation types (eg submarine nodules) GSM 19 Overhauser magnetometer.
may warrant disclosure of detailed information. - Two GPS base station installed to ensure accuracy of locational data.
Equipment used is a Novatel OEMV-1. Second base station used as
back-up system to ensure continuity.
- Measurement height determined by two MDL ACE IM3R laser
altimeters mounted on loop.
On line navigation conducted using SkyMap and proprietary SkyTEM
navigation software.
Drilling techniques - Drill type (eg core, reverse circulation, open-hole hammer, rotary air - Not relevant for this release.
blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple
or standard tube, depth of diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by what method, etc).
Drill sample recovery - Method of recording and assessing core and chip sample recoveries - Not relevant for this release.
and results assessed.
- Measures taken to maximise sample recovery and ensure
representative nature of the samples.
- Whether a relationship exists between sample recovery and grade
and whether sample bias may have occurred due to preferential
loss/gain of fine/coarse material.
Logging - Whether core and chip samples have been geologically and - Not relevant for this release.
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical studies.
- Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography.
- The total length and percentage of the relevant intersections logged.
Sub-sampling - If core, whether cut or sawn and whether quarter, half or all core - Not relevant for this release.
techniques and taken.
sample preparation - If non-core, whether riffled, tube sampled, rotary split, etc and whether
sampled wet or dry.
- For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
- Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.
- Measures taken to ensure that the sampling is representative of the in
situ material collected, including for instance results for field
duplicate/second-half sampling.
- Whether sample sizes are appropriate to the grain size of the material
being sampled.
Quality of assay data - The nature, quality and appropriateness of the assaying and - The applied SkyTEM system 312 HP is calibrated at the Danish National
and laboratory tests laboratory procedures used and whether the technique is considered Reference site Lyngby. Calibration includes measurements of the
partial or total. transmitter survey data repeated at a range of altitudes at the
- For geophysical tools, spectrometers, handheld XRF instruments, etc, reference site. Hereby, it is documented that the instrument can
the parameters used in determining the analysis including instrument reproduce the reference site with the same set of calibration
make and model, reading times, calibrations factors applied and their parameters independent of the flight altitude. All processed data are
derivation, etc. corrected according to the calibration parameters.
- Nature of quality control procedures adopted (eg standards, blanks, - A repeat line at the same location is flown once a day to document
duplicates, external laboratory checks) and whether acceptable system repeatability.
levels of accuracy (ie lack of bias) and precision have been - The transmitted current should not be less than 220 A at any time on
established. production lines.
- The deviation from planned survey lines shall not exceed 50m over a
distance of more than 1000m.
- Mean terrain clearance of the sensor will not exceed the agreed
height by more than ±20m over a distance of more than 1000m.
- Base station magnetometer installed to measure diurnal variations for
use in data processing. The base station magnetic sensor will be
placed in a low magnetic gradient area beyond the region of
influence of any man made interference. The sensor is located close
to the survey area at a logistically feasible location as determined by
SkyTEM. The base station magnetometer will be synchronised with the
survey aircraft acquisition system and will be operated during all
survey acquisition flights. The diurnal variations will be reviewed in-field
on a daily basis.
- The magnetic sensor is situated on the carrier (loop) frame away from
the aircraft. No compensation of the magnetic data is necessary.
- Survey lines are reflown if the magnetometer instrument peak to peak
noise (measured as a 4th difference on the raw unfiltered.
uncompensated magnetometer signal) of +/-0.1 is exceeded over a
distance of more than 5% of the line length or if non-linear diurnal
variations between two points separated by 30 secs is greater than 2
nT as measured by the base station magnetometer.
Verification of - The verification of significant intersections by either independent or - The acquired electromagnetic and magnetic data will be processed
sampling and alternative company personnel. using Skytem's in-house processing and reduction software (SkyLab) as
assaying - The use of twinned holes. well as Geosoft's Oasis Montaj software. This software allows for full
- Documentation of primary data, data entry procedures, data data preprocessing, repeatability and statistical analysis, as well as full
verification, data storage (physical and electronic) protocols. quality analysis of the output datasets.
- Discuss any adjustment to assay data. - Following reduction of the data, repeatability and QA procedures
have been applied to both the positional, electromagnetic and
magnetic observations.
- QA procedures are applied to all data on a daily basis and any
measurements not conforming to contract specifications must be
repeated.
Location of data - Accuracy and quality of surveys used to locate drill holes (collar and - Location of flight paths determined using GPS instruments from Novatel
points down-hole surveys), trenches, mine workings and other locations used with real time SBAS corrections and DGPS post-processing to ensure
in Mineral Resource estimation. increased accuracy.
- Specification of the grid system used.
- Quality and adequacy of topographic control.
Data spacing and - Data spacing for reporting of Exploration Results. - Aeromagnetic line and tie line spacing is 200m and 800m respectively
distribution - Whether the data spacing and distribution is sufficient to establish the as this is believed appropriate for the level of precision required to
degree of geological and grade continuity appropriate for the Mineral interpret geological features and anticipated geophysical targets in
Resource and Ore Reserve estimation procedure(s) and classifications the area.
applied.
- Whether sample compositing has been applied.
Orientation of data in - Whether the orientation of sampling achieves unbiased sampling of - As per standard industry practice, acquisition lines were flown on
relation to geological possible structures and the extent to which this is known, considering headings of 80? and 45? perpendicular to the strike of the known
structure the deposit type. geology. Tie lines were flown at 90? to the acquisition lines.
- If the relationship between the drilling orientation and the orientation
of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
Sample security - The measures taken to ensure sample security. - All data acquired by SkyTEM is reported to the Company’s
representatives.
Audits or reviews - The results of any audits or reviews of sampling techniques and data. - No audits or reviews have been carried out at this stage beyond
standard data Quality Control assessments.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and - Type, reference name/number, location and ownership including - The Masiqhame Prospecting Right is under option earn in agreement
land tenure status agreements or material issues with third parties such as joint ventures, to Orion to acquire upto 73% interest, as disclosed in the ASX releases
partnerships, overriding royalties, native title interests, historical sites, 29 April 2016 and 29 September 2016.
wilderness or national park and environmental settings. - The Namaqua-Disawell Prospecting and Mining Rights is under an earn
- The security of the tenure held at the time of reporting along with any in option agreement for Orion to acquire upto 80% interest in the joint
known impediments to obtaining a licence to operate in the area. venture. Details of the agreement is disclosed in the ASX release 14
July 2016.
Exploration done by - Acknowledgment and appraisal of exploration by other parties. - Previous explorers in the region include Anglovaal, Anglo America,
other parties Iscor, Newmont, Gold Field of SA and Africa Nickel. Exploration was
aimed at Zn, Cu and Ni.
Geology - Deposit type, geological setting and style of mineralisation. - The tenements are located in the central portion of the Areachap
Group on the Eastern Margin of the Namaqua Mobile Belt in South
Africa. The Areachap Belt represents a paleo- island arc setting of
Protereozoic age. The belt hosts a number of VMS and mafic hosted
Ni-Cu style deposits, including the world class Prieska Zn – Cu deposit.
- The targets include Ni-Cu-PGE mineralisation hosted within mafic
intrusions and VMS deposits.
Drill hole Information - A summary of all information material to the understanding of the - Not relevant for this release.
exploration results including a tabulation of the following information
for all Material drill holes:
- easting and northing of the drill hole collar
- elevation or RL (Reduced Level – elevation above sea level in
metres) of the drill hole collar
- dip and azimuth of the hole
- down hole length and interception depth
- hole length.
- If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly
explain why this is the case.
Data aggregation - In reporting Exploration Results, weighting averaging techniques, - Not relevant for this release.
methods maximum and/or minimum grade truncations (eg cutting of high
grades) and cut-off grades are usually Material and should be stated.
- Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used for
such aggregation should be stated and some typical examples of
such aggregations should be shown in detail.
- The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between - These relationships are particularly important in the reporting of - Not relevant for this release.
mineralisation widths Exploration Results.
and intercept lengths - If the geometry of the mineralisation with respect to the drill hole angle
is known, its nature should be reported.
- If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg ‘down hole length, true
width not known’).
Diagrams - Appropriate maps and sections (with scales) and tabulations of - Not relevant for this release.
intercepts should be included for any significant discovery being
reported These should include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional views.
Balanced reporting - Where comprehensive reporting of all Exploration Results is not - Not relevant for this release.
practicable, representative reporting of both low and high grades
and/or widths should be practiced to avoid misleading reporting of
Exploration Results.
Other substantive - Other exploration data, if meaningful and material, should be reported - The Company’s previous ASX releases have detailed exploration works
exploration data including (but not limited to): geological observations; geophysical including Orion and historical drilling, geological mapping and results
survey results; geochemical survey results; bulk samples – size and of ground EM surveys.
method of treatment; metallurgical test results; bulk density,
groundwater, geotechnical and rock characteristics; potential
deleterious or contaminating substances.
Further work - The nature and scale of planned further work (eg tests for lateral - The Company plans to follow up these results with ground geophysical
extensions or depth extensions or large-scale step-out drilling). surveys test targets which may arise from the survey reported here.
- Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
Date: 14/12/2017 08:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
