Wrap Text
Quarterly Activities Report for Period Ending 31 December 2017
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
(“Orion”)
Quarterly Activities Report For Period Ending 31 December 2017
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO ORION’s
WEBSITE FOR THE COMPLETE ANNOUNCEMENT.
HIGHLIGHTS
- Resource drilling continues to deliver positive results:
- 44 massive sulphide intersections in Deeps confirm historical results at Prieska Project.
- Drilling on +105 Level Target (Open Pit) completed, with resource estimation underway.
- Down hole EM surveys tested positive for massive sulphides outside the historic drill grid
showing EM to be an effective exploration tool and the potential to discover extensions to
the known mineralisation.
- Safety, environment and community engagement ongoing:
- Another LTI-free quarter achieved for the Prieska Project with 92,737 hours worked.
- A collaboration Memorandum of Understanding signed with the Siyathemba Municipality.
- Mine feasibility studies progressing as scheduled:
- Phase 1 of the feasibility studies concluded and Peer Reviews identify optimisation
opportunities.
- Environmental baseline studies completed and public participation process commenced.
- Mine Re-entry and infrastructure assessment:
- Detailed inspection of Prieska water pipeline completed.
- Preparation for detailed inspection of Hutchings Shaft under way.
- Regional Exploration Program initiated:
- SkyTem survey underway.
- Re-appraisal of Jacomynspan data is underway to include a JORC compliant mineral
resource statement of the Nickel-Copper-Cobalt-PGE deposit.
- $7.19 million raised under capital raising initiatives during the Quarter:
- $5.50 million raised via private placements of shares at 2.4 cents per share.
- $1.44 million raised via placement of shares at 2.4 cents per share to private equity group
Tembo Capital, allowing it to maintain its 19.99% holding in Orion under the terms of its Top-
up Right. Tembo Capital’s share subscription enabled Orion to reduce the balance of the
Tembo Capital Loan Facility.
- $0.25 million raised via private placement of shares at 2.4 cents per share to the Company’s
Chairman, Mr Denis Waddell.
Exploration
Areachap Belt Projects (South Africa)
The Company continued an intensive drilling campaign at the Prieska Zinc-Copper (Prieska) Project.
Work intensified on drilling at the Deep Sulphide Target with the aim of outlining Mineral Resources
compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (2012 edition) (JORC Code) at the Prieska Project along with other key studies which will be
used as the basis of a Bankable Feasibility Study (BFS), which the Company aims to complete by Q4
CY18. Resource drilling on the +105 Level Target (Open Pit) was completed and a resource estimation
is in progress.
Regional exploration on the Masiqhame and Namaqua-Disawell permits continue, with an airborne
electromagnetic (EM) survey, data compilations and geochemical studies being carried out.
Prieska Zinc-Copper Project
The Prieska Project covers unmined dip and strike extensions from a historical underground mining
operation. Mineralisation was delineated by extensive drilling by the previous owners. Orion has
digitally captured, validated and modelled all relevant project drilling data available from hard-copy
sources. This work has enabled the Company to define targets for near surface mineralisation
comprising oxide, supergene and primary sulphide material to a depth of 100m which is potentially
accessible via an initial open pit (+105 Level Target (Open Pit)) and the deeper sulphide mineralisation
identified by historic drilling (Deep Sulphide Target). The targets are based on 182 historical drill
intersections, which can be relied on for width and depth of mineralisation, while 88 historical drill holes
provide information on grade of mineralisation. Since the acquisition of the Prieska Project in March
2017, 160 additional drill holes have been digitized from historic mine plans below the -800m level.
While the data has shortcomings due to loss of some historic records which prevent estimation of
Mineral Resources compliant with the JORC Code, the Company is encouraged by the infill and
confirmatory drilling results to date. By 31 December 2017, 44 intersections have been drilled in the
Deep Sulphide Target and 35 intersections completed in the +105 Level Target (Open Pit).
Safety and Environment
No lost time injuries were reported during the Quarter.
Category of Work Hours Worked
Quarter Year to Date
Exploration 88,993 198,227
Mine Re-Entry 3,744 11,138
Total 92,737 209,365
The Year to date Lost Time Injury Frequency Rate (LTIFR) for 200,000 manhours worked is: 0.88
The Quarterly LTIFR for 200,000 manhours worked is: 0
These compare well to industry averages of 10.32 and 1.50 respectively.
Workshops on managing heat stress and awareness sessions on minimising the environmental
footprint were conducted during the Quarter. Specific procedures were developed to manage the
shutdown and restart of operations around the Christmas holiday period. Preventative safety audits
continued with the focus for the Quarter, ensuring the workplaces were secured for the holiday
shutdown.
Community and Stakeholder Engagement
The Company continued constructive engagements with the local government and communities in
preparation for mine development. In October 2017, a memorandum of understanding (MoU) was
entered into with the Siyathemba Municipality. The MoU aims to facilitate cooperation on
community and social investment projects. The Municipality will be co-opted to participate in some
of the social and labour planning projects that are a mandatory requirement during mine
development and operation.
An Orion office was established in the town of Prieska as a community information centre. The office
will be used as a base for disseminating information to the surrounding community on the progress of
development operations at the Prieska project, as well as a means by which the community can
contact and communicate with Orion.
Feasibility Studies and Environmental Impact Assessment
Progress Peer Review and Study progression
Mine feasibility studies are being progressed in three stages, these being: Phase 1 – a review of
historical information and all existing conceptual studies; Phase 2 – option studies; Phase 3 – detailed
design and completion of a BFS.
Phase 1 work is now complete and culminated in a study-progress peer review attended by third
party consultants. Phase work 1 aimed to review proposed design concepts to assess for fatal flaws
prior to the concepts being advanced to detailed engineering assessment and design. A multi
discipline peer review was conducted over a 4-day period with RSV (SA) Pty Ltd and METS Pty Ltd
invited as external peer reviewers. No fatal flaws were identified during the peer review process and
several optimisation opportunities were highlighted that are now being prioritised and selectively
implemented.
Overall, feasibility studies are progressing as scheduled and are due to be completed in Q4 CY18.
Mining
Geotechnical investigations to determine inputs into open pit mine design are now completed. High
resolution digital scanning of underground excavations and sinkhole areas was conducted to
supplement structural mapping. Geotechnical logging of core was also completed. All gathered
information is being interactively incorporated into mine designs.
Plans are being formulated to locate, quantity and determine the best method of filling voids created
by mining below the crown pillar, targeted for mining during the early phase of mining operations.
The technical review of proposed open pit and underground mining concepts was also completed.
Underground mining methods of longhole open stoping and variants of drift and filling are being
further refined and advanced.
Open pit optimisation re-runs using the latest design assumptions are scheduled for Q2 CY18. The re-
runs will use the latest mineral resource estimate figures to determine pit limits for infrastructure
placement planning and voids management assessment.
Ore processing
Overview - The metallurgical testwork program is being conducted in two phases largely informed
by how ore processing was successfully undertaken historically. The first phase of testwork consists of
scouting testwork to evaluate material response to differential flotation and developing an ore
processing flowsheet suitable for the materials likely to be mined. The second phase consists of
testing to ensure the optimised flowsheet can successfully treat the range of material likely to be
treated over the life of mine and obtaining input parameters for costing and scheduling to develop
feasibility study production schedules.
The initial phase of metallurgical test work was largely completed during the Quarter and
yielded positive results, that demonstrate the potential for the Prieska Project to produce
high quality marketable zinc and copper concentrates. (summarised in Table 1 below).
Total Recovered to
Test Head Grade Concentrate Combined Tails
Test Description
Mass Cu Zn Rec. Mass
Cu(%) Zn(%) Rec. Cu (%) Zn(%)
(%) (%) (%) (%)
Cu Rich Deeps Rougher 2.41 2.79 37 93.5 93.4 63 0.25 0.29
Zn-Rich Deep Rougher 1.47 6.48 34 94.1 96.9 66 0.13 0.30
Zn-Rich Supergene Rougher-Cleaner 1.53 8.87 17 92.0 92.8 83 0.19 0.94
Copper Concentrate Zinc Concentrate
Test Description Cu Zn Cu Cu Zn
Cu Rec. Grade Zn Rec. Grade Rec. Grade Zn Rec. Grade
(%) (%) (%) (%) (%) (%) (%) (%)
Cu Rich Deeps Rougher 89.5 12.0 22.2 3.4 4.0 0.5 71.2 10.3
Zn-Rich Deep Rougher 88.9 8.6 10.4 4.4 5.2 0.4 86.6 30.5
Zn-Rich Supergene Rougher-Cleaner - - - - 89.7 8.0 91.2 47.2
Table 1: Summary of Initial Metallurgical Test Work Results.
The results confirm that the remaining Prieska mineralisation, intersected to date, also responds well
to metal concentration by froth flotation and recoveries, such that matching or exceeding
historical performance may be expected (refer ASX release 15 November 2017). All samples tested
achieved greater than 92% copper and zinc recoveries into rougher concentrates, which are the
products of the first stage of froth flotation. Mass pulls to rougher concentrates ranging between
27% and 37% demonstrated the materials’ amenability to concentration.
Optimised rougher flotation conditions to produce differentiated copper and zinc concentrates
from the Deep Sulphide Target have also been determined, as have preliminary rougher conditions
to produce a bulk copper and zinc concentrate from the shallow +105 Level Target (Open Pit).
Historical rougher flotation conditions have been improved on through a combination of varying
reagent dosages and the use of supplementary modern reagents. The resultant rougher products
are well-suited for upgrading in cleaner circuits to produce saleable products. Cleaner flotation test
work is continuing.
The initial test work is being undertaken to verify the amenability to recovery and concentration
using froth flotation, of both the remaining massive sulphide mineralisation and the supergene
mineralisation that is being targeted for first production using open pit mining. Froth flotation was
used successfully when the historic Prieska Copper Mine operated between 1971 and 1991. During
that period, some 45.6 Mt of ore was processed to produce 428kt of copper and 1.01Mt of zinc as
high quality concentrates1. Mine records show that a life-of-mine metal recovery of 85% for Cu and
84% for Zn was achieved (refer to Figure 1 for historical metallurgical performance of Prieska Mine) 2.
Figure 1: Prieska Mine historic production and metallurgical performance 1971 -1991.
The ongoing test work aims at confirming that:
- all variants of hypogene and supergene sulphide mineralisation, intersected in drilling to date,
are amenable to recovery and concentration using froth flotation;
- grade variation within the deposit, from high copper to high zinc grade mineralisation, does not
negatively affect the flotation response;
- the Prieska mineralisation is amenable to modern, conventional flotation reagents; and
- flotation recoveries and concentrate grades may potentially be enhanced with finer grinding.
The subsequent phase of metallurgical test work, now started, is directed at developing optimum
cleaner conditions, comminution characterisation, variability assessments and other design test work
required to formulate the most profitable processing design.
1) Obtained from mine production records
2) Obtained from mine production records.
Test Work Program - Detailed metallurgical test work will be conducted using 1,583kg of diamond drill
core samples obtained from mineralised intersections in 21 holes drilled across the mineralised zones
of the Prieska deposit that are targeted for mining, (refer Figure 2 for location of metallurgical sample
holes). These zones are generally demarcated into the near-surface supergene sulphide zones (+105
Level Target (Open Pit)) and the deeper hypogene sulphide zones (Deep Sulphide Target), (refer
Figure 3 for targeted mineralised zones). The +105 Level Target (Open Pit) is being considered for
mining by open pit methods while the Deep Sulphide Target is being assessed for extraction by
underground mining methods utilising the significant underground infrastructure remaining from the
historic mine such as shafts and declines.
Figure 2: Plan view showing location of drill holes used to obtain samples for metallurgical test work, within Prieska
mineralisation envelope.
The complete metallurgical test work program will consist of flotation scouting, flotation
optimisation, comminution characterisation, variability assessments and advanced design work to
determine the most profitable process design. The results presented in this release form part of the
flotation scouting stage of the whole program. Flotation scouting work is being conducted on drill
core composite samples obtained from 3 of the 21 drill holes3, with a total mass of approximately
130kg, (refer Figures 2 for sample sources).
Test Work Results - Based on metallurgical test results obtained to date, the following has been
achieved, (Table 1 provides a summary of the results):
- the copper-rich material from the Deep Sulphide Target responded well to a differential
rougher float, achieving 89.5% copper rougher recovery to the copper concentrate and
93.4% zinc rougher recovery to the combined copper and zinc concentrates, under optimal
rougher flotation conditions;
- the zinc-rich material from the Deep Sulphide Target also responded well to a differential
rougher float, achieving 88.9% copper rougher recovery to the copper concentrate and
96.9% zinc rougher recovery to the combined copper and zinc concentrates, under optimal
rougher flotation conditions; and
- the zinc-rich supergene material from the +105 Level Target (Open Pit) responded well to a
bulk flotation flowsheet, achieving 89.7% copper and 91.2% zinc recovery into a bulk
concentrate after rougher flotation, regrind and cleaning. A marketable concentrate with a
grade of 47% zinc and 8% copper was produced.
Follow-up Work - The positive results allow the test work program to progress to the next phase. This
follow-on work entails conclusion of the scouting work on the copper-rich mineralised supergene
zone of the +105 Level Target (Open Pit). Further bulk flotation, differential flotation, cleaner flotation
and concentrate regrind tests will be undertaken to determine the expected cleaner upgrade
potential and ultimately expected concentrate grades for marketing assessments. Further
comminution characterisation and variability assessments will also be conducted as part of the
detailed variability test work program.
Figure 3: Cross-section of the Prieska deposit’s targeted mineralisation.
Mining Infrastructure
Water Supply - A detailed inspection of the Prieska water treatment facility and the pipeline
transporting water to the Prieska Project site from the Orange River was completed. The treatment
facility which currently services Prieska town and the surrounds, has a capacity to draw and treat
approximately 15 million litres of water a day from the Orange River. The water pipeline extends from
Prieska to Copperton town 60km away. The inspections included the dismantling and internal
examination of a section of the pipeline including the various types of valves installed to regulate
water supply. The inspections confirmed that the pipeline integrity is in excellent condition and there
is sufficient spare capacity in the system to supply contemplated mine water needs. Some of the
pipeline valves will require replacement to ensure the pipeline remains serviceable for the life of mine.
Gathered information is now being used to develop and cost the pipeline and water treatment
facility refurbishment plan.
3) Hole ID’s OCOD077 and OCOD95 for the supergene samples and OCOD048_D2_6 for the Deeps samples.
Power Supply – Eskom were commissioned to complete a feasibility study into re-establishing the
power supply to the mine from the Eskom Cuprum Substation located onsite. The Eskom feasibility
studies have progressed during the Quarter and are due to be completed in Q1 CY18. The option
of obtaining power directly from one of the neighbouring renewable energy projects continued to
be investigated with proposals having been received from project developers. The proposals are
being assessed.
Shaft Refurbishment – Preparation for the detailed inspection of the shaft barrel and headframe is
underway, which is scheduled for Q1 CY18. Further to the peer review and assessment of the shaft
refurbishment strategy, the requirement to obtain a sample of steelwork from below the
accumulated water level, as well as obtaining camera or video footage of the submerged shaft
steelwork was highlighted.
Mine dewatering – Approximately 8.5 million cubic metres of water has accumulated in the
underground workings over 26 years. Several mine dewatering concepts are being investigated and
preliminary inquiries have been made to the water authorities on the permissibility of the various
options. Options being considered include accelerated evaporation, water treatment and storage
and recycling of the water. Work on selection of pumps and the configuration of the pumping
assembly is well advanced and expected to be completed by Q1 CY18.
Social and Labour Plan
Preparation of the Social and Labour Plan (SLP) for the Prieska Project, which is a mandatory
requirement when operating a mine, continued with the first draft document now prepared and
awaiting specific inputs from other study disciplines. The SLP is required by law to incorporate
community projects promoting local enterprise development (LED), human development and the
management of the impacts of downscaling mining operations at mine closure. Several LED projects
have been identified in consultation with the local municipality and these projects are being further
formulated and costed for inclusion as part of the SLP.
Environmental
Specialist baseline studies and reports on soils, ecology, heritage, air quality and hydrology, (including
1:100 year flood lines) are now completed. The environmental design criteria, to be used to guide
the feasibility studies, was also completed and disseminated to the feasibility study team.
Geochemical static leach testing of soils and rock has commenced and will be completed by Q1
CY18.
Baseline dust monitoring network was established and monitoring has been ongoing for two months.
A hydrocensus survey has been conducted and water quality monitoring holes drilled and now being
monitored. A water use licence application was prepared and submitted for the use of
accumulated underground water for prospecting activities.
An interested and affected parties database and register have been established. The mandatory
public participation process has commenced with the project description baseline document
prepared, public notices and advertisements drafted and to be distributed in Q1 CY18. Pre-
application meetings with the various authorities have also commenced. Environmental assessment
work is on schedule to allow for the submission of applications for a water use licence, waste
management permit and environmental authorisation by Q1 CY18.
Product Logistics and Marketing
Investigations into optimal route for the transport of copper and zinc concentrates have continued
with several port options and transport modes being considered. Preliminary inquiries have been
sent out to 11 potential service providers seeking proposals. Various pricing models are being
assessed and preliminary inquiries to Transnet on availability of rail for use by the project has been
made.
Preliminary metallurgical results as well as historical production have been used as the basis for
estimating the type of concentrates likely to be produced from the Prieska operation. These
preliminary product quality estimates are being used to make initial inquiries with concentrate
marketers and off-takers. Selection of concentrate marketing option is yet to be concluded.
Mining Right Application
The application for a Mining Right for the Prieska Project is scheduled for submission in Q1 CY18. All
mine design concepts will be finalised by the time of submission, with detailed feasibility study work
to follow. Work on compiling the submission has commenced, with the mandatory survey plans
being compiled, as well as all other elements of the submission being compiled.
Deep Sulphide Target drilling progress
During the Quarter, the Company continued with an intensive drill program on the Deep Sulphide
Target (Figure 4). A total of 40,836m of drilling has been completed on the Deep Sulphide Target as
at the end of December 2017 (Figure 5). At the height of activity, 13 surface diamond drill rigs and
one percussion rig were in operation. A total of 13,585m of diamond drilling and 1,096m of percussion
drilling were completed during the Quarter.
Orion’s drilling aims to provide statistical validation of historic drill data in the Deep Sulphide Target
and infill data points to meet the required drill spacing for a Mineral Resource estimate compliant
with the JORC Code. Drilling also tested new targets and extended mineralisation outside the historic
drill grid. Drilling results from 16 drill holes targeting the Deep Sulphide were announced during the
Quarter (refer ASX releases 5 October 2017, 9 October 2017, 8 November 2017 and 12 December
2017) (Table 2).
High level comparison of Orion drill results with historic drill results compares well (refer ASX releases 5
October 2017, 9 October 2017, 8 November 2017 and 12 December 2017). Detailed geostatistical
analysis is underway with definitive results expected shortly.
While drilling has concentrated on validation within confines of historically detected mineralisation
several holes were successfully drilled to test for upside potential, intersecting both strike extensions
and new target horizons.
Figure 4: Longitudinal projection showing the +105 Level and Deep Sulphide targets as well as drilling on the Deep Sulphide target.
Figure 5: Plan showing Orion drill hole collars and intersection points on the Deep Sulphide Target.
East North From To Length Cu Zn Au Ag
Drill hole (UTMz34S) (UTMz34S) (m) (m) (m) (%) (%) (g/t) (g/t)
OCOD046 624610 6686251 1017 1027.65 10.65 0.8 4.19 0.15 5.72
1031.7 1034 2.3 1.04 4.14 0.33 5.4
including 1022 1027.65 5.65 1.16 6.19 0.2 7.5
624824 6686282 998 1009.15 11.15 0.33 3.42 0.15 9.7
1004.83 1009.15 4.32 0.31 5.08 0.22 15.9
OCOD059_D1 including 1023.6 1033.4 9.8 0.72 7.96 0.13 5.5
1040.86 1045.32 4.46 0.55 5.06 0.1 8.42
OCOD059-D2 624824 6686032 1028 1032.39 4.39 0.63 3.18 0.13 7.55
984.25 1037.3 7.85 0.16 0.65 0.07 3.5
OCODO59_D3 624576 6686282
1044 1047 3 0.13 9.2 0.08 2
OCOD060 625722 6685271 1123 1126.6 3.6 0.69 5.71 0.2 8.21
OCOD062_D1 625647 6685275 1108.45 1110.52 2.07 0.61 5.33 0.28 7.6
OCOD064 624659 6686219 979.43 981 1.57 1.82 5.87 0.45 11.7
624350 6686466 1072.2 1099 26.8 1.22 2.38 0.23 9.29
OCOD066-D1 Including 1072.2 1086.7 14.5 1.09 3.06 0.26 7.15
OCOD066_D4 624350 6686466 1076.9 1099.1 22.2 1.69 2.7 0.24 10.3
624691 6686077 974.55 997.85 23.3 0.84 5.45 0.18 6.8
OCOD068 including 977.65 988 10.35 0.7 6.92 0.18 5.95
624691 6686077 977 1000.7 23.7 1.02 3.8 0.22 11.9
OCOD068_D2 including 978 985.1 7.1 0.99 6.68 0.17 8.8
1003.35 1006.8 3.45 0.93 3.58 0.21 11
OCOD072 625714 6685217 1101.7 1107.05 5.35 0.72 5.14 0.22 6.28
625712 6685214 1105.95 1122 16.05 0.8 2.71 0.2 13.8
OCOD072_D3 including 1110.41 1113.41 3 0.24 7.16 0.08 5
625815 6685218 1084.1 1086.65 2.55 1.99 0.1 1.48 38.2
1103.63 1129.8 26.17 1.31 6.51 0.26 13.8
OCOD074 including 11036.63 1115.04 11.41 0.92 7.69 0.19 9.3
1184.7 1193.4 8.7 0.97 2.43 0.21 22.3
OCOD080 624578 6686280 1034.3 1046.9 12.6 0.73 4.23 0.2 9.9
1121.2 1124 2.8 0.25 1.36 0.16 4.7
OCOD087 624392 624392
1129.9 1142.35 12.45 1.12 5.17 0.25 10.8
Table 2: Drill hole intersections reported from the Deep Sulphide Target for the October – December 2017 Quarter (refer ASX
releases 5 October 2017, 9 October 2017, 8 November 2017 and 12 December 2017). All intersections weighted by length and
specific gravity.
By the end of December 2017, Orion had completed 47 intersections from 19 mother holes on the
Deep Sulphide target (Figure 5). The intersections have been achieved at vertical depths of 974m –
1,193m and have required 9,319m of percussion pre-collar and 32,778m of diamond drilling with 140
directional wedges were set to steer the drilling to pre-determined target points. Assay results from 4
more intersections are awaited while 6 holes are in progress.
Deep Sulphide Target Drilling Results – validation and infill drilling
While statistical comparison between historic and Orion drilling is ongoing, with positive initial
indications, several holes have also added additional important information such as mine survey
checking.
Mine Survey Validation
Drill holes OCOD046 and OCOD068 intersected mineralisation in an area where historic mine plans
show mineralisation to be blocked out but not stoped prior to the mine closing in 1991 (Figures 6 and
7). The intersection of intact, high grade mineralisation in this area represents a key finding as it
confirms the limited extent of previous mining in this area. Importantly the strong geotechnical
conditions, in proximity to mine development, support an attractive target for potential early
production.
Figure 6: Cross - section through drill hole OCOD046.
Figure 7: Cross section through OCOD068 and OCOD068_D2 showing the intersection position relative to the historic mine
workings and adjacent holes.
Drill hole OCOD064 was planned to drill through the preparatory development drives to confirm the
locality and dimensions of the drive and if possible, intersect mineralisation below the drives (Figure
8). The hole intersected the targeted drive at 981.00m.
Figure 8: Section through OCOD064_D1 and adjacent historic drill holes showing the mineralisation intersected
in the hanging and footwall of the drive.
Outlining of new mineralised target horizons
Hole OCOD074, drilled in the south eastern section of the Deep Sulphide Target, intersected 3 zones
of mineralisation 60m down dip and 120m south east (along strike) of historic intersections. Wide high
grade massive sulphide mineralisation was intersected in the Main Zone of mineralisation with 26.17m
at 6.51% Zn, 1.31% Cu, 0.26g/t Au and 13.8g/t Ag from 1,103.63m including 11.41m at 7.69%Zn, 0.92%
Cu, 0.19g/t Au and 9.3g/t Ag from 1,103.63m.
A second zone of mineralisation, the Lower Zone, was intersected 55m below the Main Zone. The
Lower Zone reported 8.7m at 2.43% Zn, 0.97% Cu, 0.21g/t Au and 22.3g/t Ag from 1,184.7m. The Lower
Zone was not always intersected in historic drill holes as holes were stopped short of this zone. The
intersection confirms promising continuity of the Lower Zone and highlighting the potential to add
substantial tonnages to the Deep Sulphide Target (Figure 9).
Importantly, a narrow intersection of 2.55m at 0.10% Zn, 1.99% Cu, 1.48g/t Au and 38.2g/t Ag from
1,084.10m was intersected approximately 29m above the main zone. This mineralisation with relatively
high grade Cu, Au and Ag content was intersected in the stratigraphic footwall of the overturned
stratigraphic package and has characteristics suggestive of a possible feeder zone to the exhalative
massive sulphides. This intersection merits further investigation as a potential mineralised channel at
high angle to the main massive sulphide, which is bedding parallel.
Drilling on the margins of and outside and on the periphery of the historic drill grid
Drilling on the margin of the historic drilled grid and in areas with low drill density has demonstrated
significant upside potential, with thicker than expected mineralisation persisting beyond the core
area.
OCOD059_D1, D2, D3
Drill hole OCOD059_D1 was drilled as a deflection from hole OCOD059 and intersected mineralisation
60m from OCOD059 (Figure 10). While the parent hole OCOD059 only intersected two thin zones of
mineralisation of 0.68m and 1.00m, OCOD059_D1 intersected 3 wide zones of high grade
mineralisation:
- 11.15m at 3.42% Zn, 0.33% Cu, 0.15g/t Au and 9.7g/t Ag from 998.00m,
including 4.32m at 5.08% Zn, 0.31% Cu, 0.22g/t Au and 15.9g/t Ag from 1,004.83m;
- 9.8m at 7.96% Zn, 0.72% Cu, 0.13g/t Au and 5.5g/t Ag from 1,023.60m; and
- 4.46m at 5.06% Zn, 0.55% Cu, 0.10g/t Au and 8.42g/t Ag from 1,040.86m.
Intersection OCOD059_D2, a deflection drilled from OCOD059 intersected 4.39m at 3.18% Zn, 0.63%
Cu, 0.13g/t Au and 7.55g/t Ag from 1,028m and intersection OCOD059_D3 also drilled as a deflection
from OCOD059 also intersected high grade Zn mineralisation over 3m in an area south east of the
main Deep Sulphide Target in an area with little historic drill information, reporting 3m at 9.2% Zn,
0.13% Cu, 0.08g/t Au and 2g/t Ag and confirms the exploration potential in the alteration zone
towards the south eastern limb of the Deep Sulphide Synform.
Figure 10: showing drill hole collar positions in the North West Target Area.
OCOD060
Drill hole OCOD060 intersected 3.6m at 5.71% Zn, 0.69% Cu, 0.2g/t Au and 8.21g/t Ag from 1,123m in
an area where historic isopach model data had also interpreted that mineralisation was pinching
out, with expected thickness less than 2m. This result therefore provides encouragement for the
presence of wide mineralisation available for mechanised mining in this area (Figure 11).
Intersection OCOD062_D1 a deflection drilled from OCOD062 intersected 2.07m at 5.33% Zn, 0.61%
Cu, 0.28g/t Au and 7.6g/t Ag from 1,123m down-hole depth in the south eastern part on the edge of
the Deep Sulphide target (Figure 11).
Figure 11: Longitudinal projection showing the position of holes OCOD60, OCOD062 and OCOD62_D1 in the
south eastern part of the target area.
Figure 12: Map showing the historic isopachs and drill hole collars in the South East Section.
OCOD072_D3
Hole OCOD072_D3 drilled as deflection from OCOD072 intersected 16.05m at 2.71% Zn, 0.80% Cu,
0.2g/t Au and 13.8g/t Ag from 1,105.95m including 3.00m at 7.16%Zn, 0.24%Cu, 0.08g/t Au and 5.0g/t
Ag from 1,110.41m on the periphery of the south east section of the Deep Sulphide Target. The
mineralised zone was intersected in an area where historic data suggest the width of mineralisation
to be between 2 and 3m wide. The hole confirms upside tonnage potential in the south east (Figure
12).
Drilling on down hole EM anomalies
OCOD066
A down hole EM survey on OCOD066 detected two off-hole conductors (refer ASX release 6
September 2017). The first anomaly occurs up-dip of OCOD066 and trend northwest. The second
anomaly occurs to the south east of OCOD066 and trends northwest-southeast, parallel to the fold
axis of the PCM synform (Figure 13). Subsequent drill results prove downhole EM to be a successful
geophysical method to apply, with both conductors drill tested and successfully intersecting
mineralised massive sulphides. The intersections in OCOD066_D1 and D4, drilled as a deflections from
OCOD066 tested the anomaly up dip of OCOD066 and intersected 26.8m of massive and semi
massive sulphides. The intersection was made 100m along strike and to the north west of historic
drilling. Results for OCOD066_D1 and D4 are set out below:
- 26.8m at 2.38% Zn, 1.22% Cu, 0.23g/t Au and 9.29g/t Ag from 1072.20m including 14.50m at
3.06% Zn, 1.09% Cu, 0.26g/t Au and 7.15g/t Ag from 1072.20m (OCOD066_D1); and
- 22.2m at 2.7% Zn, 1.69% Cu, 0.24g/t Au and 10.3g/t Ag from 1076.90m (OCOD066_D4).
The wide zone of mineralisation in this area represents a key finding as it confirms exploration potential
outside the previously defined exploration target and emphasises the value of modern geophysical
methods applied by Orion. Importantly this is in an area not previously tested by drilling and proves
mineralisation to be open ended to the northwest and up dip of OCOD066_D1 and D4.
Figure 13: Plan showing EM conductors and drill holes OCOD066_D4 and OCOD087 at Prieska Project.
OCOD087
Hole OCOD087 tested the northwest-southeast trending EM plate the EM conductor suggested that
mineralisation is developed down dip to the south east of the current Exploration Target and that
additional drilling in this area may significantly increase tonnages of massive sulphide mineralisation.
OCOD087 confirmed this concept, intersecting 12.45m at 5.17% Zn, 1.12% Cu, 0.25g/t Au and 10.8g/t
Ag (Figure 13).
Drilling continues on the Deep Sulphide Target and permitting is awaited to extend drilling onto the
South Eastern Target area.
+105 Level Target (Open Pit) Area
A total of 12 drill holes were completed during the Quarter on the +105 Level Target (Open Pit). These included:
- 1 infill hole from the +105 level Target (Open Pit) underground;
- 5 metallurgical sample holes from the 105 Level underground;
- 3 metallurgical sample holes from surface; and
- 3 geotechnical holes from surface.
To the end of December 2017, the Company had announced the results from 25 intersections drilled
into the +105 Level Target (Open Pit) (Figure 14).
Figure 14: Plan showing holes drilled on the +105 Target (Open Pit) with the holes drilled by Orion showed in
blue.
The Company has announced drilling results of 24 drill holes from the +105 Level Target (Open Pit) with
significant results shown in Table 3.
East North Depth From To Length Cu Zn Au Ag
Drill hole (UTM34S) (UTM34S) (m) (m) (m) (m) (%) (%) (g/t) (g/t)
39 23 31 8 0.31 0.92 0.03 0.5
OCOR012A 624166 6686808 36 39 3 0.50 1.36 0.02 0.6
42 15 20 5 0.92 1.56 0.04 0
OCOR013A 624199 6686776 36 42 6 0.60 0.68 0.03 0.3
OCOR014 624228 6686776 42 35 40 5 2.10 0.34 0.01 0
OCOR015 624228 6686744 108 83 86 3 0.40 1.40 0.05 2.3
108 57 79 22 1.38 10.8 0.30 9.7
OCOR016 624340 6686653 incl. 62 69 7 1.41 17.8 0.26 6.9
77 57 69 12 4.14 1.89 0.29 9.9
OCOR017 624361 6686618
incl. 63 66 3 7.40 4.34 0.08 1.3
OCOR020 624300 6686626 38 10 20 10 0.39 1.13 0.16 1.0
85 48 68 20 2.21 8.58 0.36 12.1
OCOR023 624347 6686621 incl. 63 66 17 2.01 9.98 0.37 2.3
OCOR025 624378 6686544 49 8 25 17 0.86 1.00 0.55 8.1
110 55 97 42 2.36 4.41 0.42 13.6
OCOR027 624393 6686556 incl. 55 60 5 9.28 0.10 0.65 31.6
incl. 75 81 6 0.90 12.4 0.29 6.7
OCOR028 624363 6686561 43 7 24 14 0.94 0.56 0.09 0.9
OCOR029 624394 6686534 46 5 25 20 0.53 0.65 0.10 1.5
OCOR030 624292 6686713 103 71 77 6 1.90 0.85 0.39 8.2
61 17 20 3 1.22 0.26 0.03 1.0
OCOR031 624252 6686723 46 60 14 0.30 0.71 0.01 0.6
186.14 161 163 2 0.14 1.02 0.14 7.0
OCOD033 624503 6686323 170.71 180.05 9.34 1.40 4.00 0.13 9.0
184.7 156.1 176.7 20.6 0.63 1.36 0.11 8.9
OCOD035 624477 6686355 incl. 167.9 170.5 2.6 0.49 5.20 0.11 13.9
149.25 103 105 2 3.25 0.52 0.37 20.1
112.6 142 29.4 1.52 3.06 0.36 9.0
incl. 115 123.5 8.5 2.17 4.33 0.35 11.3
OCOD036 624375 6686455
incl. 129.06 131.11 2.05 1.09 4.86 0.24 7.4
incl. 134 137.35 3.35 3.82 3.31 0.47 23.5
incl. 139 142 3 0.44 7.13 0.13 2.9
OCOD037 624406 6686417 157.29 147.53 152.75 5.22 1.42 4.95 0.38 15.6
141.21 103.8 106.5 2.70 1.20 1.02 0.21 2.7
110.98 111.90 0.92 3.04 0.06 0.14 4.0
OCOD038 624406 6686417 113.80 115.63 1.83 1.38 0.50 0.07 3.3
126.44 130.88 4.44 1.46 3.03 0.13 4.2
132.28 137.17 4.89 1.19 1.78 0.16 5.7
East North Depth From To Length Cu Zn Au Ag
Drill hole
(UTM34S) (UTM34S) (m) (m) (m) (m) (%) (%) (g/t) (g/t)
OCOD040 624553 6686302 149 119.48 123.60 4.12 2.83 0.35 0.01 0.5
202.3 187.76 199.29 11.53 0.97 3.23 0.22 8.8
OCOD043 624563 6686287
incl. 189.22 192.56 3.34 1.51 5.26 0.36 8.3
OCOD044 624483 6686360 94.6 59.56 65.50 5.94 0.58 1.16 0.01 0.9
OCOD047 624844 6686154 117.8 143.70 147.47 3.07 0.47 1.06 0.09 1.3
75 50.00 54.82 4.82 1.10 0.63 0.33 12.7
OCOU073 624777 6686284 56.00 59.00 3.00 5.65 1.00 0.34 17.0
OCOU076 624843 6686231 49.67 63.00 13.33 13.33 3.08 0.23 0.17 6.34
Table 3: Drill hole intersections from the +105 Level Target (Open Pit). All intersections are length weighted.
Figure 15: Longitudinal projection showing the Oxide and Supergene Zones of the +105 Level Target (Open Pit).
+ 105 Level Target (Open Pit) – Metallurgical drilling
A total of 8 diamond drill holes were drilled to obtain samples for metallurgical test work. Drill holes
OCOU100, OCOU102, OCOU104 and OCOU109 were drilled from underground to obtain samples
from the supergene zone. Holes OCOD106, OCOD106A and OCOD108 were drilled from surface to
obtain samples from the Oxide and Supergene Zones of mineralisation. All samples were dispatched
to Mintek in Johannesburg for test work with results awaited.
+105 Level Target (Open Pit) – Geotechnical drilling
A total of 3 diamond drill holes, OCOD097A, OCOD098 and OCOD099 were drilled into the hanging
wall of the +105 Mineralised Zone to obtain orientated core for geotechnical logging to help optimise
the open pit design (Figure 14).
Regional Exploration
With the completion of the Agama transaction in March 2017, the focus of the Company has been
on rapidly advancing the Prieska Project through feasibility studies towards a development decision
point. The Company maintains a substantial and prospective landholding in the Areachap Belt
(Figure 16) and intends to apply increasing attention to exploration for potential satellite deposits to
feed into the life of mine plan for the Prieska Project. It is noteworthy that Volcanogenic Massive
Sulphide (VMS) deposits almost always occur as “clusters” associated with volcanic centres with four
such centres having been identified in the Areachap Belt. The Company’s prospecting rights overlie
the bulk of the Copperton and Boksputs Volcanic Centres. Further details of the work programs will
be released as they are designed and implemented, with results to be released as they are received.
Figure 16: Regional geology map of the Areachap Belt showing prospecting rights owned by Orion and currently under
option to Orion and noted mineral occurrences as per published data from South African Council for Geoscience.
SkyTEM survey underway
Orion contracted SkyTEM, a leading AEM survey company headquartered in Denmark which offers
state-of-the-art helicopter borne transient electromagnetic (TEM) and magnetic acquisition system,
to fly an extensive (6,025-line km) TEM survey. The survey covers a large portions of the Company’s
Masiqhame and Namaqua-Disawell JV Project areas located in the Northern Cape (Figure 19).
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 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.
SkyTEM production flights over Orion’s Masiqhame and Namaqua-Disawell Prospecting Rights
commenced late November 2017. The survey was planned for completion in late January 2018, but
weather conditions have resulted in some delays. All data is being continually reviewed and
processed by Orion’s Perth based international expert consultants, Southern Geoscience
Consultants.
Four primary (higher priority shown in red) and eleven secondary priority (show in yellow) AEM
anomalies were detected on the Masiqhame Mineral Right during the preliminary data review
(Figure 17) (refer ASX release 14 December 2017). 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. Further, 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 18).
Figure 17: Airborne EM anomalies shown on the AEM Map on the left and the magnetic map on the right.
Figure 18: Plans showing the improved newly acquired magnetic data on the left versus historically available airborne magnetic
data on the right.
The survey is demonstrating the value of applying modern airborne 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.
Kantienpan Zinc-Copper Deposit (Masiqhame)
During Orion’s first phase of ground EM and follow up drilling on the Kantienpan Prospect during 2016,
the potential for success of the application of modern EM as a key tool for targeting VMS
mineralisation was demonstrated. Modern EM methods have advanced a great deal since the last
systematic exploration took place in the Northern Cape belt and Orion stands to benefit from its
research and development of exploration techniques applicable for massive sulphides undertaken
in the Fraser Range belt in Western Australia during 2013-2014.
An exploration program consisting of airborne electromagnetic (AEM) and airborne magnetic (AM)
surveys, follow up ground geophysics, geological mapping and geochemistry to identify and further
drill targets is planned.
Figure 19: Locality plan for the proposed 962km2 SkyTEM (AEM) survey area. The area completed is shown in red. The contact
with the geological unit indicated in green on the right-hand diagram represents the priority target area.
Jacomynspan Nickel-Copper-Cobalt-PGE Project (Namaqua-Disawell)
During the Quarter, Orion continued to review data relating to the Namaqua – Disawell project area
(Figure 19). A substantial amount of pre-digital data exists from exploration pre 2000 by (amongst
others) Anglo American/AAPS, Phelps Dodge, Anglovaal and Iscor (now Kumba).
The SkyTEM survey is continuing on blocks 2 and 3, which cover the Namaqua-Disawell Prospecting
right (Figure 20). A total of 2867 line km of flights were completed at the end of December 2017.
Figure 20: Airborne EM progress over Blocks 2 and 3 at the end of December 2017.
In addition to the airborne EM survey, Orion is continuing with:
- Litho-geochemical characterisation of the Jacomynspan intrusive;
- Defining the tectonic setting, intrusive characteristic and mineralisation hosted by the
Jacomynspan Intrusive;
- Updating the existing database; and
- Compiling data into a GIS format.
Re-appraisal of Jacomynspan data is underway to include a JORC compliant mineral resource
statement of the Nickel-Copper-Cobalt-PGE deposit.
Orion will be utilising its experience and expertise developed in exploring for magmatic nickel-copper
deposit in the Fraser Range Province of Western Australia to reinterpret the extensive database for
the Jacomynspan Project area and rank the exploration targets. These will then be followed up with
modern high-powered geophysical tools and methods which have not previously been applied in
the Areachap belt before drill testing.
About the Jacomynspan Nickel-Copper-Cobalt-PGE Project Deposit
The Jacomynspan-Deposit was first identified by Anglo American Prospecting Services (AAPS) with
drilling carried out along a 4km strike length. In one portion of the deposit AAPS drilled to a depth of
900m. Disseminated nickel sulphide mineralisation was intersected with widths between 30 – 70m
(refer ASX release 14 July 2016).
Orion believes a substantial exploration opportunity exists within the project area to search for higher
grade, massive and semi-massive accumulations of nickel-bearing sulphides, analogous to the Nova-
Bollinger deposit in the Fraser Range Province of Western Australia.
Marydale Gold-Copper Project
In addition to the Prieska Project, the Agama transaction gives the Company exploration rights over
the Marydale Gold-Copper Project, a gold copper deposit located 60km north of the Prieska Project
(Figure 16).
Past work by Orion includes an IP survey over 2.6 km strike following the target horizon. The Company
drilled two holes within the historic drill grid that confirms the Cu – Au mineralisation and 4 holes on IP
anomalies. Drilling show the IP response to be caused by broad zones containing disseminated
sulphides with low levels of Cu-Au mineralisation.
Orion is currently planning follow-up exploration on the Marydale Gold – Copper Project.
Connors Arc Epithermal Gold Project (Queensland)
During the Quarter, no work was undertaken at the Connors Arc Project due to the fast tracking of
drilling and the BFS at the Prieska Project. The Company is actively seeking opportunities to progress
the Connors Arc Project through a joint venture or similar partnership.
Fraser Range - Nickel-Copper Projects (Western Australia)
Orion maintains a sizeable tenement package in the Fraser Range Province of Western Australia
which Independence Group NL (ASX: IGO) is currently earning in to via a Joint Venture Agreement
(JVA, refer ASX release 10 March 2017).
During the Quarter, IGO completed an aircore drilling program, which commenced during the
September Quarter. The aim of the drilling was to improve the understanding of the bedrock geology
in the project area with areas of prospective geology or geochemical anomalism to be followed up
with further work.
In addition to drilling, IGO has completed and is continuing with, ground gravity and Moving Loop
EM surveys in the project area similar to, and infilling, those completed by Orion (refer ASX release 6
October 2016) along with starting a regional Spectrem airborne EM survey.
Data from these surveys will be used in conjunction with results from drilling to determine the
prospectivity of the Orion tenement package. IGO has advised Orion that assays have been
received and interpretation of the data is currently in progress.
Walhalla Gold and Polymetals Project (Victoria)
During the Quarter, the Company did not carry out any exploration activity on the Walhalla Project.
Tenement Schedule
Ownership
Tenement Project Interest Change in Quarter Joint Venture Partner
South Africa
NC30/5/1/1/2/10445PR PCM 73.33% --- ---
NC30/5/1/2/2/10244PR Marydale 73.33% --- ---
Western Australia
E28/2367 Fraser Range 30% --- Independence Group NL
E28/2378 Fraser Range 30% --- Independence Group NL
E28/2462 Fraser Range 30% --- Independence Group NL
E28/2596 Fraser Range 30% --- Independence Group NL
E39/1653 Fraser Range 35% --- Independence Group NL &
Geological Resources Pty Ltd
E39/1654 Fraser Range 10% --- Independence Group NL &
NBX Pty Ltd
E69/2379 Fraser Range 10% --- Independence Group NL &
Ponton Minerals Pty Ltd
E69/2380 Fraser Range 10% --- Independence Group NL &
Ponton Minerals Pty Ltd
E69/2707 Fraser Range 10% --- Independence Group NL &
Ponton Minerals Pty Ltd
Queensland
EPM19825 Connors Arc 100% --- ---
EPM25122 Connors Arc 100% --- ---
EPM25283 Connors Arc 100% --- ---
EPM25703 Connors Arc 100% --- ---
EPM25708 Connors Arc 100% --- ---
EPM25712 Connors Arc 100% --- ---
EPM25714 Connors Arc 100% --- ---
EPM25763 Connors Arc 100% --- ---
EPM25764 Connors Arc 100% --- ---
EPM25813 Connors Arc 100% --- ---
EPM26081 Connors Arc 100% --- ---
EPM26082 Connors Arc 100% --- ---
EPM26083 Connors Arc 100% --- ---
Victoria
MIN5487(1) Walhalla 100% --- ---
EL5340 Walhalla 100% --- ---
EL5348 Walhalla 100% --- ---
(1) MIN 5487 has been sold to Centennial Mining Ltd.
Corporate
Cash and Finance
Cash on hand at the end of the Quarter was $4.57M.
Placement
On 30 October 2017 the Company announced that it was undertaking a capital raising of up to
229.167M ordinary fully paid shares (Shares) at an issue price of 2.4 cents per Share to raise up to
$5.5M. The capital raising occurred in two stages, being:
- Tranche 1 – 144.583M Shares to raise $3.47M were issued on 3 November 2017, using the
Company’s 15% placement capacity under ASX Listing Rule 7.1. The issue of Shares was
subsequently approved by shareholders at the Company's General Meeting held on 13
December 2017 (General Meeting); and
- Tranche 2 – 84.583M Shares to raise $2.03M were issued on 18 December 2017 and 19
December 2017 as approved by shareholders at the General Meeting.
In addition, on 18 December 2017, the Company issued 10.417M Shares at 2.4 cents per Share to
raise $0.25M, to Orion’s Chairman, Mr Denis Waddell as approved by shareholders at the General
Meeting,
(together the Capital Raisings).
Tembo Top-Up Right and Loan Facility
On 2 January 2018, the Company announced that mining focused, private equity group Tembo
Capital Mining Fund II LP and its affiliated entities (Tembo Capital), confirmed its continued support
of Orion through subscribing for Shares allowing Tembo Capital to maintain its 19.99% holding in the
Company.
Orion announced on 12 April 2017 that it had entered a formal placement agreement in respect of
a placement and strategic relationship with Tembo Capital, pursuant to which Tembo Capital was
granted an anti dilution right to maintain its percentage holding in Orion where the Company
conducts subsequent equity raisings (Top-up Right). Tembo Capital’s interest in Orion was diluted as
a result of the Capital Raisings. Pursuant to the Top-up Right, Orion offered Tembo Capital the right
to subscribe for up to 60M Shares, allowing Tembo Capital to maintain its 19.99% holding in Orion
(Top-up Shares) at an issue price of 2.4 cents (the same Share issue price as the Capital Raisings).
On 29 December 2017, Orion issued 60M Shares in the Company at an issue price of 2.4 cents per
Share to raise $1.44M as approved by shareholders at the General Meeting.
Orion announced on 18 August 2017 that it had entered into a $6.0M bridge loan facility agreement
with Tembo Capital, pursuant to which Tembo Capital has advanced funds to Orion (Loan Facility).
The $1.44M raised was used to reduce the balance of the Loan Facility.
On 15 November 2017, the Company announced an extension to the term of the Loan Facility from
15 December 2017 to 31 May 2018. The extension to the term of the Loan Facility relieved Orion of
its requirement to repay the Loan Facility by 15 December 2017 ensuring that proceeds from the
Capital Raisings and Loan Facility can be used principally to progress the intensive resource drilling
campaign at the Company’s Prieska Zinc-Copper Project, where significant drill results have been
returned in recent months (refer ASX releases 12 December 2017, 8 November 2017, 9 October 2017,
5 October 2017, 19 September 2017 and 6 September 2017).
The current program is the next step in the process to define a maiden Mineral Resource estimate as
defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code) and will be fed into the BFS (refer ASX release 11 July 2017). The BFS will build
on both the substantial existing historical dataset relating to mining and processing activities as well
as the new information being generated by the onsite activities. Funds will also be used to continue
exploration programs, including a large airborne electromagnetic survey and regional geochemistry
on the Company’s Northern Cape South African tenements, and for working capital purposes (refer
ASX release 14 December 2017).
As part of the terms of amendment to the Loan Facility, Orion agreed to an increase in the
establishment fee from 5% to 6.67% of the Loan Facility amount (capitalised).
At the end of the Quarter, $3.56M had been drawn down against the Loan Facility.
Small Shareholding Sale Facility
On 21 November 2017 the Company announced that it had established a small shareholding sale
facility (Sale Facility) for shareholders who held less than $500 worth of Shares and whose registered
address was in Australia. The Sale Facility allowed those shareholders to sell their Shares cost
effectively, while also assisting the Company reduce the costs associated with servicing smaller
shareholdings. The Company established the Sale Facility for the following reasons:
- To give holders of a small parcel of Shares (i.e. less than a marketable parcel of Shares as
defined in the ASX Listing Rules (that is a parcel of shares with a value of less than $500, based
on the Share price of 3.1 cents on the Record Date) (Small Holding)) the opportunity to sell
their shareholding, without incurring brokerage or handling costs which, in proportion to the
value of their investment, may otherwise render a transaction of this size unattractive or
uneconomic; and
- To reduce the expense and administration involved in maintaining shareholders with small
Shareholdings.
Shareholders who on 20 November 2017 (Record Date) held a Small Holding received a letter and
share retention slip from the Company. The letter explained that, unless those shareholders notified
the Company that they wished to retain their Shares by submitting the share retention slip or they
hold more than $500 worth of Shares on the Sale Facility closing date, those Shares would be sold,
and the proceeds remitted to them free from brokerage and handling fees.
On 23 November 2017, a first notice was sent to shareholders of Small Holdings and on 10 January
2018 a second letter to shareholders was dispatched to all shareholders who held a Small Holding of
Shares on the Record Date and who were yet to return a completed share retention slip. The Sale
Facility closed on 19 January 2018.
Change of Status, Name and Replacement Constitution
At the General Meeting, shareholders approved the change of status from a no liability company,
“Orion Minerals NL”, to public company limited by shares, “Orion Minerals Limited”. Importantly at
the General Meeting, shareholders also approved the cancellation of partly paid shares which will
allow the change in status to be affected. The 58,775 partly paid shares were cancelled during the
Quarter. ASIC were notified of the passing of the resolution for the change of status and under
subsection 164(3) of the Corporations Act, ASIC published a notice in the Commonwealth Gazette
that states the intention to alter the details of the Company's registration.
The change to the status and name of the Company will come into effect one month after the notice
is published in the Commonwealth Gazette (being 2 February 2018). The change of name and status
on the ASX will be effective after the change is confirmed by ASIC. The ASX Code for the Company
will remain unchanged.
Also at the General Meeting, a new constitution of Orion was adopted by shareholders by special
resolution and will come into effect on and from the change of status and name.
Numis Securities
During the Quarter, the Company appointed Numis Securities Limited as a corporate advisor. As part
of the fee payable to Numis, the Company issued the 1,900,000 unlisted options to Numis on 21
December 2017. The Options have an exercise price of 3.5 cents, an expiry date of 30 June 2020
and will not be quoted on the ASX.
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) 207 920 3150
E: michael.vaughan@fivemark.com.au E: orion@tavistock.co.uk
Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000
31 January 2018
Date: 31/01/2018 02:35:00 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
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