Wrap Text
Geological Modelling Confirms Compelling Targets Surrounding The Jacomynspan Ni-Cu-Co-PGE Intrusive
Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
Geological Modelling Confirms Compelling Targets Surrounding The Jacomynspan Ni-Cu-Co-PGE Intrusive
- The Jacomynspan Intrusive Complex has important characteristics in common with major Ni-Cu
occurrences such as Voisey’s Bay; Kabanga and Nova-Bollinger.
- A recently completed airborne EM and magnetic survey has identified several high priority targets for
follow up work.
- The geophysical targets are centred around a maiden JORC Mineral Resource of 6.8Mt containing
39,480 tonnes Ni, 22,800 tonnes Cu and 1,800 tonnes of Co at a 0.4% Ni cut-off with grades of 0.57%
Ni, 0.33% Cu and 0.30% Co, drilled between 1971 and 2012.
- Detailed re-appraisal applying geochemistry and re-logging of magmatic features has made important
findings in support of a compelling exploration opportunity.
Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce that a geological re-
evaluation of the ultramafic intrusive hosted Jacomynspan Ni-Cu-Co-PGE deposit undertaken for the Company
by expert consultant Richard Hornsey, has highlighted important findings that elevate the importance of this
district as a compelling target for exploration.
“Figures", "Appendices" and "Tables" 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 Jacomynspan intrusion is located within the Meso to Neo-Proterozoic Namaqua-Natal Belt. The belt is a
complex, long-lived multi-phase orogenic assembly zone, related to the amalgamation of the Rodinia
Supercontinent (Figure 1). These super-continent amalgamation episodes are associated with emplacement
of mafic-ultramafic intrusions with the potential to host Ni-Cu mineralisation and are therefore of high
exploration interest. The event that resulted in the emplacement of the Jacomynspan Complex is part of a
global event associated with several world-class Nickel-sulphide deposits such as Voisey’s Bay, Kabanga and
Nova-Bollinger.
The main Jacomynspan intrusion discovered in 1973 is a mafic-ultramafic sill attaining widths of up to 80m
over a strike of approximately 5km, dipping 65º to 75° to the south-east and has been folded into a curvilinear
shape parallel to the possibly-faulted margin of the Jacomynspan Formation (Boven Rugzeer Structural Zone).
The lithologies identified include norite, hornblende gabbro, pyroxenite, and harzburgite. Although the intrusion
is locally deformed and subject to low-grade metamorphism, the intensity of deformation is significantly less
than the host gneiss.
The work undertaken by Richard Hornsey has included a review of the key genetic and interpretative features
of the intrusion, a dedicated litho-geochemical sampling program to characterise the intrusion which hosts the
Mineral Resource and to develop a set of parameters that may inform prospectivity analysis and be used to
assess and evaluate other intrusions within the terrane.
Key observations by Richard Hornsey are:
- The intrusion has a primary magmatic fractionation sequence from peridotite (harzburgite and olivine
pyroxenite), to pyroxenite, and locally norite. The intrusion is not layered, nor compositionally
fractionated. The components of the intrusion form compositionally unique discrete units that appear
to have been emplaced as mono-compositional magma pulses;
- The intrusion post-dates peak metamorphism and tectonic mobilisation;
- The sulphidic harzburgite unit is the best mineralised and was emplaced at a later stage and intrudes
into the pyroxenite. It is non-deformed and has distinct to sharp intrusive contacts, forming shallow to
westerly plunging lenses hosted within the pyroxenite;
- The intrusion hosts sulphide mineralisation throughout its extent within almost all recorded lithologies
except for a volumetrically subordinate footwall harzburgite unit. The sulphidic harzburgite unit
contains higher tenor Cu – Ni mineralisation than the earlier, low temperature metamorphosed
pyroxenite, which it intrudes. The sulphide mineralisation has been derived from primary magmatic
processes that although intimately related, reflect different conditions within the flowing magma
conduit. For characterisation purposes the mineralisation is divided into three categories reflecting the
genetic processes involved (Figure 2):
o Type 1 mineralisation is primary magmatic mineralisation that has frozen in-situ together with
the host cumulates. This is extensively present as fine grained disseminated and net-textured
sulphide mineralisation (1-30% sulphide).
o Type 2 mineralisation has been injected into previously lithified cumulates, or immediately
overlies internal disconformities within the intrusion. This mineralisation may be coarsely net-
textured, or forms veins, stringers, semi-massive to massive sulphide (60-80% sulphide).
Although injected, this is a primary magmatic feature related to transport of sulphide liquid by
the magma travelling along the conduit. The intrusion hosts stringer sulphide as cross-cutting
veins that locally brecciate the host. Of these, the JMP038 intersection is the most significant
due to its higher tenor, and development of loop-textured pentlandite.
From the top; massive sulphide stringer (JMP001) with an associated alteration halo cross-cutting the
peridotite unit. Massive sulphide vein associated with pegmatitic feldspar (JMP003) cross-cutting the
pyroxenite unit. Transgressive massive sulphide veins intruding and brecciating already-lithified pyroxenite unit
(JMP041). Massive sulphide stringer, which is currently unique due to its higher tenor (>4% Ni), and which has
coarse loop texture (red arrow) (JMP038).
o Type 3 mineralisation is massive sulphide mineralisation possibly of similar tenor as Type 2
injections, but with volumetrically larger accumulations that result from trapping of large
quantities of sulphide liquid derived from the magma chamber. These are typically associated
with locations of intrusion morphology change or choke-points. This style of mineralisation has
not specifically been explored for outside of the original discovery site and has not yet been
discovered at the main Jacomynspan intrusion, where exploration focussed on the core a
large intrusive body, rather than the margin zones and other potential trap sites required to
accumulate the sulphide liquid, such as those found at similar mineral deposits globally
including the Voisey’s Bay Deposit. This type of mineralisation should form the focus of
ongoing exploration.
Geochemical “spidergram” plots (Appendix 1) have been plotted for trace elements, REE and the PGE analysis
from all type lithologies and presented using standard plots. These indicate that all samples have similar
profiles, therefore are part of the same magma suite and are intimately related. All samples are characterised
by extreme depletion of Ti. This may be related to removal of titaniferous magnetite liquid. This liquid may have
been deposited outside of the target mineralised units and may provide an associated geophysical signature
that form a diagnostic parameter for Jacomynspan-suite intrusions.
Magma provenance and characterisation diagrams (Appendix 1) indicate that the magmas are crustally
contaminated, tholeiitic komatiites to komatiitic basalt, related to arc magmatism, and derived from extensive,
shallow mantle melting. These melts generally produce large quantities of magma that are enriched in base
metals and PGE.
Implications for Exploration
The Jacomynspan intrusive complex shares many characteristics to other late-tectonic intrusions emplaced
into orogenic margins globally. These include moderate to deep-seated, late-stage, post-peak deformation
emplacement, complex magma emplacement history indicative of a long-lived conduit, and indications of multi-
phase mineralisation history that has locally derived Type 2 mineralisation and has good potential for Type 3
accumulation of massive sulphide.
The intrusions post-date the allochthonous juxtaposition of the host Areachap and Jacomynspan Formations
and it is likely that intrusions will be found in both host rock units. Importantly it should also be noted that not
all intrusive bodies will outcrop and the potential for blind intrusive bodies should be anticipated in addition to
those mapped from outcrop.
The Type 2 and Type 3 mineralisation, which will be the main exploration target, are best targeted using
electro-geophysical techniques such as the recent SkyTEM survey conducted by Orion (refer ASX release 1
February 2018). Integration of the SkyTEM EM survey and magnetic data have outlined a number of strong
conductors in the vicinity of the main Jacomynspan intrusive (Figure 3). These targets will now be followed up
with ground geophysics and ground truthing, before prioritised targets are selected for drill testing.
Mineral Resources
The Mineral Resources for the Jacomynspan Project were previously reported (refer ASX release 14 July
2016) in accordance with the SAMREC Code (2007) as a “qualifying foreign resource estimate” as defined in
the ASX Listing Rules. The Mineral Resources have now been reassessed by the Competent Person and is
stated here in compliance with the 2012 Edition of the Australian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code). The historical drill data, including assay data and QA/QC
protocols, were found to be consistent with the JORC Code by the Competent Person (discussed in Appendix
2) The Mineral Resources stated in Table 1 are for drilling data currently available (Figure 4). A 0.4% Ni cut-
off grade was used for the Mineral Resource with the resource estimate at other cut-offs presented in Table 2.
The maiden JORC Mineral Resource for the Jacomynspan Ni-Cu-Co Project was estimated utilising the
following parameters, with further supporting information located in Appendix 2:
- The Jacomynspan Mineral Resource comprises portions of a metamorphosed mafic to ultramafic intrusion
containing nickel-copper sulphides (Figure 1). The sill intrusion has been partially metamorphosed on a
regional scale to lower amphibolite facies and the original mafic rocks now exist as tremolite schist. Within
the tremolite schist, large lenses of olivine rich rocks occur, which range from olivine-pyroxenite to
harzburgite. These ultramafic zones are non-schistose and are important in the context of the Mineral
Resource as they are associated with enhanced grades of mineralisation. The intrusion is enclosed within
quartz-feldspar-biotite-garnet gneiss country rocks.
- The area defined as a Mineral Resource extends approximately 1.3km along strike by 1.0km on dip,
having been constrained for estimation to a maximum depth of 900m below surface. The Mineral
Resource is between approximately 20m and 80m thick, with an average thickness of approximately 50m.
The Jacomynspan intrusion dips approximately 75° to the south and outcrops on surface within the
Namaqua Mining Right. The intrusion is oxidised to approximately 75m below surface. The oxidised
material is excluded from the Mineral Resource.
- The stated Mineral Resource is based on data from historical drilling carried out by Anglo American (AAC)
(1971-1977), Gold Fields (GFSA) (1993) and African Nickel Holdings Limited (ANHL) (2011-2012). A total
of 52 diamond core drill holes, totalling 20,945m, were used for the resource estimation.
- Drill holes intersected the Mineral Resource between approximately 40 m and 150 m apart along strike
and down dip. Over half of the area has been drilled at less than 75 m drill hole spacing along strike.
- Diamond core samples were taken by splitting BQ and NQ core in half. Drill hole samples were taken at
nominal 0.5 to1 m intervals, unless there was a lithological change.
- AAC samples were analysed at Anglo American Research Laboratory, GFSA samples at Gold Fields
Laboratories and ANHL samples at Intertek Genalysis and ALS Chemex.
- ANHL inserted CRM’s, blanks and duplicates with each batch at a 5% insertion rate. No QA/QC data is
available for the GFSA and AAC drilling.
- All of the ANHL drill hole collars have been surveyed by a qualified surveyor using a differential GPS.
Survey methods of GFSA and AAC boreholes are unknown.
- Downhole positions were surveyed for all of the ANHL drill holes using an electronic multi-shot instrument.
The AAC holes were surveyed down the hole using acid bottle techniques. GFSA survey method is
unknown.
- No grade parameters were applied to the geological model, which comprises a wireframe of the tremolite
schist and a number of wireframed olivine-pyroxenite bodies within the tremolite schist. The gabbro-
pyroxenite lithologies were included with the olivine-pyroxenite bodies.
- Sample lengths were composited to 1m within each domain, with one Co and one PGE value capped.
One PGE sample value was cut from the database due to an extreme Pt value that was inconsistent with
other metal grades in the sample.
- One metre composite grades were estimated into a lower grade tremolite schist domain and a higher
grade olivine rich domain, using indicator kriging. Hard boundaries were used in the estimation.
- A block model with cells of 25m X by 5m Y by 20m Z was used, with sub-blocking of 12.5m X by 10m Z.
- Relative Densities (SG t/m3) determinations were made for the ANHL drill hole samples using a gas
pycnometer. SG was interpolated into the block model using Ordinary Kriging.
- Both Indicated and Inferred Resources are classified at the Jacomynspan Project. Indicated Mineral
Resources are declared where block estimates are achieved with the required minimum number of
samples within 1.5 times the variogram range of Ni values. Inferred resources are declared where a block
estimate is located within twice the variogram range of Ni from the nearest borehole.
- The Mineral Resource is reported above a cut-off grade of 0.4% Ni.
- A geological loss of 5% has been applied to the model to account for any losses as a result of adverse
geological features.
Orion’s Managing Director and CEO, Errol Smart, commented on the results:
“The geological setting of the Jacomynspan Intrusive Complex shows strong similarities with the Fraser Range
Belt in Western Australia. Orion is confident that the nickel-focussed exploration techniques that it developed
during its work in the Fraser Range, including development of advanced, specialised exploration tools for
intrusion hosted mineralisation, will provide a strong basis for exploration on the highly prospective Northern
Cape project areas.”
Errol Smart
Managing Director and CEO
8 March 2018
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 the exploration carried out at the Jacomynspan Project 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’s 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 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 information in this report that relates to Orion’s Mineral Resource, complies with the JORC Code and has
been compiled and assessed under the supervision of Mr Jeremy Witley, a Principal Resource Consultant at
the MSA Group Pty Ltd. Mr Witley (Pri. Sci. Nat.) is registered with the South African Council for Natural
Scientific Professionals (Registration No. 400181/05), a ROPO for JORC purposes. Mr Witley 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 JORC Code. Mr Witley is the
principal author of the report detailing the Mineral Resources and consents to the inclusion in this
announcement of the matters based on his information in the form and context in which it appears with
reference to the disclosures detailed in Appendix 2.
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
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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).
Date: 08/03/2018 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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