Wrap Text
Quarterly Activities Report for the Period Ended 31 March 2018
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
(“Orion” or “the Company”)
QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 MARCH 2018
“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.
HIGHLIGHTS
- Prieska Zinc-Copper Project Mineral Resource drilling and estimation achieves major milestones:
o Maiden JORC compliant total Mineral Resource estimate reported as 29.4Mt containing 1,126,000
tonnes Zn and 365,000 tonnes Cu, for the Prieska Project.
o Prospecting Rights covering strike extensions of the Prieska deposit granted.
o 42 new drill hole intersections completed, further validating historical drilling results at the Prieska
Project’s Deep Sulphide Target.
o +105 Level Target (Open Pit) drilling campaign completed, providing invaluable geotechnical and
mineral resource estimation data.
- Safety, environment and community engagement ongoing:
o Zero Lost time injuries for 69,030 manhours worked at the Prieska Project.
o Prieska Project Social and Labour Plan endorsed by Local Municipality.
o The Steering Committee of the collaboration forum with local Government on the Prieska Project social
investment projects was constituted and is now operational.
o The mandatory public participation and commentary process for the Prieska Project environmental
assessment has progressed well.
- Mine feasibility studies reach significant milestones:
o Detailed inspection of main hoisting shaft completed.
o Metallurgical processing flowsheet formulated for all material types.
o Preparation and lodgement of the Mining Right application for the feasibility studies concluded.
o Confirmation that national grid power available from onsite electrical substation.
- Regional Exploration Program initiated:
o Litho - geochemistry investigation of ultramafic intrusive drill samples undertaken with the aim of
assisting in the identification of priority regional exploration drill targets on the Namaqua-Disawell
Project.
o SkyTEMTM survey completed on the Masiqhame and Namaqua-Disawell projects, identifying high
priority VMS Zn-Cu and intrusive related Ni-Cu-Co-PGE targets for follow-up.
o Classification and reporting of a maiden JORC compliant Mineral Resource estimate of the
Jacomynspan Nickel-Copper-Cobalt-PGE deposit of 6.8Mt containing 39,480 tonnes Ni, 22,800 tonnes
Cu and 1,800 tonnes of Co at 0.4% Ni cut-off grade with grades of 0.57% Ni, 0.33% Cu and 0.03% Co
drilled between 1971 and 2012.
o Masiqhame earn-in to 49% (Kantienpan Deposit) completed.
o Namaqua–Disawell first stage of earn-in (25%) obligations satisfied.
Exploration
Areachap Belt Projects (South Africa)
The Company continued an intensive drilling campaign at the Prieska Zinc-Copper Project (Prieska Project).
Work focused on drilling at the Deep Sulphide Target with the aim of upgrading the classification of Mineral
Resources compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (2012 edition) (JORC Code). This, along with other key studies, will be used as the basis of a
Bankable Feasibility Study (BFS), which the Company aims to complete by Q4 CY18. A maiden total Mineral
Resource was reported for the Prieska Project during the Quarter (refer ASX release 8 February 2018).
Regional exploration on the Masiqhame and Namaqua-Disawell permits continued, with an airborne
electromagnetic (EM) survey, data compilations, geochemical studies and Mineral Resource work being carried
out.
Prieska Zinc-Copper Project
The Prieska Zinc-Copper Project covers unmined dip and strike extensions from a historical underground mining
operation. Mineralisation was delineated by extensive drilling carried out 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 (Deep Sulphide Target). The targets are based on 182
historical drill intersections, which could be relied on for width and depth of mineralisation, while 88 historical drill
holes provided information on grade of mineralisation.
Since the acquisition of the Prieska Project in March 2017, 281 additional drill holes have been digitised from
historic mine plans below the -680m level. The data initially had shortcomings due to loss of some historic records
which prevented estimation of Mineral Resources compliant with the JORC Code until further validation and infill
drilling was completed by Orion. By 31 March 2018, 42 mother and deflected holes for resource estimation, and
11 holes for metallurgical test work had been drilled in the Deep Sulphide Target by Orion. At the +105 Level
Target (Open Pit) 31 holes for resource estimation and 13 holes for metallurgical and/or geotechnical test work
were drilled by Orion, providing confirmation of the original data and allowing a Maiden JORC compliant Mineral
Resource to be established for both the +105 and Deep Sulphide Targets. The Deep Sulphide Mineral Resource
remains open on both dip and strike and drilling will continue to test for extensions and provide improved density
within the Mineral Resource to increase confidence level.
Safety and Environment
No lost time injuries were reported during the Quarter.
Category of Work Hours Worked
Quarter Year to Date
Exploration 65,558 65,558
Mine Re-Entry 3,472 3,472
Total 69,030 69,030
The Lost Time Injury Frequency Rate (LTIFR) per 200,000 manhours worked is: 0.72.
The Quarterly LTIFR for 200,000 manhours worked is: 0.
These safety metrics compare well to industry averages of 10.32 and 1.50 respectively.
Emphasis for the Quarter was on improving awareness and practices associated with hydrocarbon and general
waste management. Containment bunding around the fuel storage and surface parking bay for underground
mobile equipment were upgraded. An awareness campaign on the statutory requirements for waste
management was conducted and signage was erected to improve access control around the Prieska Project
site. A safety audit of the community liaison and information centre in the town of Prieska was also undertaken
to ensure facilities are safe for public use in light of anticipated increasing use as the Company’s activities
increase in the region.
Feasibility Studies and Environmental Impact Assessment
Mine development work on the Prieska Project for the Quarter focused primarily on preparing the Mining Right
application documentation. Ongoing feasibility study work will reference data collated and concepts derived for
the mining right application, though to greater detail.
Mine Design
Mine design work for the Quarter focused on conceptualising mine layouts and sequencing for the Mining Right
Application. As complete Mineral Resources estimate for the Copperton deposit are due for completion later in
the year, the majority of mine design work involved the collection of data in preparation for detailed design work
on geotechnical conditions, quantifying of voids, investigating backfilling options, including the collection of
samples for both paste and cemented aggregate fill backfill testing.
Detailed inspection of the main hoisting shaft (Hutchings Shaft)
The ongoing mine feasibility studies reached a material milestone this Quarter with the completion of the detailed
visual, mechanical and civil inspections of the Hutchings Shaft barrel, steelwork and concrete headgear, from
the surface down to a depth of 380m. The inspections confirmed that the shaft headframe, shaft barrel steelwork
and shaft wall integrity have been well preserved since mine closure in 1991. This makes the option of
refurbishing the existing shaft for future use a realistic and viable option to be considered for detailed feasibility
assessment.
The commercial viability of mining operations, planned to be established within the footprint of the historic Prieska
Copper Mine, is substantially enhanced by being able to leverage off the substantial suite of pre-existing
infrastructure which includes, amongst others, the concrete-lined, 1km deep, vertical Hutchings Shaft, that was
originally designed to hoist some 300,000 tonnes per month of rock out the mine (Figure 1).
The shaft is concrete-lined with an inside diameter of 8.84m. The shaft steelwork consists of a lattice of buntons
and dividers that are configured to provide two compartments to house rock hoisting skips and one central
compartment to house a square cage to transport people and materials (Figure 2).
The shaft barrel is topped by a rectangular concrete headframe which is 68.6m high (Figures 3 and 4). The shaft
operated with a Koepe-type winder mounted on top of the headframe to hoist the rock skips and a separate,
ground-based, double-winder to lift the people and materials cage.
A large volume of engineering data has now been collected for assessment and is being used to formulate and
cost the detailed shaft refurbishment plan. This is a significant step towards de-risking the mine re-establishment
project.
Orion originally obtained permission and re-established access into the underground mine and the shaft barrel
from March 2017. During that time, Orion completed a preliminary assessment of the shaft integrity concluding
that:
- no substantial obstructions were in the shaft barrel;
- the water quality was unlikely to accelerate corrosion;
- the main steel members, bolts and welding in the headframe and shaft barrel had been preserved; and
that
- shaft refurbishment and re-use was a realistic option to be considered for further assessment.
This Quarter, a detailed inspection program was completed (refer ASX release 2 February 2018). The initial
stage of this inspection program aimed to accurately determine the mechanical and structural integrity of the
shaft steel work down to a depth of 380m. The second stage of inspection involved obtaining video footage of
the shaft steelwork and walls to do a visual inspection down to a depth of 200m below the accumulated water
surface. A remote-operated vehicle was used to obtain the footage. The third stage of the inspection involved a
detailed civil and structural assessment of the concrete headframe to assist with winder placement and shaft
configuration.
Various characteristics of the shaft steelwork and infrastructure were assessed as part of the first stage. Table
1 summarises characteristics assessed, and methodologies employed.
Characteristic Assessment Methodology
Buntons, dividers and guides identification Aerosol paint markers
Buntons, dividers and guides condition Visual assessment / detailed photography
Buntons, dividers and guides connections condition Visual assessment / detailed photography
Shaft barrel connection condition Visual assessment / detailed photography
Shaft services and piping condition Thickness testing instrument
Bunton, divider and guide thickness testing Thickness testing instrument
Piping thickness testing Thickness testing instrument
Shaft wall / concrete lining condition Visual / mechanical assessment / detailed photography
Shaft dimensions assessment Laser distance measuring instrument
Bunton, dividers and guide positioning Laser distance measuring instrument
Steelwork weld integrity Magnetic particle inspection instrument (NDT)
Based on collected information the following conclusions were made:
- The primary steelwork, connections and shaft walls presents well and better than was expected by the
shaft inspection team.
- Significant corrosion is limited to the top 45m of primary steelwork in the shaft. Structural integrity of the
steelwork below this level is amenable to re-use following selective replacement and repairs.
- Shaft steelwork recovered from underwater has been unaffected by being submerged and shows no
signs of added deterioration compared to similar steelwork from above the waterline.
- As expected, secondary light steelwork and pipework is compromised by corrosion and will be replaced.
Shaft refurbishment is now viewed as the optimal route of re-establishing hoisting capabilities of the Hutchings
Shaft. The steelwork is repairable, though a portion of the steelwork will require replacement, generally in line
with assumptions that were made as part of formulating conceptual planning.
Ore processing investigations
The development of a mineral processing flowsheet, for the treatment of sulphide zinc-copper mineralisation at
the Prieska Project was completed during the Quarter.
The derived mineral processing flowsheet achieves high zinc and copper recoveries into separated product
streams from which the production of high-quality, differentiated zinc and copper concentrates can be yielded.
The processing flowsheet has been tested with notable success on all the mineralised zones of the Prieska
deposit that are targeted in the BFS that is currently being conducted. The deposit is zoned, for metallurgical
testing, by the degree of oxidation, (shallow supergene and deep hypogene zones), and test work addressed
internal variation in zinc and copper grades relative to each other resulting in (zinc-dominant and copper-
dominant zones). Representative core samples for the test work were collected from holes drilled by Orion
across these different grade and oxidation zones.
The derived flowsheet, when applied to samples collected from the supergene horizon, achieved maximum metal
recoveries of 88% zinc within the zinc circuit and 74% copper within the copper circuit. Samples collected from
the hypogene horizon attained maximum metal recoveries of 85% for zinc within the zinc circuit and 88% for
copper within copper circuit.
These metal recoveries, were achieved using only open-circuit testing, (a preliminary step applied to only
demonstrate processing flowsheet efficacy) and compare very well to metal recoveries reported to have been
achieved during historical mining operations1. Further improvements in metal recovery and the production of
optimised, premium quality concentrates can be expected during the follow-up locked-cycle testing that is
currently underway and due for completion in Q2 2018.
Results achieved are summarised in Table 2.
Cu Circuit Zn Circuit
Test Head Grade Combined Tails
Recovery2 Recovery2
Test Description Cu Zn Zn Cu Zn
Cu Rec.
Cu (%) Zn (%) Rec. Rec. Rec. Grade Grade
(%)
(%) (%) (%) (%) (%)
Cu-rich Deeps Open Circuit Cleaner 2.3 2.5 87 16 69 3 0.3 0.9
Zn-rich Deeps Open Circuit Cleaner 1.5 5.7 88 7 85 5 0.1 0.5
Supergene Open Circuit Cleaner 2.1 3.7 74 7 88 20 0.2 0.2
Table 2: Summary of flowsheet development metallurgical test work results from open circuit tests (refer ASX
release 1 March 2018).
The results achieved from Phase 2 test work, reported here, are indicative of how the derived flowsheet performs
with respect to recovering and separating targeted metals. Ongoing optimisation aims to improve the resultant
concentrate qualities to equal or better the metallurgical performance that what was achieved during historical
mining operations. The metallurgical test work results achieved to date confirm that the Prieska deposit is
amenable to efficient treatment applying widely-used, well-understood mineral processing techniques and using
standard, widely available reagents.
Other metallurgical design work progressed during the Quarter includes definition of the ore processing design
criteria, preliminary mass and water balances, preliminary mechanical equipment lists and process flow
diagrams. Metallurgical test work is being conducted at Mintek Laboratories in Johannesburg, South Africa and
work currently in progress includes, amongst others,
- investigating pre-concentration by ore sorting and heavy liquid separation;
- comminution testing on samples taken from various parts of the deposits; and
- low intensity magnetic separation to optimise recoveries and targeted copper and zinc concentrate
qualities.
Mining Infrastructure
Power Supply – Eskom, the national power supply company, was commissioned to complete a feasibility study
into re-establishing the power supply to the mine from its Cuprum substation that is located on the Prieska Project
site. Eskom has now completed the first phase of the study with the conclusion that sufficient electrical power
can be made available at the Cuprum substation to support future mining operations. The second stage of the
study involves a detailed assessment of the optimal substation upgrades required and selection of the entity to
undertake these same upgrades.
Product Logistics and Marketing
Investigations into the optimal route for the transport of copper and zinc concentrates to market have continued
with several port options and transport modes being considered. Preliminary inquiries sent out to 11 potential
service providers were short-listed during the Quarter and the facilities of some of these service providers
inspected. Various pricing models are still being assessed and a response to preliminary enquiries sent to
Transnet on the availability of rail for use by the project is expected in Q2 2018.
Metallurgical test work results to produce optimised concentrates for detailed marketing enquiries are due in Q2
2018. Whilst preliminary product quality estimates were used for initial conceptual studies and enquiries, the
mining studies are now at a stage where detailed concentrate analyses are required.
Community and Stakeholder Engagement
A Steering Committee was constituted to administer the Memorandum of Understanding entered into in October
2017 between the Company and local government to collaborate on community and social development
programs to be implemented in the vicinity of the Prieska Project. The Company uses this forum, amongst others,
to act as a catalyst for local economic and social development. The Steering Committee has held regular meetings
during the Quarter with focus areas including, amongst others, education-related initiatives, such as
the assessment of how best to introduce e-learning through the application of the EduVOD satellite education
content solution for Prieska schools and the engagement with various stakeholders, including the Provincial
Department of Education, to align efforts on improving the provision of education services in the region.
The Company has also been instrumental in reinvigorating the “Greening of Prieska Committee”, a local
organisation focused on improving living conditions for Prieska residents.
On 27 March 2018, the Company presented the Prieska Project Social and Labour Plan (SLP) to the local
Municipal Council. The SLP encompasses the commitments the Company will make with respect to undertaking
local economic development and the development of its workforce should mining operations commence. The
SLP is thus an integral and mandatory component of the Mining Right application.
The Municipal Council passed a resolution providing unconditional endorsement of the project SLP. This
endorsement was submitted together with the SLP to the Department of Mineral Resources as part of the Mining
Right application. The Mining Right application was lodged in April 2018.
Members of the community continued to engage with the Company through the community liaison office in
Prieska, which also provides facilities for potential suppliers of goods and services to complete online
registration, as well as facilitating for individuals to register their interest for future employment with the Company
or its contractors.
(2Represents the total metal recovered to the high grade cleaner concentrate, high grade cleaner tailings, low grade re-cleaner
concentrate, low grade re-cleaner tailings and scavenger rougher concentrate in open circuit testing. Lock-cycle testing aims
to recover most of this metal into the final concentrate.)
Environmental
The mandatory Public Participation Process continued with the project description baseline document prepared
and public notices and advertisements pertaining to the proposed Prieska Project made available to interested
and affected parties. Some public comments have been received and responded to satisfactorily. Pre-application
meetings with the various authorities continued throughout the Quarter. Environmental assessment work is on
schedule to allow for the submission of applications for a water-use licence, waste management permit and
Environmental Authorisation in April 2018, along with the Mining Right application. The following key tasks were
also addressed during the Quarter:
- the groundwater study is now complete and a draft report prepared; and
- static leach testing and radiological testing on tailings samples are under underway.
Mining Right Application
The application for a Mining Right for the Prieska Project was submitted to the Department of Mineral Resources
in April 2018. Once submitted, the review and approval process takes a statutorily mandated 300 working days
before a decision is granted. Hence, the mining right review process is scheduled to be completed by Q3 2019.
Deep Sulphide Target drilling progress
During the Quarter, the Company continued with an intensive drill program in the north-western part of the Deep
Sulphide Target (Figures 5 and 6). A total of 50,685m of drilling has been completed on the Deep Sulphide
Target as at the end of March 2018. At the height of activity, 13 surface diamond drill rigs and one percussion
rig were in operation. A total of 8,188m of diamond drilling was completed during the Quarter.
The Orion drill program aims to provide statistical validation of historic drill data in the Deep Sulphide Target as
well as to infill data points required for optimal drill spacing for a Mineral Resource estimate compliant with the
JORC Code. Drilling is also testing new targets and extending known mineralisation outside the historic drill grid.
Drilling results from 11 drill holes and deflections targeting the Deep Sulphides were announced during the Quarter
(refer ASX releases 1 February 2018 and 19 February 2018) (Table 3).
Detailed geostatistical analysis on the Orion and historic drilling indicated that the data compared well and were
acceptable for Mineral Resource estimation.
While drilling has concentrated on validation within the confines of historically detected mineralisation, several
holes were successfully drilled to test for upside potential, intersecting both strike extensions and new target
horizons.
East North From To Length Cu Zn Au Ag
Drill hole
(WGS84 Lo23) (m) (m) (m) (%) (%) (g/t) (g/t)
OCOD066_D7 -68 682 -3 314 374 1,056.90 1,061.00 4.1 0.75 2.64 0.13 6
989.6 991.6 2 1.36 0.12 0.35 14
-68 334 -3 314 757
OCOD068_D3 999.42 1,012.64 12.62 2.94 3.33 2.19 30
including 999.42 1,004.04 4.62 5.06 2.73 5.31 55
OCOD080_D1 -68 451 -3 314 556 1,033.50 1,046.00 12.5 0.44 3.44 0.12 5
1,103.50 1,104.00 0.5 0.24 5.72 0.11 9
-68 640 -3 314 400
1,109.45 1,120.47 11.02 0.71 3.45 0.11 6
OCOD087_D1
1,109.45 1,113.00 3.55 0.3 4.17 0.04 4
including
1,116.00 1,120.47 4.47 1.32 4.82 0.38 10
1,105 1,109.5 4.5 0.08 5.39 0.17 5
OCOD087_D2 -68 640 -3 314 400
1,122 1,136 14 0.59 4.23 0.18 5
OCOD101 -68 510 -3 314 497 1,079.66 1,086.70 7.04 1.1 3.58 0.22 9
OCOD101_D1 -68 510 -3 314 497 1,070.5 1,075.73 5.23 1.27 5.27 0.21 11
OCOD103 -68 583 -3 314 461 1,098.00 1,106.40 8.4 0.65 1.99 0.08 7
-68 583 -3 314 461 1,089 1,103.09 14.09 1.53 2.82 0.51 11
OCOD103_D2
including 1,099 1,102 3 4.22 1.95 1.49 31
OCOD107 -68 539 -3 314 489 1,086.30 1,086.90 0.6 1.33 4.06 0.19 11
OCOD110 -68 482 -3 314 533 1,060 1,065 5 0.74 4.83 0.22 15
By the end of March 2018, Orion had completed and received assays from 42 mother and deflected holes on the
Deep Sulphide target. Intersections in these holes were achieved at vertical depths of between 880m to 1,136m
below surface and required 285 directional wedges to steer the drilling to pre-determined target points. At the end
of the Quarter, assay results from 4 more intersections were awaited while 7 holes were in progress.
Deep Sulphide Target Drilling Results – validation
A statistical comparison between historic and Orion drilling was completed by Z Star Mineral Resource Consultants
(Z*) as part of the January 2018 Mineral Resource estimation of the Deep Sulphide Target. The comparison
indicated that the variogram models for Cu% and Zn% for both historic and Orion data compared favourably.
Drilling on the margins of and outside and on the periphery of the historic drill grid
Drilling on the north-west margin of the historic drilled grid and in areas with low drill density has demonstrated
significant upside potential, with thicker than expected mineralised zones persisting beyond the core area.
Drill holes OCOD087_D1 and OCOD087_D2 drilled as deflections from OCOD087, OCOD103, and OCOD103_D2
drilled as a deflection from OCOD103 all intersected thick mineralisation beyond the north-west margin of historical
drilling (Figures 5 and 6). The Intersections made are:
- OCOD087_D1: 11.02m at 3.45% Zn, 0.71% Cu, 0.11g/t Au and 6g/t Ag from 1,109.45m;
- OCOD087_D2: 14.0m at 4.23% Zn, 0.59% Cu, 0.18g/t Au and 5g/t Ag from 1,122.00m;
- OCOD103: 8.40m at 1.99% Zn, 0.65% Cu, 0.08g/t Au and 7g/t Ag from 1,098.00m and
- OCOD103_D2: 14.09m at 2.82% Zn,1.53% Cu, 0.51g/t Au and 11g/t Ag from 1,089.00m.
Drill hole OCOD066_D7, drilled as a deflection from OCOD066, intersected 4.10m at 2.64% Zn, 0.75% Cu, 0.13g/t
Au and 6g/t Ag from 1,056.90m, indicating the thick mineralised zone reported above is narrowing along strike to
the north-west which confirms the thickness indicated by historic isopach data in this area (Figures 5 and 6).
Drill hole OCOD080_D1, drilled as a deflection from OCOD080, intersected 12.50m at 3.44% Zn, 0.44% Cu,
0.12g/t Au and 5g/t Ag from 1,033.50m in the hinge zone of the north-western part of the Deeps Sulphide Target
along strike to the south-east of the thick mineralisation mentioned above (Figures 5 and 6).
Drill holes OCOD101, OCOD101_D1 drilled as a deflection from OCOD101, OCOD110 and OCOD107 were all
drilled on the down-dip margin of the historical drill grid in the north-west of the Deep Sulphide Target (Figures 5
and 6). These holes confirmed historic isopach data indicating that the mineralised horizon is narrowing down-
dip towards the trough of the synformal structure that deformed the Deep Sulphide horizon. Intersections made
are:
- OCOD101: 7.04m at 3.58% Zn, 1.10% Cu, 0.22g/t Au and 9g/t Ag from 1,079.66m;
- OCOD103: 8.40m at 1.99% Zn, 0.65% Cu, 0.08g/t Au and 7g/t Ag from 1,098.00m;
- OCOD110: 5.00m at 4.83% Zn, 0.74% Cu, 0.22 g/t Au and 15g/t Ag from 1,060.00m and
- OCOD107: 0.60m at 4.06% Zn, 1.33% Cu, 0.19g/t Au and 11 g/t Ag from 1,086.30m.
Drilling in area with high copper-gold - proximal to depositional vent
Drill hole OCOD068_D3 drilled as a deflection from OCOD068 in the south-eastern part of the north-western
hinge area of the Deep Sulphide mineralised body intersected 12.62m at 3.33% Zn, 2.94% Cu, 2.19g/t Au and
30g/t Ag from 999.42m (Figures 5 and 6). This mineralisation is interpreted as a possible proximal depositional
vent to the deposit.
+105 Level Target (Open Pit) Area
The last two drill holes on the +105 Level Target (Open Pit) were completed during the Quarter. These included:
- One infill hole from the +105 level Target (Open Pit) underground; and
- One geotechnical hole from surface.
+ 105 Level Target (Open Pit) – Resource drilling
Drill hole OCOU112, drilled from underground as an infill hole in the supergene ore zone, intersected a few
centimetres of oxidised material within a zone of high core loss at the target depth of 66.80m. This indicates that
a sink hole has collapsed from surface to the level of the intersection and that the remainder of the oxide and
collapsed material was probably washed away during drilling. The final depth of OCOU112 is 90.52m.
+105 Level Target (Open Pit) – Geotechnical drilling
Drill hole OCOD099, the last of a total of 3 diamond drill holes drilled into the hanging wall of the +105 Level
mineralised zone to obtain orientated core for geotechnical logging, to assist in the optimisation of the open pit
design, was completed. The final depth of OCOD099 is 163.8m.
Mineral Resource Estimation and Reporting
Mineral Resource estimation of the Deep Sulphide Target by Z* on both the Repli Prospecting Right and the
available information from historic drilling on the Vardocube Prospecting Right, using drill data available as at 31
December 2017, was completed during the Quarter. Formal execution of the Vardocube Prospecting Right from
the Department of Mineral Resources is expected in April 2018.
The +105 Level Mineral Resource (Open Pit) estimation by Z* and a third-party review thereof by SRK Consulting
South Africa (Pty) Ltd (SRK) was completed in December 2017. Queries highlighted by SRK relating to the
relative density water-method initially used by Orion were resolved by re-doing relative densities in the
mineralised zone using a different method, a wax method. No significant differences in the values between the
two methods were found, and it was concluded that the original relative density determinations used for the +105
Mineral Resource are acceptable for resource estimation.
A maiden total Mineral Resource for the Prieska Project, comprising the Deep Sulphide and the +105 Level
resources, was reported and classified in February 2018. The Deep Sulphide Mineral Resource was restricted
to that lying within the Repli Prospecting Right (approximately 70% of the targeted mineralisation). In April 2018,
the JORC compliant total Mineral Resource was updated to include the remaining 30% targeted mineralisation
on the Vardocube Prospecting Right (Table 4) (refer ASX release 9 April 2018).
Total Mineral Resource For Prieska Project - Repli Trading No 27 (Pty) Ltd & Vancoube (Pty) Ltd
Zn Cu Ag Au
Classification Tonnes Metal Tonnes Grade(%) Metal Tonnes Grade(%) Metal Tonnes Grade(%) Metal Tonnes Grade(%)
Deep Sulphide Repli* Inferred 22,600,000 839,000 3.7 266,000 1.2 6,904,000 9.5 153,000 0.2
Deep Sulphide Vardocube** Inferred 5,200,000 253,000 4.9 67,000 1.3 1,627,000 9.7 35,000 0.2
+105 Supergene Repli* Indicated 1,200,000 32,000 2.6 30,000 2.4 348,000 8.7 9,000 0.2
+105 Oxide Repli* Inferred 300,000 2,000 0.9 2,000 0.6 17,000 1.8 1,000 0.1
Total GLobal 29,400,000 1,126,000 3.8 365,000 1.2 8,896,000 9.4 198,000 0.2
Note All Resources Stated at Zero Cut-off
Rounding, as required by reporting guidelines, may result in apparent differences between tonnes, grade and contained metal content
(3Mineral Resource reported in ASX release of 9 April 2018: “Prieska Project total Mineral Resource increases to 29.4 million tonnes
containing 1.13 million tonnes Zn and 0.36 million tonnes Cu” available to the public on www.orionminerals.com.au/investors/market-news.
Competent Person Orion’s exploration: Mr. Errol Smart. Competent Person: Orion’s Mineral Resource: Mr. Sean Duggan. Orion is not aware
of any new information or data that materially affects the information included above. For the Mineral Resource, the company confirms that
all material assumptions and technical parameters underpinning the estimates in the ASX release of 9 April 2018 continue to apply and have
not materially changed. Orion confirms that the form and context in which the Competent Person’s findings are presented here have not
materially changed.)
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 7) and is applying increasing
attention to exploration for Volcanogenic Massive Sulphide (VMS) and Ni-Cu PGE deposits to the north of the
Prieska Project. The Areachap Belt is analogous to other Proterozoic Mobile Belts with major VMS and magmatic
Ni-Cu-Co-PGE deposits.
VMS deposits almost always occur as “clusters” associated with volcanic centres. Four such centres have been
identified in the Areachap Belt. The Company’s prospecting and mining rights include the bulk of the Copperton
and Boksputs Volcanic Centres.
Similarly, world-class nickel deposits occur in “clusters” for example, Sudbury, Duluth, Pechenga and Voisey’s
Bay. There are a number of mafic intrusive bodies with multiple known nickel and related mineral occurrences
are located on the Namaqua-Disawell and Masiqhame Prospecting Rights. Electro-magnetic geophysical
methods are useful for exploring for both VMS and Magmatic Ni-Cu types of deposits.
SkyTEMTM survey
Modern EM methods have advanced a great deal since the last systematic exploration took place in the Northern
Cape Areachap Belt and Orion stands to benefit from its approach to use the latest EM techniques in its regional
exploration program.
Orion contracted SkyTEMTM, a leading airborne electromagnetic (AEM) survey company headquartered in
Denmark which offers state-of-the-art helicopter-borne transient electromagnetic (TEM) and magnetic
acquisition systems, to fly an extensive TEM survey. The survey covered a large portion of the Company’s
Masiqhame and Namaqua-Disawell Project areas located in the Northern Cape (Figure 8).
The SkyTEMTM survey was flown with the SkyTEMTM312 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.
The high power SkyTEMTM AEM survey over the Masiqhame and Namaqua-Disawell Prospecting Right areas,
was completed on 24 January 2018. A total of 6,025-line kilometres were flown with an area of 962km2 covered
by the survey. Known VMS deposits and Magmatic Ni-Cu deposits were detected by the survey proving AEM to
be an effective exploration tool in the Areachap Belt (Figures 9 and 10, ASX releases 14 December 2017 and
1 February 2018).
Masiqhame Project
This project is defined in terms of the Masiqhame tenement holding and includes Kantienpan, Boksputs and Van
Wyks Pan zinc – copper mineral occurrences and has regional potential for VMS zinc copper and intrusive nickel-
copper-cobalt-PGE mineralisation.
SkyTEMTM anomalies associated with a paleo sea floor setting
AEM anomalies identified during a preliminary review of the SkyTEMTM data by Orion’s Perth based geophysical
consultants, Southern Geoscience Consultants were prioritised for follow-up. Following geological, airborne
magnetic interpretation and initial field work, 20 anomalies are currently selected for follow-up by ground TEM
surveys. Of the 20 anomalies, 15 coincide with a paleo sea floor setting, and are considered VMS type targets.
The paleo sea floor position was interpreted from available regional geological data and field mapping. The paleo
sea floor setting forms the target stratigraphic horizon for VMS type deposits. The anomalies in the northern part
of the Masiqhame prospecting right are spatially associated with known Zn – Cu VMS deposits at Kantienpan
and Boksputs. This include anomalies K1 – 2, B1 – 4 (Figures 11 and 12). These mineral deposits and
occurrences are considered under explored. Importantly, outcrops of ferruginous chert, characteristic of distal
exhalites that form within VMS mineralising systems, coincide with Anomaly BS1. Anomaly BS1 has a strike
length of 600 to 800m (refer ASX releases 14 December 2017 and 1 February 2018).
About the Masiqhame Project
In April 2016, the Company entered into a binding option agreement to earn up to a 73% interest in Masiqhame
Trading 855 Pty Ltd. Masiqhame holds prospecting rights over a large, highly prospective area located
approximately 80km north of the Prieska Project (Figure 7). The Company exercised the option it holds with
Masiqhame and to date, has acquired a 49% interest in Masiqhame.
Namaqua–Disawell Project
VMS Zinc-Copper & Nickel-Copper-Cobalt-PGE Targets
This project is defined in terms of the Namaqua and Disawell tenement holdings, includes the Jacomynspan Ni-
Cu-Co-PGE and Rooiputs Zn – Cu Deposits and has regional potential for VMS zinc copper and Intrusive nickel-
copper-cobalt-PGE mineralisation.
VMS Zinc-Copper
Historic exploration on the Namaqua and Disawell Rights focussed mainly on Cu-Ni mineralisation. However,
reconnaissance mapping reveals outcrops of ferruginous chert on anomaly H2. The chert is considered a distal
exhalite of a VMS system. H2 is a 2800m long conductor associated with the interpreted paleo seafloor (Figures
10, 13 and 14). The 2800m strike length compares favourably with that of the giant Prieska Deposit that has a
strike length of 2400m. This is an untested target and offers a unique opportunity for discovery as there is
currently no evidence to suggest that this conductor was explored in the past.
Magmatic Ni-Cu-Co
During the Quarter, the following work was completed on the Ni – Cu project, covering mainly the Namaqua–
Disawell Prospecting Rights:
- A litho-geochemical study characterizing the Jacomynspan Intrusive and rating Disawell Prospecting
Right as a target area for Ni–Cu-Co--PGE mineralisation by nickel expert consultant, R. Hornsey (refer
ASX release 8 March 2018);
- The SkyTEMTM survey (refer ASX releases 14 December 2017 and 1 February 2018);
- The first pass selection of SkyTEMTM anomalies for follow-up; and
- A JORC compliant Mineral Resource estimate by The MSA Group on the Jacomynspan Ni–Cu–Co–
PGE deposit (refer ASX release 8 March 2018).
Ongoing studies include:
- Compilation of a GIS database;
- Modelling of SkyTEMTM data; and
- Planning of Ground EM surveys
Litho-geochemical study
The final report on the Jacomynspan litho-geochemical study was received on the 12 March 2018. The findings
of this research are discussed below.
The Jacomynspan 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 14):
- 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).
- 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.
- 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 focused on the core of 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 indicate that all samples have similar profiles, therefore are part of the same
magma suite and are intimately related. Magma provenance and characterisation diagrams 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 a multi-
phase mineralisation history that has good potential for forming massive sulphide deposits.
Mineral Resource estimate
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 been reassessed by the Competent Person, classified and reported
in compliance with the JORC Code (refer ASX release 8 March 2018). The Mineral Resources stated in Table 5
are for drilling data currently available (Figure 15). A 0.4% Ni cut-off grade was used for the Mineral Resource
with the resource estimate at other cut-off grades presented in Table 6. Figure 16 shows a longitudinal projection
of the resource classifications.
Mineral Resource Grade-Tonnage Table for the Jacomynspan Project at a 0.40% Ni cut-off grade
Ni Cu Co Pt Pd Au
Cut
off Gra Metal Metal Gra Metal
% Volume Grade Metal Grade Metal Grade Metal de Ounc Grade Ounc de Ounc
Classification Ni (m3) Tonnes (%) Tonnes (%) Tonnes (%) Tonnes (g/t) es (g/t) es (g/t) es
Indicated 0.40 584,000 1,780,000 0.55 10,000 0.29 5,000 0.03 1,000 0.17 10,000 0.11 6,000 0.07 4,000
Inferred 0.40 1,647,000 5,056,000 0.58 29,000 0.35 18,000 0.03 1,000 0.19 31,000 0.13 21,000 0.07 11,000
(4 Mineral Resource reported in ASX release of 8 March 2018: “Geological Modelling Confirms Compelling Targets Surrounding the
Jacomynspan Ni-Cu-Co-PGE Intrusive” available to the public on www.orionminerals.com.au/investors/market-news. Competent Person
Orion’s exploration: Mr. Errol Smart. Competent Person: Orion’s Mineral Resource: Mr. Jeremy Witley. Orion is not aware of any new
information or data that materially affects the information included above. For the Mineral Resource, the company confirms that all material
assumptions and technical parameters underpinning the estimates in the ASX release of 8 March 2018 continue to apply and have not
materially changed. Orion confirms that the form and context in which the Competent Person’s findings are presented here have not
materially changed.)
Indicated Mineral Resource for the Jacomynspan Project at various Ni cut-off grades
Ni Cu Co Pt Pd Au
Cut Metal Metal Metal Metal Metal Metal
off % Grade Tonne Grad Tonne Grade Tonne Grade Ounce Grade Ounce Grade Ounc
Ni Volume (m3) Tonnes (%) s e (%) s (%) s (g/t) s (g/t) s (g/t) es
0.20 11,252,000 33,000,000 0.26 86,000 0.18 58,000 0.02 6,000 0.10 101,000 0.05 53,000 0.04 44,000
0.25 4,205,000 12,393,000 0.32 40,000 0.20 25,000 0.02 3,000 0.11 45,000 0.06 25,000 0.05 19,000
0.30 1,501,000 4,461,000 0.42 19,000 0.24 11,000 0.02 1,000 0.14 20,000 0.08 12,000 0.05 8,000
0.40 584,000 1,780,000 0.55 10,000 0.29 5,000 0.03 1,000 0.17 10,000 0.11 6,000 0.07 4,000
0.50 284,000 872,000 0.66 6,000 0.37 3,000 0.04 300 0.16 5,000 0.11 3,000 0.07 2,000
Inferred Mineral Resource for the Jacomynspan Project at various Ni cut-off grades
Ni Cu Co Pt Pd Au
Cut Metal Metal Metal Metal Metal Metal
off % Grade Tonne Grad Tonne Grade Tonne Grade Ounce Grade Ounce Grade Ounc
Ni Volume (m3) Tonnes (%) s e (%) s (%) s (g/t) s (g/t) s (g/t) es
0.20 11,022,000 32,304,000 0.29 94,000 0.20 63,000 0.02 6,000 0.10 108,000 0.06 60,000 0.04 44 000
0.25 3,974,000 11,863,000 0.42 49,000 0.26 31,000 0.02 2,000 0.15 55,000 0.09 34,000 0.05 20 000
0.30 2,303,000 7,008,000 0.52 36,000 0.31 22,000 0.02 2,000 0.19 42,000 0.12 27,000 0.06 14 000
0.40 1,647,000 5,056,000 0.58 29,000 0.35 18,000 0.03 1,000 0.19 31,000 0.13 21,000 0.07 11 000
0.50 982,000 3,041,000 0.67 20,000 0.41 13,000 0.03 1,000 0.17 16,000 0.12 11, 000 0.07 7 000
SkyTEMTM survey over Ni-Cu targets
The Type 2 and Type 3 mineralisation identified during the litho-geochemical study, which will be the main target,
are best targeted using electro-geophysical techniques such as the SkyTEMTM survey. The SkyTEMTM survey
detected conductors over three known Ni – Cu occurrences, including the Jacomynspan and Rok Optel deposits
and the Hartebeestpan 1 Anomaly (Figures 10 and 17). Interpretation of the EM data is ongoing. In addition to
the Jacomynspan anomaly, five anomalies were selected for follow-up as a first pass (Figures 11 and 17).
The SkyTEMTM anomaly over the Jacomynspan Prospect shows an extensive formational conductor continuing
south east from the known deposit for 4km and suggesting the Jacomynspan Intrusion to be developed over this
strike length. The Ni-Cu potential of the intrusion was not previously fully tested over this strike length (Figure
17).
Modelling of plates from the SkyTEMTM data, ground EM follow-up and diamond drilling to test for high tenor Ni-
Cu-Co-PGE mineralisation on these anomalies will be the next steps in follow up exploration programs.
About the Jacomynspan Nickel-Copper-Cobalt-PGE Deposit
The Jacomynspan-Deposit was first identified by Anglo American Prospecting Services (AAPS) with drilling
carried out along a 4km strike length. Resource drilling was carried out over a 1.3km central section of the strike
length where 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.
In July 2016, the Company entered into a binding term sheet to acquire up to a 59.2% interest over the
Jacomynspan Project from two companies, Namaqua Nickel Mining (Pty) Ltd and Disawell (Pty) Ltd
(Companies), which hold partly overlapping prospecting rights and mining right applications (Figure 7).
Orion’s earn-in right will be via a South African-registered special-purpose vehicle (SPV), established by the
Company as its vehicle for investment in the joint ventures and of which historically-disadvantaged South African
(HDSA) shall hold a minimum of 26% of the issued shares. To-date, Orion has satisfied its obligations for Orion
SPV to earn an initial interest of 25% (Orion 18.5%).
Marydale Gold-Copper Project
This project is defined in terms of the Agama: Rich Rewards tenement holding and includes the known Marydale
Gold Copper Deposit.
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 7).
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 copper - gold mineralisation, and 4 holes on IP anomalies.
Drilling showed 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 possible sale.
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).
As foreshadowed in the December 2017 Quarterly Report, IGO is completing a major regional scale
interpretation of the geological framework of the Albany-Fraser Orogen based on first pass aircore drilling
(principally used to improve the understanding of the bedrock geology in the project area) and high resolution
geophysical data including a regional scale Spectrem airborne EM survey.
The regional scale work is also enabling areas with lower prospectivity, either due to the underlying geology or
the depth of transported cover, to be identified and relinquished so that exploration can focus on the most
prospective areas.
In addition to the regional scale surveys, a ground EM survey is currently underway on parts of the Orion
tenements where VTEM and aircore geochemistry anomalism has previously been identified.
Under the JVA, IGO is responsible for all exploration on the tenements and provides regular updates to Orion of
its activities and results arising from them. No material results were received during the Quarter.
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 Change in Quarter Joint Venture Partner
Interest
South Africa
NC30/5/1/1/2/10445PR PCM 73.33% --- ---
NC30/5/1/2/2/10244PR Marydale 73.33% --- ---
NC30/5/1/1/2/11841PR(1) Vardocube 70.00% Granted ---
(1)
NC30/5/1/1/2/11850PR Bartotrax 74.00% Granted ---
NC30/5/1/1/2/10032MR(2) Namaqua-Disawell 18.50% Earn in Achieved Namaqua Nickel Mining (Pty) Ltd
NC30/5/1/1/2/10938PR Namaqua-Disawell 18.50% Earn in Achieved Disawell (Pty) Ltd
NC30/5/1/1/2/11010PR Namaqua-Disawell 18.50% Earn in Achieved Namaqua Nickel Mining (Pty) Ltd
NC30/5/1/1/2/816PR Masiqhame 49.00% Earn in Achieved Masiqhame 855 (Pty) Ltd
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% --- ---
Ownership
Tenement Project Interest Change in Quarter Joint Venture Partner
Victoria
MIN5487(3) Walhalla 100% --- ---
EL5340 Walhalla 100% --- ---
EL5348 Walhalla 100% --- ---
(1) Execution of Prospecting Right expected April 2018.
(2) Execution of Mining Right pending.
(3) MIN 5487 has been sold to Centennial Mining Ltd.
Corporate
Cash and Finance
Cash on hand at the end of the Quarter was $1.6M.
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 capital raisings completed by the Company
during the December 2017 Quarter.
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 a General Meeting held
on 13 December 2017.
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 Company’s Prieska Zinc-Copper Project. 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.
Board Changes
Mr Mark Palmer joined the Orion Board on 31 January 2018 as a Non-executive Director and the appointee
nominated by Tembo Capital.
Following Quarter end, on 18 April 2018 the Company announced that Mr Michael Hulmes had been appointed
as a Non-executive Director of Orion.
Following Mr Hulmes’ appointment, the Company also advised that Mr William Oliver stepped down as a Non-
executive Director, effective 18 April 2018, in order to focus on his other business interests. Mr Oliver will continue
to consult to the Company on technical matters in his new role, including supervision of the Fraser Range joint
venture and the Connors Arc Project.
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 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)) 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.
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.
In line with the terms of the Sale Facility, a total of 1,463,432 Shares (representing approximately 0.1% of Shares
on issue) were sold at the sale price of 3.2 cents per Share which was higher than the authorised price as
required by the Company’s constitution. Following the Sale Facility, the total number of shareholders was
reduced by 1,020.
Shareholders who were the holder of a less than a marketable parcel of Shares as at 5:00pm (Melbourne time)
19 January 2018, who had not taken steps to retain their holding under the Sale Facility, received payment of
their respective proceeds in February 2018.
Change of Status, Name and Replacement Constitution
At the General Meeting held on the 13 December 2017, shareholders approved the change of status from a no
liability company, “Orion Minerals NL”, to public company limited by shares, “Orion Minerals Limited”. The change
to the status and name of the Company came into effect on 2 February 2018. The ASX Code for the Company
remains unchanged.
Also, at the General Meeting, a new constitution of Orion was adopted by shareholders by special resolution and
came into effect on 2 February 2018.
Euroz Research Report
On 1 March 2018, Euroz Securities Limited (Euroz) completed a research report on Orion. To view a copy of
the report, please visit our website at:
https://orionminerals.com.au/investors/analyst-coverage/.
Euroz makes the report available (and Orion reproduces it) subject to the disclaimer and disclosure on page 14
of the report.
Hannam & Partners Research Report
On 12 March 2018 the Company announced that Hannam & Partners had completed a research report on Orion.
To view a copy of the report, please visit our website at:
https://orionminerals.com.au/investors/analyst-coverage/.
As disclosed in the report, the cost of producing the report was covered by Orion as part of a contractual
arrangement with Hannam & Partners. Hannam & Partners makes the report available (and Orion reproduces it)
subject to the disclaimer on page 24 of the report.
30 April 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) 207 920 3150
E: michael.vaughan@fivemark.com.au E: orion@tavistock.co.uk
Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000
Date: 30/04/2018 02:15:00 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,
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