Wrap Text
Sulphides Intersected at Rok Optel Ni-Cu Prospect, Areachap Belt, Northern Cape, South Africa
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”)
SULPHIDES INTERSECTED AT ROK OPTEL NI-CU PROSPECT, AREACHAP BELT, NORTHERN
CAPE, SOUTH AFRICA
“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.
- Semi-massive and injected-stringer sulphide veins intersected in the first hole testing fixed-loop
electro-magnetic surveys at Rok Optel.
- Intersection interpreted to be in a magma conduit intrusion with three horizons of Ni-Cu-bearing semi-
massive and stringer-massive sulphide mineralisation
Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to provide an update on diamond
drilling of the first Ni-Cu target on the Namaqua and Disawell mineral rights (Disawell) in the Areachap Belt,
South Africa. Fixed-Loop Time Domain Electro Magnetic (FLTDEM) surveys and geological mapping over
helicopter-borne electro-magnetic anomalies at the Disawell Prospects commenced in May 2018 (refer ASX
release 1 February 2018). Diamond drilling commenced in July 2018, targeting high-grade, magmatic sulphide
Ni-Cu-Co-PGE mineralisation.
Drill hole OROD001 (Figures 1, 2 and 3) has intersected a thick succession of sulphide-bearing mafic to
ultramafic intrusive rocks. Importantly, injected veinlets of massive sulphide (locally >90% over 2-15cm
pyrrhotite, chalcopyrite and pentlandite mineralogy) confirm the presence of magmatic Ni-Cu sulphide
mineralisation.
The current OROD001 drill hole depth is at 390m. Drilling is continuing in ultramafic intrusion to test the
footwall contact, before down-hole electromagnetic surveys will be used to identify possible off-hole conductors
that may be associated with larger massive-sulphide lenses.
Recent FLTDEM surveys have shown that historic drilling at Rok Optel (refer ASX release 3 July 2018) had
failed to test areas of highest conductivity in close proximity to the conduit intrusions, which were shown to
host disseminated Ni–Cu-Co–PGE mineralisation (Figure 4).
The intersections achieved in OROD001 provide strong geological proof of concept for Orion’s expectation
that the Jacomynspan group of intrusions has good potential to host high-grade massive sulphide
mineralisation similar to the Nova - Bollinger deposit in the Fraser Range, Western Australia.
At Rok Optel, a relatively (compared to Jacomynspan) sparse “base-load” of Type 1 disseminated
mineralisation was encountered. The zones where mineralisation is present are characterised by forcible
injection of sulphide liquid intruding the partly solidified host intrusion, forming magmatic breccias hosting Type
2-style, massive-to-semi-massive sulphide mineralisation (Figure 1). This indicates that during the conduit life,
it accommodated through-flowing immiscible sulphide magma, which is a key characteristic for accumulation
of large massive sulphide lenses in ultramafic intrusions.
Comparisons to the Fraser Range Intrusions
The geotectonic setting and age of the Namaqua-Natal intrusions which the Jacomynspan are part of, are
directly comparable to those in the Fraser Range, Western Australia, where similar mafic to ultramafic
intrusions host the Nova - Bollinger massive sulphide orebody (Mineral Resource of 13.1Mt at 2% Ni, 0.8%
Cu) (refer Independence Group NL quarterly results presentation of 27 July 2018). Orion’s team, which has
extensive Fraser Range exploration experience, is able to draw meaningful comparisons between the two
terranes, which have similar ages, tectonic settings and metamorphic overprints.
Within both terranes, the intrusions were emplaced at a late stage of orogenesis, and at intermediate to deep
crustal level. Both terranes host morphologically complex, composite intrusions with stacked sill intrusions. At
Nova-Bollinger, the best mineralisation is located within the lowermost sill. At Rok Optel, diamond drilling is
now testing the full extent of the sill complex for the first time.
The rock types are similar within both terranes, being predominantly gabbro to norite, with localised layers of
harzburgite and troctolite. The chemistry of the intrusive rocks indicates derivation from fertile mantle-derived
magma that has undergone crustal contamination leading to sulphide liquid segregation.
Orion’s Managing Director and CEO, Errol Smart, commented:
"The first intersection at Rok Optel 2 has confirmed our expectation that the Jacomynspan intrusive complex
is fundamentally similar to what we saw in the Fraser Range. We have now demonstrated that geological
conditions exist for accumulation of large intrusive massive sulphide bodies similar to Nova - Bollinger and that
our modern exploration techniques will facilitate discovery of these massive sulphides. The similarity in
geological terranes between Areachap and Fraser Range is further underscored by Independence Group’s
recent announcement of their discovery of what appears to be a Prieska style VMS at Andromeda in the Fraser
Range.”
Errol Smart
Managing Director and CEO
30 July 2018
Errol Smart
Managing Director and CEO
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
Competent Person Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Richard
Hornsey (Pr.Sci.Nat.) Registration No: 400071/96, a Competent Person who is a member of the South African
Council for Natural Scientific Professionals, a Recognised Overseas Professional Organisation (ROPO). Mr
Hornsey is a Consultant to Orion. Mr Hornsey has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the JORC Code. Mr Hornsey consents to the inclusion in
this announcement of the matters based on his information in the form and context in which it appears.
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 (where applicable). To the maximum extent
permitted by law, Orion and any of its related bodies corporate and affiliates and their officers, employees,
agents, associates and advisers:
- disclaim any obligations or undertaking to release any updates or revisions to the information to reflect
any change in expectations or assumptions;
- do not make any representation or warranty, express or implied, as to the accuracy, reliability or
completeness of the information in this release, or likelihood of fulfilment of any forward-looking statement
or any event or results expressed or implied in any forward-looking statement; and
- disclaim all responsibility and liability for these forward-looking statements (including, without limitation,
liability for negligence).
Appendix 1: The following tables are provided in accordance with the JORC Code (2012) for the reporting of Exploration Results for the Jacomynspan Project.
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling - Nature and quality of sampling (e.g. cut channels, random chips, or - No drill hole core sampling has been undertaken at the date of
techniques specific specialised industry standard measurement tools appropriate reporting.
to the minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc.). These examples should
not be taken as limiting the broad meaning of sampling.
- Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems
used.
- Aspects of the determination of mineralisation that are Material to the
Public Report.
- In cases where ‘industry standard’ work has been done this would be
relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1
m samples from which 3 kg was pulverised to produce a 30 g charge
for fire assay’). In other cases more explanation may be required,
such as where there is coarse gold that has inherent sampling
problems. Unusual commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of detailed information.
Drilling techniques - Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air - Diamond core drilling was undertaken using HQ core size to drill
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, through the weathered zone (approximately 75m) reducing to NQ core
triple or standard tube, depth of diamond tails, face-sampling bit or in hard rock.
other type, whether core is oriented and if so, by what method, etc.). - The OROD001core was not oriented.
Drill sample - Method of recording and assessing core and chip sample recoveries - Core recoveries are assessed on a routine basis using drill rig and core
recovery and results assessed. yard standard procedures.
- Measures taken to maximise sample recovery and ensure - At the drill rig, core stick-ups are measured at the end of each run. The
representative nature of the samples. core is fitted together and placed into the core trays with a plastic block
- Whether a relationship exists between sample recovery and grade at the end of each run recording the hole depth and advance.
and whether sample bias may have occurred due to preferential - At the core yard, the length of core is measured for each run. The
loss/gain of fine/coarse material. measured length of core is subtracted from the run length recorded from
the driller’s stick-up measurements and recorded as a core gain or loss.
- During the logging process, core recoveries are considered, and the
cause of loss is quantified and described. The locations of ‘bottom
breaks’ relative to the core run markers are observed.
- No information is available yet to determine whether a relationship
exists between grade and core recovery.
Logging - Whether core and chip samples have been geologically and - The drill hole core has been geologically logged by the Competent
geotechnically logged to a level of detail to support appropriate Person. This process utilises a standard-format logging template
Mineral Resource estimation, mining studies and metallurgical designed specifically for this style of mineralisation.
studies. - Both quantitative and qualitative logging is undertaken dependent upon
- Whether logging is qualitative or quantitative in nature. Core (or the features being described. Qualitative parameters include lithology,
costean, channel, etc.) photography. colour, grain size, weathering, structural features, alteration, sulphide
- The total length and percentage of the relevant intersections logged. and oxide mineralisation, secondary mineralisation, and general
contextual comments. Quantitative parameters include intensity of the
qualitative parameters, mineralisation percentages, and magnetic
properties.
- The logs are recorded onto pre-designed templates and captured into
digital format at the project office.
- The drill hole core is photographed according to standard core yard
procedure and the photographs are digitally archived.
Sub-sampling - If core, whether cut or sawn and whether quarter, half or all core - No sampling has been undertaken to date.
techniques and taken.
sample preparation - If non-core, whether riffled, tube sampled, rotary split, etc. and
whether sampled wet or dry.
- For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
- Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.
- Measures taken to ensure that the sampling is representative of the
in-situ material collected, including for instance results for field
duplicate/second-half sampling.
- Whether sample sizes are appropriate to the grain size of the material
being sampled.
Quality of assay data - The nature, quality and appropriateness of the assaying and - No new analyses have been undertaken to date.
and laboratory tests laboratory procedures used and whether the technique is considered
partial or total.
- For geophysical tools, spectrometers, handheld XRF instruments,
etc., the parameters used in determining the analysis including
instrument make and model, reading times, calibrations factor
applied and their derivation, etc.
- Nature of quality control procedures adopted (e.g. standards, blanks,
mduplicates, external laboratory checks) and whether acceptable levels
of accuracy (i.e. lack of bias) and precision have been established.
Verification of - The verification of significant intersections by either independent or - No independent peer reviews have been undertaken.
sampling and alternative company personnel.
assaying - The use of twinned holes.
- Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
- Discuss any adjustment to assay data.
Location of data - Accuracy and quality of surveys used to locate drill holes (collar and - The drill hole collar was located using a handheld Garmin GPS. The
points down-hole surveys), trenches, mine workings and other locations drill hole azimuth and dip were surveyed using a Brunton compass.
used in Mineral Resource estimation. - Drill hole downhole surveys are undertaken using a North-seeking Gyro
- Specification of the grid system used. instrument.
- Quality and adequacy of topographic control. - The data are recorded using the WGS84 datum, UTM Zone 34S.
Data spacing and - Data spacing for reporting of Exploration Results. - This is the first drill hole into the Rok Optel prospect.
distribution - Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and
classifications applied.
- Whether sample compositing has been applied.
Orientation of data - Whether the orientation of sampling achieves unbiased sampling of - No sampling has yet been undertaken.
in relation to possible structures and the extent to which this is known, considering
geological structure the deposit type.
- If the relationship between the drilling orientation and the orientation
of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
Sample security - The measures taken to ensure sample security. - No sampling has yet been undertaken.
Audits or reviews - The results of any audits or reviews of sampling techniques and data. - No sampling has yet been undertaken.
6
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement - Type, reference name/number, location and ownership including - The farm Rok Optel 261 has overlapping rights (in respect of differing
and land tenure agreements or material issues with third parties such as joint minerals) held by two companies.
status ventures, partnerships, overriding royalties, native title interests, - Namaqua Nickel Mining (Pty) Ltd holds a mining right NC 10032MR
historical sites, wilderness or national park and environmental (over Die Plaas No. 387: Whole Farm Hartebeest Pan 175: RE, Portion
settings. 5 Jacomyns Pan 176: RE, Portion 1, Rok Optel 261: RE, Portion 1,
- The security of the tenure held at the time of reporting along with any Portion 2, Portion 3) for the mining of Nickel, Copper, Cobalt, PGM,
known impediments to obtaining a licence to operate in the area. Gold. This right was granted on 19 September 2016 subject to certain
conditions, which include local community participation and financial
guarantees, but is not yet executed.
- Disawell (Pty) Ltd holds two prospecting rights, namely NC
30/5/1/1/2/11010 PR (over Jacomyns Pan 176: RE, Portion 1, Portion 2
Rok Optel 261: RE, Portion 1, Portion 2, Portion 3 Rooi Puts 172:
Portion 2, Portion 3, Portion 4) and NC 30/5/1/1/2/10938 PR (over
Hartebeest Pan 175: RE, Portion 3, Portion 4, Portion 5 Farm 387: RE),
each for the exploration of Zinc, Lead and Sulphur.
- Disawell and Namaqua entered into an earn-in agreement with Orion
Minerals, in terms of which Orion (through its subsidiary, Area Metals
Holdings No. 3 (Pty) Ltd) is granted the right to invest in these
companies.
- No historical or environmental impediments to obtaining an operating
licence are known.
Exploration done by - Acknowledgment and appraisal of exploration by other parties. - On Rok Optel 261, exploration has been undertaken by several parties,
other parties although only limited data are available. Hochmetals SWA undertook
exploration during the early 1970’s, and drilled the drill holes previously
reported upon by Orion Minerals. Poor quality standardised and
summarised geological logs submitted to government are the only
information remaining from this period.
- Newmont undertook exploration from 1975 to 1977. The Hochmetals
core was re-analysed. The existing drill hole PUD001 was deepened by
70m and a new hole (PUD007) drilled to 522.90m. A report (Gresse
1977) with drill plans and sections is available, and has been captured
into the database.
7
Criteria JORC Code explanation Commentary
Geology - Deposit type, geological setting and style of mineralisation. - The Rok Optel mineralisation is contained within portions of a
metamorphosed mafic to ultramafic intrusion at least 150m thick
containing magmatic nickel-copper sulphides. The intrusion is
predominantly norite and gabbro, with lenticular bodies of pyroxenite to
harzburgite. The intrusion is enclosed within quartz-feldspar-biotite-
garnet (sillimanite) gneiss country rocks.
Drill hole - A summary of all information material to the understanding of the - See table 1.
Information exploration results including a tabulation of the following information
for all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above sea level in
metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
- If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from
the understanding of the report, the Competent Person should clearly
explain why this is the case.
Data aggregation - In reporting Exploration Results, weighting averaging techniques, - No assays are available.
methods maximum and/or minimum grade truncations (e.g. cutting of high
grades) and cut-off grades are usually Material and should be stated.
- Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used
for such aggregation should be stated and some typical examples of
such aggregations should be shown in detail.
- The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship - These relationships are particularly important in the reporting of - No assays are available.
between Exploration Results.
mineralisation - If the geometry of the mineralisation with respect to the drill hole
widths and intercept angle is known, its nature should be reported.
lengths - If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (e.g. ‘down hole length, true
width not known’).
8
Diagrams - Appropriate maps and sections (with scales) and tabulations of - Appropriate diagrams showing the intersections are reported in the main
intercepts should be included for any significant discovery being body of the text.
reported. These should include, but not be limited to a plan view of
drill hole collar locations and appropriate sectional views.
Balanced reporting - Where comprehensive reporting of all Exploration Results is not - The visible nature of the results has been put into appropriate context
practicable, representative reporting of both low and high grades mand it is noted that no conclusions can be drawn until results are
and/or widths should be practiced to avoid misleading reporting of returned from the laboratory.
Exploration Results.
Other substantive - Other exploration data, if meaningful and material, should be reported - No other exploration data are reported.
exploration data including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples – size and
method of treatment; metallurgical test results; bulk density,
groundwater, geotechnical and rock characteristics; potential
deleterious or contaminating substances.
Further work 1. The nature and scale of planned further work (e.g. tests for lateral - The drill hole will be continued to intersect the base of the Rok Optel
extensions or depth extensions or large-scale step-out drilling). intrusion; following which a down-hole electro-magnetic survey will be
2. Diagrams clearly highlighting the areas of possible extensions, undertaken. Follow-up work will be dependent upon the survey results.
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
9
Date: 30/07/2018 08:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
