ORION MINERALS LIMITED - Drilling Commences on New High Conductance Target at Rok Optel, Northern Cape, South Africa

Release Date: 06/08/2018 08:20
Code(s): ORN
 
Wrap Text
Drilling Commences on New High Conductance Target at Rok Optel, 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”)

DRILLING COMMENCES ON NEW HIGH CONDUCTANCE TARGET AT ROK OPTEL, 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.

     -   A fourth Fixed Loop Time-Domain Electro-Magnetic survey has been completed at Rok Optel,
         detecting the highest conductance measured yet at the northern end of the cluster.
     -   The modelled conductance of 9400S is three times the highest conductance previously detected at
         Rok Optel.
     -   Drilling has commenced to test this high conductance target.

Orion’s Managing Director and CEO, Errol Smart, commented:

"Our first intersection at Rok Optel demonstrated that geological conditions exist for accumulation of large
intrusive massive sulphide, Ni-Cu bodies. The new ROK 4 conductor, which is three times higher in
conductance than the ROK 2 conductor at drill hole OROD001 is very encouraging for the potential to discover
a large massive sulphide body.”

Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to provide an update on ongoing
exploration at the Rok Optel Ni-Cu target on the Namaqua and Disawell mineral rights (Disawell) in the
Areachap Belt, South Africa (Figure1). 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 (refer ASX release 30 July 2018) intersected a succession of sulphide bearing mafic to
ultramafic intrusive rocks, over a down-hole width of 186.86m. Most importantly, the sulphide mineralisation
includes syn-magmatic injection veins and stringers of massive sulphide comprising pyrrhotite, chalcopyrite
and pentlandite. The hole was completed at 412.06m.

An additional FLTDEM grid (ROK4) has now been completed to the north of grid ROK1 (Figure 2) to test the
extension of the conductive zone and better define the anomaly for drilling. Plate models have orientation
consistent with the intrusion morphology as currently understood from the available drill hole and surface
mapping data. The plate models at ROK 4 (Table 1) have conductance of up to 9400S and are consistently
approximately 100m x 300m in area. The intimate associations and consistent plunge of the target indicate
that this anomaly is likely to be an extension of the mineralisation drilled in OROD001 (target plate
conductances of 1250 to 2900S), with interpreted increasing sulphide content toward the north. A second
diamond drill hole, OROD002, was started on 4 August 2018 to test the high conductance target.

In parallel with drilling at OROD002, drill core processing, sampling and analysis of OROD001 is continuing
and fieldwork is underway to augment the historic surface mapping. All information is being integrated to
enable construction of a three-dimensional intrusion model to enable optimal drill targeting. The Rok Optel
intrusion remains open at its northern, southern, and western margins.


6 August 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).

                  X   Y UTM34S     Elevation   Initial Depth   Final Depth (m)         Dip    Azimuth
           UTM34S                        (m)             (m)                     (degrees)   (degrees)
OROD001   580215.00   6746005.00    1,059.00            0.00           412.06       -60.00         120
OROD002   580360.00   6746760.00    1,559.41            0.00           450.00       -65.00         090

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 factors
                            applied and their derivation, etc.
                        -   Nature of quality control procedures adopted (e.g. standards, blanks,
                            duplicates, 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.                           - OROD001 and OROD002 are the first and second drill holes by Orion
distribution           -    Whether the data spacing and distribution is sufficient to establish the       Minerals into the Rok Optel prospect. Seven drill holes were drilled by
                            degree of geological and grade continuity appropriate for the Mineral          previous explorers.
                            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.


Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)

 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, 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.
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 2.
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 have been undertaken.
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 have been undertaken.
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’).
Diagrams               - Appropriate maps and sections (with scales) and tabulations of             - The prospect plan indicates the drilled and planned drill hole localities.
                         intercepts should be included for any significant discovery being
                         reported. These should include, but not be limited to a plan view of
                         drill hole collar locations and appropriate sectional views.
Balanced reporting     - Where comprehensive reporting of all Exploration Results is not            - The visible nature of the results has been reported in an appropriate
                         practicable, representative reporting of both low and high grades            manner. No conclusions can be drawn with respect to the grade of the
                         and/or widths should be practiced to avoid misleading reporting of           intersected mineralisation until analytical data are received from the
                         Exploration Results.                                                         laboratory.
Other substantive      - Other exploration data, if meaningful and material, should be reported     - The Time Domain Electromagnetic Surveys are undertaken using a
exploration data         including (but not limited to): geological observations; geophysical         best-in-class electromagnetic receiver manufactured by
                         survey results; geochemical survey results; bulk samples – size and          Electromagnetic Technologies. The source is a custom-built Time
                         method of treatment; metallurgical test results; bulk density,               Domain Electromagnetic transmitter, capable of transmitting 140 Amps
                         groundwater, geotechnical and rock characteristics; potential                into a 1 x 1km aluminium wire loop. The source is coupled with military
                         deleterious or contaminating substances.                                     grade fluxgate sensors for shallow exploration and super-sensitive high-
                                                                                                      temperature Super Conducting Quantum Interference Devices
                                                                                                      (SQUIDs) manufactured in Germany, which are state of the art for
                                                                                                      deeper exploration. The SQUID system was employed at the ROK4
                                                                                                      grid and can detect moderate to super-conductors to approximately

                                                                                               1,000m below surface. Readings are taken every 50-100m on 200m-
                                                                                               spaced grid lines.
Further work   1. The nature and scale of planned further work (e.g. tests for lateral       - Drill hole OROD001 intersected the base of the Rok Optel intrusion at
                  extensions or depth extensions or large-scale step-out drilling).            387.82m and was completed at 412.06m. A down-hole electro-
               2. Diagrams clearly highlighting the areas of possible extensions,              magnetic survey will be undertaken. Follow-up work will be dependent
                  including the main geological interpretations and future drilling areas,     upon the survey results.
                  provided this information is not commercially sensitive.                   - Drill hole OROD002 will be drilled as indicated in the report to a depth
                                                                                               dependent upon the host stratigraphy and mineralisation. The hole will
                                                                                               then be surveyed using down-hole electromagnetics.

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