Wrap Text
Fixed Loop TDEM Results Confirm Cu-Zn Massive Sulphide Targets at Bolsputs
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”)
FIXED LOOP TDEM RESULTS CONFIRM CU-ZN MASSIVE SULPHIDE TARGETS AT BOKSPUTS
- Two compelling volcanogenic massive sulphide targets identified from fixed-loop electromagnetic surveys.
- Targets lie within the known Boksputs VMS camp on the Masiqhame Prospecting Right.
- High conductance of the modelled plates suggests massive sulphide mineralisation.
- Modelled conductors coincide with highly prospective stratigraphic and structural settings.
“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.
Orion’s Managing Director and CEO, Errol Smart, commented:
"The fixed loop TDEM survey is rapidly confirming our expectations from the SkyTEM TM survey. The combination
of strong conductors identified in close proximity to known Zn-Cu sulphides is very encouraging. Orion continues to
identify and prioritise drill targets on the Masiqhame prospecting right.”
Orion Minerals Limited (ASX/JSE: ORN) (Orion or Company) is pleased to report positive Fixed-Loop Electro-
Magnetic (FLEM) survey results over Cu-Zn targets on the Masiqhame prospecting right in the Areachap Belt, South
Africa (Figure 1). FLEM surveys and geological mapping following up on helicopter-borne Electro-Magnetic (AEM
or SkyTEMTM) anomalies on the Masiqhame prospecting right commenced in July 2018. Orion is targeting
Volcanogenic Massive Sulphide (VMS) Zn – Cu mineralisation at Masiqhame.
Historic exploration by various companies including Anglovaal, Anglo American Prospecting Services, Shell
Minerals and Iscor during the 1970s to 1990s confirmed the presence of VMS deposits on the Masiqhame
prospecting right. These include the well-documented Zn-Cu deposits of Kantienpan and Boksputs. These deposits
occur on the western and eastern margins of the Areachap Belt respectively, in the northern part of the Masiqhame
prospecting right and 110km north-west of Orion’s Prieska Zinc-Copper Project (Figure 1).
Three FLEM grids have been surveyed by Orion over the Boksputs area, following up on anomalism detected by
Orion’s SkyTEMTM survey. Two strongly conductive plates were modelled on the grids named B1 and B4 (Figure 2).
The two conductors present high priority, historically unexplored, compelling drill targets, in close proximity to the
known Boksputs VMS deposits.
The plate modelled at target B1 is highly conductive, with a conductance of 3000 Siemens (S) (Table 1). The
modelled plate measures 1,000m by 1,000m with the top of the plate 500m below surface. Geological mapping
indicates the plate lies along the contact between meta-psammitic rocks (sedimentary rocks) and amphibolite (mafic
volcanic rocks) (Figure 3). This setting is similar to that of the VMS style mineralisation discovered by Shell Minerals
at Boksputs in the 1970s. The depth to the top of the B1 anomaly is probably beyond the detection limits of the
geophysical instruments available to previous explorers and thus the area has not been subjected to historical
exploration.
The anomaly at target B4 has a moderate conductance of 400 S. The modelled conductor has dimensions of 1,000m
by 300m. Structural interpretation shows that the anomaly occurs in the same stratigraphic position as the Boksputs
mineralisation and is coincident with the plunge of a tight fold closure (Figure 3). The B4 conductor is of particular
interest as strata-bound sulphide mineralisation in highly-deformed metamorphic terrains is commonly localised
within fold closures.
A third, lower-priority target at BS1 is of some interest due to the identification of a thin exhalite at the outcrop
position. Such exhalites are often strong indicators for VMS mineralisation.
Orion’s geophysical surveys have been undertaken using equipment designed specifically to test for massive
sulphide mineralisation. The data is validated and processed by Spectral Geophysics in South Africa and then
interpreted by Southern Geoscience Consultants (Perth, Western Australia). FLEM surveys and geological mapping
in the area are ongoing.
ID Size Depth Conductance Dip Geology
B1 1000 X 500m 3000S SW Meta-psammite / pelite and amphibolite.
1000m Minor exhalites present.
B4 300 X 1000m 350m 400S 60SW Plunge north-west. Sand covered.
Magnetic interpretation shows associated fold
closure.
BS1 800 X 700m <100m 40S W Meta-volcano sedimentary package.
Thin exhalite horizon present.
Table 1: Table showing VMS targets selected for follow-up and targets covered with FLEM on the
Masiqhame prospecting right.
About the Boksputs Deposits
Sulphide mineralisation at Boksputs was drilled by Shell (South Africa) in the 1970s. Mineralisation occurs as
intercalated lenses within a sequence of amphibolite, biotite-quartz-feldspar gneiss and mica schist. Mineralisation
was reported to consist of disseminated to semi-massive sulphides in lenses of 200m by 300m and 3m in width.
Massive sulphide zones do occur within these lenses. Host rocks to the sulphide mineralisation are chlorite gneiss,
amphibole-feldspar gneiss, amphibolite and garnet-biotite gneiss. Chalcopyrite and sphalerite are the dominant
economic minerals. Mineralisation occurs as chalcopyrite/sphalerite/pyrite and magnetite/chalcopyrite types.
Features such as the association of predominantly pyrite and chalcopyrite hosting rocks, with basaltic host rocks of
low-K tholeiitic composition and distinctive REE distribution curves of the amphibolite suite, were reported to indicate
a positive correlation to an island arc setting and Besshi type deposits. Besshi type deposits are known for their
large tonnages (e.g. Besshi in Japan (230 Mt) and Windy Craggy in British Columbia (297 Mt)).
Details of TDEM system in use
The AEM survey targets are followed up with a best-in-class electromagnetic (EM) receiver manufactured in Perth,
Western Australia, by Electromagnetic Technologies. The current source is a custom-built, Time Domain Electro-
magnetic (TDEM) transmitter, capable of transmitting 140 Amps into a 1km-by-1km aluminium wire loop. This
current source is coupled with military-grade fluxgate sensors for shallow exploration and super sensitive, high-
temperature Super Conducting Quantum Interference Devices (SQUIDs) sourced from Germany, which are state-
of-the-art sensors for deep exploration. The SQUID system, together with the high-powered TDEM transmitter, can
detect moderate- to super-conductors to depths of approximately 1,000m. Readings are taken every 50-100m on
grid-lines spaced 200m apart.
Errol Smart
Managing Director and CEO
25 September 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
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 Professional Organisation (RPO). 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 as a requirement under the JORC Code (2012) requirements for the reporting of Exploration Results for the Masiqhame
Project.
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 mineral rights to the property are vested in the state and the Act
and land tenure agreements or material issues with third parties such as joint regulates the exploration and mining industry in South Africa
status ventures, partnerships, overriding royalties, native title interests, - A prospecting right in accordance with the Act was granted to Masiqhame
historical sites, wilderness or national park and environmental Trading 855 Pty Ltd (Masiqhame) to prospect for a period of five years
settings. effective from 12 March 2014.
- The security of the tenure held at the time of reporting along with any - The prospecting right was granted in respect of the farm Koegrabie 117
known impediments to obtaining a licence to operate in the area. comprising Portions 2 – 11; Boksputs 118 Portions 1,7,8,9,10; Kantien
Pan 119 Portions 1 and 2; Van Wyks Pan Portions 1-5; and Zonderpan
Portions 1,5,6,7,8 situated in the Magisterial / Administrative District of
Kenhardt, Northern Cape Province. The total Area measures
98435.8548Ha in extend.
Exploration done by - Acknowledgment and appraisal of exploration by other parties. - Much of the background information in this announcement was sourced
other parties from:
o Humphreys, H.C, 1986. Metamorphic imprints upon sulphide
mineralisation at Boksputs, Northern Cape South Africa. Mineral.
Deposita 21, p271 – 277.
o Geringer, G.J, Pretorius, J.J and F.H. Cilliers, 1987. Strata-bound
copper-iron sulphide mineralisation in a Proterozoic front arc setting
at Boksputs, Northwest Cape, South Africa. Mineral. Deposita 22,
p81 – 89.
o Council of Geoscience, 2008. Geological Map of the Republic of
South Africa.
o Previous exploration in the Areachap Belt including at the Boksputs
and Kantienpan deposits were carried out by Shell South Africa,
Anglovaal, Phelps Dodge, Anglo American and Iscor.
o Exploration activities across the Project area included surface
geochemical sampling, geophysical surveying, diamond core and
air drilling.
Geology - Deposit type, geological setting and style of mineralisation. - Mineralisation at Kantienpan and Boksputs are of the Volcanogenic
Massive Sulphide Type.
- Mineralisation occur in the Proterozoic Areachap Group that also host
other VMS deposits including Areachap, Kielder and Prieska.
- The mineralisation is strata-bound, and sulphide concentrations range
from disseminated to massive.
Drill hole - A summary of all information material to the understanding of the - N/A
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, - N/A
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 highgrade
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 - N/A
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 - N/A
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
practicable, representative reporting of both low and high grades - N/A
and/or widths should be practiced to avoid misleading reporting of
Exploration Results.
Other substantive - Other exploration data, if meaningful and material, should be reported - Extensive geology mapping, geochemical sampling, and airborne and
exploration data including (but not limited to): geological observations; geophysical ground geophysical programmes were undertaken by previous explorers,
survey results; geochemical survey results; bulk samples – size and using the equipment and methods available at that time. These
method of treatment; metallurgical test results; bulk density, geophysical data are not all available.
groundwater, geotechnical and rock characteristics; potential - In 2017 and 2018 Orion undertook a regional SkyTEM TM geophysical
deleterious or contaminating substances. survey. The results are reported in ASX releases 1 February 2018 and 8
March 2018. Interpretation of the results is ongoing.
- Ground EM surveys are underway.
Further work - The nature and scale of planned further work (e.g. tests for lateral - Further ground-based Fixed Loop Electromagnetic surveys will be
extensions or depth extensions or large-scale step-out drilling). undertaken to cover the extent of airborne conductors identified from the
- Diagrams clearly highlighting the areas of possible extensions, recent SkyTEMTM airborne survey. The detailed location and extent of
including the main geological interpretations and future drilling areas, this work is yet to be finalised.
provided this information is not commercially sensitive.
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