Wrap Text
Quarterly Activities Report for the Period ended 30 September 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 30 SEPTEMBER 2018
“Figures" and “tables” referred to throughout this announcement can be viewed on the pdf version of the
announcement, available on the Company's website, www.orionminerals.com.au.
HIGHLIGHTS
- Resource drilling at the Prieska Zinc-Copper Project continues to deliver positive results:
o 86 massive-sulphide intersections in Deep Sulphide Target confirm historical results.
o Resource drilling of the south-eastern continuation of the Deep Sulphide Target on the Vardocube
Prospecting Right continued.
o Updated JORC Mineral Resource estimate scheduled for December 2018.
- Mine Feasibility Studies reach significant milestones:
o Preliminary mine design layout and schedule completed, together with selection of underground
mining fleet.
o Follow-up locked-cycle metallurgical test work on the Deep Sulphide Target completed, confirming
targeted recoveries and production of saleable zinc and copper concentrates.
o Significant progress with power and water supply agreements, product logistics and marketing and
permitting.
- Near-mine exploration program commenced:
o Ground EM survey on Bartotrax Prospecting Right indicates conductor along strike of known Annex
mineralisation.
o Drill testing of EM conductor commenced.
o Repli Trading Prospecting Right (Doonies Pan) granted.
- Regional exploration program continues:
o Drill testing of Fixed-Loop Time-Domain Electromagnetic targets (FLTDEM) started and is ongoing on
the Namaqua-Disawell Prospecting Rights.
o Drilling at the Rok Optel Prospect intersected several zones of Ni-Cu-PGE mineralised stringer and
massive sulphides.
o Two down-hole electromagnetic surveys (DHEM) completed on the Rok Optel Prospect with highly-
conductive off-hole bodies detected in both surveys.
o Field mapping over SkyTEMTM anomalies continued.
o Five FLTDEM surveys completed over the Masiqhame Prospecting Right.
o FLTDEM surveys outline two highly-prospective drill targets on Boksputs in the Masiqhame
Prospecting Right.
- Safety, environment and community engagement:
o Zero lost-time injuries for 131,351 man-hours worked at the Prieska Project.
- $18M capital raising initiatives completed during the Quarter:
o $11.25M raised via placements to sophisticated and professional investors at $0.037 per Share,
conducted via two tranches. Tranche 1 Shares were issued during the June 2018 Quarter raising
$3.4M and Tranche 2 Shares were issued during the Quarter raising $7.9M.
o $0.25M raised via placement of Shares at $0.037 per Share to the Company’s Chairman, Mr Denis
Waddell.
o Tembo Capital confirmed its continued support of Orion through subscribing for $6.4M in Shares, at
an issue price of $0.037 per Share, with the subscription amount reducing the amount re-payable to
Tembo Capital under the Loan Facility.
Operations Report
Orion Minerals Limited (Company or Orion) strives to achieve a sustainable balance of intense operations
with a strong focus on social responsibility.
Health and Safety, Environmental Management and Community Engagement
Health and Safety
No lost-time injuries were reported during the Quarter.
At the Prieska Zinc-Copper Project (Prieska Project), which includes underground activity, the Lost-Time
Injury Frequency Rate (LTIFR) per 200,000 man-hours worked was zero for the Quarter and for the financial
year to date. One medical treatment case with a drill operator took place during the Quarter.
Hours Worked
Category of Work
Quarter Financial Year to Date
Exploration 128,971 128,971
Mine Re-Entry 2,380 2,380
Total 131,351 131,351
A National Safety Day – in line with the safety initiative being promoted by the Minerals Council of South Africa
– took place at the Prieska Project site during the Quarter. The event was attended by 200 people, including
the Company’s staff as well as contracted employees of Precision Capital Development Services (Pty) Ltd
(PCDS), Discovery Drilling (Pty) Ltd (Discovery Drilling) and the UMS Group (Shaft Sinkers).
The day focused on two key sections from the Mine Health and Safety Act, namely that safety is everyone’s
responsibility and an employee’s right to leave a dangerous work-place. Each company gave a presentation
on safety topics relevant to their respective work-streams. DRA Projects South Africa (Pty) Ltd (DRA) also
took part in the safety day, with a similar event held at its Cape Town offices.
Environmental Management
Representatives from the Department of Mineral Resources were invited for a project familiarisation visit. An
environmental inspection was carried out and the need to improve on hydrocarbon management was identified.
Codes of practices were updated and amended as necessary.
One environmental incident took place in the Quarter, which was an oil spill from an exploration drill rig.
Approximately 30 litres of oil discharged from a leaking hose on a night shift. The contaminated soil was treated
and removed in accordance with hydrocarbon management procedures.
Community Engagement
Engagement with the Siyathemba Municipal Council, in terms of the Memorandum of Understanding and the
Steercom, continued during the Quarter with particular focus on the following:
- Water infrastructure: A Memorandum of Understanding has been signed with the Siyathemba
Municipality to secure a long-term water supply for the Prieska Project in return for a commitment by
the Company to upgrade the municipal waterworks to meet the Project’s requirements. This
arrangement will also benefit the community as a whole. A Steercom Water Infrastructure Sub-
Committee has been formed to draft a supply agreement in time for the conclusion of the Company’s
Bankable Feasibility Study (BFS).
- Residential development: A Steercom Residential Development Sub-Committee has been
established to ensure that the Company’s accommodation requirements are integrated with the
Siyathemba Municipality residential development strategy.
- Environment: The Company has been instrumental in reinvigorating the “Prieska Greening
Committee”, which aims to improve the physical environment and therefore the living conditions for
Prieska residents. A non-profit company has been registered (Prieska Greening NPC) and the
Company is facilitating the provision of legal assistance to formulate a Memorandum of Incorporation
(MOI) and a Service Level Agreement (SLA) between the Prieska Greening NPC and the Siyathemba
Municipality, which together will provide the framework through which the greening objectives are
achieved. In the meantime, the greening initiative was initiated with the Company’s active
involvement, through successful Arbor Week activities during September 2018. These included the
planting of shade and fruit trees and the establishment of backyard vegetable gardens for indigent
members of the community.
In August 2018, the Company arranged an educational seminar for small, medium and micro-sized enterprises
(SMME) and non-governmental organisations (NGO) in Prieska. Presenters included the Department of
Economic Development and Tourism (DEDAT), South African Revenue Services (SARS) and the Industrial
Development Corporation (IDC).
The event was well attended with more than 70 representatives from the Prieska business and NGO
communities. The Company plans to continuously facilitate local enterprise education and development.
In order to support the stimulation of economic growth through enterprise development, the Company
continued to encourage potential local suppliers of goods and services to register online via the Supply Chain
Network (SCNet) portal. At the time of reporting, over 80 businesses were registered on this portal, of which
more than 50 are located in the Siyathemba area.
The Company will utilise this portal to assess the capabilities of local enterprises to fulfil the future requirements
of the mine.
Community members seeking future mine employment continued to submit their curricula vitae and
expressions of interest at the community liaison office, and at the time of reporting the Company’s database
has reached over 550 curricula vitae.
Analysis of the local skills base commenced during the Quarter as an input into the human resource and skills
development plan required for the BFS and to meet the SLP commitments.
In August, the Regional Manager and other senior members of the management team of the Northern Cape
regional branch of the Department of Mineral Resources (DMR) visited the Prieska Project site. This was
followed in September by a visit by DMR officials of both the regional branch and the Pretoria head office.
The Company is encouraged by the commitment by the DMR at all levels to actively engage with the Company
to facilitate the progression of the Company’s projects within the regulatory environment.
Exploration and Mine Development
Areachap Belt Projects (South Africa)
The Company continued an intensive drilling campaign at the Deep Sulphide Target of the Prieska Zinc-
Copper Project (Prieska Project) during the Quarter, with the aim of upgrading the classification of Mineral
Resources in accordance 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 for the BFS, which the Company aims to complete
in Q2 2019.
Prieska Zinc-Copper Project
The Prieska Project remains the focus of the Company’s activities and is at an advanced stage of
Feasibility Studies.
Project Overview
The Prieska Project covers un-mined dip and strike extensions from a historical underground mining operation.
Mineralisation was delineated by extensive drilling undertaken by the previous owners. The Company 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)). 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 the grade of
mineralisation.
Since acquiring the Prieska Project in March 2017, 261 additional drill holes have been digitised from historical
mine plans below the -680m level. While the data have shortcomings due to the loss of some historical records
which prevents classification of Mineral Resources in accordance with the JORC Code (2012), the Company
is encouraged by the in-fill and confirmatory drilling results to date.
By 30 September 2018, 87 mother and deflected holes for resource estimation, and 15 deflections for
metallurgical test work, had been drilled in the Deep Sulphide Target.
Deep Sulphide Target drilling
During the Quarter, the Company continued with an intensive Deep Sulphide Target drill program which was
mainly focused in the areas of the south-eastern Vardocube Prospecting Right, and the north-western Repli
Prospecting Right (Figure 1). A total of 84,959m of drilling has been completed on the Deep Sulphide Target
as at the end of September 2018.
At the height of activity, 18 surface diamond drill rigs were in operation, 14 of which were drilling on the
Vardocube extension of the Deep Sulphide resource (Figure 1). A total of 17,804m of diamond drilling was
completed during this Quarter, of which 15,013m was drilled on the Vardocube Prospecting Right.
The Company’s drill program aims to provide statistical validation of historical drill data available for the Deep
Sulphide Target, as well as to in-fill data points required for optimal drill spacing to allow classification of the
Mineral Resource in accordance with the JORC Code (2012). Drilling is also testing new targets and extending
the known mineralisation outside of the historical drill grid.
Drilling results from 20 drill hole intersections targeting the Deep Sulphide Target were announced for this Quarter
(Table 1 and Figures 2-5, refer ASX release 18 September 2018 and 15 October 2018). These results are
consistent with previously reported intersections in the vicinity of these recent intersections.
By the end of September 2018, the Company had completed 85 mother and deflected holes and received
assays from 69 intersections on the Deep Sulphide target (Figures 2-5).
Intersections in these holes were achieved at vertical depths of 880m to 1,220m and required 467 directional
wedges to steer the drilling to pre-determined target points. At the end of the Quarter, analytical results from
an additional 15 intersections were awaited while two holes were still in progress.
Table 1: Drill-hole intersections reported from the Deep Sulphide Target for the September 2018
Quarter (refer ASX releases 18 September and 15 October 2018). All intersections weighted by length
and relative density.
East North From To Length Cu Zn Au Ag
Drill hole (WGS84 (WGS84
(m) (m) (m) (%) (%) (g/t) (g/t)
LO23) LO23)
Repli
-67,254 -3,315,542 1128.45 1132.75 4.30 1.87 4.61 0.33 20
OCOD060_D4
-67,254 -3,315,542 1166.75 1168.30 1.55 0.78 7.57 0.21 8
East North From To Length Cu Zn Au Ag
Drill hole (WGS84 (WGS84
(m) (m) (m) (%) (%) (g/t) (g/t)
LO23) LO23)
OCOD115_D1 -68,303 -3,314,265 979.55 980.95 1.40 2.31 1.78 0.19 20
OCOD116_D4 -68,313 -3,314,367 1021.91 1027.58 5.67 0.67 2.74 0.18 8
-67,171 -3,315,571 1087.26 1096.55 9.29 1.13 7.70 0.26 11
-67,171 3,315,571 1099.65 1103.40 3.75 3.05 1.10 0.51 28
OCOD120 -67,170 3,315,570 1105.40 1114.00 8.60 1.01 1.28 0.28 10
-67,170 3,315,570 1131.50 1136.70 5.20 0.86 7.18 0.18 9
-67,170 3,315,570 1137.70 1145.20 7.50 1.11 5.87 0.19 9
-67,145 -3,315,591 1084.30 1096.20 11.90 1.36 5.10 0.26 13
-67,144 -3,315,592 1099.00 1100.40 1.40 2.20 3.46 1.06 18
OCOD120_D1
-67,143 -3,315,593 1115.70 1127.75 12.05 1.40 5.40 0.32 13
-67,143 -3,315,594 1128.75 1130.90 2.15 0.27 6.53 0.10 4
Vardocube
OCOD121 -67,160 -3,315,681 1099.95 1104.15 4.20 1.72 4.99 0.37 22
OCOD122 -67,068 -3,315,656 1075.01 1078.04 3.03 1.98 6.11 0.19 14
OCOD122_D5 -67,048 -3,315,642 1065.00 1068.52 3.52 0.60 3.73 0.18 7
OCOD123 -67,110 -3,315,697 1089.00 1095.35 6.35 1.12 8.31 0.19 10
OCOD123_D2 -67,133 -3,315,720 1096.70 1100.28 3.58 1.90 5.38 0.30 17
OCOD124 -67,015 -3,315,739 1080.20 1083.50 3.30 0.76 5.27 0.11 8
OCOD125 -66,943 -3,315,728 1061.00 1065.00 4.00 0.62 4.40 0.12 8
OCOD125_D2 -67,048 -3,315,642 1074.22 1076.80 2.58 0.50 2.58 0.11 6
OCOD128 -66,984 -3,315,788 1081.50 1084.05 2.55 1.28 6.69 0.16 9
OCOD128_D1 -67,005 -3,315,809 1089.00 1090.00 1.00 2.62 2.79 0.78 30
OCOD130 -66,919 -3,315,793 1060.30 1062.30 2.00 0.50 3.36 0.11 14
OCOD131_D1 -67,012 -3,315,665 1054.75 1065.00 10.25 1.03 3.84 0.23 16
-66,956 -3,315,902 1086.00 1088.08 2.08 1.41 5.13 0.39 12
OCOD133
-66,956 -3,315,902 1111.34 1112.35 1.01 2.00 2.66 0.14 17
OCOD135 -66,874 -3,315,886 1071.50 1076.10 4.60 0.42 5.49 0.40 17
OCOD137 -66,842 -3,315,927 1065.95 1069.00 3.05 0.72 1.92 0.16 6
Mineral Resource Database
Verification of historical drill-hole data continued during the Quarter, and all 193 holes in the area below the
mined-out stopes have now been verified for analytical data. Verification of the drill-hole traces is in progress
with 107 out of a total of 193 holes having been verified to date. Once the verification process is completed,
the geological database will be corrected with errors detected.
The full migration from the old Access database to the new Geobank database was completed during the
Quarter, with the new Geobank database being continuously updated as new information is received.
Feasibility Studies
Mine Design
A preliminary mine design layout and schedule incorporating various paste back-fill cycles was completed
during the Quarter. This work is being reviewed and possible optimisation steps are in the process of being
identified that will be incorporated into an updated mine production schedule that will be produced following
completion of the next update of the Deep Sulphide Target Mineral Resource model in early December 2018.
Based on this initial mining schedule, underground mining fleet selection has been completed.
The associated ventilation design has been completed and it is likely that a bulk air-cooling system will be
required during the mid-summer months. The cooling unit would likely be a 3.2MW power rating and will be
installed at the secondary (Beecroft) down-cast ventilation shaft.
Following a trade-off study completed in the Quarter, a rail haulage system is the current preferred means of
rock handling on the 957-metre level. This would take blasted rock from the mining sections where load-haul
dump units (LHD) and trucks would tip into ore-passes feeding the rail haulage level. The rail system would
transport rock back to the shaft tips and crusher for hoisting to surface.
Ore processing investigations
Test-work undertaken during the Quarter focused on replacing the sodium cyanide (NaCN) reagent with
sodium meta-bisulphite (SMBS). NaCN is used as a zinc depressant in the copper flotation stream. The
removal of NaCN from the process reagent stream will eliminate the potential environmental issues involved
with handling NaCN and remove CN from the tailings stream. A CN detoxification plant will also not be required.
The tests are aimed at proving that SMBS will deliver the same performance characteristics as the NaCN.
Three plant feed blends have been prepared and the first test stream has been completed and has shown
positive results.
Follow-up locked-cycle metallurgical testing was completed on the Deep Sulphide Target to produce final
copper and zinc concentrates. Results from the test program confirm the metallurgical continuity with the up-
dip area of the mineralised zone. Excellent recoveries of both copper and zinc into separate, high-quality
concentrates were achieved.
The total metal recoveries ranged from 80% to 94% for zinc and 80% to 86% for copper into separated
concentrates. The metal grades of the concentrates produced ranged between 45% and 54% zinc and
between 20% and 26% copper in the respective products. Gold and silver are collected in the copper
concentrates, at levels that would qualify them as valuable by-products.
Results are consistent with expectations for bench-scale test work, which has limited stabilisation time and is
therefore expected to show lower values than for steady-state plant operating conditions.
A number of metallurgical samples have been prepared from the exploration drilling that has taken place in
the Vardocube Prospect section of the Resource over the last few months. The samples have been used for
variability testing to further support the depth of knowledge on the flotation characteristics across the entire
Resource. Test results to date are supporting the recovery and concentrate grade data achieved from the Repli
Prospect section test-work.
Infrastructure
Power Supply – The design and costing of a 132kV feeder bay has been completed by the Company’s
electrical engineering consultant which will be incorporated into the Eskom Cuprum sub-station adjacent to the
mine. The design and construction methodology will be presented to the Eskom Technical Evaluation Forum
(TEF) and, once the anticipated approval is received, construction of the installation can commence as part of
early works.
The feeder bay will deliver power to a 132kV to 11kV sub-station to be built within the mine boundary area.
This sub-station design has also been completed to a BFS level for inclusion into the Prieska Project’s capital
estimate. Once approval has been received from the TEF, detailed engineering design will commence on the
mine sub-station, after which construction can begin also as part of early works.
Water Supply – A Memorandum of Understanding was signed with the Siyathemba Municipality regarding the
Company’s access to long-term water supply from the Prieska Water Works. Principles for financing the
planned upgrades to the pumping infrastructure, involving both the Municipality and the Company, have been
described in the agreement and indicative water tariffs have been stated.
The Prieska Project water-balance calculation is nearing completion which will determine the volume of water
needed for the planned mining operation and the extent of the upgrades required at the Water Works.
The pipeline carrying water to the Prieska Project site will also undergo various upgrades and the assessment
of the scale of the work has already been completed.
Product Logistics and Marketing
Investigations into trucking, rail and shipping options for the concentrate logistics are continuing. Once
concentrate is trucked from site, the two rail-head options previously identified – namely Kimberley (300km
from site) and Groveput (48km from site) – are both still under consideration. Discussions are continuing with
Transnet, the National Rail and Ports Authority, on the viability of re-equipping the Groveput rail siding and
further information is required around the expected cost of the upgrade before a decision can be made.
In-land transport for concentrate handling is now being assessed in detail. The trucking roster for dispatching
of concentrates from site to market, as well as expected operating costs for the various transporting options to
preferred ports, have now been determined. Discussions are advancing with Transnet and are indicating which
port option would suite the volumes, delivery schedules and customer locations for the Prieska concentrates.
After previously considering Coega (near Port Elizabeth) and Cape Town, as preferred ports, Transnet has
suggested that Richards’ Bay and Durban should also be short-listed. These talks are continuing as the details
and costs regarding these additional ports are being finalised.
Transportable Moisture Content (TML) tests are currently underway which will determine the moisture
characteristics of the Prieska concentrates. These results will assist in determining the drying capacity to be
installed in the processing plant to meet shipping TML requirements. Moisture content will also be a factor
when finalising marketing arrangements with smelter customers.
The total elemental content of the zinc and copper concentrates likely to be produced from the Prieska Project
have been received. Based on these results it has been confirmed that the concentrates are clean, with low to
non-existent levels of deleterious elements likely to attract penalty charges from smelters, such as cadmium,
mercury, bismuth and arsenic. Specialist consultants have been co-opted to advise the Company on viable
concentrate marketing options, as part of the advanced stages of the BFS.
Mining Right Application
The application for the Repli Mining Right for the Prieska Project was submitted to the DMR in April 2018. The
Environmental Impact Assessment (EIA) and Environmental Management Program (EMP) which is part of this
application were submitted in September 2018, concluding the submission process. The environmental licence
is anticipated to be granted during Q1 2019, after which the Mining Right approval is expected later in the
same quarter.
The Mining Right for the Vardocube section of the Prieska Project was also submitted during the September
2018 Quarter. The accompanying draft (environmental) Scoping Report will then be submitted during
November 2018 and, after allowing for the public participation timeframe, the final EIA and EMP will be
submitted in May 2019. Based on these dates, the anticipated granting of the Vardocube Environmental
Licence is expected during Q3 2019.
Regional Exploration (South Africa)
Overview of Regional Activity
The Company maintains a substantial and prospective land-holding in the Areachap Belt (Figure 6), and
exploration programs on regional Volcanogenic Massive Sulphide (VMS) and Ni-Cu-Co-PGE projects have
been accelerated during this Quarter. The Areachap Belt is analogous to other Proterozoic Mobile Belts hosting
major VMS and magmatic Ni-Cu-Co-PGE deposits.
VMS deposits almost always occur as “clusters” associated with volcanic spreading centres, with four such
centres having been identified in the Areachap Belt. The Company is currently prospecting for VMS deposits
on its Near Mine Projects and the Masiqhame Prospecting Rights (Figure 6). These prospecting rights include
the bulk of the Copperton and Boksputs Volcanic Centres. The Near Mine Projects include the Prieska Project
as well as the adjacent areas of the Repli, Vardocube and Bartotrax Prospecting Rights. In addition to the giant
Prieska Deposit, four smaller deposits referred to as Annex, K1, K3 and K6 are located in the Near Mine Project
area (Figure 7). The Kantienpan and Boksputs Zinc-Copper Deposits are currently the two most prominent
deposits on the Masiqhame Prospecting Right.
Similarly, world-class nickel deposits tend to also occur in clusters both on prospect and regional scales. Within
these intrusive centres, a small number of the intrusions tend to host the best mineralisation, depending upon
the intrusion magma-flow dynamics and timing of magmatic sulphide immiscibility and transport. Several mafic
intrusive bodies with nickel and other associated mineral occurrences are known to exist on the Namaqua-
Disawell Prospecting Rights (Figure 6). The setting of mineralisation has been confirmed to be analogous to
other orogenic-hosted, deep-seated magma conduit complexes such as Kabanga (Tanzania), Nova
(Australia), Ntaka Hill (Tanzania), Akelikongo (Uganda), and Limoeiro (Brazil). These intrusive complexes are
generally small, complex-shaped bodies that may host a disproportionate quantity of sulphide mineralisation
relative to their size. Conduit style mineralisation is currently the top priority global target for magmatic Ni-Cu-
PGE sulphide exploration.
EM geophysical methods are the primary tool for discovery of massive magmatic Ni-Cu-Co-PGE deposits.
Due to the complexity of these intrusions, an innovative approach to exploration is required to resolve the
locations of the best mineralisation. This entails usage of airborne, ground, and down-hole surveying systems.
Regional exploration on the Near Mine, Masiqhame and Namaqua-Disawell Prospecting Rights continued,
with diamond drilling, Fixed-Loop Time Domain Electromagnetic (FLTDEM) surveys and field mapping
currently underway.
Modern electromagnetic (EM) methods have advanced a great deal since the last systematic exploration took
place in the Areachap Belt, and the Company stands to benefit from its approach in using the latest EM
techniques in its regional exploration program.
The Company completed an extensive airborne electromagnetic (AEM or SkyTEMTM) and magnetic survey
over a large portion of the Masiqhame and Namaqua-Disawell Prospecting Rights during the March 2018
Quarter (Q1 CY2018) (refer ASX release 1 February 2018). FLTDEM surveying over selected AEM anomalies
commenced during the previous quarter and is ongoing.
The equipment being used is a best-in-class EM receiver manufactured in Perth, Western Australia, by
Electromagnetic Technologies. The current source is a custom-built Time Domain Electromagnetic (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. Readings are taken every 50 to100m on grid lines spaced 200m
apart. A total of 11 loops – five on the Masiqhame, one on the Disawell and five on the Bartotrax Prospecting
Right – were completed during this Quarter, with 814 stations surveyed for the Quarter.
Near-Mine Exploration
The Near Mine Project is defined by prospecting rights held by Repli, Repli (Doonies Pan), Vardocube and
Bartotrax (Figure 7). Apart from the giant Prieska Deposit, four smaller deposits occur on the Near Mine
Project. These include Annex, explored by Anglovaal between 1969 and 1981, and three deposits on Kielder
(Doonies Pan), referred to as the K1, K3 and K6 deposits, and explored by Newmont SA between 1976 and
1979. Exploration targets currently defined on the Near Mine Project area include the north-western and south-
eastern strike extent of the Prieska Deposit, the western and eastern strike extent of the Annex Deposit and
the Magazine Antiform (Figure 8). A SkyTEMTM and magnetic survey is scheduled for November 2018 over
the Near Mine Project area.
Annex Copper Deposit
Annex, located approximately 6km south of the Prieska Project, and was discovered by Anglovaal Limited in
1969. Anglovaal’s historical diamond drilling at Annex followed up on conductors detected by airborne Input
EM surveys, and succeeded in delineating mineralisation underneath a 35m-thick Dwyka tillite cap (Figures 9
and 10).
Mineralisation was identified over a strike length of 1,000m and drilled down to 550m below surface. The
deposit remains open in depth down-plunge.
Significant intersections from historical drilling by Anglovaal at Annex (Figures 9 and10) include:
• 3.87m at 1.91% Cu and 0.49% Zn in VAX 19;
• 4.28m at 2.88% Cu and 0.34% Zn in VAX 26;
• 2.65m at 1.44% Cu and 0.33% Zn in VAX 27;
• 4.08m at 1.14% Cu and 0.41% Zn in VAX 29;
• 4.11m at 2.17% Cu and 0.54% Zn in VAX 32; and
• 4.77m at 1.39% Cu and 0.68% Zn in VAX 35. (refer ASX release 18 September 2018)
Younger stratigraphic cover and general poor outcrop renders interpretation of the geological setting of the
Annex Deposit problematic, but the current understanding indicates repetition of the Prieska mineralised
stratigraphy over a north-west – south-east trending set of folds (Figure 11).
Annex – Exploration Program
The Company completed ground EM surveying to explore for possible strike and depth extensions of the
Annex Deposit on the 18 September 2018, with four loops of FLTDEM surveys having been completed. An
EM conductor, ANN5, detected approximately 1,000m west along strike of the Annex Deposit is currently being
drill tested (refer Figure 8).
Drilling started in September 2018 utilising two diamond drill rigs with a total of 170.55m having been drilled
during the Quarter. Hole OAXD001, started on the 24 September 2018, is planned to intersect the Annex
Deposit to verify historical drill data and to obtain samples of the host rock and mineralisation. Drill-hole
OAXD002, planned to test the FLTDEM anomaly ANN5, commenced on the 28 September 2018. Drilling is
currently ongoing.
Magmatic Ni-Cu-Co-PGE
During the Quarter, litho-geochemical results from Rok Optel, Area 4, and two new intrusions identified on
Jacomynspan Portion 1 confirmed that all the intrusions show comparable geochemical signatures and have
therefore been interpreted to belong to the same suite of intrusions (Figure 12).
This has subsequently been termed the Jacomynspan Intrusive Suite.
The Jacomynspan Intrusive Suite shares many characteristics to that of other late-tectonic intrusions emplaced
into complex, long-lived orogenic margins globally. These include complex, moderate to deep-seated, late-
stage, post-peak deformation magma emplacement histories, indicative of a long-lived conduit system showing
indications of a multi-phase mineralisation history resulting in good potential for the formation of massive
sulphide deposits.
The Jacomynspan intrusion is a rotated sill composed primarily of melanorite, pyroxenite, and harzburgite that
hosts magmatic sulphide mineralisation throughout its extent. A parallel, massive non-mineralised harzburgite
sill in the structural footwall extends to the east of the Jacomynspan sill.
Within the Jacomynspan sill, cross-cutting relationships are present between the pyroxenite and harzburgite
units, indicating that the harzburgite was emplaced during a later phase of magmatic activity. The best
mineralisation in terms of metal grade and tenor is hosted by net-textured sulphidic harzburgites. The
pyroxenite unit is also mineralised throughout but has lower tenor mineralisation as compared to the
harzburgite unit. The sulphide mineralisation is interpreted to have been derived from primary magmatic
processes that, although intimately related, reflect varying conditions within the flowing magma conduit.
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 to a depth of 900m over 1.3km of the
strike by AAPS. Disseminated nickel-sulphide mineralisation was intersected with widths varying between 30
to 70m (refer ASX release 14 July 2016).
The Company 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 Kabanga
Deposit (Tanzania) and the Nova-Bollinger Deposit (Fraser Range Province of Western Australia).
During the Quarter, the focus has been “Phase 1” drill-testing of the Rok Optel intrusion. The following work
was completed:
- Completion of two diamond drill-holes (OROD001 and OROD002) and commencement of drill-hole
OROD003 at the Rok Optel Prospect. A total of 1,179m was drilled during the Quarter. Assay results
were received for drill hole OROD001 (refer ASX release 10 September 2018).
- A focused field mapping program at Rok Optel to assess the validity of the Newmont mapping data
and to characterise, contextualise and understand the geology.
- Down-hole Transient Electromagnetic surveys (DHTDEM) of drill-holes OROD001 and OROD002.
- Geophysical modelling of the DHTDEM data and identification of new plates.
- Regional field mapping, litho-geochemical sampling and interpretation of new data.
- Derivation of a working structural model of the Rok Optel intrusion for interpretative and predictive
purposes.
Ongoing work includes:
- Drill testing of DHTDEM conductors.
- Compilation and ongoing interpretation of the Rok Optel drill-hole data, including lithology, mineralogy,
structural data, location and style of mineralisation.
Rok Optel Prospect
The Rok Optel Prospect was discovered during the early 1970’s and was initially explored by Phelps Dodge
and Hochmetals SWA. Hochmetals completed mapping, Induced Polarisation (IP) geophysics, and drilled six
holes (2,117m), three of which intersected magmatic sulphide mineralisation.
Newmont SA entered into the project during 1974, undertaking field mapping, soil geochemistry, magnetics,
IP, and diamond drilling. Drilling included deepening of Hochmetals’s DDH001 hole, and drilling a new hole
(591.95m). The remaining core from the Hochmetals campaign was re-logged and assayed. Newmont exited
the project during 1977.
Newmont interpreted the intrusion to be a mafic dyke emplaced parallel to the gneiss foliation, striking north
to north-north-east and dipping 65-75° to the west (Gresse, 1977). Magmatic mineralisation is located at
several horizons, as disseminated, coarse patches, and massive stringers associated with coarse-grained
feldspathic amphibolite. It was noted that the mineralisation plunges to the south at 20°.
Fixed Loop EM surveys
The conductors on Rok Optel have conductivities greater than 3000 Siemens. The position of the Rok Optel
conductors relative to historical drill-holes are shown in Figure 13 and the details of the modelled plates in
Table 2. Most historical drill holes testing historic IP and magnetic targets did not intersect the zones of highest
conductance detected in the Company’s recent surveys. The historical drilling intersected zones of lower
conductance on the edges of the newly modelled plates (Figures 13 and 14).
Historical drill hole PUD003 intersected 23.12m at 0.32% Ni and 0.28% Cu from 294m including 5.92m at
0.46% Ni and 0.35% Cu from 303m and 1.8m at 0.58% Ni and 0.60% Cu from 306m (Figure 14) (refer ASX
release 29 May 2018).
Diamond Drilling
The drill-hole status at 30 September 2018 is summarised in Table 3. OROD003, was subsequently completed
at 532.13m.
Table 3: Rok Optel diamond drill status at 30 September 2018.
X Elevation Dip Azimuth
Drill Hole Y UTM34S Final Depth (m)
UTM34S (m) (degrees) (degrees)
OROD001 580,215 6,746,005 1,059 412.06 -60 120
OROD002 580,360 6,746,760 1,559 491.95 -65 090
OROD003 580,142 6,745,874 1,057 275.15 -70 102
Drill-hole OROD001 intersected sulphide-bearing mafic to ultramafic intrusive rocks over a down-hole width of
186.86m. The hole was completed at 412.06m. The drill-hole intersected multiple thin massive-sulphide
veinlets varying from 1 to 50mm in width displaying injection features and occurring in swarms or concentrated
within sulphide mineralised zones.
Drill-hole OROD002 intersected a complex sequence of interfingering mafic to ultramafic sills from 25.73m to
the end of hole at 491.95m. Sulphide mineralisation was intersected at several horizons in OROD002, including
massive, injected stringers, coarse-blebs and patchy network styles, all of which are typical of conduit-style
mineralisation.
At 30 September 2018, drill-hole OROD003 was at 275.15m within garnet gneiss with thin apophyses of
intrusive rocks.
Assay data have been received from OROD001. The SG-weighted intersection data are tabulated in Table 4
for the elements of economic interest.
Table 4: Mineralised intersections from OROD001 (refer ASX release 10 September 2018).
From Width Ni 2PGE + Au
Drill Hole Cut Off Cu (wt%) Co (wt%)
(m) (m) (wt%) (g/t)
201.05 8.99 0.24 0.16 0.016 0.22
0.2% Ni
292.09 7.29 0.28 0.11 0.013 0.66
OROD001
0.3% Ni 297.44 1.94 0.38 0.15 0.015 1.45
0.5% Ni 201.05 1.22 0.45 0.57 0.047 0.16
Down-hole EM surveys (DHTDEM)
DHTDEM surveys were undertaken in drill-holes OROD001 and OROD002 to assess whether the intersected
mineralisation could explain the surface EM plates, and whether other mineralisation is present adjacent to the
holes. In both cases, the intersected mineralisation is expressed as an in-hole anomaly, but stronger off-hole
anomalies with conductances of 10,500S (OROD001) and 16,000S (OROD002) were identified.
This is consistent with other sulphide mineralised intrusions at which multiple mineralised zones result in
complex electromagnetic responses that are challenging to resolve until drill-hole control is achieved.
The modelled plates are illustrated in Figure 17. Drill-hole OROD003 is currently in progress to test the
OROD001 off-hole conductor. Several zones of mineralisation have been intersected for which analyses are
awaited.
Regional Mapping and Geochemistry
A two-week mapping program was undertaken at Rok Optel to characterise and understand the lithologies
present and assess the quality of the historical data. It was found that the mapping is generally valid, but some
positional errors are present.
This work has enabled better characterisation of the Jacomynspan Formation stratigraphy into eastern
hornblende gneiss and western paragneiss. The target intrusions display different outcrop characteristics
dependent upon host stratigraphy. Recognition of these characteristics has assisted in identifying outcrops of
interest, resulting in the discovery of two new norite intrusions on Jacomynspan Portion 1.
Samples from all intrusions, including Jacomynspan, Area 4, Rok Optel main and subsidiary intrusions, and
the Jacomynspan Portion 1 norites have been geochemically compared. All intrusions display very similar
trace element characteristics and are therefore interpreted to be related. Six related intrusions have thus far
been identified within a relatively small part of the project area.
Area 4 Prospect
The Area 4 Prospect (Area 4) was surveyed using two grids, A4A and A4B (Figures 12 and 16). Seven plate
models of conductance ranging from 350S to 2000S, with smaller dimensions characteristic of semi-massive
to massive sulphide mineralisation within or on margins of disseminated sulphide mineralisation, have been
modelled (Figure 18).
Drilling by previous companies targeting geochemical, magnetic and IP targets did not test the highly-
conductive bodies detected by the Company using FLTDEM (Figures 18). The plates on Grid A4B lie within
100m of known Ni-Cu sulphide mineralisation intersected in historical drill-hole JAC007, which intersected
62.5m of sulphide mineralisation at 0.26% Ni and 0.17% Cu from 304m (Figure 19).
No work was undertaken at Area 4 during the Quarter.
Planned work on the Ni-Cu-Co-PGE targets
The current diamond drill program is nearing completion. The data derived from the program will be
comprehensively reviewed and interpreted to assess the potential of the intrusion to host massive
mineralisation and outline the methodology to resolve details of the mineralised zones intersected.
Masiqhame Project
Overview
This project is defined in terms of the Masiqhame tenement holding and includes the Kantienpan, Boksputs
and Van Wyk’s Pan zinc-copper mineral occurrences (Figure 18), showing regional potential for hosting VMS
zinc-copper and nickel sulphide mineralisation.
SkyTEMTM anomalies associated with a paleo-sea floor setting
The airborne magnetic data obtained with the SkyTEMTM surveys is superior to any regional airborne magnetic
data previously available over the prospecting right and allowed for detailed regional geological interpretations
(Figure 20). These interpretations were based on published data and field mapping in conjunction with
aeromagnetic data. Using the Kantienpan and Boksputs areas as type localities, a paleo–seafloor setting was
identified, and mapped out, using the magnetic data. VMS deposits form on, or close to, the seafloor and as
such, the paleo-seafloor became a target horizon for discovering VMS deposits.
Geological setting, conductivity, coherency and size of SkyTEM TM anomalies were used as criteria to select
VMS targets at Masiqhame and Disawell. Ten anomalies identified fall within the boundaries of the Masiqhame
Prospecting Right (Figure 18).
Five FLTDEM surveys were completed between 8-24 July 2018 and 26 September to 3 October 2018 in the
Boksputs area. Final modelling of plate models was received for three of these surveys (Table 5). Of the three
conductors modelled, B1 and B4 offer priority follow-up drill targets (Figure 20, refer ASX release 24 September
2018). Mapping and structural interpretations over the B1 and B4 targets were completed and show the
conductors to:
- Occur in a similar stratigraphic position to the VMS style mineralisation at Boksputs;
- Have favourable stratigraphic and structural settings with both anomalies occurring on a prospective
contact between amphibolite and meta-psammite. Anomaly B4 occurs in a fold hinge, and is orientated
parallel to the plunge direction;
- Have dimensions that show the causative bodies to be of relatively large volumes; and
- Be blind targets not tested before. It is doubtful whether IP surveys used in the 1970’s could have
detected a 500m deep conductor like B1, and no evidence could be found that conductors B1 and B4
were drill tested in the past.
The B4 conductor occurs in the same stratigraphic position as the Boksputs Deposit and appears to follow the
plunge of a tight overturned synformal structure. The structural stratigraphic setting and spatial association
with known mineralisation makes the B4 conductor a highly prospective VMS target (Figure 21).
The Company plans to follow-up both the B1 and B4 conductors with diamond drilling.
Marydale Gold-Copper Project (Witkop)
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 located 60km north of the Prieska Project (refer Figure 6).
Past work by the Company includes an IP survey over 2.6km strike following the target horizon. The Company
drilled two holes within the historical drill grid, that confirms the copper-gold mineralisation, and four holes on
IP anomalies. Drilling showed the IP response to be caused by broad zones containing disseminated sulphides
with low levels of copper and gold mineralisation.
The Company is currently busy reviewing the potential of the Marydale Gold-Copper Deposit. An approach
predicting mineralisation to be stratabound was used in modelling of the deposit under the previous owners.
The Company has since revised the interpretation of the control on the mineralisation to rather be shear
hosted. This calls for reinterpretation of the data. Should the data indicate that the deposit is amenable to
small scale mining, a mining permit application should be applied for.
Connors Arc Epithermal Gold Project (Queensland)
During the Quarter, no work was undertaken at the Connors Arc Project due to the focus on fast-tracking
resource drilling and advancing the BFS at the Prieska Project. The Company announced on 2 May 2018 a
binding sale agreement with Evolution Mining Limited for 100% interest sale of the Connors Arc Project (refer
to the Corporate section for more information).
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 stated in previous Quarterly Reports, 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 was completed 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
Own
ershi
Tenement Project p Change in Quarter Joint Venture Partner
Inter
est
South Africa
NC30/5/1/1/2/10445PR PCM 73.33% ---
NC30/5/1/1/2/10138MR PCM 73.33% ---
NC30/5/1/2/2/10244PR Marydale 73.33% --- ---
NC30/5/1/1/2/11841PR(1) Vardocube 70.00% --- ---
NC30/5/1/1/2/11850PR(1) Bartotrax 74.00% --- ---
NC30/5/1/1/2/10032MR(1) Namaqua-Disawell 18.50% --- Namaqua Nickel Mining
(Pty) Ltd
NC30/5/1/1/2/10938PR Namaqua-Disawell 18.50% --- Disawell (Pty) Ltd
NC30/5/1/1/2/11010PR Namaqua-Disawell 18.50% --- Namaqua Nickel Mining
(Pty) Ltd
NC30/5/1/1/2/816PR Masiqhame 49.00% --- 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 0% Sold 100% interest ---
EPM25122 Connors Arc 0% Sold 100% interest ---
EPM25283 Connors Arc 0% Sold 100% interest ---
EPM25703 Connors Arc 0% Sold 100% interest ---
EPM25708 Connors Arc 0% Sold 100% interest ---
EPM25712 Connors Arc 0% Sold 100% interest ---
EPM25714 Connors Arc 0% Sold 100% interest ---
EPM25763 Connors Arc 0% Sold 100% interest ---
EPM25764 Connors Arc 0% Sold 100% interest ---
EPM25813 Connors Arc 0% Sold 100% interest ---
EPM26081 Connors Arc 0% Sold 100% interest ---
EPM26082 Connors Arc 0% Sold 100% interest ---
EPM26083 Connors Arc 0% Sold 100% interest ---
Victoria
MIN5487(2) Walhalla 100% --- ---
EL5340 Walhalla 100% --- ---
EL5348 Walhalla 100% --- ---
(1) Execution of Mining Right pending.
(2) MIN 5487 has been sold to Centennial Mining Ltd.
Corporate
Cash and Finance
Cash on hand at the end of the Quarter was $6.4M.
Capital Raising
On 25 June 2018, the Company announced an $11M capital raising at an issue price of $0.037 per fully paid
ordinary share (Share), to be conducted via a placement to sophisticated and professional investors
(Placement). One of the members of the Company’s Broad Based Black Economic Empowerment Partner in
South Africa also subscribed for $0.25M in Shares which will be included in Tranche 2 at an issue price of
$0.037 per Share.
The Placement was conducted via two stages, being:
- Tranche 1 – 91.6M Shares to raise $3.39M were issued on 29 June 2018, using the Company’s 15%
placement capacity under ASX Listing Rule 7.1. The issue of Shares was subsequently ratified by
shareholders at the Company's general meeting held on 3 August 2018; and
- Tranche 2 – 212.5M Shares to raise $7.86M were issued on 15 August 2018 as approved by
shareholders at the Company’s general meeting held on 3 August 2018.
In addition to the placements, the Company also obtained shareholder approval at the general meeting
held on 3 August 2018, to enable the Company’s Chairman, Mr Denis Waddell, to subscribe for 6.8M
Shares at 3.7 cents per Share to raise $0.25M and for Tembo Capital (or nominee) to subscribe for 172.9M
Shares at 3.7 cents per Share. On 23 August 2018, the Company issued:
o 6.8M Shares at 3.7 cents per Share to Mr Denis Waddell (or nominee); and
o 172.9M Shares at a deemed issue price of 3.7 cents per Share to Tembo Capital (or nominee).
The 172.9M Shares issued to Tembo Capital were issued in consideration for reducing the amount repayable
to Tembo Capital under the loan facility between the Company and Tembo Capital, pursuant to which Tembo
Capital advanced $6M in funds to Orion (excluding capitalised interest and fees) (refer below for further detail).
Proceeds from the Placement will be used principally to finalise the bankable feasibility study on the Company’s
flagship Prieska Project, which is scheduled to be completed in Q2 2019. Funds will also be used to continue
exploration programs on the Company’s highly prospective tenements located in the Northern Cape, South
Africa and for working capital.
Tembo Capital
In addition to the Placement, Tembo Capital Mining Fund II LP and its affiliated entities (Tembo Capital),
confirmed its continued support of Orion through subscribing for $6.4M in Shares, at an issue price of $0.037
per Share, being the issue price for Shares issued under the Placement. The issue of Shares to Tembo Capital
was approved by shareholders at the Company’s general meeting held on 3 August 2018 and occurred on 23
August 2018 in two stages being:
- 102.7M Shares, resulting in Tembo Capital's shareholding increasing to 19.99%; and
- 70.2M Shares, resulting in Tembo Capital's shareholding increasing to 22.99%, in reliance on the 3%
creep exemption available under item 9 of section 611 of the Corporations Act.
Orion announced on 18 August 2017 that it had entered into a loan facility agreement with Tembo Capital,
pursuant to which Tembo Capital has advanced $6M in funds to Orion (excluding capitalised interest and fees)
(Loan Facility). The term of the Loan Facility has been extended from 30 September 2018 to 31 December
2018. At the end of the Quarter, $6.0M had been drawn down against the Loan Facility (excluding capitalised
interest and fees).
Orion agreed with Tembo Capital, that Tembo Capital’s Share subscription be issued in consideration for
reducing the amount re-payable to Tembo Capital under the Loan Facility at a deemed issue price of $0.037
per Share, being the same issue price as the Shares being offered under the Placements. The balance of the
Loan Facility (including accrued interest) following this repayment was reduced by $6.4M (being the value of
Shares subscribed for by Tembo Capital) to $0.54M.
Sale of Connors Arc Project
On 2 May 2018, the Company announced that it had entered into a binding sale agreement (Agreement) with
Evolution Mining Limited (Evolution), for Evolution to acquire 100% of Orion’s Connors Arc Project
(Tenements) in Queensland. Consideration for the sale of the Tenements consists of $2.5M cash and a 2%
royalty on net smelter returns (NSR) from the sale of gold recovered and sold by Evolution from the Tenements
to a value of $5.0M.
Key terms of the Agreement are:
- Stage 1 Payment - an initial $1.5M cash payment, payable upon conditions typical for agreements of
this nature being:
o Orion obtaining indicative approval from the Queensland Government Department of Natural
Resources, Mines and Energy (Department), for the transfer of the Tenements to Evolution; and
o the assignment to Evolution of the Tenements’ native title agreements.
- Stage 2 Payment - a further $0.5M cash payment, payable to Orion upon approval by the Department
for retention of the total area of three of the Tenements included in the Agreement until the renewal of
the existing term of those Tenements;
- Stage 3 Payment - a further $0.5M cash payment, payable to Orion upon approval by the Department
for renewal of two Tenements included in the Agreement and for retention of the total area of those
Tenements for a period 12 months from the date of such renewal; and
- a 2% royalty on NSR from the sale of gold recovered and sold by Evolution from the Tenements to a
value of $5.0M.
The Company received payment for Stages 1 and 2, totalling $2.0M cash in July 2018.
The sale of the non-core Tenements is consistent with Orion’s decision to place greater focus on its flagship
project, the Prieska Project and its highly prospective regional exploration projects within the Areachap Belt,
including the advanced Jacomynspan Nickel-Copper-Cobalt Project.
Annual Financial Report
The Company recorded a loss of $8.9M after tax for the year ended 30 June 2018. The result was driven
primarily by exploration expenditure incurred of $2.4M which, under Orion’s deferred exploration, evaluation
and development policy, did not qualify to be capitalised and was expensed and finance expenses of $2.0M,
principally related to bridge loan fees and interest of $0.9M and convertible note interest of $0.8M.
Net cash used in operating activities and investing activities totalled $22.0M and included payments for
exploration and evaluation of $17.7M. Net cash from financing activities totalled $23.5M.
Annual General Meeting
The Annual General Meeting of shareholders of the Company will be held at Clayton Utz, Level 27, QV. 1
Building, 250 St Georges Terrace, Perth, Western Australia on Thursday, 29 November 2018 commencing at
3:00 p.m. (Perth time).
General Meeting
A General Meeting of shareholders of the Company was held on 3 August 2018 at RSM Australia Partners, 8
St Georges Terrace, Perth, Western Australia. All resolutions put to shareholders at the General Meeting were
carried on a show of hands.
25 October 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: 25/10/2018 09:30:00 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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