Wrap Text
Significant New VMS Discovery at Ayoba Confirms Strong Near-Mine Exploration Potential at Prieska
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”)
SIGNIFICANT NEW VMS DISCOVERY AT AYOBA CONFIRMS STRONG NEAR-MINE EXPLORATION
POTENTIAL AT PRIESKA
• 10.6m zone of copper-zinc bearing sulphides, including 5.2m of massive sulphides, intersected at Ayoba
Prospect.
• Intersection was drilled 5.3km south-west of the Prieska Zinc-Copper Project.
• Mineralisation and associated alteration typical of Volcanogenic Massive Sulphide (VMS) deposits.
• Discovery hole tested an electro-magnetic (EM) plate with a 1.1km strike and 450m dip extent.
• The discovery validates Orion’s expectations that there is excellent potential to discover a cluster of VMS
deposits around the Prieska Project.
• The exploration methodology adopted is validated by the success of the first hole drilled as part of the
Near-Mine Exploration Program.
“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.
Errol Smart, Orion Managing Director and CEO, commented:
“The discovery at Ayoba is a very important breakthrough, which clearly demonstrates the potential for large
satellite deposits to be discovered in close proximity to our advanced Prieska Zinc-Copper Project. VMS
deposits tend to occur in clusters and yet there has been virtually no exploration outside of the known deposits
at Prieska in several decades. In fact, this intersection is the first new VMS discovery in the Areachap Belt for
the past 36 years.
This important discovery demonstrates the huge potential to find additional deposits within a 5-10km radius of
the proposed processing plant and mine infrastructure at Prieska, validating our exploration strategy which is
aimed at unlocking the value of this rich mineral province. It also demonstrates the advantage of using modern
geophysical exploration techniques in such a well mineralised VMS terrain and is the deepest ‘blind deposit’
ever discovered in the Areachap.”
Orion Minerals Limited (ASX/JSE: ORN) (Orion or Company) is pleased to announce the discovery of a new
copper-zinc bearing massive sulphide body located in close proximity to the Company’s flagship Prieska Zinc-
Copper Project (Prieska Project or Prieska Deposit), in the Areachap Belt, Northern Cape Province, South
Africa (Figure 2).
The discovery hole, OAXD002, was drilled at the Ayoba Prospect, a satellite exploration target, and is both the
first exploration hole drilled as part of the Company’s Near-Mine Exploration Project (Table 1) and the first hole
to test for new mineralisation surrounding the historical Prieska Mine in more than 36 years.
Diamond drill-hole OAXD002 intersected 10.55m of sulphide mineralisation, including 5.17m of massive
sulphides (>70% sulphides) from a down-hole depth of 653.2m (Figure 1). The discovery was made by drill
testing a Fixed Loop Electro Magnetic (FLEM) conductor located 5.3km south-southwest of the Company’s
Hutchings Shaft at the Prieska Project and 1.6km west and along strike of known copper mineralisation at
Annex (refer ASX release 25 October 2018) (Figure 3).
The modelled conductor has a strike length of 1.1km and extends down-dip to at least 800m below surface.
The vertical depth to the top of the conductor is 500m.
The identification of copper (chalcopyrite) and zinc (sphalerite) associated with the massive sulphide
mineralisation, and with host lithology similar to that at the Prieska Deposit, suggests the discovery of a
Volcanogenic Massive Sulphide (VMS) deposit (Figure 1).
Alteration associated with the deposit is noted to be similar to the alteration associated with the Prieska VMS
deposit. The modelled FLEM plate suggests the potential for a large, low conductive sulphide body at Ayoba.
The geology, as seen in the drilled core, suggests the stratigraphy to be structurally overturned with potential
for further folded repetition of the mineralisation.
The current structural interpretation shows that the newly discovered mineralisation, as well as the Annex and
Prieska Deposits all occur on the same stratigraphic horizon (Figure 4). This conforms to Orion’s exploration
model of VMS deposits clustering around giant VMS deposits like the Prieska Deposit to form VMS camps.
Giant VMS deposits form on, or immediately below a paleo-seafloor. To accumulate the large tonnages of
sulphides necessary to form a giant VMS deposit, the paleo-seafloor must be stable over a long period of time,
increasing the chances for other large deposits to form in proximity during this hiatus in the geological history.
The paleo-seafloor setting as mapped at Ayoba - Annex defines the target stratigraphic position in the VMS
camp and guided the targeting positions for surveying with FLEM.
Modelling of the FLEM data at Ayoba showed a conductor with a low conductance of 100 to 150S (Siemens)
which correlates well with the intersected mineralisation, being pyrite dominated, with minor pyrrhotite which
is unlikely to yield strong conductance.
The subtle geophysical anomaly and deep-seated character of Ayoba provide encouragement that the
mineralisation may be traced beyond the confines of the initial electro-magnetic (EM) survey plate model. The
key stratigraphic horizon remains untested by geophysics or drilling for 1000m along strike to the western
tenement boundary (Figure 3).
Logging and sampling of the drill core is currently underway with assays expected in late December 2018.
Further EM surveys, including down hole EM, are being planned, before follow-up drilling.
Table 1: Collar location of drill hole at the Ayoba discovery.
Drill hole East North From To Depth Azimuth Inclination
(UTM 34 (UTM 34 (m) (m) (m)
SOUTH) SOUTH)
OAXD002 622130 6681090 0.00 701.00 701.00* 26o -73o
*Hole still in progress, depth as at 24 November 2018.
Errol Smart
Managing Director and CEO
28 November 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’s Statement
The information in this report that relates to Exploration Results is not in contravention of the 2012 Edition of
the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code) and has been compiled and assessed under the supervision of Mr Errol Smart, Orion’s Managing
Director. Mr Smart (PrSciNat) is registered with the South African Council for Natural Scientific Professionals,
a Recognised Overseas Professional Organisation (ROPO) for JORC purposes and 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 Smart
consents to the inclusion in this announcement of the matters based on his information in the form and context
in which it appears.
Disclaimer
This release may include forward-looking statements. Such forward-looking statements may include, among
other things, statements regarding targets, estimates and assumptions in respect of metal production and
prices, operating costs and results, capital expenditures, mineral reserves and mineral resources and
anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to
future technical, economic, market, political, social and other conditions. These forward-looking statements
are based on management’s expectations and beliefs concerning future events. Forward-looking statements
inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Orion. Actual results and developments may vary
materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements. Orion makes no undertaking to subsequently update or
revise the forward-looking statements made in this release to reflect events or circumstances after the date of
this release. All information in respect of Exploration Results and other technical information should be read in
conjunction with Competent Person Statements in this release (where applicable). To the maximum extent
permitted by law, Orion and any of its related bodies corporate and affiliates and their officers, employees,
agents, associates and advisers:
• disclaim any obligations or undertaking to release any updates or revisions to the information to reflect
any change in expectations or assumptions;
• do not make any representation or warranty, express or implied, as to the accuracy, reliability or
completeness of the information in this release, or likelihood of fulfilment of any forward-looking statement
or any event or results expressed or implied in any forward-looking statement; and
• disclaim all responsibility and liability for these forward-looking statements (including, without limitation,
liability for negligence).
Appendix 1: The following tables are provided in accordance with the JORC Code (2012) for the reporting of Exploration Results for Prieska Near Mine Project.
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques • Nature and quality of sampling (e.g. cut channels, random chips, or • Diamond core is cut at the core yard and half core is taken as the
specific specialised industry standard measurement tools appropriate sample.
to the minerals under investigation, such as down hole gamma sondes, • The core is sampled at 1m intervals where possible with sample lengths
or handheld XRF instruments, etc.). These examples should not be adjusted to ensure samples do not cross geological boundaries or other
taken as limiting the broad meaning of sampling. features.
• Include reference to measures taken to ensure sample representivity • Mineralised zones are drilled using core drilling.
and the appropriate calibration of any measurement tools or systems • Sampling is carried out under supervision of a qualified geologist using
used. procedures outlined below including industry standard QA/QC.
• Aspects of the determination of mineralisation that are Material to the • Samples submitted for analysis to ALS Chemex (Pty) Ltd (ALS) are
Public Report. pulverised in its entirety at ALS and split to obtain a 0.2g sample for
• In cases where ‘industry standard’ work has been done this would be digestion and analysis.
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 using NQ sized core.
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple • In the near-surface weathered zone HQ core was drilled.
or standard tube, depth of diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by what method, etc.).
Drill sample recovery • Method of recording and assessing core and chip sample recoveries • All mineralised intersections are done with core drilling.
and results assessed. • Core stick-ups reflecting the depth of the drill hole are recorded at the
• Measures taken to maximise sample recovery and ensure rig at the end of each core run.
representative nature of the samples. • A block with the depth of the hole written on it is placed in the core box
• Whether a relationship exists between sample recovery and grade at the end of each run.
and whether sample bias may have occurred due to preferential • At the core yard, the length of core in the core box is measured for each
loss/gain of fine/coarse material. run. The measured length of core is subtracted from the length of the run
as recorded from the stick-up measured at the rig to determine the core
lost.
• Core recovery in all the mineralised intersections are good.
• No assay results available as yet.
Criteria JORC Code explanation Commentary
Logging • Whether core and chip samples have been geologically and • Core of the entire hole length was geologically logged and recorded on
geotechnically logged to a level of detail to support appropriate standardised log sheets by qualified geologists.
Mineral Resource estimation, mining studies and metallurgical studies. • Qualitative logging of colour, grain size, weathering, structural fabric,
• Whether logging is qualitative or quantitative in nature. Core (or lithology, alteration type and sulphide mineralogy carried out.
costean, channel, etc.) photography. • Quantitative estimate of sulphide mineralogy.
• The total length and percentage of the relevant intersections logged. • Logs are recorded at the core yard and entered into digital templates at
the project office.
Sub-sampling • If core, whether cut or sawn and whether quarter, half or all core • NQ core to be cut at core yard and half core taken as sample.
techniques and taken. • The entire sample length is cut and sampled.
sample preparation • If non-core, whether riffled, tube sampled, rotary split, etc. and • Sample preparation planned to be undertaken at ALS, an ISO
whether sampled wet or dry. accredited laboratory. ALS utilises industry best practise for sample
• For all sample types, the nature, quality and appropriateness of the preparation for analysis, involving drying of samples, crushing to <5mm if
sample preparation technique. required and then pulverising so that +85% of the sample passes 75
• Quality control procedures adopted for all sub-sampling stages to microns.
maximise representivity of samples. • Certified Reference Materials (CRM), blanks and duplicates are inserted
• Measures taken to ensure that the sampling is representative of the in and analysed with each batch. Insertion rates for the current reporting is:
situ material collected, including for instance results for field CRMs = 10%, blanks = 5% and field duplicates = 2%.
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 assays results as yet.
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 • The Competent Person is personally supervising the drilling and sampling
sampling and alternative company personnel. along with a team of experienced geologists.
assaying • The use of twinned holes. • The Competent Person reviews the calculation of the significant
• Documentation of primary data, data entry procedures, data intersections.
verification, data storage (physical and electronic) protocols. • For the EM survey, data is collected on site and validated by a
• Discuss any adjustment to assay data. geophysical technician daily. Data (raw and processed) is sent to a
consultant geophysicist for review and quality control.
Location of data points • Accuracy and quality of surveys used to locate drill holes (collar and • Drill hole collar positions are laid out using a handheld GPS.
Criteria JORC Code explanation Commentary
down-hole surveys), trenches, mine workings and other locations used • After completion of the drilling all collars were surveyed by a qualified
in Mineral Resource estimation. surveyor using a Trimble R8 differential GPS.
• Specification of the grid system used. • Down hole surveys are completed using a North-Seeking Gyro
• Quality and adequacy of topographic control. instrument.
• All survey data is in the WGS84 ellipsoid in the WG23 Zone with the
Hartebeeshoek 1994 Datum. The coordinates are also supplied in Clarke
1880 and in UTM WGS84 Zone 34 (Southern Hemisphere).
Data spacing and • Data spacing for reporting of Exploration Results. • Drill holes aim to intersect mineralisation on spacings sufficient to establish
distribution • Whether the data spacing and distribution is sufficient to establish the geological and grade continuity appropriate for Mineral Resource and
degree of geological and grade continuity appropriate for the Mineral Ore Reserve estimations.
Resource and Ore Reserve estimation procedure(s) and classifications • No sample compositing will be applied.
applied.
• Whether sample compositing has been applied.
Orientation of data in • Whether the orientation of sampling achieves unbiased sampling of • Drilling is oriented perpendicular, or at a maximum achievable angle to,
relation to geological possible structures and the extent to which this is known, considering the anticipated attitude of the mineralisation.
structure the deposit type. • The geometry of the mineralisation can not yet be determined and the
• If the relationship between the drilling orientation and the orientation effect of drill angle is not known
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. • Chain of custody is managed throughout, and the policy managed
through an appropriate SOP. Samples are stored on site in a secure
locked building and then freighted directly to the laboratory.
Audits or reviews • The results of any audits or reviews of sampling techniques and data. • SRK Consulting has carried out a review on the sampling techniques and
data.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and • Type, reference name/number, location and ownership including • The Prospecting Rights are held by Bartotrax (Pty) Ltd, which is a
land tenure status agreements or material issues with third parties such as joint ventures, subsidiary of Orion.
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings.
• The security of the tenure held at the time of reporting along with any
known impediments to obtaining a licence to operate in the area.
Exploration done by • Acknowledgment and appraisal of exploration by other parties. • No previous exploration has been conducted at Ayoba.
other parties
Criteria JORC Code explanation Commentary
Geology • Deposit type, geological setting and style of mineralisation. • The deposit is a Volcanogenic Massive Sulphide (VMS) deposit which is
situated in the southernmost exposures of the north-northwest trending
Kakamas Terrain, which forms part of the Mid-Proterozoic Namaqualand
Metamorphic Complex.
• The deposit is hosted by the Copperton Formation of the Areachap
Group. The Areachap Group, hosts several VMS deposits such as the
Prieska, Areachap, Boksputs, Kantien Pan, Kielder and Annex
Vogelstruisbult deposits.
Drill hole Information • A summary of all information material to the understanding of the • Drill hole collar coordinates, elevation, inclination and azimuth, down
exploration results including a tabulation of the following information hole length, interception depth and hole length are available in Orion’s
for all Material drill holes: geological database and are not all included in this release.
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.
Relationship between • These relationships are particularly important in the reporting of • All intersection widths quoted are down hole widths.
mineralisation widths Exploration Results. • OAXD002 intersected the mineralisation at high angle to the attitude of
and intercept lengths • If the geometry of the mineralisation with respect to the drill hole angle the mineralisation.
is known, its nature should be reported.
• 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 • Appropriate diagrams (plan, cross section and long section) are shown
intercepts should be included for any significant discovery being in the release text.
reported. These should include, but not be limited to a plan view of
drill hole collar locations and appropriate sectional views.
Balanced reporting • Where comprehensive reporting of all Exploration Results is not • All drill hole results referred to in the release are listed in Table 1.
practicable, representative reporting of both low and high grades • The Company has presented all available information in this report in a
and/or widths should be practiced to avoid misleading reporting of balanced manner and has provided appropriate context for the
Exploration Results. Exploration Results to allow a considered and balanced judgement of
their significance.
Other substantive • Other exploration data, if meaningful and material, should be • Hardcopy maps are available for a range of other exploration data. This
exploration data reported including (but not limited to): geological observations; includes mine survey plans, geological maps, airborne magnetics,
Criteria JORC Code explanation Commentary
geophysical survey results; geochemical survey results; bulk samples – ground magnetics, electromagnetics, gravity and induced polarisation.
size and method of treatment; metallurgical test results; bulk density, All available exploration data has been viewed by the Competent
groundwater, geotechnical and rock characteristics; potential Person.
deleterious or contaminating substances. • The Prieska Mine operated from 1972 to 1991 and is reported to have
milled a total of 45.68 Mt of ore at a grade of 1.11% copper and 2.62%
zinc, recovering 0.43 Mt of copper and 1.01 Mt of zinc. Detailed
production and metallurgical results are available for the life of the mine.
• In addition, 1.76 Mt of pyrite concentrates and 8,403 t of lead
concentrates as well as amounts of silver and gold were recovered.
• Copper and zinc recoveries averaged 84.9% and 84.3% respectively
during the life of the mine.
Further work • The nature and scale of planned further work (e.g. tests for lateral • Further drilling and geophysical surveys are planned to follow up
extensions or depth extensions or large-scale step-out drilling). OAXD002.
• Diagrams clearly highlighting the areas of possible extensions, • Assays for metals in core from OAXD002 will be submitted to ALS
including the main geological interpretations and future drilling areas, Laboratory in Johannesburg for analysis.
provided this information is not commercially sensitive.
Date: 28/11/2018 09:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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