ORION MINERALS LIMITED - Orion to Take Controlling Interest in Regional Exploration Package Following Key Regulatory Consent

Orion to Take Controlling Interest in Regional Exploration Package Following Key Regulatory Consent

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”)


ORION TO TAKE CONTROLLING INTEREST IN REGIONAL EXPLORATION PACKAGE FOLLOWING KEY REGULATORY CONSENT

Orion to increase stake in Prospecting Right Holder Masiqhame to 50% with right to increase to 73%

•  Masiqhame, which holds the Prospecting Rights over a highly prospective 980km2 tenement package
   ~80km north of the Prieska Copper-Zinc Project, receives ministerial consent for the transfer of a
   controlling interest to Orion.

•  Orion to be issued an additional 1% of Masiqhame shares, bringing its holding to 50% with management
   control with the opportunity to earn up to an additional 23% to take its holding to 73%.

•  The increase in ownership and control of Masiqhame further strengthens Orion’s pipeline of base metal
   exploration assets in the Areachap Belt, surrounding its flagship Prieska Project.

Orion’s Managing Director and CEO Errol Smart, commented:
“Obtaining Ministerial consent for the transfer of a controlling interest in the Prospecting Right Holder, Masiqhame,
to Orion, is a key step which gives us management control and the opportunity to increase our ownership in this
highly prospective northern exploration package to 73%.

Orion’s strategy is to develop a pipeline of VMS exploration opportunities across the highly prospective Areachap
belt to complement our flagship Prieska Copper-Zinc Project, where we intend to establish a new processing
facility and infrastructure. VMS deposits generally occur in clusters and we believe the exploration upside in the
broader belt is significant.

In 2018, we identified a number of high-priority VMS targets on the Masiqhame Prospecting Right and we are
looking forward to progressing exploration of these promising targets as part of our broader growth strategy in the
Areachap Province.”

Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce that it will move to a
controlling interest in a key regional exploration tenement package located ~80km north of its flagship Prieska
Copper-Zinc Project in South Africa’s Northern Cape Province (Prieska Project), following a restructure of the
Prospecting Right Holder, Masiqhame Trading 855 Pty Ltd (Masiqhame).

Masiqhame, which is a privately owned South African company in which Orion currently holds a 49% stake, has
received Ministerial consent to transfer a controlling interest in the company to Orion. Masiqhame is a Prospecting
Right holder to Orion in terms of Section 11 of the Mineral and Petroleum Resources Development Act, No. 28 of
2002 (MPRDA).

As a result of the receipt of Section 11 consent from South Africa’s Department of Mineral Resources and Energy,
Masiqhame will issue an additional 1% of its shares to Orion, resulting in Orion holding 50% of the total Masiqhame
shares. Under the earn-in agreement between the parties, Orion has the opportunity to earn in an additional 23%
of the shares to bring its holding to a total of 73% by completing a feasibility study on any mineral project on the
property. Orion’s exploration spend up to 31 July 2019 on the tenements amounted to ZAR16 million (~$1.6 million).
Masiqhame holds a Prospecting Right over a highly prospective area of almost 980 km2, located approximately
80km north of the Prieska Project. The Masiqhame Prospecting Right is located in easily accessible flat-lying
countryside and is well situated with regional grid power and rail lines within 10km of the site. A good all-weather
dirt road passes within 800m of the Kantienpan deposit, located on the Masiqhame Prospecting Right.

Orion entered into a binding earn-in agreement with Masiqhame in September 2016, with the agreement
amended in March 2018 to allow Orion to commence exploration activities, including drilling. The Company is
currently focusing on Volcanogenic Massive Sulphide (VMS) style mineralisation on Masiqhame and, during 2018,
completed a regional aeromagnetic and electromagnetic (SkyTEMTM) survey and fixed-loop time domain ground
electro-magnetic surveys (FLTDEM) over the Prospecting Right in order to prioritise VMS copper-zinc drill targets.


Figure 1: Locality Map showing the Prospecting Rights held by Orion overlain on the regional geology of the Areachap Belt.


Two VMS deposits, Kantienpan and Boksputs, as well as several other copper-zinc occurrences are known to exist
on Masiqhame and a high-powered FLTDEM survey conducted on Kantienpan by the Company in 2016 detected
previously unknown conductors below and along strike from known mineralisation.

Drill testing of the conductors yielded encouraging results, intersecting massive sulphides (refer ASX release 29
September 2016). These results highlighted the potential to unlock new discoveries by utilising modern geophysical
methods in the Areachap Belt. The mineralisation at the Kantienpan Deposit remains open both along strike and
at depth.


Figure 2: Map showing the area covered by the Kantienpan and Boksputs Deposits on Masiqhame and the coverage of the SkyTEMTM survey over
Masiqhame and Namaqua-Disawell.


The airborne magnetic data obtained with the SkyTEM TM surveys is superior to any regional airborne magnetic
data previously available over the Prospecting Right and allowed for more detailed regional geological
interpretations and targeting (Figure 3).

Five FLTDEM surveys have been completed over selected SkyTEM TM anomalies. Two of the conductors in the
Boksputs VMS camp offer compelling drill targets (refer ASX release 24 September 2018). Identification and
prioritising of prospects continues.


Figure 3: Solid geological map of the Masiqhame Prospecting Right showing the inferred paleo-seafloor, known copper-zinc deposits and
occurrences and SkyTEMTM anomalies.


Figure 4: Three-dimensional view looking south-east and showing the stratigraphic and structural setting of the B1 and B4 conductors on
Boksputs Prospect.


Orion believes that the integration of geochemical and geophysical methods may quickly enable new targets to
be identified within the Masiqhame Prospecting Right, which overlies a highly prospective VMS horizon extending
over more than 30km of strike.

This horizon contains numerous published occurrences of copper-zinc mineralisation associated with massive
sulphides.


Errol Smart
Managing Director and CEO

2 September 2019


ENQUIRIES

Investors                              Media                                                           JSE Sponsor
Errol Smart – Managing                 Nicholas Read                       Barnaby Hayward             Rick Irving
Director & CEO
Denis Waddell – Chairman               Read Corporate, Australia           Tavistock, UK               Merchantec Capital
T: +61 (0) 3 8080 7170                 T: +61 (0) 419 929 046              T: +44 (0) 787 955 1355     T: +27 (0) 11 325 6363
E: info@orionminerals.com.au           E: nicholas@readcorporate.com.au    E: orion@tavistock.co.uk    E: rick@merchantec.co.za
Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000


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).

Date: 02/09/2019 11:57:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.