Wrap Text
December 2023 Quarterly Activities Report
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
December 2023 Quarterly Activities Report
HIGHLIGHTS
- Orion's transition to become a mine developer and operator at the Prieska Copper Zinc Mine (PCZM)
is well advanced, with onboarding of a site-based skilled operating team, installation of mining
infrastructure and commencement of the trial mining program.
- Trial mining contractor, P2 Mining (Newrak Mining Group), mobilised to the PCZM site during the
Quarter and commenced with 143 Level drawpoint loading and waste drive development towards
the 105 Level supergene orebody. At the end of the December Quarter, a total of ~4,000 tonnes of
drawpoint material had been hauled to surface and 75% of the waste drive development was
complete. Development reached the 105 Level ore in January 2024.
- PCZM partnered with electrical service provider, Power Plant Electrical Technologies, for all the EPC
surface and underground electrical reticulation leading up to the 15MVA tie-in planned for Q2
CY2024.
- Mine dewatering pumps were procured and delivered to site in time for the planned Q1 CY2024
installation. Dewatering will commence after the construction of the evaporation storage dam and
the availability of the 15MVA power supply.
- Updated Feasibility Study on the accelerated development strategy and staged ramp-up at Prieska
is well advanced and on track for completion by mid-CY2024, once the trial mining program has
been completed.
- Orion entered into agreement to acquire 12,156 hectares of surface rights at the Okiep Copper
Project (OCP), opening up new opportunities for exploration in the area and facilitating surface
drilling to conduct validation drilling and support the Okiep Bankable Feasibility Study (BFS).
- Delivery of the Okiep BFS has been delayed to accommodate validation drilling and metallurgical
test work programs on areas not previously accessible.
- Experienced mining executives Anthony Lennox and Patience Mpofu appointed to the Board as non-
executive directors.
Orion's Managing Director and CEO, Errol Smart, said:
"Orion made significant progress in 2023 and I am very proud of how far the Company has come in the
last year as we continue to advance towards production.
"During the year, we systematically checked the boxes that allowed us to progress the development of
our three key base metal hubs in South Africa's Northern Cape.
"Supported by the equity, convertible debt and royalty funding packages we secured in 2023, Orion
commenced trial mining at our flagship Prieska Copper Zinc Mine (PCZM) during the December Quarter,
with our trial mining contractor mobilising to site in late September to commence drawpoint loading and
waste drive development. We celebrated the first blast at Prieska in November and mine development
has reached the 105 Level orebody in January.
"Results from this trial mining program will provide a vital input for the Early Production Feasibility Study for
Prieska, which is targeted for completion by mid-year.
"We are also continuing to progress metallurgical test work on Prieska ore, with current test work programs
focused on the supergene sulphide ore which we expect to mine in the initial phase of the proposed
mining operation while dewatering of the main mine is underway.
"At the Okiep Copper Project, we are continuing to work to complete the final elements of the Feasibility
Study in collaboration with our peer review team. On advice of the independent expert reviewers, we
completed planning for a twin drilling program to verify historical data that underpinned the Mineral
Resource Estimates at the Flat Mines East and North orebodies and further de-risk the study.
"Following the recent completion of land access negotiations, this drilling program will commence shortly,
with the Flat Mines Feasibility Study now scheduled for completion by mid-CY2024.
"We are also continuing our review and update of previous studies at the Jacomynspan Nickel-Copper-
Cobalt-PGE Project and progressed planning for a trial mining program to support metallurgical test work
programs. Laboratory scale test work to confirm amenability of the Jacomynspan concentrated to the
Stratega-TCM Metal Vapour Refining Technology progressed with pleasing results.
"With mine development studies progressing on multiple fronts, we are excited for 2024 and believe this
year will be a game changer for Orion as we deliver on our vision of becoming a fully integrated future
metals product producer.
"We were also pleased to announce the appointment of two new non-executive directors to the Orion
Board during the Quarter, with Anthony Lennox and Patience Mpofu joining Orion. This marks the
beginning of a board renewal process as we begin our transition to becoming an operating mining
company. I would like to welcome Anthony and Patience to the Orion team – we are extremely fortunate
to have secured their services, and I am very much looking forward to working with them.
"A big thank-you also to Tom Borman, who stepped down as a non-executive director in October. Tom
has made a huge contribution to Orion over a number of years and remains a significant and supportive
shareholder. We thank him for his hard work and wise counsel as a highly valued board member."
Orion Overview
Orion Minerals Ltd (ASX/JSE: ORN) is a diversified international base metals company which is developing
three complementary base metal production hubs in South Africa's Northern Cape Province, a richly
endowed mineral province and well-established mining jurisdiction.
Orion is prioritising the development of projects capable of meeting the growing demand for key future
facing metals – such as copper, zinc and nickel – that have strong market fundamentals because of
declining global resource inventories, falling grades at major mines and lack of investment in new mines.
The use of these metals in clean energy technologies makes them critical to a low-carbon future.
The Company continues to fast-track the development of its flagship Prieska Copper Zinc Mine (PCZM),
with an Early Production Feasibility Study currently in progress targeting the staged ramp-up of operations
and production. Key inputs to this study include the trial mining program (commenced in October) and
ongoing metallurgical test work, with dewatering of the underground mine also planned for early CY2024.
The Feasibility Study is due for completion by mid-CY2024.
Orion is also advancing the development of a second production hub, initially based on the Flat Mines
area at the Okiep Copper Project (OCP), while also conducting exploration programs to increase the
Resource and Reserve base to underpin a larger-scale, longer-term operation. The BFS on Flat Mines has
been delayed to accommodate a drilling and metallurgical program.
Orion's third project, the Jacomynspan Nickel-Copper-Cobalt-PGE sulphide (JMP) project will leverage
modern refining technology specifically directed toward production of metal products that are critical
to the energy transition. The metal vapour refining technology currently being tested on JMP metal
sulphide concentrates presents an exceptional opportunity to maximise metal recovery to high value
products with high ESG credentials.
Operations Report
Health and Safety, Community Engagement and Environmental Management
Health and Safety
No injuries were recorded during the December 2023 Quarter. The hours worked for the Quarter and the
2024 financial year to date are shown in the table below:
Table 1: Hours worked at Orion's Areachap and Okiep Copper Projects (South Africa).
Hours Worked
Category of Work
Quarter FY2024 YTD Total
Exploration 5,473 9,155
Surface 12,780 24,106
Underground 31,558 37,546
Contractors 19,473 27,562
Total 69,284 98,369
The Lost-Time Injury Frequency Rate (LTIFR) per 200,000 hours worked is 0.0 for the December Quarter.
At the end of the Quarter, the team celebrated 1,597 days without a Lost Time Injury (LTI).
Community and Stakeholder Engagement
Orion surpasses local community employment targets
Prieska Copper Zinc Mine (PCZM) is proud to have achieved 56% local community representation at the
current employment level. By the end of December 2023, a total of 93 community members were
employed at PCZM, which has 166 on-site employees. Local employees come from the communities of
Prieska, Marydale, Vanwyksvlei and Niekerkshoop, and fill various roles at the operation.
Over the three months to the end of December 2023, 17% of the mine's goods and services and sub-
contracting opportunities were awarded to local suppliers who were either based in the community,
employed community labour, or were based in the Northern Cape (up from 13% in the prior quarter).
Of these contracts, 66% were awarded to businesses that are either based in, or employ labour from, the
host communities of Siyathemba and Vanwyksvlei, and 34% to businesses located elsewhere in the
Northern Cape. There are continued efforts to identify competent local enterprises to further increase
host community spend.
Orion is working to meet aspirational targets that are captured in its Community Participation Framework,
which was developed at PCZM. The framework, which has evolved through a year-long series of in-person
meetings with representatives from local businesses and resident groups, commits Orion to proactively
encourage host community involvement in its operations through targets of 50% of employment, 30% of
the procurement of goods and services and 40% of sub-contracting opportunities.
The first of its type among junior mining companies operating in South Africa, the framework is a model
for community engagement and participation. It also provides a template that will be implemented at
the Okiep Copper Project in the Nama-Khoi municipal area.
Siyathemba Community
Local Enterprise Development and Skills Transfer
The second PCZM Social & Labour Plan Human Resource Development program was completed during
the Quarter, with 16 local candidates participating in Competency B (underground safety) training.
Training took place at the Murray & Roberts Training Centre in Carletonville and transportation services
were arranged through a local vendor.
Together with Orion, Murray & Roberts has also offered learnership opportunities at the Training Centre to
ten community members. This six-month learnership program began on 6 November 2023, and includes
three women and seven men from the community.
Nama Khoi Community
First Social and Labour Plan projects underway
Significant progress was achieved towards the execution of two Flat Mines Social and Labour Plan (SLP)
projects during the Quarter. These Local Economic Development projects are focused on animal
husbandry and agriculture to ensure that communities have a way to sustain their livelihoods beyond
mining.
A dedicated project team, represented by Orion, a Ward Councillor, a Community Development Worker,
the Department of Agriculture, two Ward Committee members and the Nama-Khoi Local Economic
Development Officer, was formed.
A specialised training program focused on vegetable cultivation, sponsored by the Department of
Agriculture and Rural Development, was run for 15 community members. This foundational training serves
as a stepping stone towards self-sufficiency and ensures sustainable livelihoods for the participants. Orion
plans to expand the initial training in 2024, by focusing on further education in both vegetable cultivation
techniques and egg laying practices.
Environmental Management
Making positive contributions to the state of the natural environment, reducing pollution, and ensuring
negligible contamination from operational activities are central to Orion's business model and part of our
commitment to delivering the highest level of environmental compliance while managing and
monitoring the environmental impacts of our activities throughout the mining lifecycle.
There were no environmental incidents recorded during the December 2023 Quarter.
Water Use Licence Application (WULA)
The Amended Integrated Water Use Licence Application (IWULA) Report for PCZM (prepared by ABS
(Africa) dated November 2021) was reviewed with the Department of Water and Sanitation (DWS) during
November 2023. Confirmation was given by the DWS that the amendment, with recommendations from
DWS, is likely to be received in Q1 CY2024.
Prieska Copper Zinc Mine Development and Exploration
Human Resources
A strategy remains in place to integrate PCZM employees within the Prieska community and local
economy. Sourcing of highly skilled individuals remains a challenge, more specifically engineering skills.
Given that specialist mining skills are currently not available locally, skills transfer remains a high priority
while the positive impact of disposable incomes being spent within the local economy benefits the entire
host community.
In conjunction with Murray & Roberts, the skills transfer and development of local community members
should establish a pool of local candidates available to feed into PCZM and contractor mining positions
as these become available and as the mine moves towards full operations.
Critical Focus Items
During the Quarter, a number of critical items were addressed in support of trial mining and dewatering
at PCZM. These included:
• The Skyjack hoisting platform installed in the Hutchings Shaft has been upgraded to carry three
people at a time. It has DMRE approval as the second escape from underground;
• P2 Mining team mobilised in October and commenced with 143 Level footwall drive loading,
drawpoint loading and 105 Level development;
• Both the 163 Level fixed underground refuge chamber and the mobile refuge chamber are in
operation, enabling 50 people to work underground at a time;
• Designs and plans for the self-build of a 15MVA Eskom grid connection sub-station expansion were
approved by Eskom and the procurement of long lead items has commenced;
• The underground ventilation plan was completed and the required ventilation fans have been
procured, delivered to site and installed in a staged approach based on criticality allowing trial
mining to commence;
• Services to the underground workings (ventilation, water, electricity and compressed air) have
been installed. Rectangular ducting was sourced for the historical underground drives giving
sufficient clearance to the trial mining fleet and removing the need for costly access tunnel
slipping; and
• Power Plant Electrical Technologies (PPE Technologies) were appointed as electrical EPC
contractor for all electrical standards together with surface and underground electrical
reticulation installation.
Dewatering
The water depth is presently approximately 269m below surface. Primary dewatering will commence
once sufficient electrical power becomes available and a water storage facility has been constructed.
The submersible pumps for installation in the main Hutchings Shaft and the multi-stage pumps to be
installed on the 178-Level have been delivered to site and will be installed in Q1 CY2024.
Different water treatment and purification methods were evaluated based on cost (CAPEX and OPEX
intensity), executability, timelines and compliance with the PCZM water use licence specifications. The
most suitable solution has proven to be the construction of an interim single-lined 13-hectare water
storage facility for dewatering.
Mine dewatering and water treatment is now planned to progress in two phases, with the first phase
focusing on volume reduction through evaporation which will utilise standard evaporation as originally
included in the PCZM BFS20. The concentrated brine remaining will then be temporarily stored in the 13-
hectare single-lined impoundment facility located within the footprint of the approved 65-hectare tailings
storage facility (TSF).
The second phase of Reverse Osmosis water treatment will follow at a later stage, being less time sensitive,
and will focus on producing agricultural use quality water for possible host community projects. Brine will
be stored in the planned 9-hectare effluent storage facility (ESF) as approved in the water use license.
The future treatment of brine stored in the lined facilities to recover agri-minerals and fertiliser as part of a
potential joint venture with parties specialised in this industry and possibly with local partners, remains an
opportunity to be exploited in the future.
ECO Elementum Engineering has been contracted to design the 13-hectare dewatering storage facility.
The design is such that it will allow for a seamless transition into the future paddocked 65-hectare TSF
treatment plant slurry storage facility once the Processing Plant comes online. The footprint has been
optimised for the planned dewatering rates and will make use of evaporators to concentrate the salts in
storage. Construction of the storage facility commenced in January 2024.
The early dewatering program is on track to complete installation of dewatering pumping at a rate of
100m3/hr initially in Q2 CY2024, building up to 500m3/hr by Q4 CY2024. Dewatering will commence with
the scheduled 15MVA Eskom power connection in Q2 CY2024 and the availability of a dedicated sub-
station to support the dewatering pumps.
Power Reticulation
The engineering design of the 15MVA electricity supply point sub-station extension was approved by
Eskom in October. Construction of the sub-station extension by an Eskom approved contractor is
scheduled to commence in Q1 CY2024. PCZM has partnered with PPE Technologies (Power Plant
Electrical Technologies) for the electrical specifications, procurement, and electrical project
management. The 15MVA upgrade is scheduled to be completed by Q2 CY2024.
Photo 1: Underground Electrical Substation.
In the meantime, the surface and underground electrical reticulation has commenced and is being
project managed by a site-based PPE construction manager in readiness for the delivery of the long-lead
items of the 15MVA upgrade.
The interim arrangement to increase the currently available electrical supply to 1MVA has commenced
with the construction of the 11kV overhead powerline and installation of transformers and electrical
switchgear. Switch-over to the 11kV supply occurred in mid-January 2024. The Medium Voltage (11kV)
extension to the underground workings powers the trial mining compressors, mining drills and ventilation
fans at the 105 Level and drawpoint loading at the 143 Level.
Exploration
A program of shallow in-fill Reverse Circulation holes was completed in Q3 CY2023. The purpose of the
program was to increase the amount of drilling data in the oxide Mineral Resource above the +105 Level
supergene sulphide Mineral Resource and to provide material for oxide leach test work purposes.
This could facilitate the evaluation of the open pit oxide mining concept. Thirty-two holes were drilled
totalling 1,286m (Figure 1).
Interpretation and modelling is currently underway with expected completion in Q1 CY2024. Results from
oxide leach test work is pending.
Figure 1: Drill holes – actual oxide hole positions.
Trial Mining
P2 Mining (part of Newrak Mining – a company with more than 25 years of contractor mining experience)
is the appointed mining contractor for the 6-month trial mining period. P2 Mining mobilised to site in late
September 2023, with final equipment arriving and being commissioned from early October 2023.
Trial mining kicked off with footwall drive loading to access the 143 Level drawpoints followed by
development drilling and blasting from the 105 Level development drive towards the supergene Crown
Pillar orebody.
Approximately 4,000 tonnes of different drawpoint material was loaded to surface over the December
Quarter. At surface, the material is stored according to geological classification for future treatment in a
crushing and sub sampling plant, with grade determination in the newly constructed mine laboratory.
Photo 2: 143 Level drawpoint material stockpiled on surface.
Photo 3: +105 Level face charging.
Photo 4: Ore horizon intersected with Primary development.
Drilling and blasting of the development cross-cut ramp started towards the end of November and a
total of 68m (at 4.5m wide x 4.5m high) of the projected 95m drive was completed by the end of the
Quarter.
Development rates were hampered with poor machine availability at start-up together with services
(water and ventilation) issues as the mining team came to grips with the site conditions and teething
problems of starting a new operation.
Ventilation was installed in a phased approach making optimal use of the available electrical power at
the time, with final fans only becoming operational once the ends of the two 150m ore drives were
reached in Q1 CY2024.
Machine reliability has now improved substantially, and the required underground services are now fully
installed and operational. The 105 Level supergene Crown Pillar is expected to be reached early February
2024 when underground rock conditions will be evaluated and the original assumptions regarding
development drift dimensions, roof support and mining method will be reviewed.
Based on this new-found information, a 40,000t per month mining schedule will be developed to follow
after trial mining has come to an end.
The trial mining project is testing the conventional load-haul-dump arrangement as well as an alternative
underground mining method using continuous loaders matched with bi-directional trucks. The learnings
and efficiency improvements will feed into the revised mining BFS, together with drawpoint sampling
results from the 143, 201 and 259 Levels that will evaluate the quality of broken ore remaining in old stopes
in the upper areas of the underground workings.
Photo 5: Trial mining at PCZM site 143 Level.
Mining Fleet for Trial Mining Phase
The mining fleet of vehicles and machinery is shown in the table below.
Equipment sizing will be further optimised from the understanding of the supergene Crown Pillar orebody
and incorporated into the mining schedule to follow.
Item Description Quantity
LHD Aard 5.t 2
Dump Trucks 14 t low profile Fermel 2
Drill Rig Sandvik DD321 1
Utility Vehicle UV120 1
Continuous Loader ITC120N 1
Bi-directional drive Dump Trucks 20t Paus ITC 10 2
Metallurgical Process Re-evaluation and Early Concentrator Plant Design
Orion continues to engage with various technical and turnkey process plant service providers for the
supply of a 30-60ktpm modular process plant to treat ore from the trial mining phase at PCZM. The test
work for the design of the process plant is being undertaken on supergene material.
Processing routes developed by Mintek in 2018 include hypogene milling, sequential copper (Cu)
flotation, zinc (Zn) flotation and ultra-fine grinding. However, opportunities still exist to improve on the
processing route for the supergene sulphide portions of the deposit (+105 Level Crown Pillar) and this is
the focus of the current test work.
Flotation testing of hypogene samples in line with historical recoveries of the mine achieved over 86%
recovery for both Cu and Zn, with Cu concentrate grades above 28% and Zn at 53% (refer ASX/JSE release
26 May 2020). Test work is now being progressed to assess the supergene sulphide recoveries from Locked
Cycle testing.
The results of this test work will be incorporated into the Early Mining Plan and modular process plant
design. The plant will be designed to treat the different orebodies in separated treatment campaigns
from surface stockpile material. Throughput rates will be in the 30-60ktpm range.
Mr Bryan Broekman, the previous Chief Metallurgist for Anglovaal Group – who was directly responsible
for most of the metallurgical process plant optimisations at Prieska Copper Mines to treat mixed oxide,
supergene sulphide and hypogene sulphide ores from 1988 until mine closure in 1991 – is overseeing the
two sets of supergene flotation test work on 1.5 tonnes of fresh metallurgical samples drilled from four
holes in the supergene sulphide zone of the +105 Resource blocks.
The test work is currently being undertaken by Enprotec and MTEC Engineering respectively. Additional
fresh supergene mined material for test work will become available from the trial mining project in Q1 CY
2024.
Metallurgical Test Work Update
PCZM Supergene Ore
The project focus has been turned around and the readily accessible supergene ore will be mined first
while dewatering of the underground mine is underway. In 2018, Mintek completed some preliminary
flowsheet development work on the treatment of supergene ore.
The 2018 Mintek test work demonstrated on a preliminary basis that the flotation of supergene ore was
feasible. This process concept became the base case for the current process design.
The metallurgical test work is being carried out at Maelgwn South Africa Laboratories under the guidance
of Orion Mineral's metallurgical consultants. A composite sample for this test work program was
developed from reverse circulation drill core samples from the +105 Level Crown Pillar.
The flowsheet adopted by Mintek in the 2018 study is shown in Figure 2 below.
Figure 2: Simplified flow diagram of the flotation process.
For the Q3 CY2023 test work, the supergene flowsheet development focused on the production of
separate copper and zinc concentrates at economically attractive grades.
The first phase of supergene test work proved that bulk concentrate flotation achieved high recoveries
of copper and zinc into a bulk concentrates. The test work also showed that a high grade pyrite
concentrate (>50% S grade) is easily produced and presents a by-product sales opportunity.
Photo 6: Photograph showing a batch flotation test of the PCZM supergene ore at Maelgwyn.
The next phase of Enprotec and MTEC Engineering test work under the guidance of Bryan Broekman is in
progress at Maelgwyn, focused on improving and refining the flotation procedures developed during the
initial test phases to achieve the required selectivity for saleable concentrates production.
The procedure changes focused on:
1. Conditioning method and time;
2. Reagents addition sequence and methods; and
3. Management of slurry pH and potential.
Early indications from this phase of test work indicate a marked improvement in the flotation process
Cu/Zn selectivity in comparison to the earlier rounds of tests completed. This phase of test work will
continue with the flotation process improvements to achieve copper and zinc selectivity for the
production of higher quality concentrates.
PCZM Oxide Resources
Samples of oxides mineralisation from +143 Level drawpoints where crown pillar collapse material has
reported and +105 Level Crown Pillar have been delivered to CM Solutions Laboratories for
characterisation and leach test work. This test work is scheduled for Q1 CY2024.
Okiep Copper Project Development and Exploration
Feasibility Study Report
The Okiep Bankable Feasibility Study (BFS) Report was submitted for peer review in the September 2023
Quarter. The review team examined the reports and supporting documentation discipline by discipline,
to advise Orion where additional work may be required to satisfy commercial banks' due diligence
required for project funding. A bulletin itemising area's requiring further clarification and, in some cases,
further work, was provided to Orion.
The bulk of the Study content was accepted, however the peer review team recommended additional
validation drilling to confirm the results of Newmont and Goldfields era drilling that has been used
throughout the study. This validation drilling will confirm Resource classification of the project area as
defined by the Competent Person that signed off on the Resource Statement. The historical exploration
data from work done by Newmont and Goldfields (the prior owners of the Project Area) has been
validated to satisfaction at Flat Mine North however lack of surface access resulted in the absence of
twin-drilling by Orion in the Flat Mines East and South orebodies.
Orion concluded negotiations in January 2024 to access and acquire 12,156 ha of land that includes the
majority of the Flat Mines Project area.
In consultation with the peer review team, Orion will drill additional diamond drill holes into the Flat Mines
orebodies to prove the reliability of the legacy exploration data to a standard which would be
satisfactory to lenders. This drilling program is scheduled to commence in February 2024, and will delay
the completion of the BFS to approximately mid-2024.
The drilling program into the Flat Mines will provide the opportunity to gather additional data, including
geotechnical and metallurgical characteristics of the Flat Mines orebodies to confirm the absence of any
negative ore zonation over the extensive intrusive bodies. The Okiep Copper Company, who previously
operated more than 16 mines in the district, never noted any metallurgical abnormalities that made
treatment of these orebodies in the central milling and concentrator facilities problematic.
Environmental Management
Water Use Licence Application (WULA)
The Integrated Water Use Licence Application (IWULA) was submitted to the Department of Water and
Sanitation (DWS) early in September (previous Quarter), and a certificate of receipt was received. The
Application is progressing through the Department and queries and clarifications have been answered
as required. Approval of the WULA by DWS is now anticipated in Q1 CY2024.
Okiep Project Development
Metallurgical Processing Plant
The planned availability of additional drill core from the Flat Mines East orebody has facilitated the
planning of metallurgical test work to confirm the metallurgical behaviour of ore from the East orebody.
Previously, test work on the South orebody (with very similar mineralogy) was relied upon for the
forecasting of the metallurgical behaviour of the East Mine.
The additional confirmatory test work will commence as soon as samples become available from the
diamond drilling program, scheduled to be completed by May 2024.
The capital and operating cost estimates for the Processing Plant will be updated to 2024 values.
Mine Planning
With the additional drilling to be undertaken in the Flat Mines East and North orebodies, the Resource
model will be updated by Z-star (the nominated independent Competent Person). The Mine Layouts will
be reviewed to accommodate any changes of geometry, if any, to the block model.
Infrastructure
As reported previously, the plans for the provision of power and water to the Flat Mines operations have
been finalised and incorporated in the BFS. No further work in this area is currently required.
Rehabilitation of the Nababeep waste-water-works by the local municipality is in progress, with
consultants appointed by the municipality to oversee the work. The refurbishing works required have been
put out to tender, and the appointment of contractors is imminent.
A connection point for construction power supply from the existing NK Municipality substation has been
indicated and a servitude application for the 11kV powerlines to the mine site has been submitted as
part of the SPLUMA (land use rezoning application) which is in process.
Access control booms have been installed at the entry to the Mining Area to control access to the site.
Land Access
As reported previously, access to the land on which the bulk of the surface mining infrastructure will be
located has been secured through a access and purchase agreement with a private owner and a lease
agreement with the Nama Khoi Local Municipality (NKM). The Rezoning Application for Mining Use was
submitted during the Quarter.
The fact that the rezoning application applies to land owned by a NKM means that approval for the
rezoning does not require Department of Agriculture approval. The rezoning approval is therefore of
relatively short duration.
New Okiep Mining Company Permitting
No changes in the status of the Mining and Prospecting Rights occurred during the Quarter.
Jacomynspan Project
Figure 3: Jacomynspan Project area map in the Northern Cape, South Africa.
The Jacomynspan Project offers the potential for a Class-1 nickel-copper-cobalt-PGE-gold open pit and
shallow underground mining project. As previously reported, the Namaqua Nickel Mining Right, which
was granted by the DMRE in September 2016, was notarially executed with the DMRE in December 2022.
An application for the extension of the commencement date of mining operations was submitted to the
DMRE in December 2023, to allow time to complete ongoing technical studies and a water use licence
application.
Work continued to focus on planning for a trial mining exercise to generate a sufficiently sized
representative bulk sample to test innovative metallurgical refining/battery pre-cursor production at a
pilot scale. Orion maintains an exclusivity agreement with Stratega Metals (Pty) Ltd (Stratega) to
undertake amenability test work on a 250kg sample of Ni-Cu-Co-PGE-Au concentrates from the
Jacomynspan Project after the initial laboratory amenability test work on a sample of Jacomynspan
concentrate provided promising results.
Work continued during the Quarter on refining and updating a 2013 feasibility study for the project that
forms the basis of the approved mine works plan. The current focus of work is on securing an adequate
water supply for mining operations and application for a water use licence to conduct the trial mining
operations.
Stratega Metals Vapour Refining Project
The laboratory tests on chloro-vapour extraction of sulphur and metals reported in September's Quarterly
report progressed during the Quarter. The aim is to optimise the thermodynamic conditions of the metal
vapour process. These tests will determine the thermodynamic and kinetic parameters for selective
chlorination and extraction, metal vapour transfer, distillation, and subsequent carbonylation. The
targeted outcome is the optimised refining configuration for production of high value products such as
high pyrite elemental sulphur, separated metal products and compounds and ultrafine metal carbonyl
powders.
An Independent Scientist review to evaluate and validate the outcome of the test results continued
during the Quarter. The agreed next phase of the Amenability Test will consist of a larger sample (500g)
and will start after the verification of Stage Gate 1 test results review.
As reported in the June 2023 Quarterly Report, Stratega has progressed discussions with electric vehicle
(EV) manufacturers which are potential end users of the metal vapour powder products to be produced.
One large European EV manufacturer has accepted Stratega onto its accredited supplier listing and has
expressed interest in funding a vertically integrated mine and refinery facility to produce its metal product
requirements. Discussions with this and other EV OEMs continue.
Areachap Exploration
Areachap is an under-explored belt with multiple copper-zinc and nickel-copper-cobalt-PGE-gold
intrusive targets within Orion's tenements. Chief among these are:
• Several high-grade copper-gold targets with historical and recent drill-hole intersections;
• The Kantienpan zinc-copper VMS project where Orion has identified a substantial mineralised
orebody and will now progress this project to pre-feasibility level; and
• Lithium, beryllium and Rare Earth Element (REE) opportunities, which are currently being
investigated. The Orange River Pegmatite Swarm with notable Li, Coltan and beryllium
occurrences traverses the mineral rights held by Orion with several old workings mapped on these
pegmatites.
Orion is investigating the potential to joint venture or separately fund this significant earlier stage
exploration opportunity. While the focus of Orion's operations lies with mine development of its advanced
projects Orion recognises the potential to secure funding from investors with appetite for exploration
stage investment.
Orion has secured the services of Mr John-Paul Hunt as Group Consulting Geologist, to lead the
exploration and new business opportunity. JP Hunt has until recently been the Principal Scientist for SRK
based on Johannesburg and has extensive experience in base metal exploration with a focus on
geophysics and remote sensing.
No exploration work took place during the Quarter.
Australian Projects
Fraser Range – Nickel-Copper Projects (Western Australia)
The Fraser Range Project is a belt-scale project highly prospective for high-value magmatic nickel-
copper-cobalt sulphide discoveries. ASX-listed IGO Limited is the dominant landholder in the Fraser Range
and owns the Nova Operation, which is mining and processing the Nova-Bollinger Ni-Cu-Co sulphide
deposit discovered in 2015.
Orion maintains a sizeable tenement package in the Fraser Range under a joint venture with IGO. In terms
of the joint venture, IGO is responsible for the exploration of all the tenements while Orion is free-carried
by IGO through to the first Pre-Feasibility Study. This allows Orion to maintain exposure to ongoing
exploration and development of the project, without any ongoing financial commitment.
During the December 2023 Quarter, IGO completed a rehabilitation and tenement reclassification review
across all tenements under the JV agreement. Several targets were reviewed in depth for prospectivity
and two were identified for additional exploration, to aid with further assessment. In the coming Quarter,
IGO intends to complete any additional in-depth review of the targets and prepare an exploration
program for the Peninsula and Artemis targets. Desktop review of the tenements will continue into the
coming Quarter.
Walhalla – Gold and Polymetals Project (Victoria)
While the Walhalla-Woods Point District is best known for gold mining, high-grade copper-nickel and PGE
mineralisation also occurs within the belt. Both the gold and copper-nickel-PGE mineralisation within this
district are hosted within dykes from the Woods Point Dyke Swarm, a series of ultramafic to felsic dykes
occurring over a 75km long north-south belt.
No field or exploration work was carried out on the Walhalla Project during the reporting period.
Corporate
Cash and Finance
Cash on hand at the end of the Quarter was $10.96 million. Payments made to related parties and their
associates during the Quarter was $170k for director fees and consulting fees, as listed in Section 6 of the
Company's Quarterly Cash Flow Report (Appendix 5B).
Options Exercised
During the Quarter, the Company issued 158,333,332 ordinary fully paid shares following the exercise of
options with an exercise price of $0.017 and an expiry date of 30 November 2023. Orion's former non-
executive director, Mr Thomas Borman, exercised 133,333,332 options and Clover Alloys Investments
exercised 25 million options, together investing $2.69 million in the Company.
A total of 3,354,821,376 unexercised, unlisted options, expired on 30 November 2023. These options and
those above were issued as part of the capital raising announced by the Company in March 2023.
Project Funding
Drawdown of the IDC Convertible Loan is in tranches and is pro rata matched by the drawdown requests
that Orion makes under the Triple Flag Funding Arrangement. No funding was drawn down during the
Quarter from the IDC Convertible Loan Facility or the Triple Flag early Funding Arrangement.
Orion's flagship Prieska Copper Zinc Mine (PCZM) is transitioning to the mine development and
construction phase following the conclusion of the key elements of an overarching strategic funding
package.
This funding package allows Orion to progress the development of the PCZM, including the
commencement of trial mining and processing of ore, mine dewatering and the completion of feasibility
studies for the PCZM Early Production Plan.
A summary of the material terms of the IDC Convertible Loan definitive agreement is provided in
Appendix 1 of the 8 February 2023 ASX/JSE release. While a summary of the material terms of the Triple
Flag definitive agreements is provided in Appendix 1 of the 13 December 2022 ASX/JSE release.
Directors Appointed
On 13 December 2023, the Company appointed experienced mining executives Mr Anothny Lennox and
Ms Patience Mpofu as non-executive directors of Orion. Their appointments further strengthened the
Orion Board, given their extensive skill sets including technical, operational, commercial, ESG and
community/stakeholder expertise, particularly as Orion transitions to a producer of future facing metals.
Annual General Meeting
The Annual General Meeting of shareholders of Orion was held at the offices of Clayton Utz,
Level 27, QV1 Building, 250 St Georges Terrace, Perth, Western Australia on Tuesday, 28 November 2023.
All items put to shareholders was passed by a poll.
Tenement Table
Tenement Project Ownership Change in Joint Venture Partner
Interest Quarter
South Africa
NC30/5/1/1/2/11850PR
Bartotrax 100% --- ---
NC30/5/1/1/2/13528PR1
NC30/5/1/2/2/10138MR Prieska Copper Zinc 70% --- ---
Mine
NC30/5/1/2/2/10146MR Prieska Copper Zinc 70% --- ---
Mine
NC30/5/1/1/2/12257PR Prieska Near Mine-OE5 100% --- ---
NC30/5/1/1/2/12258PR Prieska Near Mine-OE5 100% --- ---
NC30/5/1/1/2/12287PR Prieska Near Mine-OE5 100% --- ---
NC30/5/1/1/2/12405PR Prieska Near Mine-OE5 100% --- ---
NC30/5/1/1/2/11840PR Doonies Pan 70% --- ---
NC30/5/1/2/2/10032MR Namaqua-Disawell 25% --- Namaqua Nickel Mining (Pty) Ltd
NC30/5/1/1/2/12216PR Namaqua-Disawell 25% --- Namaqua Nickel Mining (Pty) Ltd
NC30/5/1/1/2/10938PR
NC30/5/1/1/2/13397PR1 Namaqua-Disawell 25% --- Disawell (Pty) Ltd
NC30/5/1/1/2/11010PR
NC30/5/1/1/2/13398PR1 Namaqua-Disawell 25% --- Disawell (Pty) Ltd
NC30/5/1/1/2/12292PR Masiqhame 50% --- Masiqhame 855 (Pty) Ltd
NC30/5/1/1/2/12197PR Boksputs North 70% --- ---
NC30/5/1/1/2/11125PR
NC30/5/1/1/2/13395PR1 Okiep 100% --- ---
Tenement Project Ownership Change in Joint Venture Partner
Interest Quarter
NC30/5/1/1/2/12357PR Okiep 100% --- ---
NC30/5/1/1/2/12897PR Okiep 70% --- ---
NC30/5/1/2/2/10150MR Okiep 56.25% --- Industrial Development Corporation
of South Africa Limited (IDC)
NC30/5/1/1/2/12850PR Okiep 56.25% --- Industrial Development Corporation
of South Africa Limited (IDC)
NC30/5/1/1/2/12852PR Okiep 100% --- ---
NC30/5/1/1/2/12854PR Okiep 100% --- ---
Western Australia
E28/2367 Fraser Range 30% --- IGO Limited
E28/2596 Fraser Range 30% --- IGO Limited
E39/1653 Fraser Range 35% --- IGO Limited & Geological
Resources Pty Ltd
E39/1654 Fraser Range 10% --- IGO Limited & NBX Pty Ltd
Victoria
EL6069 Walhalla 100% --- ---
EL5042 Walhalla 100% --- ---
This Quarterly Report is authorised by the Board.
31 January 2024
JSE Sponsor
Merchantec Capital
18
Date: 31-01-2024 08:57:00
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