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ORION MINERALS LIMITED - High Tenor Ni-Cu-Co-PGE Sulphides Intersected at Rok Optel, Northern Cape, South Africa

Release Date: 10/09/2018 09:49
Code(s): ORN     PDF:  
Wrap Text
High Tenor Ni-Cu-Co-PGE Sulphides Intersected at Rok Optel, Northern Cape, South Africa

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”)

HIGH TENOR NI-CU-CO-PGE SULPHIDES INTERSECTED AT ROK OPTEL, NORTHERN CAPE, SOUTH AFRICA

“Figures" referred to throughout this announcement can be viewed on the pdf version of the announcement,
available on the Company's website, www.orionminerals.com.au.

-   Initial drilling confirms presence of high tenor polymetallic sulphide mineralisation within two zones of a
    complex multiphase mafic conduit-style intrusion.
-   Massive sulphide veinlets occurring in swarms attain a maximum of 1-2% by volume in the wide swarm
    intersections drilled in the first hole.
-   Base metals within the better mineralised sulphide zones attain maximum tenors of 15% Ni and 4% Cu
    indicating that the target massive sulphide may be of premium quality.
-   Follow up down-hole electro-magnetic surveys detect conductors typical of bulk massive sulphide bodies,
    presenting high priority drill targets for immediate follow-up.


Orion’s Managing Director and CEO, Errol Smart, commented:

"Having confirmed that narrow injected massive sulphides veins intersected in recent drilling have high base
and precious metal tenors and also having detected very strong down-hole EM conductors which may indicate
wide lenses of sulphide with similar quality to the narrow veins already intersected, we are looking forward to
the results of follow up drilling already underway.”

Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to provide an update on ongoing
exploration at the Rok Optel Ni-Cu-Co-PGE target on the Namaqua and Disawell mineral rights (Disawell) in
the Areachap Belt, South Africa (Figure1). Assay and whole rock geochemical results have been received for
OROD001 and interpreted together with detailed core logging and follow up down-hole geophysics. The
integrated results confirm the conduit setting of mineralisation and have identified better targets for massive
sulphide discovery.

At the Rok Optel Prospect (Figure 2), drill hole OROD001 (refer ASX release 30 July 2018) 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 1-50mm
in width displaying injection features and occurring in swarms or concentrated within sulphide mineralised
zones. While the sulphide content within the individual veins attains volumetric content of >90%, the bulk
concentration of veins over the swarm width is generally <5%. The total sulphide content over assay intervals
is generally less than 5% with maximum sulphur grade of 7.15% over 0.62m from 201.05m.

The assay data indicates that the sulphide mineralisation varies in metal tenor, from low base metal tenors
(2.5 - 5% Ni, 1.5 – 3% Cu) in the upper parts of the intrusion and within veinlets hosted by country rocks, to
high tenors (10 – 15% Ni and 3-4% Cu) within veinlets and blebs in the more primitive parts of the intrusion,
which occur deeper in the intersection. The composite analytical data are illustrated by Table 1 and discussed
in detail in Appendix 1.

                        From                                                  2PGE + Au        Ni Tenor      Cu Tenor
 Drill Hole   Cut Off            Width m     Ni wt%    Cu wt%     Co wt%
                          m                                                      g/t             wt%           wt%

               0.2%
 OROD001                201.05      8.99       0.24      0.163      0.016         0.22           3.80           2.58
                Ni

               0.2%
 OROD001                292.09      7.29       0.28      0.115      0.013         0.66           9.29           3.65
                Ni

               0.3%
 OROD001                297.44      1.94       0.38      0.149      0.015         1.45           10.22          3.86
                Ni

               0.5%
 OROD001                201.05      1.22       0.45      0.569      0.047         0.16           2.90           3.66
                Ni

Table 1: Drill intersections from OROD001 calculated using SG-weighting at various cut-off grades. The Ni
and Cu tenors are calculated using the methodology of Kerr (2003) (see Appendix 2). The widths are
intersection widths and have not been corrected to true width.
 While precious metal tenors are not calculated for the intersections, the assay grades including high gangue dilution,
 indicate potential for extremely high precious metal tenor within the sulphides.

 A second hole, OROD002 was completed on 1 September 2018 testing a cluster of Fixed-Loop Time Domain Electro
 Magnetic (FLTDEM) plate models with conductance of up to 9,400S. The hole intersected a complex sequence of
 interfingering mafic to ultramafic sills from 25.73m to the end of hole at 491.95m. Four conduit-style cross cutting
 intrusions are present, the upper three, intersected from 25.73m – 233.66m depth are interpreted from logging to be
 equivalent to the OROD001 sequence. A fourth, lower intrusion was intersected over 61.8m from 330.15m -
 491.95m. This intrusion has the same rock suite and very similar poly-mineralic mineralisation to the upper intrusions.

 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. The most continuous
 mineralised zone intersected is 6.14m (intersection width) from 215.62m, which included a 13cm massive sulphide
 vein (>95% sulphide by volume) at 215.62m. A single high priority assay has been received for this vein, returning
 0.90% Ni, 0.17% Cu, 0.03g/t 2PGE + Au over a 65cm sample from 357.37m. This assay is typical of the lower tenor
 zone of sulphide mineralisation intersected in the upper part of OROD001. Assay data from the remainder of the
 intersections are awaited.

 Downhole electromagnetic (EM) surveys have been completed for OROD001 and OROD002 which has provided
 important 3D data collection and enabled more detailed resolution of the conductive bodies. While early interpretation
 focused on a simplified single conductor plate, the downhole EM surveys clearly indicate multiple stacked conductors,
 the strongest of which are off-hole. These conductors now become high priority targets to intersect larger volumes
 of the high tenor sulphides intersected in the narrow veins. The conductance of the plates infers a sulphide source.

 Drilling has commenced on a third hole to test a 10,500S conductor with plate centre located 146m from drill hole
 OROD001. A >16,000S conductor located below and offset from OROD002 remains to be tested.


 10 September 2018

 Errol Smart
 Managing Director and CEO

ENQUIRIES

Investors                                                     JSE Sponsor
Errol Smart – Managing Director & CEO                         Rick Irving
Denis Waddell – Chairman                                      Merchantec Capital
T: +61 (0) 3 8080 7170                                        T: +27 (0) 11 325 6363
E: info@orionminerals.com.au                                  E: rick@merchantec.co.za

Media
Michael Vaughan                                               Barnaby Hayward
Fivemark Partners, Australia                                  Tavistock, UK
T: +61 (0) 422 602 720                                        T: +44 (0) 207 920 3150
E: michael.vaughan@fivemark.com.au                            E: orion@tavistock.co.uk

Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000

Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Richard
Hornsey (Pr.Sci.Nat.) Registration No: 400071/96, a Competent Person who is a member of the South African
Council for Natural Scientific Professionals, a Recognised Overseas Professional Organisation (ROPO). Mr
Hornsey is a Consultant to Orion. Mr Hornsey has sufficient experience that is relevant to the style of mineralisation
and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the JORC Code. Mr Hornsey consents to the inclusion in this announcement of the
matters based on his information in the form and context in which it appears.

Disclaimer

This release may include forward-looking statements. Such forward-looking statements may include, among other
things, statements regarding targets, estimates and assumptions in respect of metal production and prices,
operating costs and results, capital expenditures, mineral reserves and mineral resources and anticipated grades
and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic,
market, political, social and other conditions. These forward-looking statements are based on management’s
expectations and beliefs concerning future events. Forward-looking statements inherently involve subjective
judgement and analysis and are necessarily subject to risks, uncertainties and other factors, many of which are
outside the control of Orion. Actual results and developments may vary materially from those expressed in this
release. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking
statements. Orion makes no undertaking to subsequently update or revise the forward-looking statements made in
this release to reflect events or circumstances after the date of this release. All information in respect of Exploration
Results and other technical information should be read in conjunction with Competent Person Statements in this
release (where applicable). To the maximum extent permitted by law, Orion and any of its related bodies corporate
and affiliates and their officers, employees, agents, associates and advisers:

•    disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any
     change in expectations or assumptions;
•    do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness
     of the information in this release, or likelihood of fulfilment of any forward-looking statement or any event or
     results expressed or implied in any forward-looking statement; and
•    disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability
     for negligence).

 Drill Hole   X UTM34S      Y UTM34S       Elevatio Initial Depth      Final Depth         Dip           Azimuth
                                            n (m)         (m)              (m)          (degrees)       (degrees)
 OROD001       580,215      6,746,005       1,059           0             412.06            -60             120
 OROD002       580,360      6,746,760       1,559           0             491.95            -65             090
 OROD003       580,142      6,745,874       1,057           0            450.00(1)          -70             102

Table 2: Orion drill hole Information.

Appendix 1:     Technical Update on the Exploration Completed at Rok Optel

This brief overview summarises and contextualises the recent and ongoing multi-disciplinary geological,
geochemical and geophysical work that has been undertaken at the Rok Optel Prospect.

Overview

The focus of recent exploration has been the drilling of two new drill holes into the Rok Optel Prospect to:

    -   Verify the setting of the intrusion in terms of time and space relative to the Namaqua-Natal orogeny,
        especially important given that the neighbouring Jacomynspan intrusion is now interpreted to have been
        emplaced at a late stage during the orogeny.
    -   Verify the historic work undertaken and interpretation of the intrusion to be a steeply-dipping body emplaced
        parallel to the regional gneiss fabric (NNE-strike, with steep dips to the west). This previous interpretation
        was not supported by the FLTDEM plates that inferred shallower dips.
    -   Identify the causative geological features for the airborne electromagnetic (AEM) and FLTDEM anomalies
        that could include sulphide mineralisation, graphite, or a conductive formational feature.
    -   Capture the maximum amount of quality new data from the drill hole core to enable construction of an
        interpretative and fully-inclusive predictive geological model to understand the sequences and
        mineralisation intersected and assess whether the EM anomalies have been fully explained or quantified.
        This data includes geological logging, detailed structural logging, completed before core cutting for analysis;
        and detailed sampling, description and quantification of mineralisation, followed by analysis.
    -   Interpret the assay results within the context of the intrusive rocks intersected and described to assess the
        nature, style, and distribution of the base and precious metals. Variation of sulphide tenor and relationships
        to lithological packages may be of importance to vector to the discovery of bulk massive sulphide lodes.
    -   Provide a platform to undertake DHTDEM surveys that provide “within mineralisation” detail to enable better
        resolution of the conductive stratigraphy and identify deeper-seated conductors that may be related to
        massive sulphide. Magma conduits are characterised by the presence of several stacked conductors related
        to mineralised stratigraphy. This introduces complexity to target plate modelling that can only be resolved
        by down-hole surveying. The FLTDEM plate models present an average derived from a surface of the earth
        2D survey platform, whereas the DHTDEM plate models are derived from 3D survey data.

This work has been supported by:

    -   Georeferencing and characterisation of the 1977 Newmont mapping followed by field mapping of the Rok
        Optel prospect, comprising a 10-day focused program by three geologists. This work has significantly
        advanced detailed understanding of the prospect,
    -   Mineralogy has been undertaken on field grab samples from Rok Optel and Area 4 for comparison to
        Jacomynspan. The final reporting on this work is awaited.
    -   Lithogeochemical interpretation of the Rok Optel and Area 4 grab sample analytical data has been
        undertaken to assess whether the intrusions trace element characteristics show that the intrusions are part
        of the same magma suite. This database will become more valuable going forward as it provides Orion with
        a tool for rapid assessment of newly identified, potentially mineralised intrusions.

Figure A-1 is a Rok Optel prospect drill plan including the current plate models from the FLTDEM and DHTDEM
surveys. The data are overlain on the SkyTEM™ first vertical derivative, reduced to the pole magnetic image that
corrects the data to plot anomalies into their correct spatial locality. The image shows that the magnetic stratigraphy
changes characteristics and becomes more banded to the east of Rok Optel. This has now been characterised by
surface mapping to represent a lithological boundary between biotite-garnet-sillimanite gneiss to the west, and
plagioclase-hornblende gneiss to the east. The FLTDEM plates are shown in dark red, and the DHTDEM plates in
dark green. Drill hole OROD003 is testing the new 10,500S plate derived from the DHTDEM survey.

Drill Hole OROD001

Certified results from the 96 analytical samples have been received from ALS Chemex. The drill hole intersected
192.63m of intrusive rocks, 104.41m of which host magmatic sulphide mineralisation, including massive sulphide
(201.23m – 201.55m, 203.54m – 203.61m, 287.05m – 287.08m), and stringer mineralisation (240.05m - 242.14m,
248.08m – 248.69m). Figure A-2 presented previously (refer ASX release 30 July 2018) has been updated to
indicate the tenors of the illustrated sulphide mineralisation. Figures A-3 to A-7 are various drill hole plots of assay
data and calculated parameters. The drill hole logs are simplified to show intrusive rocks, gneiss, granite, migmatite,
veins and major structures.

    -   Figure A-3 shows Ni and Cu (ppm). Mineralisation is hosted over three main intervals. The uppermost
        sample, from 201.05m - 201.67m, returned the highest Ni and Cu grades (6940ppm and 4870ppm
        respectively). The sample (Figure A-2) contains injected semi-massive to massive sulphide.
    -   Figure A-4 shows Pt+Pd+Au (2PGE + Au)(g/t) and S (%). This plot is more revealing as it very clearly
        indicates the zones of better quality mineralisation in terms of metal content within sulphide, referred to as
        tenor. Apart from two samples with semi-massive sulphide at 201.05m and 287.04m, the S content is
        generally below 5% of the sample. This indicates that the base metal tenors of the better grade zones will
        be elevated. The PGE are rapidly diluted within high sulphide zones of mineralisation. The 2PGE + Au plot
        indicates that there is no direct correlation between Sulphur and PGE, but that the PGE are concentrated
        within two well-defined zones within the sequence coincident with peak Ni and Cu tenor. As the PGE
        strongly partition into the sulphide phase, the PGE tenor of the sulphide mineralisation may be extremely
        high.
    -   Figure A-5 shows the calculated Ni and Cu tenors using the methodology of Kerr (2003) (Reference
        provided in the JORC table, Appendix 2). It is acknowledged that the S contents are relatively low, therefore
        the calculation may provide indicative values only, however the PGE data provide an independent
        confirmation of the elevated sulphide tenors. Sulphide tenor is the calculated metal content of 100%
        sulphide, using the base metal and sulphur grades within the rocks, corrected based upon the observed
        quantity of olivine within the rock. Olivine hosts some Ni, therefore this is deducted from the Ni assay value.
        Cu is less incorporated into the silicates but may be hosted by clinopyroxene or amphibole. Correction
        factors of 100ppm have been applied. The plot provides a clear indication of the high base metal tenor of
        the upper and lower zones of mineralisation. The best quality sulphides are located towards the base of the
        lower zone, coincident with the highest PGE + Au grades (maximum Ni tenor of 14.52% from 299.38m to
        300.08m). This indicates that, should a bulk massive sulphide body be associated with this magma influx,
        it would be of premium base and precious metal grade.
    -   Figure A-6 shows MgO and CaO (%), derived from the raw assay data by application of standard correction
        factors to convert from element to oxide. This diagram further indicates the lithological variation, and
        relationships between rock type and mineralisation. MgO content provides a proxy for the mafic to ultramafic
        characteristics, particularly for fine grained, very dark, or slightly altered rocks. MgO of < 6.5% indicates
        mafic rocks (norite and gabbro), 6.5 – 13% pyroxenites, and >13% olivine dominant ultramafic rocks. It is
        clear from this plot that the upper mineralised zone is hosted by mafic rocks, and the lower mineralised zone
        by ultramafics. The CaO plot enables discrimination between orthopyroxene and clinopyroxene-bearing
        rocks. CaO of >7.25% indicates that the rocks are clinopyroxene bearing (gabbronorite to gabbro), whereas
        <7.25% indicates orthopyroxene-dominant norite. The upper and lower mineralised zones are hosted by
        orthopyroxene-dominant rocks. The lower mineralised zone is particularly anomalous within this dataset.
        These parameters will be utilised to derive a stratigraphy for the intrusion that will lead to more robust
        correlation as more data becomes available.

Figure A-7 shows drill hole OROD001 relative to the DHTDEM plates. The uppermost plate correlates to the centre
of the mineralised zones intersected. The lowermost (10,500S) plate centre is located approximately 146m south
west of OROD001.

Drill Hole OROD002

Drill hole OROD002 has been completed with 87 analytical samples submitted to ALS Chemex for assay. The drill
hole intersected a complex sequence of interfingering mafic to ultramafic sills from 25.73m to the end of hole at
491.95m. Four conduit-style cross cutting intrusions are present, the upper three, intersected from 25.73m –
233.66m depth are interpreted from logging to be equivalent to the OROD001 sequence. A fourth, lower intrusion
was intersected over 61.8m from 330.15m - 491.95m and also has the same rock suite and very similar poly-
mineralic mineralisation to the upper intrusions. A suite of lithogeochemical samples have been selected to
characterise the intrusions and facilitate between hole correlation.

Figure A-8 shows an oblique section looking north section of OROD002 illustrating the summarised lithology,
mineralised zones (expressed as sulphide percentage estimated during core logging), and photographs of the
sulphide mineralisation styles intersected.

Geophysics

The drill holes have been surveyed by Terratec Geophysical Consultants from Windhoek, Namibia using the
DigiAtlantis DHTEM probe. This has assisted in resolving the complex geology and better-defined the locations of
the numerous conductive features within the intrusive conduit complex. This complexity is a typical feature of
mineralised conduit intrusions within which the responses from several conductors interact.

The OROD001 results indicate a 10,500S off-hole conductor is located approximately 70m to the southwest of the
drill hole with plate centre at approximately 146m. A follow-up hole, OROD003 has been collared to test the plate
centre (Figure A-7).

The DHTEM survey of OROD002 also indicates a complex series of conductive features, the uppermost of which
was intersected by the drill hole (Figure A-8). A very strong off-hole conductor (16,000S) has been identified within
the latest-time EM channels located below and to the west of the drill hole. Plate modelling is in progress, and this
anomaly will be drill tested during the coming campaign.

The EM plate models are summarised by Table 3.

 Target           Method       Loop     Conductor Model       Plate             Plate             Approximate
                                                              Dimensions        Conductance       Plate Depth (m)
                                                              (m)               (Siemens)
 Jacomynspa       FLTDEM       HP2A     HP2_2022              1000 x 1000       250               150
 n
                                        HP2_2527              1100 x 1100       325               200
                                        HP2_3032              1000 x 1000       490               310
                                        HP2_3335              1000 x 1000       575               400
 Area 4           FLTDEM       A4A      A4A_1820              150 x 90          350               75
                                        A4A_2023              125 x 80          400               75
                                        A4A_2325              150 x 75          450-500           100
                               A4B      A4B_1820              400 x 50          650               50
                                        A4B_2023              300 x 50          900               50
                                        A4B_2224              325 x 50          1100              50
                                        A4B_2527              325 x 40          1750-2000         50
 Rok Optel        FLTDEM       ROK      ROK1_2730             475 x 90          2050              230
                               1
                                        ROK1_2932             475 x 90          2500              250
                                        ROK1_3133             475 x 85          3600              280
                               ROK      ROK2_2528             475 x 100         1250              200
                               2
                                        ROK2_2729             500 x 95          1700              225
                                        ROK2_2932             475 x 85          2900              275
                               ROK      ROK3_2325             130 x 300         850               275
                               3
                                        ROK3_2527             135 x 250         950               300
                                        ROK3_2729             120 x 275         1250              300
                               ROK      ROK4_3335             100 x 330         5250              295
                               4
                                        ROK4_3537             90 x 300          7200              310
                                        ROK4_3639             80 x 300          9400              320
 Target            Method      Loop     Conductor Model       Plate             Plate             Approximate
                                                              Dimensions        Conductance       Plate Depth (m)
                                                              (m)               (Siemens)
                   OROD00      ROK      OROD001_1_283         70 x 250+         1250-1500          ~240 DH
                   1           2        0
                   DHTDEM
                                        OROD001_2_333         75 x 200           7200               ~335 DH
                                        5
                                        OROD001_2_353         75 x 125           10500+             ~335 DH
                                        7
                   OROD00      ROK      OROD002_1_373         70 x 325           7500               ~355 DH
                   2           4        9
                   DHTDEM
                                        OROD002_2_373         60 x 250           16000+             ~390-400 DH
                                        9

Table 3: Summary of the plate model dimensions and conductance for the Rok Optel prospect.

Field Mapping

Field mapping over a 10-day period was undertaken at Rok Optel by two MSc students from the University of the
Witwatersrand supervised by expert consultant Richard Hornsey. This work has added control and context to the
ongoing exploration. Field observations indicate that the Jacomynspan Formation comprises two major units within
the area studied. This has been further refined using the airborne datasets into eastern mafic gneiss (hornblende-
plagioclase) and western biotite-garnet-sillimanite gneiss terranes. Target intrusions are located within both
terranes, but display different outcrop characteristics, weathering negatively in the biotite-garnet-sillimanite terrane
(Rok Optel intrusion) and positively in the mafic gneiss terrane. A large body of structural data have been captured
that is currently being interpreted and used for 3d modelling.

The initial data have been compiled into a project geological map (Figure A-9).

Subsequent reconnaissance field mapping has identified two new norite intrusions located on Jacomynspan portion
1 that are visually very similar to Rok Optel. Grab samples have been submitted for lithogeochemistry. This further
confirms the prospectivity of this terrane, and the opportunity to detect new intrusions by undertaking basic fieldwork.

Geochemistry

Lithogeochemical and preliminary mineralogical data have been received from grab samples that confirm that the
Jacomynspan, Rok Optel, and Area 4 intrusions are all geochemically related. Figure A-10 shows a spider diagram
of selected major and trace elements showing samples from Jacomynspan compared to the new data from Rok
Optel and Area 4. The samples from Rok Optel and Area 4 have been characterised mineralogically as hornblende-
bearing olivine norite (Draft report by Solly Theron, SJT Metmin Services (Pty) Ltd). These rocks are plagioclase
and titanomagnetite-bearing, whereas the Jacomynspan samples do not host either of these elements, therefore
these mineralogical differences are reflected within this plot for Ti (titanomagnetite), Sr and Eu (plagioclase). The
remainder of the plot shows excellent correlation between the samples from the three intrusions. This strongly infers
that the three intrusions form part of a potentially extensive suite of related intrusions.

Summary of the Project Status and Ongoing Work

The exploration undertaken at Rok Optel and surrounding areas has significantly advanced the exploration model.
The following working hypotheses are being advanced and tested:

    -   The Jacomynspan Suite of intrusions are part of a suite of high magnesian tholeiitic komatiite to basalt
        conduit-style intrusions emplaced at a late stage of the Namaqua-Natal orogeny. As such they share
        characteristics with several other similar intrusive complexes, including the Fraser Range.
    -   The Rok Optel intrusion has now been confirmed to be PGE-endowed. Previous assays did not include the
        PGE.
    -   The Rok Optel working model indicates that the intrusion is a series of sill-like stacked intrusions forming a
        magma conduit. Several horizons within the intrusion host sulphide mineralisation of variable metal content,
        base metal and PGE characteristics, and tenor, indicating repeated influxes of magma.

-   Nine drill holes have been drilled into the intrusion of which six have intersected significant mineralisation.
    The westerly directed holes drilled by previous explorers may have drilled at a shallow angle to the zones
    intersected in OROD001 and OROD002, resulting in false wide intersections. The mineralised intrusions
    extend over an extent of approximately 1.3km from north to south, and there is no indication that the
    intrusions, or their mineralisation, are terminating in either direction.
-   The above observation needs to be related to the AEM geophysical anomaly and the initial FLEM datasets.
    The drilling is indicating offset, deeper-seated conductors at both OROD001 and OROD002. Within a
    complex conduit setting, the potential for deeper zones of mineralisation must always be considered and
    adequately tested.
-   Drill hole OROD003, the follow-up hole to OROD001 will provide important information for the ongoing
    exploration of Rok Optel and assist to plan the forthcoming Area 4 program.

Appendix 2: The following tables are provided in accordance with the JORC Code (2012) for the reporting of Exploration Results for the Jacomynspan 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            • The drill hole is geologically logged, and zones of mineralisation are
                              chips, or specific specialised industry standard measurement         identified and marked on the core. The core is marked for cutting
                              tools appropriate to the minerals under investigation, such as       using the “low point” of the stratigraphy, marking the downhole
                              down hole gamma sondes, or handheld XRF instruments, etc.).          direction on each core piece to ensure that the cut core is returned to
                              These examples should not be taken as limiting the broad             the tray correctly. Half core is sampled. Following cutting, the core
                              meaning of sampling.                                                 returned to the tray. The sampling process is undertaken by a
                          •   Include reference to measures taken to ensure sample                 geologist, who checks that all core is returned in the correct order by
                              representivity and the appropriate calibration of any                turning the core to face upward, fitting the core together and marking
                              measurement tools or systems used.                                   the metre intervals on the cut face. The core is reviewed, and zones
                          •   Aspects of the determination of mineralisation that are Material     of mineralisation identified. The core sample intervals are marked
                              to the Public Report.                                                with due consideration of the percentage of sulphide mineralisation,
                          •   In cases where ‘industry standard’ work has been done this           lithological contacts, and minimum and maximum sample intervals
                              would be relatively simple (e.g. ‘reverse circulation drilling was   (nominally 30cm to 1.5m). The sampling details are captured onto a
                              used to obtain 1 m samples from which 3 kg was pulverised to         paper log sheet that records sample depths, sample number (derived
                              produce a 30 g charge for fire assay’). In other cases more          from a standardised sample register) recoveries, mineralisation
                              explanation may be required, such as where there is coarse           percentage, sulphide minerals and mineralisation style. A comments
                              gold that has inherent sampling problems. Unusual commodities        field is used to capture ancillary observations or associations.
                              or mineralisation types (e.g. submarine nodules) may warrant       • Duplicate samples derived from previous drill hole core (quarter core)
                              disclosure of detailed information.                                  are added to the sample list at the end.
                                                                                                 • Following sampling data capture, the core is placed into pre-numbered
                                                                                                   plastic bags by the responsible geologist. QC samples are assigned
                                                                                                   empty bags at this point. The sample ticket book is then completed
                                                                                                   and handed over to the technician.
                                                                                                 • SG determinations are then taken by the technician using an
                                                                                                   Archimedes Bath. The data are captured and verified by the geologist
                                                                                                   prior to sample bag sealing.
                                                                                                 • QC samples (standards and blanks) are inserted into the defined
                                                                                                   sample bags by the technician.
                                                                                                 • The samples are sealed and are placed into polyweave bags for
                                                                                                   shipping to the analytical laboratory. The bagging schedule is
                                                                                                   recorded, and all bags are weighed.
                                                                                                 • All hard-copy information pertaining to the above process is filed in the
                                                                                                   original drill hole log file, and the appropriate data is digitally captured
                                                                                                   into the MS Excel drill hole log file.
                                                                                                 • Samples are despatched by courier to the analytical laboratory.


Drilling techniques   • Drill type (e.g. core, reverse circulation, open-hole hammer,          • Diamond core drilling was undertaken using HQ core size to drill
                          rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core   through the weathered zone (approximately 75m) reducing to NQ core
                          diameter, triple or standard tube, depth of diamond tails, face-       in hard rock.
                          sampling bit or other type, whether core is oriented and if so, by   • The OROD001core was partially oriented. OROD002 was drilled with
                          what method, etc.).                                                    oriented core.

Drill sample recovery •   Method of recording and assessing core and chip sample               • Core recoveries are assessed on a routine basis using drill rig and
                          recoveries and results assessed.                                        core yard standard procedures.
                      •   Measures taken to maximise sample recovery and ensure                • At the drill rig, core stick-ups are measured at the end of each run.
                          representative nature of the samples.                                  The core is fitted together and placed into the core trays with a plastic
                      •   Whether a relationship exists between sample recovery and              block at the end of each run recording the hole depth and advance.
                          grade and whether sample bias may have occurred due to               • At the core yard, the length of core is measured for each run. The
                          preferential loss/gain of fine/coarse material.                        measured length of core is subtracted from the run length recorded
                                                                                                 from the driller’s stick-up measurements and recorded as a core gain
                                                                                                 or loss.
                                                                                               • During the logging and sampling process, core recoveries are
                                                                                                 considered, and the cause of loss is quantified and described. The
                                                                                                 locations of ‘bottom breaks’ relative to the core run markers are
                                                                                                 observed.
                                                                                               • There is no relationship between grade and recovery. This is a hard-
                                                                                                 rock style of mineralisation that is being evaluated using diamond
                                                                                                 drilling, generally with 100% core recovery through the mineralised
                                                                                                 zones.

Logging               • Whether core and chip samples have been geologically and               • The drill hole core is geologically logged utilising a standard-format
                          geotechnically logged to a level of detail to support appropriate       logging template designed specifically for this style of mineralisation.
                          Mineral Resource estimation, mining studies and metallurgical        • Both quantitative and qualitative logging is undertaken dependent
                          studies.                                                               upon the features being described. Qualitative parameters include
                          Whether logging is qualitative or quantitative in nature. Core (or     lithology, colour, grain size, weathering, structural features, alteration,
                          costean, channel, etc.) photography.                                   sulphide and oxide mineralisation, secondary mineralisation, and
                      •   The total length and percentage of the relevant intersections          general contextual comments. Quantitative parameters include
                          logged.                                                                intensity of the qualitative parameters, mineralisation percentages,
                                                                                                 and magnetic properties.
                                                                                               • The logs are recorded onto pre-designed templates and captured into
                                                                                                 digital format at the project office.
                                                                                               • The drill hole core is photographed according to standard core yard
                                                                                                 procedure and the photographs are digitally archived.


Sub-sampling            • If core, whether cut or sawn and whether quarter, half or all core     •   No specific sub-sampling has been undertaken to date.
techniques and            taken.                                                                 •   The NQ core is saw-cut at the Copperton core yard, and half-core is
sample preparation      • If non-core, whether riffled, tube sampled, rotary split, etc. and         sampled.
                          whether sampled wet or dry.                                            •   Within the mineralised zones, the entire zone is cut and sampled.
                        • For all sample types, the nature, quality and appropriateness of           Internal waste or non-mineralised zones may not be sampled
                          the sample preparation technique.                                          dependent upon their width.
                        • Quality control procedures adopted for all sub-sampling stages         •   The duplicate samples are derived from quarter core from previously
                          to maximise representivity of samples.                                     sampled drill holes.
                        • Measures taken to ensure that the sampling is representative of        •   The sampling methodology is suitable for the style of mineralisation
                          the in-situ material collected, including for instance results for         being sampled. The base metals are associated with the sulphide
                          field duplicate/second-half sampling.                                      minerals, which are generally reasonably evenly distributed. Although
                        • Whether sample sizes are appropriate to the grain size of the              nugget effects are higher for the Precious Metals, they are fine
                          material being sampled.                                                    grained and intimately associated with the base metal sulphides,
                                                                                                     therefore nugget effect is reduced.
                                                                                                 •   Sample preparation is undertaken at the ISO-accredited ALS Chemex
                                                                                                     analytical laboratory. The samples are processed according to
                                                                                                     industry best-practice. This involves a sample check-in procedure
                                                                                                     during which samples are assigned unique bar codes and entered into
                                                                                                     the LIMS system. The samples are then dried, crushed to <5mm, and
                                                                                                     pulverised to >85% <75 microns.
                                                                                                 •   ALS Chemex also inserts QC samples into each batch, including 5%
                                                                                                     CRM’s, 2.5% blanks, and 2.5% duplicates.

Quality of assay data   •   The nature, quality and appropriateness of the assaying and          •   The analyses are undertaken by ALS Chemex. The samples are
and laboratory tests        laboratory procedures used and whether the technique is                  analysed for base metals, precious metals and sulphur using the
                            considered partial or total.                                             following methods:
                        •   For geophysical tools, spectrometers, handheld XRF                   •   ME-ICP41 – 35-element analysis specifically designed to analyse the
                            instruments, etc., the parameters used in determining the                acid-soluble portion of the analyte. The sample is digested using
                            analysis including instrument make and model, reading times,             aqua regia, with ICP-AES analysis. For the metals of specific interest,
                            calibrations factors applied and their derivation, etc.                  Ni, Cu, and Co, the detection limits are 1 – 10,000ppm. For S, the
                        •   Nature of quality control procedures adopted (e.g. standards,            detection limits are 0.01 – 10%.
                            blanks, duplicates, external laboratory checks) and whether          •   PGM-ICP23 – standard Pb-collection fire assay with ICP-MS finish
                            acceptable levels of accuracy (i.e. lack of bias) and precision          using a nominal 30g sample weight (detection limits of 0.005 (Pt) and
                            have been established                                                    0.001 (Au, Pd) to 10.0g/t).
                                                                                                 •   NI, CU-OG46 – is applied to samples that assay > detection limit for
                                                                                                     Ni and Cu using method ME-ICP41. The method uses aqua regia
                                                                                                     digestion with ICP-AES or AAS analysis.
                                                                                                 •   Selected samples are submitted for lithogeochemical analysis to
                                                                                                     enable comparison of the major and trace element distributions


                                                                                            between and within intrusions. This uses the package:
                                                                                          • CCP-PKG01 – this provides a complete lithogeochemical
                                                                                            characterisation of non-poorly mineralised samples to provide major,
                                                                                            trace, and the full suite of REE.
                                                                                          • The methods utilised are appropriate to the style and grade of
                                                                                            mineralisation being explored for. The aqua regia digest provides the
                                                                                            most precise analysis of the acid-soluble sulphide hosted
                                                                                            mineralisation, without digesting the non-recoverable silicate hosted
                                                                                            base metals.
                                                                                          • Following receipt of assay data, QC assessment is undertaken using a
                                                                                            standard-format spreadsheet that includes all historic assay data. The
                                                                                            external standard, blank and duplicate data are processed as well as
                                                                                            the internal ALS Chemex standards, duplicates and blanks.

Verification of    • The verification of significant intersections by either independent •  No significant intersections have yet been achieved.
sampling and         or alternative company personnel.                                   •  The drill hole data is captured onto paper logs that are kept in specific
assaying           • The use of twinned holes.                                              drill hole log files. The data is captured into a standard-format drill
                   • Documentation of primary data, data entry procedures, data             hole MSExcel spreadsheet by the geologist. The drill hole log is
                      verification, data storage (physical and electronic) protocols.       regularly appended to the project database as data is captured.
                   • Discuss any adjustment to assay data.                                • First-pass quality control is undertaken on a regular basis as the log
                                                                                            data are imported into Micromine for visualisation purposes. The
                                                                                            Micromine file import verification protocols identify any depth or survey
                                                                                            issues should they be present.
                                                                                          • No adjustments are made to assay data. The assay certificate is not
                                                                                            altered in any manner. The data are captured from the certificate into
                                                                                            the drill hole file, merged, QC samples removed, and the data are
                                                                                            appended to the Micromine project file. The data are compared to the
                                                                                            drill hole logs to assess whether any anomalies are present.

Location of data   • Accuracy and quality of surveys used to locate drill holes (collar   • The drill hole collars are field located using a handheld Garmin GPS.
points               and down-hole surveys), trenches, mine workings and other              The drill hole azimuth and dip are surveyed by the driller using an
                     locations used in Mineral Resource estimation.                         electronic level and verified using a Brunton compass.
                   • Specification of the grid system used.                               • Drill hole downhole surveys are undertaken using a North-seeking
                   • Quality and adequacy of topographic control.                           Gyro instrument.
                                                                                          • The data are recorded using the WGS84 datum, UTM Zone 34S.
                                                                                          • GPS elevation calibration is undertaken by recording points at a
                                                                                            standard datum point.


Data spacing and         • Data spacing for reporting of Exploration Results.                  • The current drilling is part of the discovery phase targeting massive
distribution             • Whether the data spacing and distribution is sufficient to            sulphide mineralisation. Although sulphide mineralisation has been
                           establish the degree of geological and grade continuity               intersected it is not intended at this stage to include this in a mineral
                           appropriate for the Mineral Resource and Ore Reserve                  resource. Seven drill holes were drilled by previous explorers.
                           estimation procedure(s) and classifications applied.
                        •  Whether sample compositing has been applied.

Orientation of data in   • Whether the orientation of sampling achieves unbiased               • The mineralisation is primary magmatic sulphide and is not related to
relation to geological     sampling of possible structures and the extent to which this is       any imposed structural control.
structure                  known, considering the deposit type.                                • The drill holes have intersected the mineralisation at a low to
                         • If the relationship between the drilling orientation and the          moderate angle to true dip, therefore sampling is representative of the
                           orientation of key mineralised structures is considered to have       mineralisation.
                           introduced a sampling bias, this should be assessed and             • The drilling orientation is appropriate to the intrusion orientation as
                           reported if material.                                                 currently understood.

Sample security          • The measures taken to ensure sample security.                       • The samples are managed according to company chain of security
                                                                                                  protocols, including storage in a locked core yard, and courier of the
                                                                                                  sealed bags directly to the laboratory.

Audits or reviews        • The results of any audits or reviews of sampling techniques and     • No specific audit of this project has been undertaken. The sampling
                             data.                                                               process is governed by well-established industry and company
                                                                                                 procedures and protocols.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)



  Mineral tenement and • Type, reference name/number, location and ownership including               • The farm Rok Optel 261 has overlapping rights (in respect of differing
  land tenure status     agreements or material issues with third parties such as joint                 minerals) held by two companies.
                         ventures, partnerships, overriding royalties, native title interests,
                         historical sites, wilderness or national park and environmental             • Namaqua Nickel Mining (Pty) Ltd holds a mining right NC 10032MR
                         settings.                                                                      (over Die Plaas No. 387: Whole Farm Hartebeest Pan 175: RE,
                                                                                                        Portion 5 Jacomyns Pan 176: RE, Portion 1, Rok Optel 261: RE,
                             • The security of the tenure held at the time of reporting along with      Portion 1, Portion 2, Portion 3) for the mining of Nickel, Copper,
                               any known impediments to obtaining a licence to operate in the           Cobalt, PGM, Gold. This right was granted on 19 September 2016
                               area.                                                                    subject to certain conditions, which include local community
                                                                                                        participation and financial guarantees, but is not yet executed.
                                                                                                     • Disawell (Pty) Ltd holds two prospecting rights namely NC
                                                                                                        30/5/1/1/2/11010 PR (over Jacomyns Pan 176: RE, Portion 1, Portion
                                                                                                        2 Rok Optel 261: RE, Portion 1, Portion 2, Portion 3 Rooi Puts 172:
                                                                                                        Portion 2, Portion 3, Portion 4) and NC 30/5/1/1/2/10938 PR (over
                                                                                                        Hartebeest Pan 175: RE, Portion 3, Portion 4, Portion 5 Farm 387:
                                                                                                        RE), each for the exploration of Zinc, Lead, Sulphur.
                                                                                                     • Disawell and Namaqua entered into an earn-in agreement with Orion
                                                                                                        Minerals, in terms of which Orion (through its subsidiary, Area Metals
                                                                                                        Holdings No. 3 (Pty) Ltd) is granted the right to invest in these
                                                                                                        companies.
                                                                                                     • No historical or environmental impediments to obtaining an operating
                                                                                                        licence are known.

  Exploration done by        • Acknowledgment and appraisal of exploration by other parties.         • On Rok Optel 261, exploration has been undertaken by several
  other parties                                                                                         parties, although only limited data are available. Hochmetals SWA
                                                                                                        undertook exploration during the early 1970’s and drilled the drill holes
                                                                                                        previously reported upon by Orion Minerals. Poor quality
                                                                                                        standardised and summarised geological logs submitted to
                                                                                                        government are the only information remaining from this period.
                                                                                                     • Newmont undertook exploration from 1975 to 1977. The Hochmetals
                                                                                                        core was re-analysed. The existing drill hole PUD001 was deepened
                                                                                                        by 70m and a new hole (PUD007) drilled to 522.90m. A report
                                                                                                        (Gresse 1977) with drill plans and sections is available and has been
                                                                                                        captured into the database.


Geology                  • Deposit type, geological setting and style of mineralisation.         • The Rok Optel mineralisation is contained within portions of a
                                                                                                   metamorphosed mafic to ultramafic intrusion at least 150m thick
                                                                                                   containing magmatic nickel-copper sulphides. The intrusion is
                                                                                                   predominantly norite and gabbro, with lenticular bodies of pyroxenite
                                                                                                   to harzburgite. The intrusion is enclosed within quartz-feldspar-biotite-
                                                                                                   garnet (sillimanite) gneiss country rocks.

Drill hole Information   • A summary of all information material to the understanding of         • See Table 2.
                           the exploration results including a tabulation of the following
                           information for all Material drill holes:
                           o easting and northing of the drill hole collar
                           o elevation or RL (Reduced Level – elevation above sea level
                                in metres) of the drill hole collar
                           o dip and azimuth of the hole
                           o down hole length and interception depth
                           o hole length.
                         • If the exclusion of this information is justified on the basis that
                           the information is not Material and this exclusion does not
                           detract from the understanding of the report, the Competent
                           Person should clearly explain why this is the case.

Data aggregation         • In reporting Exploration Results, weighting averaging                 • The assay data are captured into a standard-format MS-Excel
methods                     techniques, maximum and/or minimum grade truncations (e.g.             spreadsheet within which various derived parameters are calculated,
                            cutting of high grades) and cut-off grades are usually Material        including standard metal ratios (Pt/(Pt+Pd) and Cu/(Cu+Ni), major
                            and should be stated.                                                  element oxides (using standard conversions), combined Pt, Pd, and
                                                                                                   Au (2PGE+Au), and base and precious metal tenors (using the
                         • Where aggregate intercepts incorporate short lengths of high            methodology of Kerr, A. (2003): Spreadsheets for the calculation and
                            grade results and longer lengths of low grade results, the             correction of sulphide metal contents. Newfoundland and Labrador
                            procedure used for such aggregation should be stated and               Department of Mines and Energy, Geological Survey, Open File
                            some typical examples of such aggregations should be shown             NFLD/2805).
                            in detail.
                                                                                                 • The assay data are weighted using the SG and interval width to derive
                         • The assumptions used for any reporting of metal equivalent              a mass factor that is then applied to the metal grade. Composite
                            values should be clearly stated.                                       intervals are calculated using the mass-weighted values, which are
                                                                                                   then divided by the sum of the mass factors to derive the metal grade
                                                                                                   in weight percent.
                                                                                                 • The assay data are attributed and coloured according to the Ni grade
                                                                                                   to highlight zones of mineralisation for composite calculation.
                                                                                                   Composite intersection widths are manually calculated for various cut-


                                                                                                 off grades on a common-sense basis including minor lower grade
                                                                                                 intervals if present within a thicker zone of mineralisation.




Relationship between •   These relationships are particularly important in the reporting of   • The drill holes intersected the mineralisation at predominantly
mineralisation widths    Exploration Results.                                                    moderate to low angles.
and intercept lengths
                     • If the geometry of the mineralisation with respect to the drill hole
                         angle 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      • The prospect plan indicates the drilled and planned drill hole localities.
                         intercepts should be included for any significant discovery being
                         reported. These should include, but not be limited to a plan view • The intersection data derived from the abovementioned composite
                         of drill hole collar locations and appropriate sectional views.     calculations are presented in the report.


Balanced reporting   • Where comprehensive reporting of all Exploration Results is not        • The analytical data have been reported in a responsible and balanced
                         practicable, representative reporting of both low and high              manner.
                         grades and/or widths should be practiced to avoid misleading
                         reporting of Exploration Results.


Other substantive   • Other exploration data, if meaningful and material, should be           • The Time Domain Electromagnetic Surveys are undertaken using a
exploration data         reported including (but not limited to): geological observations;      best-in-class electromagnetic receiver manufactured by
                         geophysical survey results; geochemical survey results; bulk           Electromagnetic Technologies. The source is a custom-built Time
                         samples – size and method of treatment; metallurgical test             Domain Electromagnetic transmitter, capable of transmitting 140 Amps
                         results; bulk density, groundwater, geotechnical and rock              into a 1 x 1km aluminium wire loop. The source is coupled with
                         characteristics; potential deleterious or contaminating                military grade fluxgate sensors for shallow exploration and super-
                         substances.                                                            sensitive high-temperature Super Conducting Quantum Interference
                                                                                                Devices (SQUIDs) manufactured in Germany, which are state of the
                                                                                                art for deeper exploration. The SQUID system was employed at the
                                                                                                ROK4 grid and can detect moderate to super-conductors to
                                                                                                approximately 1,000m below surface. Readings are taken every 50-
                                                                                                100m on 200m-spaced grid lines.
                                                                                              • Down-Hole Time Domain Electromagnetic surveys are undertaken
                                                                                                using a Digi-Atlantis EM receiver. The source is a custom-built Time
                                                                                                Domain Electromagnetic transmitter, capable of transmitting 140 Amps
                                                                                                into a 1 x 1km aluminium wire loop. The drill holes are cased using
                                                                                                plastic pipe prior to survey. The survey is undertaken at station
                                                                                                intervals of between 2 and 15m dependent upon the location of the
                                                                                                mineralisation. Data are quality controlled then forward to the
                                                                                                geophysical consultant.

Further work        1.     The nature and scale of planned further work (e.g. tests for       • Drill hole OROD001 intersected the base of the Rok Optel intrusion at
                           lateral extensions or depth extensions or large-scale step-out       387.82m and was completed at 412.06m. The DHTEM survey
                           drilling).                                                           indicated that although some of the plates were intersected, a
                    2.    Diagrams clearly highlighting the areas of possible extensions,       conductor is located off-hole. A follow-up hole, OROD003, is
                          including the main geological interpretations and future drilling     underway to test this target.
                          areas, provided this information is not commercially sensitive.     • Drill hole OROD002 intersected a sequence of interlayered intrusive
                                                                                                and gneiss rocks from 25.73m to the end of hole at 491.95m. The
                                                                                                DHTEM has also indicated the presence of a deeper-seated
                                                                                                conductor that will be tested by follow-up drilling.

Date: 10/09/2018 09:49:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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