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ORION MINERALS LIMITED - Orion Minerals Granted Mining Right for its Flagship Prieska Copper-Zinc Project in South Africa

Release Date: 03/09/2019 08:30
Code(s): ORN     PDF:  
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Orion Minerals Granted Mining Right for its Flagship Prieska Copper-Zinc Project in 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”)


ORION MINERALS GRANTED MINING RIGHT FOR ITS FLAGSHIP PRIESKA COPPER-ZINC PROJECT IN SOUTH AFRICA


o   Grant of the Mining Right by the South African Department of Minerals Resources and Energy marks a
    major milestone in the development of the Prieska Copper-Zinc Project.
o   This key permitting milestone comes less than two months after the grant of Environmental Authorisation
    and three months after the release of a positive Bankable Feasibility Study.
o   Award of the Mining Right clears the way for development to commence, subject to a Final Investment
    Decision.

Next Steps:
o   Advance project financing discussions.
o   Advance project implementation planning.
o   Conclude agreements with concentrate off-take partners and key suppliers.


Orion’s Managing Director and CEO Errol Smart, commented:
“Our strategy to deliver a substantial new base metals mine at Prieska is rapidly gaining momentum. Receiving
the Mining Right is a major milestone in the development of the project and the award of this permit is testament
both to the vision of the Orion leadership team and to the support of the South African authorities for new
investment in a modernised mining sector.
The Prieska Project represents a valuable strategic asset in the global base metals sector, being one of the few
permitted mid-tier base metal development assets well positioned to move into development and production.
Our timing with this project could not be better – demand for copper is expected to soar over the next decade
on the back of transformational growth in the electric vehicle and green energy sectors.”


Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce that its subsidiary, Repli
Trading No. 27 (Pty) Ltd (Repli), which owns the majority of the Prieska Copper-Zinc Project in South Africa’s
Northern Cape Province (Prieska Project), has been granted a Mining Right over its portion of the Prieska deposit
by the South African Department of Mineral Resources.

The grant of the Mining Right represents a major step towards the development of the Prieska Project and clears
the way for construction to commence. This key permitting milestone comes just over a month after Repli received
the Environmental Authorisation related to the Project (refer ASX/JSE release 8 July 2019).

Granted under the Mineral and Petroleum Resources Development Act, the Mining Right is valid for an initial period
of 24 years and can be renewed on application for further periods, each of which may not exceed 30 years.

A wide range of conditions, including black economic empowerment, social responsibility and evidence of an
applicant’s technical and financial ability to conduct mining optimally, are pre-requisites for the approval of such
applications.

Orion has achieved several milestones in the 16 months since the submission of the application, including the
announcement of a pivotal black economic empowerment partnership, the upgrading of the Prieska Mineral
Resource to a globally significant VMS Resource of 30.49 Mt at 1.2% Cu and 3.7% Zn and the completion of the
Prieska Bankable Feasibility Study (BFS).

While the Foundation Phase BFS demonstrated strong project economics with undiscounted free cash-flows of
AUD1.1 billion pre-tax (AUD819M post-tax) and an NPV of AUD574M pre-Tax (AUD408M post-tax) at an 8% discount
rate, Orion has already identified numerous opportunities to improve on the Foundation Phase mining plan set out
in the BFS and has commenced work with post-BFS field trials, optimisation and refinement studies.

This approach will ensure that the project execution incorporates as many improvements as possible, further de-
risking the project and providing the best commercial outcome.

Next steps are the advancement of Prieska Project planning and the formalisation of project financing. Grant of
the mining right to the south eastern strike extension of the Prieska orebody on the Vardocube prospecting right
area, which was submitted after the Repli application, is imminent.




Errol Smart
Managing Director and CEO

3 September 2019


ENQUIRIES

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


Disclaimer

This release may include forward-looking statements. Such forward-looking statements may include, among other things,
statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results,
capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates, and are or may be
based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.
These forward-looking statements are based on management’s expectations and beliefs concerning future events. Forward-
looking statements inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Orion. Actual results and developments may vary materially from those
expressed in this release. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-
looking statements. Orion makes no undertaking to subsequently update or revise the forward-looking statements made in this
release to reflect events or circumstances after the date of this release. All information in respect of Exploration Results and
other technical information should be read in conjunction with Competent Person Statements in this release (where
applicable). To the maximum extent permitted by law, Orion and any of its related bodies corporate and affiliates and their
officers, employees, agents, associates and advisers:
•   disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in
    expectations or assumptions;                                                                                                                                
•   do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the
    information in this release, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or
    implied in any forward-looking statement; and
•   disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for
    negligence).




                                                                                                                               

Date: 03/09/2019 08:30:00
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