Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (May 2018)
30 slides from Orion Minerals's investor presentation, May 29, 2018
Slide 1: Orion Minerals Limited Investor presentation May 2018
Orion Minerals Limited Investor presentation May 2018 BFS & intense regional exploration underway, delivering results in a proven minerals belt Developing world class zinc and copper deposits
Slide 2: Disclaimer and Forward Looking Statements
DISCLAIMER AND FORWARD LOOKING STATEMENTS Certain statements contained in this presentation, Orion disclaims any intent or obligation to update To the maximum extent permitted by law, Orion and any including information as to the future financial or publicly any forward-looking statements whether as
Slide 3: Overview: What We Do
OVERVIEW Connors Arc WHAT WE DO Project Queensland, Australia Orion Minerals is a polymetallic minerals exploration and development company Sold to Evolution Mining (EVN) focusing on zinc, copper, nickel, gold and (May 2018) silver, as well as platinum-group metals with Areachap Projects Fraser Rang
Slide 4: Orion Corporate Summary
ORION CORPORATE SUMMARY ASX primary listing Independence Group (IGO): JSE secondary listing • Increased shareholding in ORN to 11% through a A$5M share placement(4) • Entered into collaborative agreement in respect of ORN’s nickel projects in Capital Structure Summary Significant Holder Name % Share
Slide 5: Corporate Strategy & Vision
CORPORATE STRATEGY & VISION FOCUSED ON THE RE-DEVELOPMENT OF THE PRIESKA ZN-CU PROJECT 1 • Maiden JORC Resource • Lodge Mining Right and Environmental Application Fast-track Prieska • Complete a Bankable Feasibility Study (BFS) • Expand and upgrade the Prieska Project Mineral Resource 2 • Secured mi
Slide 6: FY18 in Review
FY18 IN REVIEW STRONG PROGRESS MADE ACROSS BUSINESS Prieska Development Projects Fraser Range • Maiden JORC Mineral Resource* • Independence Group (IGO) • Secured strong JV partner IGO in Over 50,000m of drilling resulted in a secures Joint Venture rights 2017 maiden JORC Mineral Resource of 29.4Mt
Slide 7: Board of Directors
BOARD OF DIRECTORS DENIS WADDELL ERROL SMART ALEXANDER HALLER MARK PALMER MICHAEL HULMES Chairman Managing Director & Non-Executive Director Non-Executive Director Non-Executive Director Chief Executive Officer • Chartered Accountant • Geologist, with professional • Partner of Zachary Capital • Inve
Slide 8: Senior Management
SENIOR MANAGEMENT ERROL MARTIN WALTER MICHELLE LOUW NELSON SMART BOUWMEESTER SHAMU JENKINS VAN SCHALKWYK MOSIAPOA Managing Director & Chief Financial Officer Chief Operating Officer Executive: Finance & Executive: Group Corporate Social Chief Executive Officer and Company Secretary Administration Ex
Slide 9: Orion's Phase Strategy and Timeline
ORION’S 3 PHASE ASPIRATIONAL STRATEGY AND TIMELINE 1 2 3 Complete the Expand and upgrade the Execute exploration Prieska Project BFS Prieska Project resource program on highly prospective Prospecting Rights • Orion Board approval to commence Bankable • In parallel to BFS, Orion will progress key • M
Slide 10: Mining Right Application Process – Statutory Timelines
MINING RIGHT APPLICATION PROCESS – STATUTORY TIMELINES Regional Manager’s notice to commence Lodged Mining Regional Manager’s consultations with Right Application Formal Acceptance affected parties 14 DAYS 14 DAYS 6 April 2018 April 2018 May 2018 180 DAYS Ministerial Decision Grant of Mining made on
Slide 11: Prieska Project – Maiden JORC Mineral Resource Exceeds Expectations
PRIESKA PROJECT – MAIDEN JORC MINERAL RESOURCE EXCEEDS EXPECTATIONS Total Mineral Resource of 29.4Mt containing 1,126,000 tonnes Zn @ 3.8% and 365,000 tonnes Cu @ 1.2% (based on drilling results available as at 31 Dec 2017)* Drilling is ongoing, with the objective of achieving an upgrade in the clas
Slide 12: Development Plan for the Prieska Project: Leverage Existing Infrastructure
DEVELOPMENT PLAN FOR THE PRIESKA PROJECT: LEVERAGE EXTENSIVE EXISTING INFRASTRUCTURE • Primary shafts and underground decline roadways in place to access deepest remaining targets • Sealed access roads to project site • 48km via bitumen road to existing rail siding • 175MW operational solar power pl
Slide 13: Detailed Engineering Appraisal Confirms Integrity of Key Installations
DETAILED ENGINEERING APPRAISAL CONFIRMS INTEGRITY OF KEY INSTALLATIONS AT PRIESKA PROJECT - SIGNIFICANT CAPITAL COST AND TIME SAVING Shaft barrel, lining and steelwork Decline roadways and haulages in good structurally sound condition and accessible Divider Guide 8.84 diameter Bunton Skip Concrete-l
Slide 14: Metallurgical Test Work Confirming Expectations at Prieska
ORION’S METALLURGICAL TEST WORK CONFIRMING EXPECTATIONS AT THE PRIESKA PROJECT Test Head Grade Total Recovered to Concentrate Combined Tails Test Description Cu (%) Zn (%) Mass (%) Cu Rec. (%) Zn Rec. (%) Mass (%) Cu (%) Zn (%) Cu-Rich Deeps Rougher 2.41 2.79 37 93.5 93.4 63 0.25 0.29 Zn-Rich Deeps
Slide 15: Mine Plan for Prieska Project BFS
MINE PLAN FOR PRIESKA PROJECT BFS • BFS scheduled for completion in Q4 2018 Prieska target mineralisation and existing mine infrastructure - DRA appointed as lead BFS consultant - ABS Africa appointed to manage EIA studies to comply with leading +105 Level Target Beecroft Hutchings Supergene and Oxi
Slide 16: Prieska Project BFS: Mine Planning in Progress
PRIESKA PROJECT BFS: MINE PLANNING IN PROGRESS Digital mine model completed from historic survey and geology plans Drilling has confirmed accuracy and confidence in historic data Longhole open stopes in steep ore D348 OCOD068_D2 19.46 @ 5.29% Zn + 1.52% Cu 23.7m @ 3.8% Zn + 1.02% Cu F1990 16.4m @ 1.
Slide 17: Prieska Project BFS: Expanded Deep Sulphide Mineral Resource
PRIESKA PROJECT BFS: EXPANDED DEEP SULPHIDE MINERAL RESOURCE Drill rigs remain active Long section with current drilling and on surface historical development • Dual focused drilling program - Continue with infill drilling to achieve drill density for resource category upgrade - Targeting dip and st
Slide 18: Exploration: Regional Potential of the Northern Cape District
EXPLORATION: THE REGIONAL POTENTIAL OF THE NORTHERN CAPE DISTRICT • Orion has established a commanding landholding and exploration position in the Areachap belt and is expected to play a major role in this emerging minerals district • It is an established mining region without the social challenges
Slide 19: Exploration: Areachap - Highly Prospective Base Metals Belt
EXPLORATION: AREACHAP - A HIGHLY PROSPECTIVE BASE METALS BELT • The Areachap terrain is within a tectonic/mobile belt on the western margin of Three superimposed geological events the Kaapvaal Craton and has subsequently been intensely altered and tectonised produce exceptional exploration potential
Slide 20: Exploration: Major Consolidation Play in a Proven Mineralised District
EXPLORATION: MAJOR CONSOLIDATION PLAY IN A PROVEN MINERALISED DISTRICT • Orion acted at the bottom of cycle in 2015 and secured a large consolidated land package (1,790 km²) - Prieska Project acquired - This highly prospective region has been consolidated under a single owner for the first time • No
Slide 21: Exploration: Orion VMS Strategy
EXPLORATION: ORION VMS STRATEGY • The Prieska Zn-Cu deposit is of exceptional scale – ranked a “giant”* • VMS’s tend to form in clusters or camps • To form an exhalative deposit of this quality requires a long quiescent period in a marine, volcanogenic environment • This quiescence is likely to be o
Slide 22: Exploration: Increasing Intensity on Regional Exploration
EXPLORATION: INCREASING INTENSITY ON REGIONAL EXPLORATION 962km2 SkyTEM survey completed January 2018 Follow up on SkyTEM survey underway Orion Minerals | ASX & JSE: ORN | Zn, Cu, Ni, Au, Ag, PGE refer ASX release 1 February 2018 21
Slide 23: Geological Modelling Confirms Targets Around Jacomynspan Intrusive
EXPLORATION: GEOLOGICAL MODELLING CONFIRMS COMPELLING TARGETS SURROUNDING THE JACOMYNSPAN NI-CU-CO-PGE INTRUSIVE • The Jacomynspan Intrusive Complex has important characteristics in common with major Ni-Cu occurrences such as Voisey’s Bay, Kabanga and Nova-Bollinger Rooiputs • A recently completed a
Slide 24: CSR: Creating a Better Future – Local Economic Development
CSR: CREATING A BETTER FUTURE – LOCAL ECONOMIC DEVELOPMENT ORION IS A CATALYST FOR SOCIO-ECONOMIC DEVELOPMENT • Community Liaison office opened in Prieska • MoU signed with Siyathemba Local Municipality to cooperate with Orion on community development initiatives • Internet café established in 2017
Slide 25: Appendices
© Orion Minerals Appendices
Slide 26: Prieska Ownership Structure
PRIESKA OWNERSHIP STRUCTURE • Orion acquired Agama Exploration & Mining in March 2017 Orion Minerals Limited after extensive due diligence for A$8.9m* 100% • Orion has a 73.3% economic interest in the Prieska and Marydale Projects Agama Exploration and Mining (Pty) Ltd • Full compliance with current
Slide 27: Zinc Fundamentals
ZINC FUNDAMENTALS • Zinc prices have had a significant two and a half year run from a low of US$0.66/lb in January 2016 to a high of US$1.62/lb in February 2018 • Fundamentals remain strong driven by its diverse range of applications including galvanising steel, zinc alloys, use in batteries, sunscr
Slide 28: Copper Fundamentals
COPPER FUNDAMENTALS • Copper prices have also had a significant two and a half year run from a low of US$1.94/lb in January 2016 to a high of US$3.30/lb in February 2018 • Global copper demand is forecast to rise 2% in 2019 to 23.6Mt vs current supply of 23.5Mt according to the International Copper
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Slide 30: Contact us
Contact us Orion Minerals Ltd Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au Website: www.orionminerals.com.au ASX & JSE: ORN