Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (November 2017)
28 slides from Orion Minerals's investor presentation, Nov 17, 2017
Slide 1: BFS & Intense Exploration, Demonstrating Value in a Proven Minerals Belt
BFS & Intense Exploration, For personal use only Demonstrating Value ASX Code: ORN in a Proven Minerals Belt JSE Code: ORN Investor Presentation November 2017 “Expediting development at Prieska while seeking to unlock the minerals potential of the extensive land package through advanced exploration"
Slide 2: Disclaimer and forward-looking statements
Disclaimer and forward-looking statements ▪ Certain statements contained in this presentation, including information as to the future financial or operating performance of Orion Minerals NL (Orion) and its projects, are forward-looking statements. Such forward-looking statements: For personal use on
Slide 3: Orion: Corporate summary
Orion: Corporate summary ▪ Orion’s primary listing is on the ASX. ▪ Orion’s secondary listing of its Shares on the Main Board of the Johannesburg Stock Exchange commenced in September 2017. For personal use only ▪ Orion has seen strong buying interest on the JSE. Capital Structure Summary Board Shar
Slide 4: Executing a well timed counter cyclic growth strategy
Executing a well timed counter cyclic growth strategy For personal use only Source: Barclays Research, Federal Reserve Price Data PCM is an Advanced Stage, Large Scale, High Grade, Zinc – Copper Project With Superb Exploration Upside 4
Slide 5: Major consolidation play in a proven mineralised district
Major consolidation play in a proven mineralised district For personal use only ▪ Orion acted at bottom of cycle in 2015 and secured a large consolidated land package (1,790 km2) ─ Secured a potential company making project in Prieska ─ First time this highly prospective region has been consolidated
Slide 6: Prieska ownership structure
Prieska ownership structure Prieska in operation mode (1973) For personal use only ▪ Orion acquired option to purchase Agama Exploration & Mining in July 2015 ─ Extensive DD process completion, including technical, regulatory and economic work streams ─ Transaction consideration A$8.9m*, completed i
Slide 7: Prieska – A mining success story with lots remaining
Prieska – A mining success story with lots remaining Mine Manager’s planning proposal to Anglovaal corporate office (June 1987)* For personal use only *This is an historical estimate and is not reported in accordance with the 2012 Edition of the JORC Code. A Competent Person has not completed suffic
Slide 8: Extended history of metallurgical success
Extended history of metallurgical success Consistent concentrate grades and recoveries despite change in feed 1 For personal use only 60 100 ▪ Proven metallurgical process flowsheet at 50 90 80 Metal recovery (%) operational scale to handle variable ore Concentrate grades (%) 40 70 feed 60 30 50 ▪ M
Slide 9: Metallurgical test work confirming expectations
Metallurgical test work confirming expectations For personal use only Summary of Recent Metallurgical Test Work Results Total Recovered to Test Head Grade Combined Tails Concentrate Test Description Cu Mass Zn Rec. Mass Cu (%) Zn(%) Rec. Cu (%) Zn(%) (%) (%) (%) (%) Cu Rich Deeps Rougher 2.41 2.79 3
Slide 10: Significant infrastructure footprint
Significant infrastructure footprint For personal use only ▪ Sealed access roads to project site ▪ 48km via bitumen road to existing rail siding ▪ 75MW operational solar power plant – 4 HV regional lines linked to national electricity grid ▪ 800km rail link to major, bulk commodity and deep water po
Slide 11: Shaft & underground roadway conditions inspected by expert safety inspectors & engineers
Shaft & underground roadway conditions inspected by expert safety inspectors & engineers (Q2 2017) For personal use only 11
Slide 12: Generating significant momentum on the ground
Generating significant momentum on the ground For personal use only ▪ Orion Board approval to commence BFS in July 2017 with target completion in Q4 2018 – +105 Level Target, maiden JORC compliant Mineral Resource expected Q4 2017 – Deep Sulphide Target, maiden JORC compliant Mineral Resource expect
Slide 13: Systematic and low risk path to advancing Prieska
Systematic and low risk path to advancing Prieska Prieska target mineralisation and existing mine infrastructure For personal use only ▪ BFS scheduled for completion by Q4 2018 ─ DRA appointed as lead BFS consultants ▪ Key BFS technical project parameters include ─ Construction of 1.2mtpa throughput
Slide 14: Deep sulphide target drilling progressing rapidly
Deep sulphide target drilling progressing rapidly Long section with current drilling and historical development For personal use only refer ASX release 6 September 2017. 14 Drilling rigs mobile active on surface ▪ Dual drilling focused program – Confirm extensive historical drilling database on rema
Slide 15: Deep drilling delivering success
Deep drilling delivering success ▪ Grade and width presented in historic mine For personal use only planning validated ▪ Limits of historic mining confirmed ▪ Strong geotechnical conditions in close proximity to existing underground development confirmed ▪ Extensions to wide, high grade, massive sul
Slide 16: Mine planning for BFS progressing well
Mine planning for BFS progressing well Digital mine model completed from historic For personal use only survey & geology plans Drilling has confirmed accuracy and confidence in historic data Long hole open stopes in steep ore Cut and Fill Mining I shallow dipping ore refer ASX release 9 October 2017
Slide 17: +105 high grade open pit target
+105 high grade open pit target For personal use only refer ASX releases 25 May 2017 and 6 September 2017. 17
Slide 18: +105 Level Target - a high grade open pit opportunity
+105 Level Target - a high grade open pit opportunity For personal use only “virgin ground” over 400m strike and “Virgin” open pit Sinkhole impacted over 550m strike target Drilling confirmed mineralisation persists “below” sinkholes Geotechnical solution developed to allow mining by open pit with s
Slide 19: Active CSR - developing social and labour plan
Active CSR - developing social and labour plan ▪ Orion is a catalyst for socio-economic development. For personal use only We strive for : * Sustainability * Focus * Entrepreneurship *Impact Public participation meeting in Siyathemba - Prieska 19
Slide 20: The regional potential of the Northern Cape district
The regional potential of the Northern Cape district For personal use only ▪ Established mining region without the social challenges common in the South African gold, coal and platinum mining regions ─ Supportive and engaged local stakeholders Southern African Zinc deposits ▪ Presence of leading glo
Slide 21: Areachap - a highly prospective base metals belt
Areachap - a highly prospective base metals belt Three superimposed geological events produce For personal use only exceptional exploration potential ▪ The Areachap terrain is within a tectonic/mobile belt on western margin of Kaapvaal Craton and has subsequently been intensely altered & tectonised
Slide 22: Strategy to unlock regional potential of the belt
Strategy to unlock regional potential of the belt Marydale IP Survey For personal use only ▪ Value of modern exploration techniques have already been demonstrated by recent geophysical surveys ▪ Majority of historical surveys 1980’s ▪ Techniques have been refined or superseded ▪ Modern day geophysic
Slide 23: 962km2 SkyTEM survey commencing mid November
962km2 SkyTEM survey commencing mid November For personal use only 23
Slide 24: Australia – continued valuable Fraser Range exposure
Australia – continued valuable Fraser Range exposure ▪ ORN’s 3 830 km2 Fraser Range Project in JV For personal use only with Independence Group (IGO) ▪ ORN’s 10-30% equity in tenements free carried to Pre-Feasibility Study ▪ ORN tenements have drilled, confirmed sulphide nickel- copper bearing mafic
Slide 25: Zinc: Raw materials constraints drive positive outlook
Zinc: Raw materials constraints drive positive outlook Declining zinc stock and pricing impacts For personal use only ▪ Key mine closures and reductions over the past year starting to bite, 2016 mine output down 5.2% – Discretionary supply cuts from Glencore (500ktpa) and Nyrstar (100ktpa) – Comment
Slide 26: Copper: Growing demand with supply challenges
Copper: Growing demand with supply challenges For personal use only ▪ Chilean mine supply continues to struggle – Grade declines and labour issues at major mines – Power and water challenges increase cost pressures for future Chilean production ▪ Large supply projects carry technical and/or geo-poli
Slide 27: Competent Persons Statement
Competent Persons Statement • The information in this report that relates to Exploration Results at the Areachap Belt projects complies with the JORC Code and is based on information For personal use only compiled by and for Mr Errol Smart, Orion Minerals NL’s Managing Director. Mr Smart (PrSciNat)
Slide 28: Orion Minerals NL contact information
Orion Minerals NL contact information: For personal use only Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au Website: www.orionminerals.com.au 28
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