Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (February 2019)
28 slides from Orion Minerals's investor presentation, Feb 1, 2019
Slide 1: Preparing for Prieska
For personal use only ASX/JSE: ORN ASX/JSE: ORN Preparing for Prieska Developing a 21st century African zinc-copper mine PAGE Errol Smart, Managing Director and CEO | Investor Presentations – Cape Town, February 2019
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Orion Minerals • may include, among other things, statements regarding bodies corporate and affiliates and their officers, employees, agents, Ltd and its subsidiaries (Orion or Company) and their activities and is
Slide 3: Overview: A New Generation African Base Metal Mine Developer
OVERVIEW: A NEW GENERATION AFRICAN BASE METAL MINE DEVELOPER For personal use only • Fast-tracking development of the Prieska Zinc-Copper Project, Northern Cape • Robust 10-year, Phase 1 Project outlined by December 2018 Scoping Study • Bankable Feasibility Study on track for Q2 2019; Final Investme
Slide 4: Corporate Structure
CORPORATE STRUCTURE For personal use only Capital structure summary Primary listing on the ASX Shares on issue 1,874M Secondary listing on Main Board of the Johannesburg Stock Exchange Options on issue 209M Market capitalisation (2.3cps (ASX))1 $43M Significant shareholders % Loan facility ($3.6M fa
Slide 5: Prieska: Reawakening a Global VMS Giant
PRIESKA: REAWAKENING A GLOBAL VMS GIANT For personal use only • Located in Northern Cape Province, 270km south-west of regional capital, Kimberley • Established mining region, yet least populous region of South Africa • Historically mined by AngloVaal (1971-1991) Skorpion/ • Recorded historical prod
Slide 6: Prieska: Developing a New Mine in the Footprint of an Old One
PRIESKA: DEVELOPING A NEW MINE IN THE FOOTPRINT OF AN OLD ONE For personal use only • Ability to leverage off extensive infrastructure already in place: • Primary shafts and underground decline roadways • Sealed access roads, 48km via bitumen road to existing rail siding • 175MW operational solar po
Slide 7: Prieska: Deep Sulphide Resource, Strong Foundation for Development
PRIESKA: DEEP SULPHIDE RESOURCE STRONG FOUNDATION FOR DEVELOPMENT For personal use only • Deep Sulphide Mineral Resource of +105m Level Resource 28.7Mt @ 3.8% Zn and 1.2% Cu containing 1.08Mt Zn & 0.33Mt Cu (based on drilling results to 31 Oct 2018)* • Indicated Mineral Resource of 18.51Mt @ 3.6% Zn
Slide 8: Prieska Scoping Study Confirms Robust Phase 1, 10-Year Project
PRIESKA SCOPING STUDY CONFIRMS ROBUST PHASE 1, 10-YEAR PROJECT For personal use only • 2.4Mtpa operation producing ~70-80ktpa Zn and 22ktpa Cu in concentrates • 43% all-in-sustaining margin, with all-in-unit costs A$1,701/t (US$1,215/t) zinc equivalent metal sold • Estimated A$130m annual free cash
Slide 9: Prieska: Timeline to Development
PRIESKA: TIMELINE TO DEVELOPMENT For personal use only 1 2 3 Complete Prieska Project BFS Expand and upgrade Execute exploration program on highly Prieska Project resource prospective prospecting rights • Updated Deep Sulphide Resource and Scoping Study completed December 2018 • In parallel to BFS,
Slide 10: Community Engagement: Doing It Right from the Start
COMMUNITY ENGAGEMENT DOING IT RIGHT FROM THE START For personal use only Our communities are at the heart of our corporate responsibility activities. Some of the initiatives we have already undertaken include: • MoU with Siyathemba Local Municipality to cooperate on key community development initiat
Slide 11: A Dominant Land-Holding in an Under-Explored Belt
A DOMINANT LAND-HOLDING IN AN UNDER-EXPLORED BELT For personal use only • Highly prospective yet under-explored mineral province • 22 identified VMS occurrences historically confirmed by major mining houses • Reputed to have the highest concentration of zinc on the African continent1: • Large-scale
Slide 12: Major Consolidation Play in a Proven Mineral District
MAJOR CONSOLIDATION PLAY IN A PROVEN MINERAL DISTRICT For personal use only • Large consolidated land package secured by Orion in 2015 – 1,790km2 • Consolidated under single owner for first time • No major exploration activity for past 30 years • Application of modern exploration techniques presents
Slide 13: Potential to Define a Major New VMS Camp
POTENTIAL TO DEFINE A MAJOR NEW VMS CAMP For personal use only • Emerging VMS discovery at Ayoba, 5.3km SW of Prieska, confirms outstanding near-mine potential • First hole intersected: • 9.5m of massive sulphides grading 0.93% Zn and 0.63% Cu including 1.5m @ 4.98% Zn and 0.89% Cu* • 7.13m @ 1.44%
Slide 14: South Africa: A Changing Mining Landscape
SOUTH AFRICA: A CHANGING MINING LANDSCAPE For personal use only • Despite turmoil in 2017, the rule of law prevailed • President Ramaphosa appointed in February 2018 • New Minister of Mineral Resources, Gwede Mantashe, appointed • New Mining Charter significantly improved on various drafts and for j
Slide 15: South Africa: The Opportunity for a New-Generation Mining Company
SOUTH AFRICA: THE OPPORTUNITY FOR A NEW-GENERATION MINING COMPANY For personal use only • JSE is the world’s 18th largest stock exchange by market cap • 505 listed companies and +800 securities • Aggregate market cap: US$988 billion • 41% liquidity • More than R767 billion (A$76.3b) raised in the la
Slide 16: What the Changing Landscape Means for Orion
WHAT THE CHANGING LANDSCAPE MEANS FOR ORION For personal use only Focus on creating meaningful empowerment structures • Exploration free of any BEE or Mining Charter impositions – aims to encourage greenfields exploration • For Mining Rights, 5 years to achieve 30% BEE ownership: • 20% black entrepr
Slide 17: Summary: A Compelling Investment Case
SUMMARY: A COMPELLING INVESTMENT CASE For personal use only • ‘A new mine in the footprint of an old mineʼ: • Updated JORC Mineral Resource and Scoping Study completed on schedule in December 2018 • Bankable Feasibility Study on track for Q2 2019 • Significant existing infrastructure in place • Larg
Slide 18: Appendices
For personal use only APPENDICES PAGE 18
Slide 19: Board of Directors
BOARD OF DIRECTORS For personal use only 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 Denis is a Chartered Errol is a Geologist, with Alexander is a Part
Slide 20: Senior Management
SENIOR MANAGEMENT For personal use only Errol Smart Martin Bouwmeester Walter Shamu Michelle Jenkins Louw van Schalkwyk Nelson Mosiapoa Managing Director & Chief Financial Officer & Chief Operating Officer Executive: Finance & Executive: Exploration Group Corporate Social Chief Executive Officer Com
Slide 21: Prieska Mine: Current Ownership Structure
PRIESKA MINE: CURRENT OWNERSHIP STRUCTURE For personal use only Orion Minerals Limited 100% Agama Exploration and Mining (Pty) Ltd 73.3% 70.0% 73.3% Repli Trading No 27 Vardocube (Pty) Ltd Bartotrax (Pty) Ltd (Pty) Ltd 26.7% 30.0% 26.7% BEE Partners 1 BEE Partners 2 BEE Partners 3 1. Mosiapoa Family
Slide 22: Prieska: Updated Mineral Resource Inventory
PRIESKA: UPDATED MINERAL RESOURCE INVENTORY For personal use only Resource Classification Volume Tonnes Density Zn Zn Cu Cu m3 tonnes/m3 tonnes % tonnes % Indicated 5,432,000 18,507,000 3.4 667,000 3.60 217,000 1.17 Deep Sulphide Resource Inferred 2,977,000 10,219,000 3.4 417,000 4.1 117,000 1.1 Ind
Slide 23: Large Contiguous Blocks of Indicated Resource
LARGE CONTIGUOUS BLOCKS OF INDICATED RESOURCE For personal use only PAGE 23
Slide 24: Prieska: Deep Sulphide Resource with Significant Growth Potential
PRIESKA: DEEP SULPHIDE RESOURCE WITH SIGNIFICANT GROWTH POTENTIAL For personal use only Longitudinal projection showing the Repli Deep Sulphide Resource, including priority target areas (pink hatch) for resource extension drilling Refer ASX release 5 November 2018 PAGE 24
Slide 25: Scoping Study: Confirms Robust Phase 1, 10-Year Project
SCOPING STUDY: CONFIRMS ROBUST PHASE 1, 10-YEAR PROJECT For personal use only Price and FX assumptions Unit Estimated value Financial performance Unit Estimated value Metal price – Cu (USD3.00/lb) USD/t 6,614 NPV (pre-tax) @12.5% discount rate AUD m 400 – 440 Metal price – Zn (USD1.30/lb) USD/t 2,86
Slide 26: Prieska: Well-Understood Metallurgy, Good Quality Concentrates
PRIESKA: WELL-UNDERSTOOD METALLURGY, GOOD QUALITY CONCENTRATES For personal use only Historical Performance Data FS Locked Cycle Tests 100,0 90,0 • Extensive locked-cycle metallurgical test work program 80,0 Copper recovery (%) completed 70,0 60,0 50,0 • Confirms metallurgical continuity across Deep
Slide 27: Prieska Process Flowsheet
PRIESKA PROCESS FLOWSHEET For personal use only PAGE 27
Slide 28: For further information, contact
For personal use only For further information, contact: Orion Minerals Limited Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au ASX/JSE: ORN Website: www.orionminerals.com.au PAGE
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