Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (February 2024)
30 slides from Orion Minerals's investor presentation, Feb 5, 2024
Slide 1: Building Tomorrow's Mines Today
29 30 28 27 79 47 Cu Zn Ni Co PGE Au Ag Copper Zinc Nickel Cobalt PGE Gold Silver BUILDING TOMORROW’S MINES TODAY Errol Smart - Managing Director and CEO February 2024 ASX: ORN | JSE: ORN Page
Slide 2: Disclaimer
DISCLAIMER This presentation contains summary information about • may include, among other things, statements • disclaim any obligations or undertaking to release Orion Minerals Ltd and its subsidiaries (Orion or Company) regarding targets, estimates and assumptions in any updates or revisions to th
Slide 3: Our Mission
OUR MISSION FULLY INTEGRATED FROM EXPLORATION TO MARKET PRODUCING FUTURE FACING METAL PRODUCTS ESG CERTIFIED METALS, TRACKED AND VERIFIED FROM EXPLORATION TO SALE Page 3
Slide 4: Company Snapshot
COMPANY SNAPSHOT Capital Structure Summary Current Significant Shareholders Share Issue % Shares on issue 1 5,845M Tembo Capital (EU/Netherlands) 18.5 Options on issue 261M Delphi Group (EU/Germany) 12.9 Cash on hand 2 AUD11.0M Clover Alloys (SA) (South Africa) 9.2 IDC Shareholder Loan 3 AUD2.8M Tho
Slide 5: Focus on Two Highly Prospective South African Mineral Districts
FOCUS ON TWO HIGHLY PROSPECTIVE SOUTH AFRICAN MINERAL DISTRICTS Brownfields success being followed by greenfields exploration 3,582km2 of prime mining and exploration rights 450km Orion Okiep Copper Projects Orion Areachap Projects Refer ASX/JSE releases 2 February 2021 and 2 August 2021 Page 5
Slide 6: Prieska Copper Zinc Mine (PCZM)
29 30 28 27 79 47 Cu Zn Ni Co PGE Au Ag Copper Zinc Nickel Cobalt PGE Gold Silver PRIESKA COPPER ZINC MINE (PCZM) Building Tomorrow’s Mines Today ASX: ORN | JSE: ORN Page
Slide 7: Prieska Copper Zinc Mine (PCZM)
PRIESKA COPPER ZINC MINE (PCZM) BANKABLE – FULLY PERMITTED – READY TO MINE The orebody • Globally significant VMS Mineral Resource: 31Mt at 1.2% Cu, 3.6% Zn • Increased Mineral Reserve: 14.5Mt at 1.1% Cu and 3.2% Zn Foundation phase as per BFS-20 outcomes • Initial 12-year, 2.4Mtpa operation, target
Slide 8: PCZM – Cross and Long Sections
PCZM – CROSS AND LONG SECTIONS 1,250m 31Mt @ 1.2% Cu, 3.6% Zn 2.6km Page 8
Slide 9: Key Challenges for Orion with PCZM BFS-20
KEY CHALLENGES FOR ORION WITH PCZM BFS-20 High capital, long lead-time project • Can we bring forward production and reduce funding? Skills / Development Team? • Orion is proven as an explorer and study team – but where are the mining team and experience? Dewatering • What are alternatives to reduce
Slide 10: Alternative Development Strategy
ALTERNATIVE DEVELOPMENT STRATEGY STARTING SMALL TO GROW BIG Early Production Plan for PCZM under investigation to capitalise on the positive near-term outlook for the base metals market STRATEGY • Address perceived high-risk elements of plan to reduce cost of funding • Prove up and implement a low p
Slide 11: Development Strategy
DEVELOPMENT STRATEGY EARLY MINING TARGETS • Shallow Mining Plan aims to target mining from shallow underground, open pit and remnant pillars, while dewatering underway • Stream Finance and early funding initial drawdown completed (~AUD13.8M), providing funding to advance Early Production Strategy NW
Slide 12: Total Funding Secured to Advance PCZM
TOTAL FUNDING SECURED TO ADVANCE PCZM Industrial Development Corporation of AUD 20 million South Africa (IDC) Convertible (ZAR 250m) Instrument Triple Flag Precious Metals Corp AUD 10 million Triple Flag Au-Ag Stream agreement AUD 117 million (USD 80m) Total PCZM Ringfenced Finance* AUD 147 million
Slide 13: Okiep Copper Project (OCP)
29 30 28 27 79 47 Cu Zn Ni Co PGE Au Ag Copper Zinc Nickel Cobalt PGE Gold Silver OKIEP COPPER PROJECT (OCP) Building Tomorrow’s Mines Today ASX: ORN | JSE: ORN Page
Slide 14: Okiep Copper Project (OCP)
OKIEP COPPER PROJECT (OCP) A STANDOUT GROWTH OPPORTUNITY • Exercised option to acquire and applying for additional prospecting rights in the historic Okiep Copper Complex: • Historical production of +2Mt of copper • Non-JORC in-house resource ex- Goldfields of 52Mt at 1.3% • JORC Mineral Resource of
Slide 15: OCP Historical Discoveries and Mines
OCP HISTORICAL DISCOVERIES AND MINES • Mineralised intrusive bodies intrude structures aligned in east-west trending structural corridors • 25% of mineralised corridors hidden under thin surface cover • Modern geophysics expected to assist in detecting mineralisation underneath the thin cover • Orio
Slide 16: Ownership Changes Coincided with Cu Price Lows
OWNERSHIP CHANGES COINCIDED WITH CU PRICE LOWS Copper Price $/ton (real) Mining ceases / stripped Newmont Goldfields Metorex Source: Mergence Capital Page 16
Slide 17: NOM – Flat Mines 2021 Scoping Study
NOM – FLAT MINES 2021 SCOPING STUDY INDICATED ROBUST ECONOMICS FOR INITIAL “PILOT” MINING • Industrial Development Corporation (IDC) project partners • Foundation phase is modelled for 12 years • Concurrent exploration targeting mine expansion • Scoping Study indicates potential for robust pilot-pha
Slide 18: Key Surface Rights Acquired at New Okiep Mining, Flat Mines Project
KEY SURFACE RIGHTS ACQUIRED AT NEW OKIEP MINING, FLAT MINES PROJECT • Lack of surface access prevented drilling to provide final validation of data for the Bankable Feasibility Study on the Flat Mines deposits • Acquired 12,156 hectares of surface rights at OCP in January 2024 • Includes 5,687 hecta
Slide 19: Validation Drilling
VALIDATION DRILLING • The recent acquisition of the Mora Plase Farms has permitted the commencement of a validation drilling program into the Flat Mines East and South deposits • Drill core from this program will be used to validate the legacy exploration results in these areas, and provide samples
Slide 20: Jacomynspan Nickel-Copper-PGE Project (JMP)
29 30 28 27 79 47 Cu Zn Ni Co PGE Au Ag Copper Zinc Nickel Cobalt PGE Gold Silver JACOMYNSPAN NICKEL-COPPER-PGE PROJECT (JMP) Building Tomorrow’s Mines Today ASX: ORN | JSE: ORN Page
Slide 21: Jacomynspan Project (JMP) Nickel-Copper-Cobalt-PGE Mine
JACOMYNSPAN PROJECT (JMP) NICKEL-COPPER-COBALT-PGE MINE Potential significant future metals producer • Only 10% of the outcropping has been drilled – large upside potential • JORC compliant Mineral Resources: >65 million tonnes of ore containing 180kt Ni, 120kt Cu, 12kt Co • JMP Mining Right Area ca
Slide 22: JMP Ownership – 50% Orion and 37% African Nickel
JMP OWNERSHIP - 50% ORION AND 37% AFRICAN NICKEL Executed Mining Right over Ni-Cu-Co-PGE+Au Intrusive Complex Refer ASX/JSE release 4 March 2022 Page 22
Slide 23: Raw Materials Critical to Electric Vehicle Production
RAW MATERIALS CRITICAL TO ELECTRIC VEHICLE PRODUCTION The Jacomynspan Mining Right Area has mineral deposits that can potentially supply 13 metals and materials of the 24 that are critical to battery electric vehicle production, cleaner combustion & energy transition. Investigating innovative propri
Slide 24: Stratega – TCM MVT Solution
STRATEGA – TCM MVT SOLUTION* • Treating higher metallurgical recovery – lower grade concentrates (Maximises value extraction of ore deposit) • Enables >90% metal recovery to concentrate • Recovery of >95% of all metals from sulphide concentrates with premium sales value as high purity metal powder p
Slide 25: Combining Proven Chloro and Carbonyl Metal Vapour Process Technologies
COMBINING PROVEN CHLORO AND CARBONYL METAL VAPOUR PROCESS TECHNOLOGIES “MVT” TO PRODUCE CRITICAL METAL PRODUCTS Tronox – A super scale user of Chloro – MVT United Kingdom Netherlands Australia Saudi Arabia Copper Cliff, Canada Clydach, Wales Germany Vale is the worldwide leader in Carbonyl MVT Sourc
Slide 26: Enormous Exploration Upside
ENORMOUS EXPLORATION UPSIDE AREACHAP – AN UNDER-EXPLORED BELT WITH HIGH METAL ENDOWMENT Areachap Belt, Northern Cape, South Africa Multiple Cu-Zn VMS and Ni-Cu-Co intrusive targets within Orion’s mineral rights • Jacomynspan – Mining Right with potential for sulphide Ni-Cu-PGE-Au open pit and shallo
Slide 27: Prospecting Rights and New Applications
PROSPECTING RIGHTS AND NEW APPLICATIONS CONFIRMED EXPLORATION POTENTIAL IN TIER-1 MINING DISTRICT Targeting high-quality deposits in an under-explored district Masiqhame: Current PR - Known deposits • Kantienpan Zn-Cu: 1.5 Mt at 4.4% Zn and 0.4% Cu * • Boksputs Cu-Zn • Untested JMP style intrusives
Slide 28: An Exceptional Project Pipeline
AN EXCEPTIONAL PROJECT PIPELINE POISED FOR DISCOVERY AND LEADING TO DEVELOPMENT Exceptional Healthy mix of projects exploration at different stages pipeline of advancement Drill-ready targets Deliver Tier-1 and Tier-2 and past success within Projects to the market Areachap Belt Page 28
Slide 29: ESG Leader, Promoting Regional Growth
ESG LEADER, PROMOTING REGIONAL GROWTH BUILDING MINES, BUILDING COMMUNITIES • Emerging ESG Leader Award at the 2020 AAMEG Africa Awards • Junior ESG Award for Enhanced Labour Standards at the 2022 Investing in African Mining Indaba • Emerging ESG Leader for an Explorer/Developer for its Community Par
Slide 30: For further information, contact
For further information, contact: Orion Minerals Limited Level 21, 55 Collins Street Melbourne Vic 3000 Australia Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au Website: www.orionminerals.com.au ASX: ORN | JSE: ORN Page
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