Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (February 2021)
22 slides from Orion Minerals's investor presentation, Feb 2, 2021
Slide 1: Proposed Acquisition of the Okiep Copper Complex
Okiep Copper Complex For personal use only Prieska Copper- Zinc Project Proposed Acquisition of the Okiep Copper Complex An exceptional growth opportunity in South Africa’s Northern Cape Errol Smart, Managing Director and CEO | Investor Presentation February 2021 ASX/JSE: ORN
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Orion in such forward-looking statements; and materially affects the information for the Mineral Resource and Minerals Ltd and its subsidiaries (Orion or Company) and their • may include, among other things, statem
Slide 3: A Standout Growth and Diversification Opportunity
A Standout Growth and Diversification Opportunity For personal use only • Exclusive option to acquire extensive mineral interests in the Okiep Copper Complex (OCC): • Historical production of +2Mt of copper • Significant historic resource estimates and mining studies await due diligence review • Out
Slide 4: Option Agreement: Overview
Option Agreement: Overview For personal use only • Option to acquire mineral interests in the OCC held by three Target Entities • 56.25% of South African Tantalum Mining (Pty) Ltd (SAFTA) • Remaining 43.75% held by Industrial Development corporation (IDC) • IDC remains an active supporter and financ
Slide 5: Acquisition Consideration
Acquisition Consideration For personal use only Option Period Financial Commitments Purchase Consideration Option Payments (to be deducted from purchase consideration) Initial Acquisition Consideration Exclusivity Payment Option Exercise Price Payment Date Exclusivity Period Target Entity Total SAFT
Slide 6: Option Agreement: Overview
Option Agreement: Overview For personal use only • Target entities hold the majority of large historical mines within the OCC district • Extensive historic foreign Mineral Resource Reports (non JORC – subject to due diligence) • Preliminary Feasibility study reported with positive outcomes (subject
Slide 7: Strategic Rationale: The Opportunity for Orion
Strategic Rationale: The Opportunity for Orion For personal use only • Substantial drilled mineralisation that can rapidly be upgraded to JORC-compliant status at moderate cost • Potential early mine development opportunity • Potential to commence production at OCC within 18 - 24 months • Potential
Slide 8: OCC: A Major Historical Copper Production Centre
OCC: A Major Historical Copper Production Centre For personal use only View of the Okiep copper mining • +2Mt Cu produced over 150-year period ending 2006 area, ca. 1910. Source: Mindat • ~20% of historical production delivered pre-1920 - O’okiep Copper Co produced ~2.2Mt of hand-sorted ore and conc
Slide 9: OCC: Recent Ownership History
OCC: Recent Ownership History For personal use only SAFTA granted Prospecting Rights over 1940 Newmont sells 1998 2013 Flat Mines, and others 2018 OCC to Gold Metorex stops mine Fields as it exits development and RSA due to commence clean- Apartheid boycott up/slag retreatment and asset salvaging Ne
Slide 10: OCC: Ownership changes coincided with Cu lows
OCC: Ownership changes coincided with Cu lows For personal use only Copper Price $/ton (real) Mining ceases / stripped Newmont Goldfields Metorex Source: Mergence Capital PAGE 10
Slide 11: Okiep District: Industrial Era Production
Okiep District: Industrial Era Production For personal use only Newmont Goldfields Metorex • Produced 2.1Mt Cu from 121Mt RoM @ 1.9% Cu • Peaked at 2.4Mtpa ROM, mainly from underground mining • Ore sourced from 42 separate mines within the district PAGE 11 • Consistently achieved >90% plant recoveri
Slide 12: Near Term Production Potential
Near Term Production Potential For personal use only • SAFTA has applied for a Mining Right on Flat Mine • This was Metorex’s last producing section (Wheel Flat) when the central processing plant was closed • Mine records show ROM of 1.2 – 1.4% Cu until closure* PAGE 12 • Production stopes at 150m b
Slide 13: Okiep District: Geology
Okiep District: Geology For personal use only • Copper deposits hosted by easterly-trending mafic dykes, with plug like bodies forming at Dyke intersection with minor NE-trending dyke swarm • Large dimension orebodies amenable to bulk mechanised mining, simple favourable metallurgy, very strong grou
Slide 14: Mostly Shallow Mining, Many Deposits Open Down-Dip
Mostly Shallow Mining, Many Deposits Open Down-Dip For personal use only Major copper mines in the Okiep district, with final mining depth shown in metres PAGE 14
Slide 15: Compelling Exploration Targets
Compelling Exploration Targets For personal use only • Favourable host horizons below known occurrences of mineralisation • Potential for new discoveries below thin Nama cover • Intersection of ultramafic dykes with specific host lithologies results in blows of high- grade – large tonnage Carolusber
Slide 16: North-South Section through the Okiep Copper District
North-South Section through the Okiep Copper District Showing targets on favourable horizons For personal use only PAGE 16
Slide 17: Okiep District: An Exceptional Exploration Opportunity
Okiep District: An Exceptional Exploration Opportunity For personal use only • Dozens of mineralised intrusive outcrops not tested down-dip where they should intersect favourable horizons • No application of modern geophysics since 1980’s Outcrops o • Very little exploration at all since 1993 EM nev
Slide 18: Okiep District: Modern Exploration / EM Opportunity
Okiep District: Modern Exploration / EM Opportunity For personal use only >1,700 mafic body outcrops Geophysical methods >200 Cu showings used: IP, Magnetics, Gravity >100 Cu “diggings” - All only suited to find these 42 Cu “mines” 27 modern Most ore “industrial” mines was low-grade Most ore dissemi
Slide 19: District's First-Ever EM Survey Completed Recently at SAFTA
District’s First-Ever EM Survey Completed Recently at SAFTA Strong conductors detected down-dip of Flat Mine North For personal use only Conductivity / resistivity Voxel cut-away to show the two targets at Flat Mine North PAGE 19 beneath mineralisation already drilled
Slide 20: OCC: Next Steps
OCC: Next Steps For personal use only • Orion will apply its proven expertise in permitting and developing large-scale base metal projects gained at Prieska to the OCC • Work to commence immediately on upgrading existing resources to JORC status • Updated Resource and initial Scoping Study expected
Slide 21: Key Takeaways
Key Takeaways For personal use only ü Significant opportunity to acquire a major interest in a large-scale copper complex in South Africa’s Northern Cape Province ü +2Mt of historical production, with significant known mineralisation remaining unmined ü Maiden JORC Resource and Scoping Study targete
Slide 22: For further information, contact
For personal use only For further information, contact: Orion Minerals Limited Suite 617, 530 Little Collins Street Melbourne Vic 3000 Australia ASX/JSE: ORN Phone: +61 (0)3 8080 7170 Email: info@orionminerals.com.au Website: www.orionminerals.com.au PAGE
Orion Minerals — Investor Presentation (February 2021) on 6ix