Orion Minerals Limited · ASX:ORN
Orion Minerals — Diggers & Dealers Mining Forum (August 2019)
24 slides from Orion Minerals's conference presentation, Aug 5, 2019
Slide 1: Prieska Project: A strong foundation for near-term development and long-term growth
For personal use only ASX/JSE: ORN ASX/JSE: ORN PRIESKA PROJECT A strong foundation for near-term development and long-term growth PAGE Investor Presentation : August 2019
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation contains summary information about Orion targets, estimates and assumptions in respect of metal To the maximum extent permitted by law, Orion and any of its Minerals Ltd and its subsidiaries (Orion or Company) and their production and prices, operat
Slide 3: Orion Minerals – A Compelling Investment Case
ORION MINERALS – A COMPELLING INVESTMENT CASE For personal use only THE OREBODY • Globally significant VMS Resource: 30.49Mt @ 1.2% Cu, 3.7% Zn • Mineral Reserve: 13.62Mt @ 1.06% Cu, 3.18% Zn FOUNDATION PHASE BFS OUTCOMES • Initial 10-year, 2.4Mtpa operation targeting 22ktpa Cu & 70ktpa Zn • Strong
Slide 4: Prieska: Reawakening a Global VMS Giant
PRIESKA: REAWAKENING A GLOBAL VMS GIANT For personal use only • World-class orebody – recorded as a Top 30 global VMS deposit NW Hutchings Shaft SE • Located in Northern Cape Province, 270km south-west of regional capital, Kimberley Current Flooded Water • Established mining region, yet least populo
Slide 5: 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 Extensive infrastructure already in place: • Primary shafts and underground decline roadways • Sealed access roads to project site • 48km via bitumen road to existing rail siding • Four high-voltage regional lines li
Slide 6: Prieska: Mine of the Future
PRIESKA: MINE OF THE FUTURE For personal use only Implementing a modern operating philosophy (4IR enabled) can contribute to achieving quantum changes in key output parameters that are traditionally slow to improve or have regressed in the local mining industry, including: • Safety and health improv
Slide 7: Mining Production Profile
MINING PRODUCTION PROFILE For personal use only • Underground mining for majority of the Foundation Phase MILLED ORE SOURCES • Small open pit mined on retreat • Underground mining to commence on completion of: o mine dewatering o shaft refurbishment • Underground establishment program of 23 months b
Slide 8: Prieska BFS Highlights
PRIESKA BFS HIGHLIGHTS For personal use only FOUNDATION PHASE LOM EXTENSION PHASE • Demonstrates compelling investment case to establish • LOM extensions leveraging off Foundation Phase financially robust mine with initial 10 year life development and requiring limited or no o Pre-tax free cash flow
Slide 9: Prieska: Next Steps
PRIESKA: NEXT STEPS For personal use only FOUNDATION PHASE • Orion progressing key commercial work streams: • Permitting • Concentrate marketing • Project financing • Final investment decision targeted in H2 2019 • Commencement of construction targeted for late 2019/early 2020 • Ongoing optimisation
Slide 10: Environmental Authorisation Granted
ENVIRONMENTAL AUTHORISATION GRANTED For personal use only • Environmental Authorisation for the development of Prieska Copper-Zinc Project received in July 2019 • Granting of Environmental Authorisation by the South African Department of Mineral Resources is a key step in the development of the Prie
Slide 11: Post Feasibility Study Workstreams
POST FEASIBILITY STUDY WORKSTREAMS For personal use only • Effort now focused on pilot-scale field trials of key activities, business plan optimisation work, securing of long-lead time items, formalising key service and supply contracts and developing project execution capacity • Key workstreams inc
Slide 12: A Dominant Land-Holding in an Under-Explored Mineral Belt
A DOMINANT LAND-HOLDING IN AN UNDER-EXPLORED MINERAL 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: o Larg
Slide 13: Fraser Range: Searching for a Supernova
FRASER RANGE: SEARCHING FOR A SUPERNOVA For personal use only “We have a conviction the (Nova) system is much larger than we believed, and the increased probability of additional discoveries means we are motivated to significantly increase our spending in 2020.” – IGO Managing Director Peter Bradfor
Slide 14: Pivotal $8M Capital Raising and BEE Transaction
PIVOTAL $8M CAPITAL RAISING AND BEE TRANSACTION For personal use only Kolobe Nala Safika Resources Black Star Minerals Investment 44.72% 17.31% 39.97% Prieska Resources 20% Refer ASX release 2 August 2019 PAGE 14
Slide 15: Safika Resources Joins Founding BEE Partners
SAFIKA RESOURCES JOINS FOUNDING BEE PARTNERS For personal use only Highlights of the agreement About Safika • Prominent BEE mining and exploration company Safika Resources is predominantly invested in manganese through its operating in South Africa’s Northern Cape since 2006 investment in, and manag
Slide 16: Corporate Structure
CORPORATE STRUCTURE Capital structure summary Current Post Capital Raising For personal use only Shares on issue1 2,111M 2,111M Primary listing on the ASX. Options on issue2 288M 315M Secondary listing on Main Board of the Johannesburg Stock Exchange. Cash on hand3 $1.4M Current Post capital Signifi
Slide 17: Appendices
For personal use only APPENDICES PAGE 17
Slide 18: Bankable Feasibility Study Dashboard
BANKABLE FEASIBILITY STUDY DASHBOARD For personal use only Price and FX Assumptions Unit Value Financial Performance Unit Value Metal price – Cu USD/t 6,834 NPV pre-tax (post-tax) @ 8.0% discount rate AUD M 574 (408) Metal price – Zn USD/t 2,756 IRR pre-tax (post-tax) % 38% (33%) Exchange rate ZAR:U
Slide 19: Strong Cashflow
STRONG CASHFLOW For personal use only 900 900 700 700 Cumulative Cash Flow (AUD'm) Net Real Cash Flow (AUD'm) 500 500 300 300 100 100 -100 -100 -300 -300 -500 -500 Net Cash Flow After Tax Cumulative Cash Flow PAGE 19 Refer ASX release 26 June 2019
Slide 20: Construction Milestones
CONSTRUCTION MILESTONES For personal use only Milestone Description Month 1 10 20 30 33 EVAPORATION DAM & TSF EIA Amendment Process Construct, Line & Commission Evaporation Dams Construct and Commission TSF SHAFT DEWATERING & CONSTRUCTION Surface & Shaft Preparation, Pump Installation 294 Level De-w
Slide 21: Mineral Resource
MINERAL RESOURCE For personal use only The Mineral Resources are inclusive of the Mineral Reserves Refer ASX release 26 June 2019 PAGE 21
Slide 22: Mineral Reserve
MINERAL RESERVE For personal use only Refer ASX release 26 June 2019 PAGE 22
Slide 23: Mine Face to Market
MINE FACE TO MARKET For personal use only NaCN & ZnSO4 or SMBS Stockpile Classifying Cyclone Double Deck Secondary Screen Sizing Screen ROM Lime Underground Primary Crusher Prim ary Mill Secondary Mill Existing Mill Feed Bunkers Reagents Reagents Cu Float Collector Collector Conditioning Promoter Pr
Slide 24: 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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