Orion Minerals Limited · ASX:ORN
Orion Minerals — Investor Presentation (November 2015)
29 slides from Orion Minerals's investor presentation, Nov 18, 2015
Slide 1: Option secured over world-class copper-zinc project in South Africa
Option secured over world-class copper-zinc project in South Africa For personal use only • Potential for portfolio diversification with the addition of an advanced, world-class VMS copper-zinc asset ASX Code: ORN • Well-understood deposit with existing infrastructure and a clear pathway to a Feasib
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 For personal use only performance of Orion Gold NL and its projects, are forward-looking statements. Such forward-looking statements: • are nec
Slide 3: An Outstanding Opportunity for Growth & Diversification
An Outstanding Opportunity for Growth & Diversification • Option to acquire a 73.3% interest in the large, historical now closed For personal use only Prieska Copper-Zinc Mine (“PC”) in South Africa: • Recorded as one of world’s 30 largest VMS base metal deposits • Historical production of 0.43Mt of
Slide 4: Orion: Corporate Summary
Orion: Corporate Summary Capital Structure Summary For personal use only Shares on Issue 306M Board & Management Options on Issue 37M Denis Waddell Chairman Market Capitalisation (at 1.5cps) $5M CEO, Managing Errol Smart Cash on Hand (as at 30 September ’15) (1) $28k Director Significant Holder Name
Slide 5: PC Project
For personal use only PC PROJECT 5
Slide 6: Areachap Project Binding Option Term Sheet
Areachap Project Binding Option Term Sheet For personal use only • Orion has secured an option until 31 July 2016 to acquire 73.3% interests in a world class VMS Zinc, Copper project and a virgin epithermal Gold discovery. • Effective Option price: ZAR80 million (approx. A$8m) = ZAR60 million cash +
Slide 7: Project Locations
Project Locations For personal use only Pretoria Johannesburg Kimberley AREACHAP VMS BELT DOLOMITE MVT BELT Cape Town OTHER DEPOSITS 7
Slide 8: Agama / PC Project Orion Due Diligence Progress
Agama / PC Project Orion Due Diligence Progress For personal use only Six months of detailed due diligence and investment opportunity evaluation completed • Acquisition targets identified May 2015 • Initial appraisal and due diligence by Orion in-house team • Binding Option Term Sheet signed (July 2
Slide 9: Project Location and Infrastructure
Project Location and Infrastructure • 270 km SW of Kimberley (Regional Capital) For personal use only • Excellent regional & mine infrastructure: Marydale Town N • Access via bitumen road. • 2km from small village of Copperton (38 brick & mortar houses). Marydale Project • Railway siding at Groveput
Slide 10: Areachap Belt VMS & Epithermal Depositional Model
Areachap Belt VMS & Epithermal Depositional Model For personal use only Epithermal Deposits VMS Style Deposits (Sub (Sub aerial) marine) Au-Ag-Cu Au-Ag-Cu-Zn-Pb + Ba • Gold and Base metal deposits were deposited in an active volcanogenic environment @ 1,28 Ga. • The terrain is within a tectonic belt
Slide 11: PC Exploration/Development Project - Reviving a historic success
PC Exploration/ Development Project - “PC” Reviving a historic success For personal use only 1971-1991 the mine employed 4,000 people and milled 8,000tpd Produced >430,000tons Copper and > 1million tons Zinc Mine closed and site rehabilitated 1991 Returned R2.64 per share (US$1.16 at the time) in di
Slide 12: Prieska Copper Mines LTD (PCM) - History
Prieska Copper Mines LTD (PCM) - History Benefit of hindsight For personal use only • Early decision to curtail capital, shorten mine life and maximise dividend yields. • When metal prices surged damage was done – no available reserves. Decision to curtail capital and mine to 1988 closure Final Prod
Slide 13: PCM – History
PCM – History • Discovered in the 1890’s – not mined. For personal use only • Extensive exploration in 1968 by Anglovaal Ltd led to mine development commencing in 1970. • Initial drilling reserve* of 47 Mt of ore containing 30% pyrite, 1.74% copper, 3.87% zinc, 8g/t silver, and 0.4g/t gold to 840m d
Slide 14: PC Now: Remote Desert Site with Exceptional Infrastructure
PC Now Remote Desert Site with Exceptional Infrastructure For personal use only 75MW Solar Power Plant Shaft Head-frame 4 separate regional HV lines link to national electricity grid. • Tarred road to project site • 48km via bitumen road to existing rail siding • 800km rail link to major, bulk commo
Slide 15: PC – Schematic Section
PC – Schematic Section For personal use only Oxidized Ore NOT MINED 1-6m limestone Bencroft Shaft cap Massive Sulphide Ore Old workings flooded to 400m below surface (water pH 6.7 – not acid) Not well drilled up-dip on Hutchings Shaft western limb Small deposit was found at surface projection Deapes
Slide 16: PC Underground Infrastructure
PC Underground Infrastructure For personal use only • 8.8m diameter concrete lined vertical shaft to 1,024m. • 3 separate ramp declines (6.5 x 3.8m) reach deepest ore at 1,140m. • Primary mine development in place to reach deep sulphide mineralisation together with extensive regional infrastructure
Slide 17: Geological Modeling By Orion
Geological Modeling By Orion For personal use only Plan View +105 Target Orion has digitally captured, validated and modeled all available drilling data from historic hard copy sources. Deep Sulphide Target 17
Slide 18: Exploration Targets
Exploration Targets Exploration Target Tonnage Cu % Zn% For personal use only + 105 3.0 - 4.5 million tonnes 1.0 - 1.6% 1.3 – 2.0% Deep Sulphide 7.0 - 11.0 million tonnes 1.2 – 1.8% 3.9 - 5.9% • Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Targets are conceptua
Slide 19: Deep Sulphide Exploration Target
Deep Sulphide Exploration Target • Access to sulphide mineralisation is via existing mine infrastructure down to 1140m. For personal use only • Un-mined sulphide mineralisation continues below the deepest stopes and thickens in the trough zone (up to 45m in width). • Orebodies are open-ended with si
Slide 20: +105 Open Pit Exploration Target
+105 Open Pit Exploration Target • Includes oxide mineralisation to approximately 40m depth, supergene enriched mineralisation to 80- For personal use only 90m depth and primary sulphide mineralisation below. • 80% of the strike of the mineralised zone estimated by the Exploration Target represents
Slide 21: Engineering Estimation
Engineering Estimation For personal use only • The large database of historic mining and processing data & information, together with established infrastructure, services and primary access development, allows for a unusual, unique opportunity to evaluate the investment decision before proceeding to
Slide 22: The Investment Decision
The Investment Decision For personal use only • Cost to acquire 73.3% of both projects = A$8million. • Orion’s management conclude that with extensive data available, The Prieska Copper Project represents an opportunity to advance the project rapidly to feasibility study level. • Exploration risk is
Slide 23: Marydale Project: Early Stage, Virgin Gold Discovery
MARYDALE PROJECT For personal use only Early Stage, Virgin Gold Discovery Upside Potential 23
Slide 24: Marydale Project Location and Infrastructure
Marydale Project Location and Infrastructure For personal use only • 65 km NW of Station Copperton and 280km Marydale N SW of Kimberley • In close proximity to excellent Marydale Project N10 infrastructure: Prieska • Marydale on the N10 highway • Railway station at Marydale Station • Eskom grid powe
Slide 25: Marydale Project History
Marydale Project For personal use only History • First prospected by Anglo American Prospecting Services (Anglo) for Copperton style base metal mineralisation during the period 1975 to 1982. • Anglo concluded that the mineralised zone discovered was similar to the ore zone at Copperton but the grade
Slide 26: Initial Drilling
Initial Drilling 2013 Drilling For personal use only Not Optimum Orientations Section Plan View * Refer to Appendix 2 in ASX Release 18 November 2015 for significant intercepts & Appendix 3 for information required under the JORC Code 26
Slide 27: Possible Levels For Investor Participation
Possible Levels For Investor Participation For personal use only Funds raised at upper levels generally loaned down to operating ORN: ASX Australian listed, ultimate holding company. Private Company offering broad exposure to South African ventures (loan repayments are tax free) RSA Holding Co of OR
Slide 28: Competent Persons Statement
Competent Persons Statement • The information in this report that relates to Exploration Results and the Exploration Targets at the Prieska Copper project complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC For person
Slide 29: For personal use only
ral use only )) Footwall Contact brilinter
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