Orion Minerals Limited · ASX:ORN
Orion Minerals — Non-Deal Roadshow (November 2018)
34 slides from Orion Minerals's roadshow presentation, Nov 29, 2018
Slide 1: A New-Generation African Base Metals Mine Developer
For personal use only A NEW-GENERATION AFRICAN BASE METALS MINE DEVELOPER Developing a 21st century zinc-copper mine at Prieska, Northern Cape Province ASX/JSE: ORN Errol Smart, Managing Director and CEO Global Investor Roadshow November 2018 PAGE
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: Finding, Planning and Building the Mines of the Future
For personal use only FINDING, PLANNING AND BUILDING THE MINES OF THE FUTURE Starting with a ‘clean sheet’, Orion is seizing the moment with un-paralleled opportunity to break from legacy to build modern mines in South Africa PAGE 3
Slide 4: Corporate Strategy
CORPORATE STRATEGY For personal use only Orion Minerals is a polymetallic minerals exploration and development company focusing on zinc, copper, nickel, gold and silver as well as platinum group metals in South Africa and Australia. • Maiden JORC Resource • Lodge Mining Right and Environmental Appli
Slide 5: A Growth-Oriented Global Base Metals Company
A GROWTH-ORIENTED GLOBAL BASE METALS COMPANY For personal use only • ASX and JSE listed • Flagship Prieska VMS Zinc-Copper Project, Northern Cape Province • Redevelopment strategy within footprint of historical mine well-advanced: • Updated JORC Resource and Scoping Study mid-December 2018 • BFS – Q
Slide 6: Corporate Structure
CORPORATE STRUCTURE For personal use only Capital structure summary Shares on issue 1,874M Options on issue 209M Market capitalisation (2.3cps (ASX))1 $43M Significant shareholders % Bridge loan (12% interest, 31 December ’18 term) 2 $0.6M Tembo Capital 22.99 Convertible notes (2.6cps convert, 12% c
Slide 7: 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 8: 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 9: 2018: A Transformational Year for Orion
2018: A TRANSFORMATIONAL YEAR FOR ORION For personal use only Maiden Inferred Resource of 29.4Mt at 3.8% Zn, 1.2% Cu* Mining Right Application lodged April 2018 ~85,000m in-fill drilling program completed Updated Resource expected mid-December 2018 Substantial progress with Bankable Feasibility Stud
Slide 10: 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 • Historically mined by AngloVaal between 1971 and 1991 • Recorded historical production of 1Mt of Zn and 430kt of Cu from 46.8Mt of sulphide ore milled
Slide 11: Prieska: High-Quality Zinc-Copper Resource with Significant Upside
PRIESKA: HIGH-QUALITY ZINC-COPPER RESOURCE WITH SIGNIFICANT UPSIDE For personal use only • Development strategy targeting un-mined dip and strike extensions of historical underground mine MAIDEN • Vast historical drilling database digitally captured, validated and modelled • near-surface oxide, supe
Slide 12: 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 • Established mining region, yet least populous region of South Africa • Region with “distressed, ex-mining communities” brings opportunity to make a meaningful difference • Several leading global mining houses opera
Slide 13: Prieska: State-of-the-Art 21st Century Mine in the Making
PRIESKA: STATE-OF-THE-ART 21st CENTURY MINE IN THE MAKING For personal use only AYOBA PROSPECT PAGE 13
Slide 14: Prieska: High-Quality Zinc-Copper Resource with Significant Upside
PRIESKA: HIGH-QUALITY ZINC-COPPER RESOURCE WITH SIGNIFICANT UPSIDE For personal use only Total Mineral Resource of 29.4Mt containing 1,126,000t Zn @ 3.8% & 365,000t Cu @ 1.2% (based on drilling results- 31 Dec 2017)* • Drilling completed, to upgrade classification of substantial portion of total Min
Slide 15: Prieska: High-Quality Zinc-Copper Resource with Significant Upside
PRIESKA: HIGH-QUALITY ZINC-COPPER RESOURCE WITH SIGNIFICANT UPSIDE For personal use only Longitudinal projection showing the Repli Deep Sulphide Resource, including priority target areas for resource extension drilling refer ASX release 5 November 2018 PAGE 15
Slide 16: Prieska: Advanced Underground Mine Designs
PRIESKA: ADVANCED UNDERGROUND MINE DESIGNS For personal use only PAGE 16
Slide 17: 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 • Extensive locked-cycle metallurgical test work program 90.0 80.0 Copper recovery (%) completed 70.0 60.0 • Confirms metallurgical continuity across Deep Sulp
Slide 18: 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 • Orion Board approval to start BFS in July 2017 with target completion in Q2 2019 • In parallel
Slide 19: Community Engagement – Doing It Right from the Beginning
COMMUNITY ENGAGEMENT – DOING IT RIGHT FROM THE BEGINNING For personal use only • Community liaison office opened in Prieska • MoU signed with Siyathemba Local Municipality to cooperate on key community development initiatives: • Water infrastructure • Residential development • Environment • Educatio
Slide 20: 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 21: 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 22: Potential to Define a Major New VMS Camp
POTENTIAL TO DEFINE A MAJOR NEW VMS CAMP For personal use only • Significant emerging VMS discovery at Ayoba, 5.3km south- west of Prieska • First hole drilled in Orion’s Near-Mine Exploration Program intersected 10.6m zone of copper-zinc bearing sulphides, including 5.2m of massive sulphides • Mine
Slide 23: Exceptional Opportunity for High-Grade Nickel Sulphides
EXCEPTIONAL OPPORTUNITY FOR HIGH-GRADE NICKEL SULPHIDES For personal use only Targets centred around the JACOMYNSPAN – ROK OPTEL CORRIDOR (8 INTRUSIONS) JACOMYNSPAN INITIAL RESOURCE 6.8Mt containing HARTEBEESTPAN 39,480t nickel, 22,800t copper, 1,800t cobalt AREA 4 JACOMYNSPAN ROK OPTEL hosts thick
Slide 24: 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 25: 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 26: South Africa: The Opportunity for a New-Generation Mining Company
SOUTH AFRICA: THE OPPORTUNITY FOR A NEW-GENERATION MINING COMPANY For personal use only Source: Questco Equity & Debt Capital Markets Analysis, November 2018 PAGE 26
Slide 27: South Africa: The Opportunity for a New-Generation Mining Company
SOUTH AFRICA: THE OPPORTUNITY FOR A NEW-GENERATION MINING COMPANY For personal use only Source: Questco Equity & Debt Capital Markets Analysis, November 2018 PAGE 27
Slide 28: Prieska: An Opportunity to Build a Mine of the Future
PRIESKA: AN OPPORTUNITY TO BUILD A MINE OF THE FUTURE For personal use only Reported gains by Original Equipment Manufacturers (OEM) from adoption of partial automation amongst their customers across 68 countries * Source: “The advantage of SMART Technology”, presentation November 2018, Remote Contr
Slide 29: Prieska: An Opportunity to Build a Mine of the Future
PRIESKA: AN OPPORTUNITY TO BUILD A MINE OF THE FUTURE For personal use only • Automated electric underground vehicles and ore handling systems fully achievable within 10 years • Mine design is being guided to enable early • Removes personnel from direct adoption and progressive automation exposure t
Slide 30: 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 31: Orion Minerals: The Investment Case
ORION MINERALS: THE INVESTMENT CASE For personal use only • ‘A new mine in the footprint of an old mineʼ: • Updated JORC Resource AND Scoping Study mid-December 2018 • Bankable Feasibility Study Q2 2019 • Significant existing infrastructure in place • Large land-holding in Areachap province – proven
Slide 32: Appendices
For personal use only APPENDICES PAGE 32
Slide 33: 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 PAGE 33 1. Mosiapo
Slide 34: 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 Website: www.orionminerals.com.au ASX/JSE: ORN PAGE