Orion Minerals Limited · ASX:ORN
Orion Minerals — 121 Mining Investment Conference, Cape Town 2016
24 slides from Orion Minerals's conference presentation, Feb 9, 2016
Slide 1: Prieska: A world class copper-zinc project
Prieska A world class copper-zinc project • 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 Feasibility Study and development 121 Mining Investmen
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 performance of Orion Gold NL and its projects, are forward-looking statements. Such forward-looking statements: • are necessarily based upon a
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 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 copper and 1Mt of zin
Slide 4: Orion: Corporate Summary
Orion: Corporate Summary Capital Structure Summary Shares on Issue 421M Board & Management Options on Issue 91M Denis Waddell Chairman Market Capitalisation (at 1.0cps) $4M CEO, Managing Errol Smart Cash on Hand (as at 31 December ’15) $0.6M Director Significant Holder Name Number % Bill Oliver Tech
Slide 5: Areachap Project Binding Option Term Sheet
Areachap Project Binding Option Term Sheet • 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. • Option price: ZAR80 million (approx. A$7m) = ZAR60 million cash + ZAR20 million in Orion shares (
Slide 6: Project Location
Project Location • 270 km SW of Kimberley (Regional Capital) • Excellent regional & mine Pretoria Johannesburg infrastructure: • Access via bitumen road. Kimberley • 2km from small village of Copperton (38 brick & mortar houses - 54 room, catered, serviced workman’s AREACHAP VMS BELT accommodation c
Slide 7: Areachap Belt VMS & Epithermal Depositional Model
Areachap Belt VMS & Epithermal Depositional Model 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 on western margin of
Slide 8: PC Exploration/ Development Project - "PC"
PC Exploration/ Development Project - “PC” Reviving a historic success 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 ZAR2.64 (US$1.16 at the time) per share in dividend yields for ZA
Slide 9: PCM – History
PCM – History • Discovered in the 1890’s – not mined. • Extensive exploration in 1968 by Anglovaal Ltd led to mine development commencing in 1970. • Initial drilled 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 depth. • First mining 19
Slide 10: Prieska Copper Mines LTD (PCM) - History
Prieska Copper Mines LTD (PCM) - History Benefit of hindsight • 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 Production blast • Prematu
Slide 11: PCM Now: Remote Desert Site with Exceptional Infrastructure
PCM Now Remote Desert Site with Exceptional Infrastructure 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 commodity, deep water port
Slide 12: Agama / PC Project Orion Due Diligence Progress
Agama / PC Project Orion Due Diligence Progress Nine 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 2015) • Comprehensive
Slide 13: PC – Schematic Section
PC – Schematic Section • 8.8m diameter concrete lined vertical shaft to 1,024m. • 3 separate ramp declines reach deepest ore at 1,140m. • Primary mine development in place to reach deep sulphide mineralisation together with extensive regional infrastructure would significantly reduce future developm
Slide 14: Geological Modeling By Orion
Geological Modeling By Orion Plan View +105 (Open Pit) Target Orion has digitally captured, validated and modeled all available drilling data from historic hard copy sources. Deep Sulphide Target (Underground Mine) 14
Slide 15: Deep Sulphide Exploration Target
Deep Sulphide Exploration Target • Access to sulphide mineralisation is via existing mine infrastructure down to 1140m. • 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 significant exploration
Slide 16: Exploration Targets
Exploration Targets Exploration Target Tonnage Cu % Zn% + 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 conceptual in nature. The explo
Slide 17: Possible Levels For Investor Participation
Possible Levels For Investor Participation 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 ORN (whole Areachap, all
Slide 18: Marydale Project
MARYDALE PROJECT Early Stage, Virgin Gold Discovery Upside Potential 18
Slide 19: Marydale Project Location and Infrastructure
Marydale Project Location and Infrastructure • 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 power • Good all-weather r
Slide 20: Marydale Project History
Marydale Project 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 of mineralisation is
Slide 21: 2013 Drilling
Initial Drilling 2013 Drilling 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 21
Slide 22: Competent Persons Statement
Competent Persons Statement • The information in this report that relates to Exploration Results and 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 Code) and is b
Slide 23: Reader's Notes
Reader’s Notes • Opportunity to invest in advanced stage, world class, Cu-Zn project • Unusual situation that asset comes with secured finance to advance the project • Early development + exploration upside • Can invest in listed company or private subsidiary • DD materially complete, seeking acquis
Slide 24: Orion Gold NL
Orion Gold NL www.oriongold.com.au Suite 2, 64 Thomas Street, West Perth, WA, Australia, 6005 +61 8 9485 2685 24
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