Orion Minerals Ltd (ASX:ORN) (JSE:ORN) is advancing projects on South Africa’s Areachap Belt, working a definitive feasibility study (DFS) for its flagship project and awaiting assays from ground similar to Independence Group NL’s (ASX:IGO) Nova-Bollinger deposit on Fraser Range in WA.
The junior company’s flagship project is Prieska, a 29.4 million tonne zinc-copper project in South Africa that Orion is hoping to complete a bankable feasibility study (BFS) for later this year or early next year, before what it hopes will be early production in 2019.
Orion also has the Jacomynspan nickel-copper-cobalt and platinum group element project, the Masiqham zinc-copper project and Marydale gold-copper project in the African country.
In Australia, it holds the Fraser Range project joint venture in Western Australia with JV partner Independence Group, the Connors Arc Gold Project in Queensland and the Walhalla gold and polymetallic elements project in Victoria.
Orion managing director and CEO, geologist Errol Smart, told Proactive Investors: “Our exploration assets are hard to beat anywhere else on the planet.”
One of Orion’s other shining stars in South Africa is its Jacomynspan project which consists of the Namaqua and Disawell mineral rights.
Disawell has attracted attention for its similarities to Nova-Bollinger.
READ: Orion Minerals drilling highlights Nova-Bollinger-style mineralisation in South Africa
Orion drilling interceptions shown at the surface.
Melbourne-based Orion is awaiting results from its first hole at the project, the Rok Optel 2 nickel-copper target, which was first drilled late last month.
Global independent laboratory ALS Ltd (ASX:ALQ) is expected to return assays in a week or two from the Australian Laboratory Services laboratory in Johannesburg.
The drill core from Disawell target Rok Optel 2.
Orion shared a picture of drilling interceptions with the market on July 30, with the company’s managing director receiving congratulations from geologists across the globe on the mineralisation achieved on the Disawell ground.
Orion’s debut drill hole intersected a thick succession of sulphide-bearing mafic to ultramafic intrusive rocks.
Smart reported the result was confirmation of the company’s “expectation that the Jacomynspan intrusive complex is fundamentally similar to what we saw in the Fraser Range”.
Orion’s own Fraser Range project is being run as a joint venture with Nova mine owner Independence Group.
The smaller company’s interest is being free-carried until Independence completes a pre-feasibility study for the Albany-Fraser Belt tenement.
As part of its JV with Orion, Independence has notably taken rights to a potential joint venture or sale of any of Orion’s nickel projects in South Africa’s Areachap Belt.
Success at Jacomynspan could realistically make the project a takeover target.
READ: Orion Minerals spins drill at new highly conductive target
Orion has conducted four electromagnetic (EM) surveys at its Jacomynspan project’s Rok Optel 2 nickel-copper target and began drilling its second hole this month.
Orion had detected its highest conductor reading yet at the site of the second hole which is now testing the conductor target.
Tenements on the Fraser Range in Western Australia.
Smart told Proactive Investors: “For two years, when we first identified this exploration opportunity, we always said there was a very strong similarity to Fraser Range.
“Fraser Range has probably seen more than $100 million of exploration investment over the last six years, whereas this whole Areachap Belt has not had more than $20 million of investment in its whole life.”
The company’s diligence in pursuing a range-like opportunity is paying off.
Orion’s managing director said: “Nobody has drilled injected, admissible nickel-copper sulphides (since Nova-Bollinger besides Mark Creasy’s recent discovery) and for us to be able to achieve that result with our first drill hole shows you we are onto the right track.”
The Prieska Copper Mine operated for 20 years to 1991, employing around 4,000 people.
Dual-listing could become tri-listing
Orion has a primary listing on the Australian Securities Exchange (ASX), with its official listing date recorded as October 31, 2003, by the ASX.
Orion added the Johannesburg Stock Exchange (JSE) as a secondary listing on September 18, 2017, to receive good support from investors.
Smart told Proactive Investors a number of parties had recommended the company also consider a listing on the US$4.59 trillion London Stock Exchange.
He said the company was considering the option and viewed the exchange as another potential funding source for the development activities it hopes to undertake.
Shareholders kick in
Orion closed a $17.9 million oversubscribed capital raising at 3.7 cents a share in June.
“We are in a strong position to fast-track our bankable feasibility study,” Smart said.
Among Orion’s capital raising subscribers was its loan facility provider and largest shareholder Tembo Capital.
Tembo asked to turn $6.3 million of loans into shares, leaving a debt of about $600,000 for Orion to repay.
Orion’s investors approved the subscription at the company’s annual meeting last Friday, allowing Tembo to up its stake to 22.99%.
READ: Orion Minerals raising $11 million for Prieska Zinc-Copper Project
Preparations for a SkyTEM helicopter-borne survey over the northern Areachap Belt.
Orion has $19 million in the bank to work with and project support from Johannesburg-based international miner Anglo American plc (LON:AAL).
Smart pointed to the significance of the major shareholders’ backing of both the company and its portfolio of assets.
READ: Orion Minerals secures $5 million from Independence Group for base metal development strategy
Strategic partner Independence Group’s share subscription was to leave it with an 8.23% stake in the company after new shares were issued.
Tarney Holdings, a Denis Waddell outfit, would sit at 5.86% while Sija Investment and Alexander Haller would collectively hold 3.69%.
A regional geology map of the Areachap Belt.
Prieska plans being refined
Orion’s fast-tracked, zinc-copper flagship project Prieska is near good infrastructure and a supportive community, on a world-class ore body.
Between 1971 and 1991 more than 430,000 tonnes of copper was produced at the Northern Cape site and more than 1 million tonnes of zinc.
Orion has brought a new geological interpretation and modern exploration equipment to the asset to help the company reach DFS stage on the fast track.
The BFS was started in July last year and will be based on revised mineral resource statements.
READ: Orion Minerals continues to progress drilling at Prieska Zinc-Copper Project
The latest Prieska mineral resource statement.
Orion’s latest statement, published in April, puts resources at 1.126 million tonnes grading 3.8% zinc; 365,000 tonnes grading 1.2% copper; 8.896 million tonnes grading 9.4 g/t silver; and 198,000 tonnes grading 0.2 g/t gold.
The company is continuing to drill out the project as it develops block plans and mine layouts to inform its extraction plan and help produce a financial model for its planned new mine.
Errol Smart will deliver a presentation on behalf of Orion Minerals at 9.40am on day one of the Africa Down Under conference in Perth, Western Australia, on August 29-31.