Orion Minerals Limited · ASX:ORN
Orion Minerals — Corporate Update (January 2020)
34 slides from Orion Minerals's corporate update, January 2020
Slide 1: Prieska Copper-Zinc Project: Outcomes of the Bankable Feasibility Study
ASX/JSE: ORN ASX/JSE: ORN PRIESKA COPPER-ZINC PROJECT Outcomes of the Bankable Feasibility Study PAGE Community update: January 2020
Slide 2: Disclaimer
DISCLAIMER This presentation contains summary information about Orion in such forward-looking statements; and not materially changed. Minerals Ltd and its subsidiaries (Orion or Company) and their • may include, among other things, statements regarding Orion confirms that the form and context in whi
Slide 3: Contents
CONTENTS 1) Executive Summary – What do we intend to do and why? Why Develop a mine? Who are the mine owners? How does the country benefit? Bankable Feasibility Highlights 2) Project Licencing – What approvals do we still need before we can start? 3) Exploration and Mineral Resources – What are we m
Slide 4: Executive Summary: What do we intend to do and why?
EXECUTIVE SUMMARY What do we intend to do and why? Build a modern, safe and profitable copper and zinc mine • We have found – 30.5 million tonnes of rock, with 1.2% as copper and 3.7% as zinc • From which we can mine – 20.7 million tonnes, with 1.1% as copper and 3.4% as zinc • For a mine life of –
Slide 5: Executive Summary: Why develop a mine?
EXECUTIVE SUMMARY Why develop a mine? To benefit the country, while earning a profit for the mine owners • A profitable mine – that will produce copper for an all-in-sustaining cost of R54,700/t Cu, and receive an estimated R97,850/t Cu (44% margin) • Amount of money generated over the initial 10 ye
Slide 6: Executive Summary: Who are the mine owners?
EXECUTIVE SUMMARY Who are the mine owners? Community Trust Employees’ Trust BEE Shareholders ORN Public- listed Shares To benefit the country, while earning a (5%) (5%) (20%) (70%) profit for the mine owners Prieska Copper Zinc Mine PAGE 6
Slide 7: Executive Summary: How does the region benefit?
EXECUTIVE SUMMARY How does the region benefit? • Improved water supply – 20ML a day Water Treatment Plant planned for Prieska • Improved residential development – Contributes to the 3,500 new residences planned in the IDP • Provides employment – 900 people directly, 2,700 – 9,000 indirectly benefit
Slide 8: Bankable Feasibility Study Highlights
EXECUTIVE SUMMARY Bankable Feasibility Study Highlights PAGE 8 Reference: Orion Minerals ASX/Sens announcement on 24 June 2019
Slide 9: Project Licencing: What approvals do we still need?
PROJECT LICENCING What approvals do we still need before we can start? Licences and permits Prieska Project Permit Areas Repli Vardocube Social and Labour Plans – Commitments to ensure the community at ✓ ✓ large benefits Environmental Authorisations – Commitments to ensure the environment is ✓ looke
Slide 10: Exploration and Mineral Resources: What are we mining?
EXPLORATION AND MINERAL RESOURCES What are we mining? • The Prieska Deposit is one of the largest known single lens Volcanogenic Massive Sulphide (VMS) deposits. Massive • The Deposit is in the 3km thick Copperton Formation of the Areachap Group. Sulphides in Prieska • The Areachap Group also hosts
Slide 11: What will the mine look like?
EXPLORATION AND MINERAL RESOURCES What will the mine look like? NW Hutchings Shaft SE 300m below surface to water level Current Flooded Water Level Already mined 900m depth to the future bottom of mine To be mined PAGE 11
Slide 12: What is available to be mined?
EXPLORATION AND MINERAL RESOURCES What is available to be mined? Combined Prieska Project Mineral Resource for Repli + Vardocube Tenements (Effective Date: 11 January 2019) Cu Zn Mineral Classifica Cu Zn Tonnes (metal (metal Resource tion (%) (%) tonnes) tonnes) Deep Indicated 18,507,000 217,000 1.2
Slide 13: Mine Plan: What does underground mining entail?
MINE PLAN What does underground mining entail? • Dewatering – 8.7 million cubic metres of water to pump out in 18 months. Water to be stored in lined dams or treated for secondary use • Shaft and mine refurbishment – Shaft has been inspected. New steelwork will be used as required • Specialised mech
Slide 14: Mining Method
MINING METHOD How we will bring the rock to the surface? PAGE 14
Slide 15: Mineral Processing: What happens once the rock is on the surface?
MINERAL PROCESSING What do we do once the rock is on the surface? Concentrator will be on site: • Crushing – Crushing will happen underground • Milling – Two ball mills will be used • Flotation – Copper, gold and silver concentrate will be floated first and then zinc concentrate • Drying – Concentra
Slide 16: Mineral Processing: Concentrator site layout
MINERAL PROCESSING What is the concentrator site layout? PAGE 16
Slide 17: Mineral Processing: What will we sell? Copper
MINERAL PROCESSING What will we sell? Copper (in concentrate) • Copper’s main uses are electrical cables, motors, piping, construction, air conditioning and metals alloys • Will be helped by the growth of the electric vehicle market and rising electrification needs globally • The global copper metal
Slide 18: Mineral Processing: What will we sell? Zinc
MINERAL PROCESSING What will we sell? Zinc (in concentrate) • China produces and consumes 50% of zinc metal • Zinc’s main uses are in infrastructure and construction, the vehicle industry and electronics. Its most important application is in galvanizing steel (50% of zinc metal consumed) • Zinc chem
Slide 19: Mine Infrastructure
MINE INFRASTRUCTURE What needs to be built so we can operate the mine? • Processing plant – a 2.4Mtpa concentrator to produce copper and zinc products • Storage dams – Water reservoirs and tailings storage facility • Power supply – 40MVA from Cuprum Substation and renewable energy from solar and win
Slide 20: Operating Philosophy and Human Resources
OPERATING PHILOSOPHY AND HUMAN RESOURCES How many people will the mine need to operate? Operations will: Labour Category Number Management and Administration 93 • be continuous Engineering (surface and underground) 209 • require specialised skills Mineral Processing 125 • use contracts for select fu
Slide 21: Operating Philosophy and Human Resources
OPERATING PHILOSOPHY AND HUMAN RESOURCES How many people will the mine need to operate? PAGE 21 Note: Labour numbers are estimates and will vary based on operational requirements
Slide 22: Project Development Milestones: What happens next?
PROJECT DEVELOPMENT MILESTONES What happens next? PAGE 22
Slide 23: Social and Labour Plan Projects: Social commitment
SOCIAL AND LABOUR PLAN PROJECTS What is our social commitment? MoU and Steercom STRATEGIC Water Residential Energy Enterprise FOCUS Education Infrastructure Development Infrastructure Development 2.Skills 3.Residential 4.Renewable 5.Community 1.Water Works Energy Development Planning Liaison Centre
Slide 24: Local Economic Development Projects
SOCIAL AND LABOUR PLAN PROJECTS Local Economic Development Projects SLP Local Economic Development (LED) Projects Planned Expenditure - Repli Projects Total Comments Water Infrastructure R4.00m Upgrade and maintain Prieska Waterworks Residential Development Planning R1.62m Facilitate residential dev
Slide 25: Water infrastructure
LOCAL ECONOMIC DEVELOPMENT PROJECTS Water infrastructure Status • MoU between Siyathemba Municipality and Orion concluded MoU secures supply/offtake (6Ml/day) and pricing range, as well as Repli commitment to upgrade & maintain waterworks • Water Infrastructure Sub-Committee established • Water supp
Slide 26: Residential development planning
SOCIAL AND LABOUR PLAN PROJECTS Residential development planning Status • 50Ha area in Prieska identified for mine village (5Ha) and future residential development • Residential Development Sub-Committee established • Planning process (SPLUMA*) for mine residential suburb in Prieska in progress Bene
Slide 27: Renewable energy
SOCIAL AND LABOUR PLAN PROJECTS Renewable energy Status • Renewable Energy Generation Collaboration Agreement concluded between Orion and juwi. Proposed ‘behind the meter’ 35MW supply Benefits for Community • Contribute to the Municipality’s Alternative Energy Development Initiative - aimed at estab
Slide 28: Local skills development
SOCIAL AND LABOUR PLAN PROJECTS Local skills development Benefits for the community • Repli: To develop the skills of at least ten community members per year through a partnership with the Siyathemba Municipality and a preferred training centre or an alternative facility to be developed in Prieska T
Slide 29: Human Resource Development
SOCIAL AND LABOUR PLAN PROJECTS Human Resource Development Human Resource Development - Repli Human Resource Development - Vardocube Category Total Category Total ABET R19.10m ABET R750 000 Learnerships R5.47m Learnerships R960 000 Portable Skills R4.77m Portable Skills R630 000 Bursaries R2.29m Bur
Slide 30: Human Resource Development
SOCIAL AND LABOUR PLAN PROJECTS Human Resource Development ABET Total Adult Basic Education and Training (ABET) is provided to adults who want to finish their basic education and become literate. We believe ABET will play a fundamental role in building the foundation for employee career paths. We in
Slide 31: Human Resource Development
SOCIAL AND LABOUR PLAN PROJECTS Human Resource Development Bursaries Total A grant by the mine, awarded to someone to enable them to study at university or college. The bursary programme will be offered to qualifying school leavers interested in mining-related and non-mining related disciplines. Gra
Slide 32: Procurement and Enterprise Development
SOCIAL AND LABOUR PLAN PROJECTS Procurement and Enterprise Development Mining Goods 70% BEE Procurement • Black owned companies 44% BEE compliant companies require at least 50 + 1% The mine will Black Ownership comply with 21% HDP owned and controlled companies • BEE compliant Mining Charter III man
Slide 33: Supplier Registration Portal
SOCIAL AND LABOUR PLAN PROJECTS Supplier Registration Portal Status 115+ entities registered: • 65 from Siyathemba (local) • Educational seminars for SMME & NGO Development No. of SCNet Registrations (Siyathemba) 40 35 30 25 20 15 10 5 0 PAGE 34
Slide 34: For further information, contact: Orion Minerals Limited
For further information, contact: Orion Minerals Limited Phone: +61 (0)3 8080 7170 Email: [email protected] ASX/JSE: ORN Website: www.orionminerals.com.au PAGE