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ORION MINERALS LIMITED - Metallurgical Testwork Confirms Targeted Recoveries at the Prieska Zinc-Copper Project

Release Date: 22/10/2018 09:50
Code(s): ORN     PDF:  
Wrap Text
Metallurgical Testwork Confirms Targeted Recoveries at the Prieska Zinc-Copper Project

Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
(“Orion” or “the Company”)

METALLURGICAL TESTWORK CONFIRMS TARGETED RECOVERIES WITH PRODUCTION OF
SALEABLE ZINC AND COPPER CONCENTRATES AT THE PRIESKA ZINC-COPPER PROJECT


     -   Completed testwork confirms metallurgical continuity across the Deep Sulphide Zone at Prieska.
     -   No material metallurgical zonation issues encountered.
     -   Excellent copper and zinc metal recoveries confirmed, in line with historical mine performance.
     -   Ability to produce high-quality, differentiated copper and zinc metal concentrates.
     -   Results will allow process plant design to proceed, as part of the Prieska BFS due in Q2 2019.
     -   Preliminary testwork shows potential to use safer and more environmentally-friendly froth-
         flotation chemical reagents, with added benefit of delivering cost reductions.

 “Figures" referred to throughout this announcement can be viewed on the pdf version of the
 announcement, available on the Company's website, www.orionminerals.com.au.

Orion’s Managing Director and CEO, Errol Smart, commented:

“We are very pleased to have shown conclusively that the extensions of the Prieska Deep Sulphide Zone
targeted by our recently completed resource drilling are metallurgically identical to the ore that was treated
with great success for over 20 years. This is an important result, which shows that we can expect to at least
match and potentially exceed the historical plant performance and concentrate qualities.

The results from the locked-cycle testwork program confirms that we can include and use the historical mine
metallurgical performance in the ongoing Bankable Feasibility Study, allowing us to complete the design of
the process plant. We can now also provide potential concentrate off-take parties with target concentrate
specifications including minor element analyses, confirming our ability to deliver high quality concentrates.
The fact that we can produce concentrates with negligible levels of key contaminants such as manganese
or lead in our zinc concentrates is a real plus for Orion as a new base metals producer.

The additional testwork findings also indicate that we can use modern reagents and exclude cyanide from
the process, bringing both health and safety and environmental management benefits to the project while
achieving likely capital and operating cost reductions.”

Orion Minerals Ltd (ASX/JSE: ORN) (Orion) is pleased to advise that it has successfully completed follow-
up locked-cycle metallurgical testwork on the deeper mineralised domains (Deep Sulphide Zone) at its
Prieska Zinc-Copper Project (Prieska Project), located in the Northern Cape Province of South Africa.

The Prieska Deep Sulphide Zone is currently the subject of a Bankable Feasibility Study (BFS) targeted for
completion in Q2 2019. Initial results from the metallurgical testwork program were reported in June (refer
ASX release 12 June 2018) and the program has now been completed. Results have confirmed the
metallurgical continuity of the Deep Sulphide Zone with the up-dip area of the mineralised zone, where, in
the period between 1971-1991, 45 million tonnes of ore were mined and successfully processed to produce
clean and widely-marketed concentrates.

Excellent recoveries of both copper and zinc into separate, high-quality concentrates have been achieved
using the froth-flotation process that was used in historical operations. In addition, the use of modern
metallurgical reagents – which have advantages in terms of health and safety, environmental management
as well as in potential capital and operating cost savings – is showing encouraging results.


Deep Sulphide Zone (Hypogene) Test Results

The latest bench-scale, lock-cycle metallurgical tests have achieved targeted total metal recoveries, ranging
from 80% to 94% for zinc and 80% to 86% for copper into separated concentrates.
The resultant concentrates had metal grades ranging between 45% and 54% for zinc and between 20% and
26% for copper in the respective products (refer Tables 1 and 2). Gold and silver are collected in the copper
concentrates at levels that would qualify them as valuable by-products. Results are consistent with
expectations for bench-scale test work, which has limited stabilisation time and hence still opportunity for
improvement in continuous operation.

Detailed elemental analyses of the concentrates confirmed that several key deleterious elements are at
negligible levels with, notably amongst others, arsenic, bismuth, cadmium, cobalt, tellurium, thorium and
uranium at levels well below thresholds that may attract material penalty charges from most smelters or
exclude some markets. Samples were obtained from across the extent of the deposit and composited into
several blends such that a wide range of feed compositions could be assessed (refer to Table 3, Figures 5
and 6). Production scheduling using this information will further optimise resultant markable products.

Test results to date have generally equalled or exceeded the metal recoveries and concentrate grades
achieved during historical mining operations. When graphically superimposed over the historical plant
performance dataset (refer to Figures 1 and 2 below), the latest locked-cycle test results (highlighted in red)
compare favourably with the historical operational performance. The zinc and copper recovery results
correlate well to the average historical trend line.

Mine records show that over the 20-year mine life, 1.01 million tonnes of zinc and 430,000 tonnes of copper
were sold as separated, high-grade metal concentrates, with average metal recoveries of over 85% achieved
for both metals, (refer ASX release 15 November 2017).

The latest metallurgical testing program validates this substantial historical dataset which now can be
applied, along with more recent testwork results, to formulate base assumptions for ongoing mine feasibility
studies and for concentrate marketing terms.

Processing Plant Design and Cyanide Substitution

Metallurgical testing of the Prieska deposit is being conducted as part of an ongoing BFS. Outcomes from
the work program now enable the next phase of the BFS to progress, which includes the final design of the
metallurgical plant, derivation of metallurgical performance projections and optimisation of the reagent suite
to improve operating efficiency and cost control. The mineral processing plant currently being designed
employs a similar flowsheet to that used in historical mining operations, albeit with the application of modern
technology while re-utilising as much of the remaining surface infrastructure as is serviceable.

Investigations into optimising the reagent suite for the mineral processing plant are in progress with the
objective of, amongst others, substituting the use of sodium cyanide as a zinc depressant, with sodium
metabisulfite (SMBS).

The removal of sodium cyanide from the reagent suite would have significant economic and safety benefits
for the project, reducing the cost of production, avoiding any potential exposure to sodium cyanide and
eliminating the need for a detoxification section of the plant ahead of tailings storage.

Preliminary tests indicate that SMBS can effectively provide similar performances to sodium cyanide. A Deep
Sulphide Zone sample blend was tested using the standard froth-flotation flowsheet to produce copper and
zinc concentrates. The control test employed sodium cyanide, while several subsequent comparison tests
used SMBS instead of the sodium cyanide.

Test conditions for the comparison tests were adjusted for each iteration and indications were that the SMBS
reagent suite performed as well as the cyanide control test (refer to Figures 10 and 11). Further testwork is
in progress to validate these early observations. The substitution of sodium cyanide with SMBS will be a
significant improvement on the historically-applied mineral processing techniques and is in line with modern
standard practice worldwide.

Project Background

The Prieska Project is located in the Northern Cape Province of South Africa, approximately 290km south-
west of the city of Kimberley, (Figure 3). The project area encompasses the historical Prieska Copper Mine
(PCM). The PCM was profitably operated by Anglovaal as an underground zinc and copper mine, exploiting
the Copperton deposit between 1971 and 1991, processing on average three million tonnes per year to
produce 1.01 million tonnes of zinc and 430,000 tonnes of copper in concentrates (refer ASX release 15
November 2017). Run-of-mine ore was treated by froth flotation to produce separate concentrates of copper
and zinc.

Orion is now investigating the establishment of new mining operations targeting the extraction of the
remaining zinc-copper mineralisation at the Prieska volcanogenic massive sulphide (VMS) deposit.

Orion has delineated a global Mineral Resource, classified by a Competent Person and reported in
accordance with the JORC Code (2012), amounting to 29.4 million tonnes grading 3.8% zinc and 1.2%
copper, comprising, amongst others, a hypogene Inferred Mineral Resource of 27.8 million tonnes grading
3.9% zinc and 1.2% copper (Deep Sulphide Zone) (Figure 4) and a supergene Indicated Mineral Resource
amounting to 1.2 million tonnes grading 2.6% zinc and 2.4% copper (Supergene zone) (refer ASX release
9 April 2018). Mineral Resource definition work is ongoing, with the objective of improving the classification
of the Mineral Resource estimate as part of the BFS.

Mine development studies are scheduled for completion in the first half of 2019. DRA Projects South Africa
Pty Ltd (DRA) is the lead consultant appointed to consolidate the BFS, part of which includes the design of
the mineral processing plant. Metallurgical testwork is being conducted at the Mintek laboratories in
Johannesburg, South Africa. ABS Africa Pty Ltd are supervising the environmental permitting.




 Errol Smart
 Managing Director and CEO

 22 October 2018

 ENQUIRIES

 Investors                                                  JSE Sponsor
 Errol Smart – Managing Director & CEO                      Rick Irving
 Denis Waddell – Chairman                                   Merchantec Capital
 T: +61 (0) 3 8080 7170                                     T: +27 (0) 11 325 6363
 E: info@orionminerals.com.au                               E: rick@merchantec.co.za

 Media
 Michael Vaughan                                            Barnaby Hayward
 Fivemark Partners, Australia                               Tavistock, UK
 T: +61 (0) 422 602 720                                     T: +44 (0) 207 920 3150
 E: michael.vaughan@fivemark.com.au                         E: orion@tavistock.co.uk

 Suite 617, 530 Little Collins Street
 Melbourne, VIC, 3000


Competent Person’s Statement

The information as presented in this report that relates to the results of metallurgical test work at the Prieska
Project is not in contravention of the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code) and has been compiled and assessed under
the supervision of Mr Errol Smart, Orion’s Managing Director. Mr Smart (PrSciNat) is registered with the
South African Council for Natural Scientific Professionals, a Recognised Overseas Professional Organisation
(ROPO) for JORC purposes and has sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the JORC Code. Mr Smart consents to the inclusion in this announcement
of the matters based on his information in the form and context in which it appears.
Disclaimer

This release may include forward-looking statements. Such forward-looking statements may include, among
other things, statements regarding targets, estimates and assumptions in respect of metal production and
prices, operating costs and results, capital expenditures, mineral reserves and mineral resources and
anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to
future technical, economic, market, political, social and other conditions. These forward-looking statements
are based on management’s expectations and beliefs concerning future events. Forward-looking statements
inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Orion. Actual results and developments may vary
materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements. Orion makes no undertaking to subsequently update or
revise the forward-looking statements made in this release to reflect events or circumstances after the date
of this release. All information in respect of Exploration Results and other technical information should be
read in conjunction with Competent Person Statements in this release (where applicable). To the maximum
extent permitted by law, Orion and any of its related bodies corporate and affiliates and their officers,
employees, agents, associates and advisers:

-     disclaim any obligations or undertaking to release any updates or revisions to the information to reflect
      any change in expectations or assumptions;
-     do not make any representation or warranty, express or implied, as to the accuracy, reliability or
      completeness of the information in this release, or likelihood of fulfilment of any forward-looking
      statement or any event or results expressed or implied in any forward-looking statement; and
-     disclaim all responsibility and liability for these forward-looking statements (including, without limitation,
      liability for negligence).

Appendix 1 – Deep Sulphide Zone Metallurgical Testwork

Sample Collection and Preparation
Approximately 800kg of mineralised hypogene samples were collected from diamond drilling cores.
Samples were collected from 7 holes drilled to obtain samples from across the full extent of the target
mineralised zones (refer to Table 4 and Figures 4, 5 and 6). Additional samples from three more holes
drilled in the south-western extent of the Deep Sulphide Zone are pending assessment as part of
confirmatory variability testwork (refer to Figure 6).

Samples were then composited to make up blends to assess the effect of different zinc to copper ratios,
as well as mixes of samples from different geographic locations within the Deep Sulphide Zone. Five
different blends were prepared for this testwork program, (refer to Table 3).

Deep Sulphide Zone Flowsheet
The recovery plant design flowsheet tested is based on a conventional crushing, milling and flotation
process as was effectively used previously by the Prieska Copper Mine.

The copper laboratory flow-sheet includes bench-scale operation of the following main processes:
• Crushing and milling;
• Copper rougher flotation;
• Concentrate regrind;
• Copper cleaner flotation.
Refer to Figure 7 for the flowsheet schematic.

The zinc laboratory flowsheet includes bench-scale operation of the following main processes, with the
feed being the copper rougher tails:
• Zinc rougher flotation;
• Concentrate regrind;
• Zinc cleaner flotation.
Refer to Figure 8 for the flowsheet schematic.

Test Work Methodology
Laboratory-scale, open-circuit flotation tests were conducted in 1kg batches. Each sample was milled
using a laboratory rod mill at 50% solids by mass to achieve a target grind of 70% passing 75 microns
for the hypogene samples.

The milled slurry was then transferred into a 2.5 litre flotation cell, which was agitated using a Denver
D12 flotation machine at an impellor speed of 1200 rpm. Depending on the feed mass, cleaner flotation
testing was conducted in either a 1 litre or 2 litre flotation cell which was agitated using a Denver D12
flotation machine at an impellor speed of 1000 -1200 rpm. Concentrates were collected by scraping off
the froth at 15 second intervals. All test products were then pulverised and assayed for arrange of
elements including copper, lead, zinc, iron and sulphur using the ICP analysis method.

Locked-cycle testing involves repetitive batch flotation testing, whereby the open-circuit flotation test
described is repeated five times using the re-cycled intermediate flotation streams. A product sample is
collected at the end of each cycle for ICP analysis.
          
Appendix 2 – Tables and Figures


                                                   Deep Sulphide Zone Copper Concentrate
                 Units
                  of          Historical                                                         Blend                                                   Averag
 Element                                         Blend 1         Blend 2         Blend 3                      Blend 6          Min          Max
                 Measu        Pilot Plant                                                          4                                                       e
                  re
   Cu             %              26.30            25.50           25.70           22.10          22.00         19.80         19.80        25.70          23.02
   Zn             %              4.68              3.51            8.80            9.67           9.90         12.50          3.51        12.50           8.88
   Fe             %              28.00            26.20           25.00           26.70          23.70         21.20         21.20        26.70          24.56
 Total S          %              30.70            28.90           30.20           30.30          31.80         30.80         28.90        31.80          30.40
   Ag             g/t            57.00            150.77          147.00          144.00         176.00        153.00        144.00       176.00         154.15
   Au             g/t            2.80              3.33            2.56            2.01           2.40          2.80          2.01         3.33           2.62
Table 1: Element analyses conducted on the differentiated copper concentrates produced from composite samples derived from the Deep Sulphide Zone,
(refer to Table 4 for blend grades)


                                                     Deep Sulphide Zone Zinc Concentrate
               Unit of       Historical
Element                                          Blend 1          Blend 2          Blend 3         Blend 4             Min              Max          Average
              Measure        Pilot Plant
  Zn             %              50.37              53.87           49.60            46.50            50.90            46.50           53.87              50.22
  Cu             %               1.16              0.78            1.11             0.62             0.55             0.55            1.11               0.77
  Fe             %              10.56              6.25            10.10           17.90 1           6.07             6.07            17.90              10.08
Total S          %              31.72              29.53           30.10            29.30            31.50            29.30           31.50              30.11
  Ag             g/t            19.40              17.27           17.50            13.90            10.80            10.80           17.50              14.87
  Au             g/t             1.40              0.52            0.35             0.33             0.29             0.29            0.52               0.37
Table 2: Element analyses conducted on differentiated zinc concentrates produced from composite samples derived from the Deep Sulphide Zone, (refer to Table 4 for blend grades).


              Parameter                       Units of         Blend 1        Blend 2        Blend 3        Blend 4         Blend 62        Deep Sulphide
                                              Measure                                                                                          Mineral
                                                                                                                                             Resources
                                                                                                                                               Grades3
  Composite Description                                                                       100%
                                              %Weight         50% NW         80% NW                         20% NW          80% NW            81% NW 19%
 NW=North West zone SW=                                                                        NW
                                              %Weight         50% SE         20% SE                         80% SE          20% SE                SE
     South West zone                                                                          0% SE
      Sample Grade - Cu                            %             0.92           1.11           1.21            0.82            0.79                 1.20

      Sample Grade - Zn                            %             4.47           3.89           3.64            4.81            3.14                 3.90

      Sample Grade - Fe                            %             15.5           19.3           22.9            14.4            15.0                 15.8

      Grade Ratio (Zn/Cu)                       Zn : Cu          4.86           3.49           3.00            5.90            3.99                 3.25

Table 3: Summary of blended variability composites from collected metallurgical samples and the reported Mineral Resources grades for the Deep Sulphide Zone.

     Hole ID      Intersection ID                Tenement                Target                       Core Size
     OCOD046      OCOD046-D1                     Repli                   NW Deeps                     BQ           
                  OCOD046-D2-1                   Repli                   NW Deeps                     BQ
     OCOD048      OCOD048-D2-6                   Repli                   NW Deeps                     NQ
                  OCOD048-D2-7                   Repli                   NW Deeps                     NQ
     OCOD065      OCOD065-D1-4                   Repli                   NW Deeps                     NQ
                  OCOD065-D1-5                   Repli                   NW Deeps                     NQ
     OCOD066      OCOD066-D2                     Repli                   NW Deeps                     NQ
                  OCOD066-D3                     Repli                   NW Deeps                     NQ
     OCOD068      OCOD068-D1                     Repli                   NW Deeps                     NQ
     OCOD074      OCOD074-D1                     Repli                   SW Deeps                     NQ
     OCOD072      OCOD072-D1                     Vardocube               SW Deeps                     NQ
     OCOD122      OCOD122-D2                     Vardocube               SW Deeps                     NQ
                  OCOD122-D3                     Vardocube               SW Deeps                     NQ
     OCOD134      OCOD134-D1                     Vardocube               SW Deeps                     NQ
     OCOD135      OCOD135-D1                     Vardocube               SW Deeps                     NQ
  
Appendix 3: The following tables are provided in accordance with the JORC Code (2012) for the reporting of Exploration Results for Prieska Project.
  Section 1 Sampling Techniques and Data
  (Criteria in this section apply to all succeeding sections.)

Criteria                    JORC Code explanation                                                         Commentary
Sampling                    - Nature and quality of sampling (e.g. cut channels, random chips, or        - Drilling and sampling has been undertaken during three distinct periods
techniques                    specific specialised industry standard measurement tools appropriate         since the discovery of mineralisation. These are pre-mine exploration
                              to the minerals under investigation, such as down hole gamma                 (1968-1971) and during mine operations (1972-1984) holes ("V", "D",
                              sondes, or handheld XRF instruments, etc.). These examples should            and "F" prefixed holes) by Anglovaal Ltd (also known as the Anglovaal
                              not be taken as limiting the broad meaning of sampling.                      Group, “Anglovaal”), and current drilling (2017 to present) by Orion
                            - Include reference to measures taken to ensure sample representivity          Minerals Ltd (Orion).
                              and the appropriate calibration of any measurement tools or systems
                                                                                                         Anglovaal:
                              used.
                                                                                                         - For diamond drilling carried out by Anglovaal between 1968 and 1984,
                            - Aspects of the determination of mineralisation that are Material to the
                                                                                                            there is limited information available on sampling techniques for core.
                              Public Report.
                                                                                                            However, with exploration and resource management being carried out
                            - In cases where ‘industry standard’ work has been done this would be           under the supervision of Anglovaal, it is considered by the Competent
                              relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1    Person that there would be procedures in place to industry best practice
                              m samples from which 3 kg was pulverised to produce a 30 g charge             standard at that time. This is based on the Competent Persons
                              for fire assay’). In other cases more explanation may be required,            knowledge of exploration carried out by Anglovaal and discussions with
                              such as where there is coarse gold that has inherent sampling                 personnel employed by Anglovaal.
                              problems. Unusual commodities or mineralisation types (e.g.
                                                                                                         - The exploration and resource management were under the professional
                              submarine nodules) may warrant disclosure of detailed information.
                                                                                                            supervision of Dr Danie Krige an internationally recognised expert of the
                                                                                                            time who published peer reviewed papers based on the sampling data.
                                                                                                            The sampling was successful in defining a resource estimate which was
                                                                                                            used as the basis of successful mine development and operation over a
                                                                                                            20-year period.
                                                                                                          - Drilling of the original surface exploration holes was carried out 200m –
                                                                                                            250m line spacing. Underground exploration holes were not drilled on a
                                                                                                            regular spacing.
                                                                                                          - Surface drill exploration samples were all sent to Anglovaal Research
                                                                                                            Laboratory at Rand Leases Mine and underground drill samples to the
                                                                                                            mine laboratory for analyses.
                                                                                                         -  No records on the sampling methodology used are available.
                                                                                                       Orion:
                                                                                                       - Diamond core is cut at the core yard and half core is taken as the
                                                                                                         sample.
                                                                                                       - The core is sampled at 1m intervals where possible with sample lengths
                                                                                                         adjusted to ensure samples do not cross geological boundaries or other
                                                                                                         features.
                                                                                                       - Drilling at the Deep Sulphide Target was carried out with the aim of
                                                                                                         defining an approximate 60m x 60m pattern by use of “mother” holes
                                                                                                         and deflections therefrom. 

                                                                                                   - Mineralised zones are drilled using core drilling.
                                                                                                   - Sampling is carried out under supervision of a qualified geologist using
                                                                                                     procedures outlined below including industry standard QA/QC.
                                                                                                   - Samples submitted for analysis to ALS Chemex (Pty) Ltd (ALS) are
                                                                                                     pulverised in its entirety at ALS and split to obtain a 0.2g sample for
                                                                                                     digestion and analysis.
                                                                                                   - Metallurgical samples were submitted to MINTEK for testwork and
                                                                                                      analysis.
                                                                                                   - Metallurgical samples were composited to form blends to allow
                                                                                                     variability testing. The individual Hypogene (Deeps) variability drill core
                                                                                                     samples were used to make-up the variability blend composites. The
                                                                                                     individual variability drill core samples were stage crushed to 100%
                                                                                                     passing 1.7mm, thoroughly blended and split into representative
                                                                                                     subsamples by means of a rotary splitter. Variability blend composites
                                                                                                     were produced by blending the required mass of each of the individual
                                                                                                     drill core composites before blending and splitting into 1kg
                                                                                                     representative subsamples by means of a rotary splitter.
                                                                                                   - The Mintek analytical services division is ISO 17025 accredited and
                                                                                                     runs a QA/QC program to verify the analysis precision and repeatability
                                                                                                     using SARM control charts. All the samples are analysed with certified
                                                                                                     reference material (CRM) with known values.
Drilling techniques   - Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air   Anglovaal:
                        blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter,        - Records for core size are not available.
                        triple or standard tube, depth of diamond tails, face-sampling bit or      - No record on core orientation.
                        other type, whether core is oriented and if so, by what method, etc.).
                                                                                                   Orion:
                                                                                                   - Diamond core drilling using NQ and BQ sized core. BQ core was only
                                                                                                     drilled where problems were encountered in the original NQ drilled drill
                                                                                                     hole and the drilling could not continue with NQ size.
                                                                                                   - In the near-surface weathered zone HQ core was drilled.
                                                                                                   - Pre-collar drilled using percussion drilling on certain holes (above
                                                                                                     mineralisation).
                                                                                                   - Core was orientated in holes selected for geotechnical studies.
Drill sample          - Method of recording and assessing core and chip sample recoveries          Anglovaal:
recovery                and results assessed.                                                      - All mineralised intersections were done with core drilling.
                      - Measures taken to maximise sample recovery and ensure                      - Core recoveries are documented on the assay sheets. Core recoveries
                        representative nature of the samples.                                        were measured for each "run".
                      - Whether a relationship exists between sample recovery and grade            - In most V holes and all D and F holes, intersections were in hard rock
                        and whether sample bias may have occurred due to preferential                and recoveries were generally good through the mineralisation.
                        loss/gain of fine/coarse material.
                                                                                                   Orion:

                                                                                               - All mineralised intersections are done with core drilling.
                                                                                               - Core stick-ups reflecting the depth of the drill hole are recorded at the
                                                                                                 rig at the end of each core run.
                                                                                               - A block with the depth of the hole written on it is placed in the core box
                                                                                                 at the end of each run.
                                                                                               - At the core yard, the length of core in the core box is measured for each
                                                                                                 run. The measured length of core is subtracted from the length of the
                                                                                                 run as recorded from the stick-up measured at the rig to determine the
                                                                                                 core lost.
                                                                                               - Core recovery in all the mineralised intersections are good.
                                                                                               - No grade variation with recovery was noted.
Logging              - Whether core and chip samples have been geologically and                Anglovaal:
                       geotechnically logged to a level of detail to support appropriate       - All relevant intersections for V surface holes have been geologically
                       Mineral Resource estimation, mining studies and metallurgical             logged by qualified geologists and all of this information is available. It is
                       studies.                                                                  understood from historical reports and discussions with Anglovaal
                     - Whether logging is qualitative or quantitative in nature. Core (or        geologists involved with the Prieska Mine that all intersections for D and
                       costean, channel, etc.) photography.                                      F holes were logged by qualified geologists. The detail logs are
                     - The total length and percentage of the relevant intersections logged.     currently not available.
                                                                                               - Downhole geotechnical information is available for some of the D and F
                                                                                                 holes only. Downhole mineralogical logs are available for some D and F
                                                                                                 holes.
                                                                                               Orion:
                                                                                               - Pre-collar percussion holes are logged by qualified geologists on 1m
                                                                                                 intervals using visual inspection of washed drill chips. A hand held XRF
                                                                                                 instrument is used to determine the presence of any metals.
                                                                                               - Core of the entire hole length was geologically logged and recorded on
                                                                                                 standardised log sheets by qualified geologists.
                                                                                               - Qualitative logging of colour, grain size, weathering, structural fabric,
                                                                                                 lithology, alteration type and sulphide mineralogy carried out.
                                                                                               - Quantitative estimate of sulphide mineralogy.
                                                                                               - Logs are recorded at the core yard and entered into digital templates at
                                                                                                 the project office.
Sub-sampling         - If core, whether cut or sawn and whether quarter, half or all core      Anglovaal:
techniques and         taken.                                                                  - Details of sub-sampling techniques not available.
sample preparation   - If non-core, whether riffled, tube sampled, rotary split, etc. and      - Although no formal QC samples were inserted by the geologists at the
                       whether sampled wet or dry.                                               time of drilling the Anglovaal Research Laboratory produced their own
                     - For all sample types, the nature, quality and appropriateness of the      standards, certified by other commercial laboratories which were
                       sample preparation technique.                                             routinely inserted into batches at the laboratory. Duplicate samples
                     - Quality control procedures adopted for all sub-sampling stages to         were also inserted to check for repeatability.
                       maximise representivity of samples.

                        - Measures taken to ensure that the sampling is representative of the in   Orion:
                          situ material collected, including for instance results for field        - Samples from percussion pre-collars are collected by spear sampling.
                          duplicate/second-half sampling.                                          - Sampling on site aims to generate a < 2kg sub sample to enable the
                        - Whether sample sizes are appropriate to the grain size of the material     entire sample to be pulverised without further splitting.
                          being sampled.                                                           - Water is used in the dust depression process during percussion drilling,
                                                                                                     resulting in wet chip samples.
                                                                                                   - BQ and NQ core cut at core yard and half core taken as sample.
                                                                                                   - With core samples, the entire sample length is cut and sampled.
                                                                                                   - Sample preparation is undertaken at ALS, an ISO accredited laboratory.
                                                                                                     ALS utilises industry best practise for sample preparation for analysis,
                                                                                                     involving drying of samples, crushing to <5mm if required and then
                                                                                                     pulverising so that +85% of the sample passes 75 microns.
                                                                                                   - CRMs, blanks and duplicates are inserted and analysed with each
                                                                                                     batch. Insertion rates for the current reporting is: CRMs = 10%, blanks =
                                                                                                     5% and field duplicates = 2%.
Quality of assay data   - The nature, quality and appropriateness of the assaying and              Anglovaal:
and laboratory tests      laboratory procedures used and whether the technique is considered       - Surface drill exploration samples were all sent to Anglovaal Research
                          partial or total.                                                          Laboratory at Rand Leases Mine.
                        - For geophysical tools, spectrometers, handheld XRF instruments,          - Underground drill hole samples were sent to the mine laboratory, where
                          etc., the parameters used in determining the analysis including            the same analytical method was used.
                          instrument make and model, reading times, calibrations factors           - Atomic Adsorption method was used with a Nitric-bromide digest.
                          applied and their derivation, etc.                                         Underground drill hole samples were sent to the mine laboratory, where
                        - Nature of quality control procedures adopted (e.g. standards, blanks,      the same analytical method was used.
                          duplicates, external laboratory checks) and whether acceptable levels    - Although no formal QC samples were inserted with the drill samples of
                          of accuracy (i.e. lack of bias) and precision have been established.       the exploration holes the Anglovaal Research Laboratory developed
                                                                                                     their own standards, certified by other commercial laboratories and
                                                                                                     those were used internally in the laboratory. Duplicate samples were
                                                                                                     also inserted to check for repeatability.
                                                                                                   Orion:
                                                                                                   - Samples submitted to ALS were analysed for base metals, Au and Ag.
                                                                                                     Analysis was by the Inductively Coupled Plasma and Optical Emission
                                                                                                     Spectroscopy ("ICP-OES") methodology, using a four-acid digest.
                                                                                                   - External quality control of the laboratory assays is monitored by the
                                                                                                     insertion of blanks and CRMs.
                                                                                                   - CRM samples show high accuracy and tight precision with no
                                                                                                     consistent bias.
                                                                                                   - Blank samples indicate no contamination, within the pre-determined
                                                                                                     thresholds, during the sample preparation process.
                                                                                                   - Laboratory samples show excellent accuracy and precision.
                                                                                                   - ALS has their own internal QC protocols which include CRMs (5%),

                                                                                                 blanks (2.5%) and duplicates (2.5%).
                                                                                              - External laboratory checks have been carried out.
                                                                                              - Metallurgical samples submitted to MINTEK and ICP-OES methodology
                                                                                                applied for assaying.
                                                                                              - The Mintek analytical services division is ISO 17025 accredited and
                                                                                                runs a QA/QC program to verify the analysis precision and repeatability
                                                                                                using SARM control charts. All the samples are analysed with CRM with
                                                                                                known values.
Verification of    - The verification of significant intersections by either independent or   Anglovaal:
sampling and         alternative company personnel.                                           - No records available.
assaying           - The use of twinned holes.
                                                                                              Orion:
                   - Documentation of primary data, data entry procedures, data
                                                                                              - The Competent Person is personally supervising the drilling and
                     verification, data storage (physical and electronic) protocols.
                                                                                                 sampling along with a team of experienced geologists.
                   - Discuss any adjustment to assay data.
                                                                                              - The Competent Person reviewed the calculation of the significant
                                                                                                intersections.
                                                                                              - Twin holes are drilled to verify historical drill intersections (Anglovaal).
                                                                                              - For the EM survey, data are collected on site and validated by a
                                                                                                geophysical technician daily. Data (raw and processed) is sent to a
                                                                                                consultant geophysicist for review and quality control.
                                                                                              - No adjustments have been made to the assay data.
Location of data   - Accuracy and quality of surveys used to locate drill holes (collar and   Anglovaal:
points               down-hole surveys), trenches, mine workings and other locations          - All surface and underground hole collars were surveyed by qualified
                     used in Mineral Resource estimation.                                       surveyors using a theodolite.
                   - Specification of the grid system used.                                   - The historic mine survey data is in the old national Lo23 Clarke 1880
                   - Quality and adequacy of topographic control.                               coordinate system.
                                                                                              - Downhole surveys were carried out for most of the V holes and all of the
                                                                                                D and F holes. Methodology of the downhole surveys is not recorded on
                                                                                                the available hardcopy information but plans and sections are
                                                                                                meticulously plotted and signed off by a certified surveyor.
                                                                                              - Both Eastman and Sperry Sun instruments were used in the downhole
                                                                                                surveys.
                                                                                              - Significant deflections in the dips of the holes have been noted,
                                                                                                especially for the deeper holes. V holes with no downhole surveys are
                                                                                                shallower holes drilled earlier on in the initial exploration phase. These
                                                                                                holes intersected areas where the mineralisation is now largely mined
                                                                                                out.
                                                                                              - All hole positions have been converted to Lo23 WGS84 coordinates.
                                                                                              - Underground D and F holes are recorded in local "V" line and "O"
                                                                                                distance coordinates with local mine datum elevations. Level plans have
                                                                                                both the local V/O grid and Lo23 Clark 1880 grids plotted and this has

                                                                                                      been used to define transformation parameters from local grid to
                                                                                                      geographical coordinates. All hole positions have been converted to
                                                                                                      Lo23 WGS84 coordinates.
                                                                                                    Orion:
                                                                                                    - Drill hole collar positions are laid out using a handheld GPS.
                                                                                                    - After completion of the Orion drilling all collars were surveyed by a
                                                                                                      qualified surveyor using a Trimble R8 differential GPS.
                                                                                                    - Downhole surveys are completed using a North-Seeking Gyro
                                                                                                      instrument.
                                                                                                    - All survey data is in the WGS84 ellipsoid in the WG23 Zone with the
                                                                                                      Hartebeeshoek 1994 Datum. The coordinates are also supplied in
                                                                                                      Clarke 1880 and in UTM WGS84 Zone 34 (Southern Hemisphere).
Data spacing and       - Data spacing for reporting of Exploration Results.                         Anglovaal:
distribution           - Whether the data spacing and distribution is sufficient to establish the   - Original exploration holes (V) were drilled on 200m - 250m spacing.
                         degree of geological and grade continuity appropriate for the Mineral      - Underground drilled holes (D, F and R) were not drilled on a regular
                         Resource and Ore Reserve estimation procedure(s) and                         spaced grid.
                         classifications applied.
                                                                                                    Orion:
                       - Whether sample compositing has been applied.
                                                                                                    - At the Deep Sulphide Target drill holes aim to intersect mineralisation
                                                                                                      on spacings sufficient to establish geological and grade continuity
                                                                                                      appropriate for Mineral Resource and Ore Reserve estimations.
                                                                                                    - Variography studies were carried out on both the historic and Orion data
                                                                                                      set to determine the drill spacing for Mineral Resource estimates.
                                                                                                    - No sample compositing was applied.
Orientation of data    - Whether the orientation of sampling achieves unbiased sampling of          - Historical and current drilling is oriented perpendicular, or at a maximum
in relation to           possible structures and the extent to which this is known, considering       achievable angle to, the attitude of the mineralisation.
geological structure     the deposit type.                                                          - As a result, most holes intersect the mineralisation at an acceptable
                       - If the relationship between the drilling orientation and the orientation     angle.
                         of key mineralised structures is considered to have introduced a           - No sampling bias is anticipated as a result of hole orientations.
                         sampling bias, this should be assessed and reported if material.           - EM surveys by Orion were completed in an orientation perpendicular to
                                                                                                      the interpreted or intersected mineralisation.
Sample security        - The measures taken to ensure sample security.                              Anglovaal:
                                                                                                    - No details of sample security available. However, during the mining
                                                                                                      operations the site was fenced and gated with security personnel
                                                                                                      employed as part of the staff.
                                                                                                    Orion:
                                                                                                    - Chain of custody is managed throughout, and the policy managed
                                                                                                       through an appropriate SOP. Samples are stored on site in a secure
                                                                                                       locked building and then freighted directly to the laboratory.

Audits or reviews         - The results of any audits or reviews of sampling techniques and data.       Anglovaal:
                                                                                                        - No records available.
                                                                                                        Orion:
                                                                                                        - SRK Consulting has carried out a review on the sampling techniques
                                                                                                          and data.


       Section 2 Reporting of Exploration Results
       (Criteria listed in the preceding section also apply to this section.)

Mineral tenement            - Type, reference name/number, location and ownership including             - The Prospecting Rights are held by Repli Trading No 27 (Pty) Ltd and
and land tenure               agreements or material issues with third parties such as joint              Vardocube (Pty) Ltd, which are subsidiaries of Orion.
status                        ventures, partnerships, overriding royalties, native title interests,    - The Prospecting Right areas covers a strike of 2460m for the Deep
                              historical sites, wilderness or national park and environmental             Sulphide mineralisation.
                              settings.                                                                -  All of the required shaft infrastructure and lateral access underground
                            - The security of the tenure held at the time of reporting along with any     development is available within the two Prospecting Rights.
                              known impediments to obtaining a licence to operate in the area.
Exploration done by         - Acknowledgment and appraisal of exploration by other parties.             - All exploration and life of mine drilling (V, D and F holes) was done by
other parties                                                                                             Anglovaal, resulting in a substantial amount of hard copy data from
                                                                                                          which Orion has been able to assess the prospectivity of the remaining
                                                                                                          mineralisation.
                                                                                                        - The Anglovaal exploration resulted in the delineation and development
                                                                                                          of a large mine.
                                                                                                        - Metallurgical testwork was supervised by DRA Projects South Africa
                                                                                                          (Pty) Ltd (DRA) and most of the laboratory work conducted by MINTEK
                                                                                                          in their Johannesburg laboratories, South Africa.
Geology                   - Deposit type, geological setting and style of mineralisation.               - The Copperton deposit is a Volcanogenic Massive Sulphide (VMS)
                                                                                                          deposit which is situated in the southernmost exposures of the north-
                                                                                                          northwest trending Kakamas Terrain, which forms part of the Mid-
                                                                                                          Proterozoic Namaqualand Metamorphic Complex.
                                                                                                        - The deposit is hosted by the Copperton Formation of the Areachap
                                                                                                          Group. The Areachap Group, also hosts several other but smaller VMS
                                                                                                          deposits such as the Areachap, Boks Puts, Kantien Pan, Kielder, and
                                                                                                          Annex Vogelstruisbult deposits.
                                                                                                        - The structural sequence at the mine consists of a footwall Smouspan
                                                                                                          Gneiss Member, Prieska Copper Mines Assemblage (PCMA), which
                                                                                                          hosts the sulphide mineralisation, and the hangingwall Vogelstruisbult
                                                                                                          Gneiss Member.
                                                                                                        - The historically mined section of the deposit is confined to a tabular,
                                                                                                          stratabound horizon in the northern limb of a refolded recumbent

                                                                                                  synform, the axis of which plunges at approximately 5° to the south-
                                                                                                  east.
                                                                                               -  The mineralised zone outcrop has a strike of 2400m, is oxidised and / or
                                                                                                  affected by leached and supergene enrichment to a depth of
                                                                                                  approximately 100m and crops out as a well-developed gossan. It has a
                                                                                                  dip of between 55° and 80° to the northeast at surface and a strike of
                                                                                                  130° to the north. Current drilling indicates that the Deep Sulphides has
                                                                                                  a strike length of at least 2860m in depth.
                                                                                               -  The thickness of the mineralised zone exceeds 30m in places but
                                                                                                  averages between 7m and 9m. The mineralised zone persists to a
                                                                                                  depth of 1100m (as deep as 1228m in one section) after which it is
                                                                                                  upturned due to the folding.
                                                                                               -  The Deep Sulphide Target area located below the historical mined area,
                                                                                                  comprises the steep down dip continuity ("steep limb and hinge zone”)
                                                                                                  and from where it upturns to its subsequent synformal structure ("trough
                                                                                                  zone").
                                                                                               -  The morphology of the mineralised horizon in the eastern limb is well
                                                                                                  mapped out by drilling and historic mining while the western limb up dip
                                                                                                  extent is poorly tested and mapped.
Drill hole         - A summary of all information material to the understanding of the         -  Drill hole collar coordinates, elevation, inclination and azimuth, down
Information          exploration results including a tabulation of the following information      hole length, interception depth and hole length are available in Orion’s
                     for all Material drill holes:                                                geological database and are not included in this release.
                     o easting and northing of the drill hole collar                           -  The significant mineralised intersections and the easting and northing of
                     o elevation or RL (Reduced Level – elevation above sea level in              these mineralised intercepts are presented in prior releases.
                       metres) of the drill hole collar
                     o dip and azimuth of the hole
                     o down hole length and interception depth
                     o hole length.
                   - If the exclusion of this information is justified on the basis that the
                     information is not Material and this exclusion does not detract from
                     the understanding of the report, the Competent Person should clearly
                     explain why this is the case.
Data aggregation   - In reporting Exploration Results, weighting averaging techniques,         - Significant Intersections for the Deep Sulphide Target are calculated by
methods              maximum and/or minimum grade truncations (e.g. cutting of high              average of assays result > 0.3% copper or 0.5% zinc and weighted by
                     grades) and cut-off grades are usually Material and should be stated.       the sample width and specific gravity of each sample.
                   - Where aggregate intercepts incorporate short lengths of high grade        - Significant Intersections for the +105 Level Target are calculated by
                     results and longer lengths of low grade results, the procedure used         average of assays result > 0.3% copper or 0.5% zinc and weighted by
                     for such aggregation should be stated and some typical examples of          the sample width of each sample only.
                     such aggregations should be shown in detail.                              - In general, the significant intersections correspond strongly to
                   - The assumptions used for any reporting of metal equivalent values           geological boundaries (massive sulphides) and are clearly
                     should be clearly stated.                                                   distinguishable from country rock / surrounding samples.

                                                                                                    - No truncations have been applied at this stage for either Target.
                                                                                                    - Metallurgical samples were composited to form blends for variability
                                                                                                       testing.
Relationship           - These relationships are particularly important in the reporting of         - Most holes intersected the mineralisation perpendicular or at high angle
between                  Exploration Results.                                                         to the attitude of the mineralisation.
mineralisation         - If the geometry of the mineralisation with respect to the drill hole       - The geometry of the Deep Sulphide mineralisation is complex and true
widths and intercept     angle is known, its nature should be reported.                               widths can only be obtained from the three-dimensional wireframe
lengths                - If it is not known and only the down hole lengths are reported, there        created of the mineralisation.
                         should be a clear statement to this effect (e.g. ‘down hole length, true   - Mineralisation widths have been reported in previous reports.
                         width not known’).
Diagrams               - Appropriate maps and sections (with scales) and tabulations of             - Appropriate diagrams (plan, cross section and long section) are shown
                         intercepts should be included for any significant discovery being            in the release text.
                         reported. These should include, but not be limited to a plan view of
                         drill hole collar locations and appropriate sectional views.
Balanced reporting     - Where comprehensive reporting of all Exploration Results is not            - All metallurgical test results referred to in the release are listed in
                         practicable, representative reporting of both low and high grades            Tables 1,2 and 4. All other metallurgical and drill hole information have
                         and/or widths should be practiced to avoid misleading reporting of           been detailed in previous releases as referred to in the text.
                         Exploration Results.                                                       - The Company has presented all available information in this report in a
                                                                                                      balanced manner and has provided appropriate context for the
                                                                                                      Exploration Results to allow a considered and balanced judgement of
                                                                                                      their significance.
Other substantive      - Other exploration data, if meaningful and material, should be reported     - Hardcopy maps are available for a range of other exploration data. This
exploration data         including (but not limited to): geological observations; geophysical         includes mine survey plans, geological maps, airborne magnetics,
                         survey results; geochemical survey results; bulk samples – size and          ground magnetics, electromagnetics, gravity and induced polarisation.
                         method of treatment; metallurgical test results; bulk density,               All available exploration data has been viewed by the Competent
                         groundwater, geotechnical and rock characteristics; potential                Person.
                         deleterious or contaminating substances.                                   - The mine operated from 1972 to 1991 and is reported to have milled a
                                                                                                      total of 45.68 Mt of ore at a grade of 1.11% copper and 2.62% zinc,
                                                                                                      recovering 0.43 Mt of copper and 1.01 Mt of zinc. Detailed production
                                                                                                      and metallurgical results are available for the life of the mine.
                                                                                                    - In addition, 1.76 Mt of pyrite concentrates and 8,403 t of lead
                                                                                                      concentrates as well as amounts of silver and gold were recovered.
                                                                                                    - Copper and zinc recoveries averaged 84.9% and 84.3% respectively
                                                                                                      during the life of the mine.
Further work           - The nature and scale of planned further work (e.g. tests for lateral       - Further metallurgical testwork is on-going as part of the feasibility study.
                         extensions or depth extensions or large-scale step-out drilling).          - Plan showing drill hole intersections for metallurgical testwork sample
                       - Diagrams clearly highlighting the areas of possible extensions,              collection is included.
                         including the main geological interpretations and future drilling areas,   - List of drill hole identification data for metallurgical samples drill holes is
                         provided this information is not commercially sensitive.                     included

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