Orion Minerals Ltd (ASX:ORN, JSE:ORN) is trading higher on delivering “outstanding” initial results, including a “spectacular” high-grade intercept of 49 metres at 4.89% copper including 10.23 metres at 12.47%, during confirmation diamond drilling in the Flat Mines area of the Okiep Copper Project in South Africa's Northern Cape province.
The Okiep Project spans 641 square kilometres covering the majority of the area where a total of 105 million tonnes is reported to have been mined in the district over the past 100 years. The Flat Mines area and the current drilling program fall entirely within the executed Mining Right.
Results from the first two completed holes have confirmed historical information from drilling by Goldfields of South Africa (GFSA) in the 1990s, used in last year’s mineral resource update where 9.4 million tonnes at 1.3% copper was reported for the Flat Mines area, including 4.4 million tonnes at 1.3% copper at Flat Mine East (FME).
Shares rise
The standout result was from hole OFMED153, which intersected the 49 metres at 4.89% copper, including 10.23 metres at 12.47%. This intersection is around 13 metres west of a historical intersection (FME035), drilled by GFSA in 1995, which returned 59.1 metres at 3.55% copper including 10.12 metres at 9.83%.
Investors have welcomed the results with Orion shares as much as 54% higher in ASX trading this morning to A$0.02 on volume of more than 15 million.
Flat Mine East is a virgin discovery that is blind to surface and is expected to form a key part of Orion’s early production plan for the Okiep Copper Project.
The wide, high-grade massive sulphide zone is within a larger intrusive body that hosts lower-grade disseminated or blebby sulphide mineralisation. Intersections achieved to date support geological and grade distribution interpretations and were taken into account for the mineral resource modelling and estimation.
Eleven diamond drill holes totalling 5,800 metres are planned at Flat Mine East, Flat Mine South and Flat Mine North to confirm historical drilling results, provide geotechnical information and generate material for additional confirmatory metallurgical test work.
One of “highest-grade intercepts” in 40 years
Orion managing director and CEO Errol Smart said: “This standout intercept is one of the highest-grade intercepts reported in South Africa for the past 40 years. While it is always exciting to drill such spectacular intersections, they are not unexpected at Okiep.
"The high-grade copper zones confirmed by our drilling are an important, known feature in the district and at Flat Mines. Our Okiep Mine is reported to have milled 907,000 tonnes grading 21% copper from hand-sorted ore.
“For me as a geologist, this underscores the huge potential of Orion’s 641 square kilometre mineral right holdings which contain literally hundreds of mapped, outcropping mineralised bodies.
"Previous owners Newmont and Goldfields, intersected strong copper mineralisation in dozens of bodies with scout drilling but never completed drilling out the discoveries, due to low copper prices at the time, which resulted in management decisions to curtail exploration.
“This has created a huge opportunity for Orion, in a district which produced over 2 million tonnes of contained copper metal historically. The Okiep region, which has lain dormant for decades, is now undergoing a major revitalisation with the application of modern exploration and mining technologies.
“Following our announcement on April 17, 2024, that we are moving to completion of the acquisition of the mineral rights at Okiep, we are itching to get drills turning to demonstrate the untapped potential of the district, while we get our foundational operation at Flat Mines into production.
“This confirmation drilling and metallurgical test work program is being carried out at the request of the appointed debt finance advisor’s independent technical expert and is the last remaining matter to be concluded before finalisation of the bankable feasibility study.”
Plan showing historical and Orion drill holes, mineralisation envelope interpretations and extent of the Mining Right.