Orion Minerals Ltd (ASX:ORN, JSE:ORN) has progressed feasibility studies for the Prieska Copper-Zinc Mine (PCZM) and the Okiep Copper Project (OCP) in the Northern Cape Province of South Africa with the appointment of a program director and expert mining consultants.
Additionally, an internal review of the PCZM feasibility study following these appointments has identified the potential for further upside that may be realised from the optimisation of mine scheduling and design.
Nick Fouche is project director
Orion has appointed Nick Fouche as PCZM project director to oversee the completion of the feasibility study.
Fouche is a highly regarded global mining executive with vast experience in the development and execution of major mining projects around the world.
He was previously general manager growth for HBIS Palabora Mining Company, where he oversaw the development of the last major copper mine in South Africa.
Orion managing director and CEO Errol Smart said: “We are thrilled to welcome Nick Fouche as project director for the PCZM development.
"Nick was project director for the feasibility study and execution of the Palabora underground mining project and has unique experience that is applicable to Orion’s underground copper mining projects.
“His vast global experience includes roles with ERO Copper, South 32 and Rio Tinto (ASX:RIO) as general manager growth. Nick is a fantastic addition to the Orion team, as we move towards the development phase at Prieska.
LMMS appointed
Orion has also secured the services of highly respected LMMS Consultants to assist in expediting ongoing optimisation work for the PCZM feasibility study.
Australian-based LMMS, global experts in mine design and scheduling with significant international and South African project experience, has been contracted for three months from October 2024 to provide intensive input to optimise the PCZM bankable feasibility study (BFS).
“We are also pleased to have secured the services of LMMS Consultants, the same expert mining team that contributed to the success of the Palabora Copper Mine Lift 2 development project, the last big underground copper mine developed in South Africa,” Smart said.
“LMMS are recognised internationally for their specialist expertise in underground bulk mining applications and consult on high-profile large mining project development optimisations for major mining houses such as BHP (ASX:BHP), Rio Tinto and South 32, as well as for several junior mining companies.”
The consultant employees involved in the optimisation program are Joe Luxford and Doug Syme, who both worked on orebodies using the selected mining methods for PCZM in Australia and worldwide.
They were also key members of the Palabora mine planning and execution teams and therefore understand the South African operating environment with local challenges and opportunities.
Potential to unlock additional upside
Orion recently completed an internal review of the PCZM feasibility study, which highlighted the potential to unlock additional upside by undertaking a further optimisation of the mine design and scheduling for the Prieska Deeps orebody.
As a result, LMMS has commenced a further mine schedule optimisation program, which is scheduled for completion in the current quarter. The outcomes of this work will be incorporated in the final PCZM feasibility study, which is now scheduled for delivery in the first quarter of next year.
The Deeps section of the orebody has a mineral resource of 29 million tonnes at 1.2% copper and 3.8% zinc.
Smart said, “A recent review of the Prieska financial model with input from LMMS and Nick has highlighted the potential to unlock additional upside at Prieska by further optimising mine design and scheduling.
“The Prieska mineral resource has unique geometry, being folded through dip rotations of almost 320° and having mineralised true widths varying from 2 metres to 45 metres.
“While it has been relatively simple to select suitable mining methods to extract this superb orebody, the iterative process required to optimise the appropriate mining methods in different mining areas to achieve optimum ore recovery and cash flow is proving time-consuming.
“The additional optimisations now underway will require several iterative runs using Mine Shape Optimiser (MSO) software with manual adaptation of development layouts to connect mining areas using different mining methods. This time-consuming process can only be executed by suitably experienced mining engineers.
“When building large, long-life mines with large specialist mining fleets, getting the best combination of mining methods and primary development layouts is critical to maximise long-term project execution and financial returns.
“In the case of PCZM, unlocking the potential upside from additional optimisation studies outweighs the earlier completion of a feasibility study.”
Flat Mines Project feasibility
Orion notes that the feasibility study for the Flat Mines Project, part of the broader Okiep Copper Project, is on track for external review commencing in mid-November 2024 with delivery targeted by the year’s end.