Orion Minerals Ltd (ASX:ORN, JSE:ORN) has enhanced its early production strategy for the Prieska Copper-Zinc Project in South Africa by outlining an updated mineral resource estimate (MRE) for the near-surface +105 Level Crown Pillar.
The updated MRE details a robust mineral resource consisting of 2.3 million tonnes grading 1.7% copper and 1.6% zinc, taking the total mineral resource to 31 million tonnes at 1.2% copper and 3.6% zinc.
Within this resource, an indicated resource of 1.9 million tonnes carries a substantial grade of 1.82% copper and 1.7% zinc.
Looking ahead, the MRE marks a significant milestone for the company as it forms a concrete basis for the forthcoming trial mining program, which is primed for immediate commencement thanks to secured permits and funding.
“Rapidly gaining momentum”
Orion managing director and CEO Errol Smart said: “Our strategy to bring the Prieska Copper-Zinc Mine back into production is now rapidly gaining momentum, with the completion of this updated mineral resource for the near-surface, +105 Resource Block, outlining a very attractive early mining opportunity at this fully permitted mine.
“The supergene sulphide, indicated resource with a grade of 2.6% copper, is a compelling focus for our early mining strategy.
“This resource block is accessed from existing underground development via a short ramp, allowing trial mining to commence in the coming weeks.
“Ore sourced from the trial mining will be used for metallurgical optimisation tests and the detailed design of an initial processing plant at Prieska.
“Discussions with metallurgical processing and engineering groups interested in offering processing facilities under Build-Own-Operate-Transfer arrangements are also underway.
“The trial mining phase, metallurgical process optimisation and a resultant updated bankable feasibility study are fully funded with a total of ZAR370 million available from our IDC and Triple Flag funding facilities.
“A first draw-down call for ZAR167 million was made from this facility in the past week. Orion is now getting ready to embark on its transformation to an operating mining company!”
Forward plan
An infill drilling program of about 1,700 metres on the oxide resource to provide a further upgrade in confidence and additional metallurgical information is planned for the September quarter.
However, this is not critical to the current early mining BFS studies.
Apart from this infill drilling of the oxide resource, no additional drilling is planned, for the mining of sulphide ore, before the completion of the updated BFS in late 2023.
Furthermore, grade control drilling on a closely spaced grid will be executed during the operational phase of mining.