Wrap Text
Drilling Success Continues at Prieska Zinc-Copper Project
Orion Minerals NL
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
DRILLING SUCCESS CONTINUES AT PRIESKA ZINC-COPPER PROJECT
- Drilling continues at the Prieska Zinc-Copper Project with assay results received for another 8 drill holes.
- 44 intersections, including intersections for metallurgical test work have now been completed in the Deep Sulphide
Target and its extensions since May 2017.
- Drilling continues to confirm the results from historic intersections and to identify promising extensions to mineralisation
already anticipated in historic mine plans.
- Validation of electromagnetic targeting model to test strike extensions.
- Investigations into early mining of potentially significant remnant Zn-Cu mineralisation within accessible areas of
existing mine infrastructure of the historic Prieska Mine has now been initiated.
Orion Minerals NL (ASX/JSE: ORN) (Orion or Company) is pleased to announce that recent assay results received
provide further encouragement for extensions to thick zones of Zn-Cu massive sulphide mineralisation beyond
those presented in historic mine planning records at the Prieska Zinc - Copper Project (Prieska Project). These
intersections build on the success of drilling conducted since May 2017 and have validated Orion’s
electromagnetic targeting model, with hole OCOD087 successfully testing a defined target. A total of 44
intersections have now been completed by Orion at vertical depths of 974m – 1193m below surface, including
11 intersections drilled for the collection of samples for confirmatory metallurgical test work.
“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.
New intersections include:
- Hole OCOD087 intersected 12.45m at 5.17% Zn and 1.12% Cu:
- testing the second of two electromagnetic (EM) conductors detected from a down hole EM survey;
- intersection is outside the boundaries of historic drilling and confirms further extensions to the wide
zone of the historically modelled massive sulphide lens.
- Hole OCOD074 intersected 26.17m at 6.51% Zn and 1.31% Cu, including 11.41m at 7.69% Zn and 0.92% Cu
confirming thick massive sulphide in south eastern deeps target;
- Hole OCOD080 intersected 12.60m at 4.23% Zn and 0.73% Cu confirming possible extensions of thick
mineralisation to the west of north west target area;
- Hole OCOU076 drilled from underground to test the +105 Level Target (Open Pit) intersected thick, high
grade copper mineralisation with 13.33m at 0.23% Zn and 3.08% Cu;
- Hole OCOD059_D3 intersected 3.0m at 9.20% Zn and 0.13% Cu;
- Hole OCOD066_D4 intersected 22.2m at 2.70% Zn and 1.69% Cu;
- Hole OCOD068_D2 intersected 23.7m at 3.80% Zn and 1.02% Cu including 7.10m at 6.68% Zn and 0.99% Cu;
and
- Hole OCOD072_D3 intersected 16.05m at 2.71% Zn and 0.80% Cu including 3.00m at 7.16% Zn and 0.24%
Cu.
Orion’s Managing Director and CEO, Errol Smart, commented on the results:
“We continue to be pleased with drilling and exploration results at the Prieska Project. While drilling within the
confines of historically drilled mineralisation continues to verify the grade and width as historically reported, drilling
on strike and dip extensions is intersecting significant extensions to known mineralisation, which has potential to
rapidly increase the tonnages to be included in the resource estimate and BFS currently underway. Most pleasing
are the assay results from mineralisation associated with EM conductors, highlighting the potential for modern
exploration techniques to make new discoveries both at the Prieska Project and in the Areachap Belt.”
Errol further commented that “The rapid deployment for and successful execution of a technically challenging
drill program using cost effective local equipment, contractors and staff, attests to the benefits of operating in a
sophisticated mining destination like South Africa.”
Deep Sulphide Target Drilling Results
Orion has now completed 44 intersections from 15 mother holes into the Deep Sulphide Target. The intersections
have been achieved at vertical depths of 974m – 1,193m and have required 7,578m of percussion pre-collar and
30,715m of diamond drilling with 132 directional wedges set to steer the drilling to pre-determined target points.
Hole OCOD087 tested a northwest-southeast oriented EM plate modelled from an anomaly detected in a down
hole EM survey of hole OCOD066 (Figure 3, refer ASX release 6 September 2017). The EM conductor suggested
that mineralisation is developed down dip to the south east of the current zone and that additional drilling, if
successful, would substantially increase the known extents of mineralisation at the project. Hole OCOD087 has
confirmed this concept, intersecting 12.45m at 5.17% Zn, 1.12% Cu, 0.25g/t Au and 10.8g/t Ag (Figures 3 and 4).
Drilling continues to further test the extents of the modelled conductor.
Hole OCOD066_D4, drilled as a deflection from hole OCOD066 (refer ASX release 6 September 2017), twinned
the intersection in hole OCOD066_D1 (refer ASX release 8 November 2017). The holes successfully tested the EM
conductor (refer ASX release 8 November 2017). Hole OCOD066_D4 intersected mineralisation 10m from hole
OCOD066_D1 with 22.2m at 2.7% Zn, 1.69% Cu, 0.24g/t Au and 10.3g/t Ag being returned from 1076.90m (Figure
4). The results compare favourably with the intersection in hole OCOD066_D1 (Table 1) and assist with important
near-range variography determination.
HOLE ID WIDTH (m) FROM (m) Zn (%) Cu (%) Au (g/t) Ag (g/t)
OCOD066_D4 22.2 1076.90 2.70 1.69 0.24 10.3
OCOD066_D1 26.8 1072.20 2.38 1.22 0.23 9.29
Hole OCOD068_D2, drilled as a deflection from hole OCOD068 (refer ASX release 9 October 2017), was designed
as an infill hole and intersected mineralisation immediately up dip of an area historically prepared for stoping by
previous mine operators (Figures 5 and 6). The hole intersected 23.7m at 3.8% Zn, 1.02% Cu, 0.22g/t Au and 11.9g/t
Ag from 977m including 7.1m at 6.68% Zn, 0.99% Cu, 0.17g/t Au and 8.8g/t Ag from 978m and a second zone of
3.45m at 3.58% Zn, 0.93% Cu, 0.21g/t Au and 11g/t Ag from 1003.35m. The intersection validates historical
intersections in the area. The closest historic drill hole, D348, drilled from underground, intersected the mineralised
zone some 30m from hole OCOD068_D2. A comparison between the two intersections is given in Table 2.
HOLE ID WIDTH (m) Zn (%) Cu (%) Au (g/t) Ag (g/t)
OCOD068_D2 23.7 3.80 1.02 0.22 11.9
D348 23.86 5.58 1.51 Not reported Not reported
Hole OCOD080 was drilled as an infill hole between drill holes OCOD046 and historic drill hole D395 (drilled from
underground) and intersected 12.60m at 4.23% Zn, 0.73% Cu, 0.20g/t Au and 9.9g/t Ag from 1034.3m. The
intersection is 75m from hole OCOD046 (refer ASX release 5 October 2017) and the thickness and grades
correlate well with that of hole OCOD046 (Table 3).
Hole ID Width (m) Zn (%) Cu (%) Au (g/t) Ag (g/t)
OCOD046 10.65 4.19 0.80 0.15 5.72
OCOD080 12.60 4.23 0.73 0.20 9.9
Table 3. Correlation of grade and width between holes OCOD080 and OCOD046.
Hole OCOD059_D3 intersected high grade Zn mineralisation in an area south west of the main Deep Sulphide
Target where there is little historic drill information (Figures 1,2 and 5). The hole intersected 3m at 9.2% Zn, 0.13%
Cu, 0.08g/t Au and 2g/t Ag and confirms the exploration potential in the mineralised zone towards the south
western limb of the Deep Sulphide Synform.
Hole OCOD072_D3 intersected 16.05m at 2.71% Zn, 0.80% Cu, 0.2g/t Au and 13.80g/t Ag from 1105.95m, including
3.00m at 7.16% Zn, 0.24% Cu, 0.08g/t Au and 5.0g/t Ag from 1110.41m on the periphery of the south east section
of the Deep Sulphide Target. The mineralised zone was intersected in an area where historic data suggested the
width of mineralisation to be between 2 and 3m wide. The intersection confirms potential for more substantial
thicknesses of mineralisation in the south east section. (Figure 7).
Hole OCOD074, also drilled in the south eastern section of the Deep Sulphide Target, intersected 3 zones of
mineralisation 60m down dip and 120m south east (along strike) of historic intersections. Wide high grade massive
sulphide mineralisation was intersected in the Main Zone of mineralisation with 26.17m at 6.51% Zn, 1.31% Cu,
0.26g/t Au and 13.8g/t Ag from 1103.63m including 11.41m at 7.69% Zn, 0.92% Cu, 0.19g/t Au and 9.3g/t Ag from
1103.63.
A second zone of mineralisation, the Lower Zone, was intersected 55m below the Main Zone. The Lower Zone
reported 8.7m at 2.43% Zn, 0.97% Cu, 0.21g/t Au and 22.3g/t Ag from 1184.7m. The Lower Zone was not always
intersected in historic drill holes as holes were stopped short of this zone. The intersection confirms promising
continuity of the Lower Zone and highlights the potential for a parallel mineralised zone in the Deep Sulphide
Synform (Figure 8).
Importantly, a narrow intersection of 2.55m at 0.10% Zn, 1.99% Cu, 1.48g/t Au and 38.22g/t Ag from 1084.10 was
intersected above the main zone. This mineralisation with relatively high grade Cu, Au and Ag content was
intersected in the stratigraphic footwall of the overturned stratigraphic package and has characteristics
suggestive of a possible feeder zone to the exhalative massive sulphides. This intersection merits further
investigation as a potential mineralised channel at high angle to the main massive sulphide, which is bedding
parallel.
All significant intersections from surface drilling at the Deep Sulphide Target have been released in ASX releases
of 8 November 2017, 9 October 2017, 5 October 2017, 19 September 2017, 6 September 2017, 27 July 2017 and
17 July 2017 with historical drilling detailed in ASX release of 18 November 2015. New significant intersections are
included as Appendix 1. All intersections quoted for the Deep Sulphide Target are length and specific gravity
weighted, following the procedure detailed in Appendix 3.
+105 Level Target (Open Pit) and +370 BSC (Below Shaft Collar) Sulphides
Hole OCOU076 intersected 13.33m at 0.23% Zn, 3.08% Cu, 0.17g/t Au and 6.34g/t Ag (the intersections had a 72%
core recovery). The intersection confirmed the presence of a high grade Cu zone within the supergene zone in
the south eastern most part of the + 105 deposit (Figure 9).
Orion has now initiated the evaluation for potential sulphide mineralisation above the water level (-370m level)
which could present a potential upside source of valuable early cashflow to be considered in the bankable
feasibility study currently underway (+370 BSC Target). Potential exists to outline Zn – Cu mineralisation within
reach of existing and accessible underground development, including extensions immediately adjacent to the
stoped areas on the north west and south east strike extensions of the historic Prieska Mine (Figure 10), where a
3m mining width cut-off, on optimised Cu grades was historically applied. As a first stage in this investigation,
historic mine plans and longitudinal sections are being used to identify and calculate the tonnage potential of
intact mineralisation. This will be followed up by underground verification, geotechnical appraisal and drill
planning for underground drill testing.
All significant intersections from surface and underground drilling at the +105 Level Target (Open Pit) have been
released in ASX releases of 19 September 2017 and 6 September 2017. New significant intersections are included
as Appendix 2. All intersections quoted for the +105 Level Target (Open Pit) are length weighted, following the
procedure detailed in Appendix 3.
Data Assimilation and Resource Estimation
Orion has recently succeeded in locating and reaching an agreement to recover a large volume of historic hard
copy and digital data for the Prieska Project from the previous owners. The data recovered is thought to include
important information, including digital mine planning records, that may assist in Mineral Resource estimation
and evaluation of the new +370 BSC Target. Given the new data acquisition and the ongoing positive
extensional drilling, the maiden Mineral Resource estimates for the +105 Level Target (Open Pit) and North West
Deep Sulphide Target are now scheduled for CQ1 2018. Drilling will continue on strike extensions into 2018, with
final BFS Mineral Resource estimates expected mid 2018.
Errol Smart
Managing Director and CEO
12 December 2017
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) 787 955 1355
E: michael.vaughan@fivemark.com.au E: orion@tavistock.co.uk
Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000
Competent Persons Statement
Competent Persons Statement
The information in this report that relates to Orion’s Exploration Results at the Prieska Project complies with 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 Minerals 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. The Exploration Results are based on standard industry practises for drilling, logging, sampling,
assay methods including quality assurance and quality control measures as detailed in Appendix 3.
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. 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: Table of intersections from Deep Sulphide Target drilling at the Prieska Project in this release.
East North From To Length Cu Zn Au Ag
Drill hole (UTMz34S) (UTMz34S) (m) (m) (m) (%) (%) (g/t) (g/t)
984.25 1037.30 7.85 0.16 0.65 0.07 3.5
OCODO59_D3 624576 6686282
1044.00 1047.00 3.00 0.13 9.20 0.08 2.0
OCOD066_D4 624350 6686466 1076.90 1099.10 22.20 1.69 2.70 0.24 10.3
624691 6686077 977.00 1000.70 23.70 1.02 3.80 0.22 11.9
OCOD068_D2 including 978.00 985.10 7.10 0.99 6.68 0.17 8.8
1003.35 1006.80 3.45 0.93 3.58 0.21 11.0
OCOD072_D3 625712 6685214 1105.95 1122.00 16.05 0.80 2.71 0.20 13.8
including 1110.41 1113.41 3.00 0.24 7.16 0.08 5.0
625815 6685218 1084.10 1086.65 2.55 1.99 0.10 1.48 38.2
1103.63 1129.80 26.17 1.31 6.51 0.26 13.8
OCOD074
including 11036.63 1115.04 11.41 0.92 7.69 0.19 9.3
1184.70 1193.40 8.70 0.97 2.43 0.21 22.3
OCOD080 624578 6686280 1034.30 1046.90 12.60 0.73 4.23 0.20 9.9
1121.20 1124.00 2.80 0.25 1.36 0.16 4.7
OCOD087 624392 624392
1129.90 1142.35 12.45 1.12 5.17 0.25 10.8
Appendix 2: Table of intersections from +105 Level Target (Open Pit) drilling at the Prieska Project in this release.
Drill hole East North From To Length Cu Zn Au Ag
(UTMz34S) (UTMz34S) (m) (m) (m) (%) (%) (g/t) (g/t)
OCOU076 624843 6686231 49.67 63.00 13.33 3.08 0.23 0.17 6.34
1. All significant intersections > 1m and >0.3% copper or > 0.5% zinc are quoted.
2. Holes prefixed with OCOD are drilled from surface; those with the prefix OCOU have been drilled from underground.
3. It is recommended that the supporting information contained in Appendix 3 is read in conjunction with these results.
Appendix 3: The following tables are provided to ensure compliance with the JORC Code (2012) requirements for the reporting of Exploration Results for the
Prieska Project.
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques - Nature and quality of sampling (e.g. cut channels, random chips, or - Diamond core cut at core yard and half core taken as sample.
specific specialised industry standard measurement tools appropriate - Diamond core sampled on 1m intervals where possible, sample lengths
to the minerals under investigation, such as down hole gamma sondes, adjusted to ensure samples do not cross geological boundaries or other
or handheld XRF instruments, etc.). These examples should not be features.
taken as limiting the broad meaning of sampling. - Drilling at the Deep Sulphide Target carried out aiming to define an
- Include reference to measures taken to ensure sample representivity approximate 100m x 100m pattern by use of “mother” holes and
and the appropriate calibration of any measurement tools or systems deflections from these holes.
used. - Drilling at the +105 Level Target carried out aiming to define an
- Aspects of the determination of mineralisation that are Material to the approximate 45m x 45m pattern.
Public Report. - Percussion / reverse circulation pre collars (where used) sampled on a
- In cases where ‘industry standard’ work has been done this would be composite basis.
relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 - Mineralised zones are drilled using core drilling.
m samples from which 3 kg was pulverised to produce a 30 g charge - Sampling carried out under supervision using procedures outlined below
for fire assay’). In other cases more explanation may be required, such including industry standard QA/QC.
as where there is coarse gold that has inherent sampling problems. - Samples submitted for analysis to ALS is pulverised in its entirety at ALS
Unusual commodities or mineralisation types (e.g. submarine nodules) and split to obtain a 0.2g sample for digestion and analysis.
may warrant disclosure of detailed information. - Downhole EM survey carried out using standard techniques.
Drilling techniques - Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air - Diamond core drilling using NQ and BQ sized core.
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple - Pre collar drilled using percussion drilling on certain holes (above
or standard tube, depth of diamond tails, face-sampling bit or other mineralisation).
type, whether core is oriented and if so, by what method, etc.).
Drill sample recovery - Method of recording and assessing core and chip sample recoveries - All mineralised intersections are done with core drilling.
and results assessed. - Core stick-ups reflecting the depth of the drill hole are recorded at the
- Measures taken to maximise sample recovery and ensure rig at the end of each core run.
representative nature of the samples. - A block with the depth of the hole written on it is placed in the core box
- Whether a relationship exists between sample recovery and grade at the end of each run.
and whether sample bias may have occurred due to preferential - At the core yard, the length of core in the core box is measured for
loss/gain of fine/coarse material. 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.
- No grade variation with recovery noted.
Logging - Whether core and chip samples have been geologically and - All percussion holes are logged on 1m intervals using visual inspection of
geotechnically logged to a level of detail to support appropriate washed drill chips and both full. Core is logged by geology and
Mineral Resource estimation, mining studies and metallurgical studies. recorded between geological contacts by qualified geologists.
- Whether logging is qualitative or quantitative in nature. Core (or - Qualitative logging of colour, grainsize, weathering, structural fabric,
costean, channel, etc.) photography. lithology, alteration type and sulphide mineralogy carried out.
- The total length and percentage of the relevant intersections logged. Quantitative estimate of sulphide mineralogy and quartz veining.
- 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 - BQ and NQ core cut at core yard and half core taken as sample.
techniques and taken. - Samples from percussion pre collars are collected by spear sampling.
sample preparation - If non-core, whether riffled, tube sampled, rotary split, etc. and - Sampling on site aims to generate a < 2kg sub sample to enable the
whether sampled wet or dry. entire sample to be pulverised without further splitting.
- For all sample types, the nature, quality and appropriateness of the - Water is used in the dust depression proses during percussion drilling,
sample preparation technique. resulting in wet chip samples.
- Quality control procedures adopted for all sub-sampling stages to - With core samples, the entire sample length is cut and sampled.
maximise representivity of samples. - Sample preparation is undertaken at ALS Laboratory Johannesburg, an
- Measures taken to ensure that the sampling is representative of the in ISO accredited laboratory. ALS utilises industry best practise for sample
situ material collected, including for instance results for field preparation for analysis involving drying of samples, crushing to <5mm if
duplicate/second-half sampling. required and then pulverising so that +85% of the sample passes 75
- Whether sample sizes are appropriate to the grain size of the material microns.
being sampled. - CRM’s, blanks and replicates are inserted every 30 samples and
analysed with each batch.
- Lab supplied CRM’s, blanks and replicates are analysed with each
batch.
- Specific gravity measurements are made over the full length of each
individual sample on split core where possible. Where not possible due
to crushed or broken core, a minimum of 80% of the core sample is
used. The specific gravity is determined by measuring and subtracting
the wet weight from the dry weight using an electronic density scale.
Care is taken to clean and zero the scale between each weighing.
- The sample is first weighed in air and the weight recorded. The sample is
then weighed, while completely submerged in clean water within a
measuring beaker. The mass of beaker and water are deducted for net
submerged weight and volume displacement read on measuring
beaker.
- The sample is then removed and placed back into the core tray in the
correct position and orientation. The procedure is repeated for each
geological sample interval.
- The data is recorded in the Specific Gravity Data Sheet. The specific
gravity is calculated for each sample using the formula:
SG = weight of sample
(weight of sample in air minus the weight of the sample in water).
Quality of assay data - The nature, quality and appropriateness of the assaying and - Samples from drilling were submitted to ALS Chemex in Johannesburg.
and laboratory tests laboratory procedures used and whether the technique is considered Samples were analysed for base metals using a four acid digest and
partial or total. ICP-OES and for gold by fire assay with AAS finish.
- For geophysical tools, spectrometers, handheld XRF instruments, etc., - External quality assurance of the laboratory assays is monitored by the
the parameters used in determining the analysis including instrument insertion of blanks, duplicates and certified reference materials (CRM)
make and model, reading times, calibrations factors applied and their - Coarse field duplicates consisting of a split sub-sample of the original
derivation, etc. crushed sample material.
- Nature of quality control procedures adopted (e.g. standards, blanks, - Three CRMs are alternated through the sample stream and where
duplicates, external laboratory checks) and whether acceptable possible matched to the material being drilled.
levels of accuracy (i.e. lack of bias) and precision have been - Two blanks are used (pulp and chips).
established. - No external laboratory checks have been carried out at this stage.
- Down hole EM surveys are carried out using a 3 component Digi-Atlantis
probe and ultra high power transmitter.
- Loop size of 1800m x 600m are used with continuous measurements
taken as the probe travels into the hole and out again.
- Surface TDEM surveys are carried out using a Supracon Jesse Beep squid
sensor and ultra high power transmitter with a Smartem 24 receiver.
Verification of - The verification of significant intersections by either independent or - Orion’s executive geologist is personally supervising the drilling and
sampling and alternative company personnel. sampling along with a team of experienced geologists.
assaying - The use of twinned holes. - The Managing Director and the executive geologist have reviewed the
- Documentation of primary data, data entry procedures, data raw laboratory data and confirmed the calculation of the significant
verification, data storage (physical and electronic) protocols. intersections.
- Discuss any adjustment to assay data. - For the EM survey, data is 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.
Location of data points - Accuracy and quality of surveys used to locate drill holes (collar and - Collar data has been laid out using a handheld GPS and these
down-hole surveys), trenches, mine workings and other locations used coordinates are reported here.
in Mineral Resource estimation. - All of the Orion drill hole collars are surveyed by a qualified surveyor
- Specification of the grid system used. using a differential GPS which may result in minor adjustments to
- Quality and adequacy of topographic control. coordinate data.
- Downhole surveys are completed using a North-Seeking Gyro
instrument.
- The historic mine survey data is in the old national Clarke 1880
coordinate system. All data is collected the surveyor is in Clarke 1880
and in UTM WGS84 Zone 34 (Southern Hemisphere). UTM WGS84 Zone 34
coordinates are reported above.
Data spacing and - Data spacing for reporting of Exploration Results. - At the Deep Sulphide Target drill holes aim to intersect mineralisation on
distribution - Whether the data spacing and distribution is sufficient to establish the approximately 100m x 100m spacing with infill drilling to be carried out in
degree of geological and grade continuity appropriate for the Mineral areas of interest as determined by results.
Resource and Ore Reserve estimation procedure(s) and classifications - At the +105 Level Target drill holes aim to intersect mineralisation on
applied. approximately 45m x 45m spacing with infill drilling to be carried out in
- Whether sample compositing has been applied. areas of interest as determined by results.
- Variography studies were carried out on the historic data set for both
Targets to determine the drill spacing for Mineral Resource estimates.
Orientation of data in - Whether the orientation of sampling achieves unbiased sampling of - Drilling is oriented perpendicular, or at a maximum achievable angle to,
relation to geological possible structures and the extent to which this is known, considering the attitude of the mineralisation.
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 - Where surface access or geotechnical conditions do not allow access
sampling bias, this should be assessed and reported if material. to optimal drill collar positions, holes may be inclined.
- The intersections will be corrected once the mineralised zone is
modelled in three dimensions and local attitude can be accurately
determined.
- No sampling bias is anticipated as a result of hole orientations.
- EM surveys are completed in an orientation perpendicular to the
interpreted or intersected mineralisation.
Sample security - The measures taken to ensure sample security. - Chain of custody is managed by the Company. Samples were stored on
site in a secure locked building and then freighted directly to the lab.
Audits or reviews - The results of any audits or reviews of sampling techniques and data. - No audits or reviews have been carried out at this stage.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and - Type, reference name/number, location and ownership including - The Prospecting Right is held by a subsidiary company of Agama
land tenure status agreements or material issues with third parties such as joint ventures, Exploration and Mining (Pty) Ltd (Agama), which is a wholly owned
partnerships, overriding royalties, native title interests, historical sites, subsidiary of Orion. As such, Orion effectively holds a 73.33% interest in
wilderness or national park and environmental settings. the project.
- The security of the tenure held at the time of reporting along with any - The Prospecting Right covers a strike of 2200m for the Deep Sulphide
known impediments to obtaining a licence to operate in the area. mineralisation out of a total interpreted strike of 2800m.
- The Prospecting Right covers the complete known strike of the +105
Level Target.
- All of the required shaft infrastructure and lateral access underground
development is available within the Prospecting Right.
Exploration done by - Acknowledgment and appraisal of exploration by other parties. Deep Sulphide Target
other parties - All exploration and life of mine drilling (V, D and F holes) was done by
Anglovaal, resulting in a substantial amount of hard copy data from
which the Company has been able to assess the prospectivity of the
remaining mineralisation.
- The Anglovaal exploration resulted in the delineation and development
of a large mine.
+105 Level Target
- The 2012 drilling of the NW section of the +105 Level Target was carried
out by the previous owners of the Subsidiary (Orion acquired the
subsidiary in March 2017).
Geology - Deposit type, geological setting and style of mineralisation. - The Copperton deposit is a Volcanogenic Massive Sulphide deposit. The
deposit is contained in the Areachap Group, which also hosts the Boks
Puts, Areachap, Kielder, Annex Vogelstruisbult and Kantienpan deposits.
- The historically mined section of the deposit is confined to a tabular,
stratabound horizon in the northern limb of a refolded recumbent
synform which plunges at approximately 45° to the southeast. It is hosted
within deformed gneisses of the Copperton Formation, which have
been dated at 1285 Ma and forms part of the Namaqualand
Metamorphic Complex.
- The mineralised zone outcrop has a strike of 2400m, was oxidised and /
or affected by leached and supergene enrichment to a depth of
approximately 100m, and outcrops 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. The width of the mineralised zone exceeds 35m in
places but averages between 7m and 9m. The mineralised zone persists
to a depth of 1100m (as deep as 1200m in one section) after which it is
upturned.
- The +105 Level Target area comprises the oxide / supergene / mixed
zone (and a zone of remnant primary sulphides) situated from above
the upper limit of mining at approximately 100m depth up to surface.
Drill hole Information - A summary of all information material to the understanding of the - All Significant Intersections, location data and other drill hole information
exploration results including a tabulation of the following information is tabulated in Appendix 1 and Appendix 2.
for all Material drill holes:
- easting and northing of the drill hole collar
- elevation or RL (Reduced Level – elevation above sea level in
metres) of the drill hole collar
- dip and azimuth of the hole
- down hole length and interception depth
- 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 the
grades) and cut-off grades are usually Material and should be stated. 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 for average of assays result > 0.3% copper or 0.5% zinc and weighted by the
such aggregation should be stated and some typical examples of sample width of each sample only.
such aggregations should be shown in detail. - In general, the significant intersections correspond strongly to geological
- The assumptions used for any reporting of metal equivalent values boundaries (massive sulphides) and are clearly distinguishable from
should be clearly stated. country rock / surrounding samples.
- No truncations have been applied at this stage for either Target.
Relationship between - These relationships are particularly important in the reporting of - All intersection widths quoted are down hole widths.
mineralisation widths Exploration Results. - Most holes intersected the mineralisation perpendicular or at high angle
and intercept lengths - If the geometry of the mineralisation with respect to the drill hole angle to the attitude of the mineralisation.
is known, its nature should be reported. - The mineralisation has complex geometry and mineralisation widths
- If it is not known and only the down hole lengths are reported, there need to be estimated based on interpretation of surrounding intercepts.
should be a clear statement to this effect (e.g. ‘down hole length, true
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 announcement 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 drill hole results referred to in the announcement, are listed in
practicable, representative reporting of both low and high grades Appendix 1 and 2. All other drill holes, including those with no
and/or widths should be practiced to avoid misleading reporting of mineralisation, have been detailed in previous announcements as
Exploration Results. detailed in the text.
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 - Drilling is ongoing to test the Deep Sulphide Target.
extensions or depth extensions or large-scale step-out drilling). - Downhole and surface EM surveys are also in progress aimed at
- Diagrams clearly highlighting the areas of possible extensions, delineating targets away from the historically drilled areas.
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
Date: 12/12/2017 09:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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