Orion Minerals: developing project execution strategy, sourcing funding
With the completion of Definitive Feasibility Studies for both Prieska Copper Zinc Mine (PCZM) and Okiep Copper Project (OCP) in the prior Quarter, the focus in the June 2025 quarter turned to developing a project execution strategy as well as sourcing the required funding to enable development of both projects.
In addition, a systematic and integrated review of the near-term and medium-term exploration upside for both Projects began and is being undertaken in a more formalised and structured way, including the planning of drill programs for conversion of Inferred category Mineral Resources to Indicated category Mineral Resources. No new drilling was conducted in the June 2025 Quarter.
During the Quarter, the focus at PCZM has been on operational readiness and value engineering. Initial value engineering has targeted improvement initiatives such as a reduction in Upper-Level mining waste development metres; aligning Uppers BOOT plant operations and a review of the Uppers end of mining operations, with the Deeps Plant start-up date; cost saving opportunities associated with a finite life build-own-operate-transfer (BOOT) plant; optimising on-site accommodation; and investigating synergies between shaft dewatering and the tailings storage facility.
Operational readiness by the Owners Team focussed on the critical path items from the integrated DFS project schedule. This included on-site accommodation; front end engineering design (FEED) contractor appointment; bulk electricity infrastructure timelines; derisking long lead items (such as winders); shaft safety; dewatering; and mining fleet optimisation.
Activities will begin with the construction of the 20kt per month BOOT concentrator for the Phase 1 Uppers ore body mining, while the mine is being dewatered to reach the Deeps ore body 22 months later. Once the mine is dewatered, ore handling will be established, prior to the mining of the Phase 2 Deeps.
At PCZM, five priority target areas have been defined representing along-strike and lateral extensions to the defined Mineral Resource. These programs aim to confirm the continuity and grade of mineralisation,
within an overall highly continuous geological horizon that has already been mined historically and further delineated across an area of 2,600m x 1,500m. A medium-term program is being defined to optimise the Mineral Resource conversion drill plan (described in the 2025 DFS), with an emphasis on reducing planned meterage and associated costs, using historic exploration drives and planned future development.
During the Quarter, the potential to enhance the financial outcomes of the DFS for the Flat Mines Project at OCP through an optimisation process, was identified. Work on the optimisation studies has commenced with a focus on bringing forward production and reducing project capital expenditure. In addition, planning for early works and securing the required funding for the project is underway.
At OCP, both near and medium-term exploration targets have been identified, with a plan to initially focus on near-mine extensions to open mineralisation at the Flat Mine deposits, the confirmation and delineation of deposits in close proximity to the intended Flat Mine processing facility, and then moving to evaluating other deposits within the larger tenement area in the medium-term.
