Modern Mining July 2019

COPPER/ZINC

development of what will be a new-generation mining project for South Africa, fully-compli- ant with the new South African Mining Charter and backed by a strong group of BEE investors and including host community and employees as shareholders alongside existing cornerstone shareholders. “With the Prieska BFS now complete and granting of the Mining Right imminent, we intend to fully focus on progressing discus- sions with project financiers, concentrate off-take partners and key suppliers,” he said. “We expect to be in a position to make a final investment decision for the Prieska project development in the second half of this year, putting us on-track to commence construc- tion in late 2019 or early 2020. I would like to acknowledge the enormous effort of our hard- working team in delivering this outstanding result, which sets Orion up to begin its trans- formation from explorer to developer.” Photos courtesy Orion Minerals

asset, delivering A$1,1 billion of pre-tax free- cashflow, a pre-tax Net Present Value of A$574 million at an 8 % discount rate and an all-in- sustaining margin of 44 % during the 10-year Foundation Phase of the project. “Importantly, the capital payback period is short – at just under three years from first production, with a low unit operating cost base to take advantage of most metal price environments. There is also ample scope to sig- nificantly extend the mine life through further mining studies, drilling and exploration pro- grammes to extend the deposit, which remains open at depth and along strike. The huge potential for additional satellite discoveries both within the immediate near-mine environ- ment and within the broader region provides us with a very strong project pipeline which we believe will see us operating in this district for many decades to come.” He added that the Prieska BFS also pro- vided a platform for Orion to progress the

Longitudinal section showing the historically mined area and the Deep Sulphide resource at the Prieska project, with the Deep Sulphide resource subdivided into the Repli and Vardocube resource areas.

July 2019  MODERN MINING  29