Orion Minerals believes that excellent opportunity exists for new discoveries within the Prieska Volcanogenic Massive Sulphide (VMS) Camp and is currently fast-tracking its near-mine exploration program.
Orion’s MD and CEO, Errol Smart, comments:
“This pivotal resource upgrade provides a strong foundation for our strategy to fast-track the development of a state-of-the-art base metals operation at Prieska next year.
“This is an outstanding result for our shareholders, which demonstrates the success of the 85,000 m infill drilling program completed over the past 18 months.
“The higher-confidence Indicated component of the resource has increased from zero to 18.5 million tonnes, a result which has exceeded our expectations for the area where we completed infill drilling.
“This very high conversion rate is testament to the exceptional quality and consistency of this deposit, and the indicated resource will now form the cornerstone of our BFS due for completion in Q2 next year.
“However, it is also important to note that the thick, high-grade intersections on the margins of the resource area present compelling expansion targets.
“This near-mine exploration upside, when combined with the opportunity to upgrade additional inferred resources with future underground drilling and the broader
potential of the emerging VMS field, puts Orion in an outstanding position to realise its objective of becoming a significant new player in the global base metals industry, with the development of the Prieska Deposit and exploration of the Areachap Belt.”
An additional 60,391 m of drilling resulting in 50 new intersections and validation of 105 historical drill holes since the last Resource announcement in April 2018, has successfully increased the total Deep Sulphide Resource to 28.73 Mt grading 3.77% Zn and 1.16% Cu, with 18.51 Mt grading 3.60% Zn and 1.17% Cu upgraded to the higher-confidence Indicated category, available for inclusion in estimation of Ore Reserves by the BFS currently underway.
Resource infill drilling was completed in Q4, 2018 and the current Mineral Resource incorporates the results of 85,424 m of drilling from 41 mother holes with 61 deflections, resulting in 87 intersections.
In addition, 452 validated historical drill holes were incorporated into the resource
The primary focus of the drilling was to undertake infill sampling within the Deep Sulphide inferred resource area, and to focus on converting as much as possible of the inferred to indicated resource within the given time frame.
As a result, mineralisation was not closed off and potential exists to increase the resource with more drilling at the Prieska Zinc-Copper Deposit.
In addition, Orion also believes that excellent opportunity exists for new discoveries within the Prieska Volcanogenic Massive Sulphide (VMS) Camp and is currently fast-tracking
its near-mine exploration program.
As part of the BFS, Orion now looks forward to the completion of detailed scheduling and the mine design for the deep sulphide resource.
With engineering studies progressing well and metallurgical optimisation completed, Orion is confident of a positive outcome for the BFS.