Wrap Text
Option Agreement to Purchase Mills Follows Successful Metallurgical Optimisation of the Prieska Copper-Zinc Project
Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
(“Orion” or “the Company”)
Option Agreement to Purchase Mills Follows Successful Metallurgical Optimisation of the Prieska Copper-Zinc
Project Bankable Feasibility Study
- Success in ore processing value engineering studies culminates in securing the right to purchase mills,
that are normally long-lead items for the Prieska Copper-Zinc Project.
- The option secured, is over a pair of SAG and Ball malls ideally suited to the Prieska ore and could
realise a significant project capital cost saving.
- Revised processing plant layout provides for significant improvements in the planned capital
expenditure, operating costs and plant operability.
“We are very pleased that we can now begin to lock in the anticipated project optimisations with associated
positive CAPEX and OPEX savings. The plant optimisation studies progressed alongside studies on improved water
treatment and optimisation of our mine-to-market schedule, all of which are now nearing completion. The
successful metallurgical optimisation of the process flowsheet has culminated in securing the right to purchase
two new mills which are available at a significant discount to mills which would otherwise have to be placed on
order as a long-lead item. These optimisations all promise to deliver an uplift on the already excellent investment
case for the Prieska Project.”
Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce that, following the
successful conclusion of value engineering studies on the ore processing plant design and layouts for the Prieska
Copper-Zinc Project (Prieska Project), the Company has moved to secure specific mills required to realise the
identified improvements via an option agreement.
The Company has identified two new 3,600kW mills, that are immediately available at a significant discount to
similar mills which would only be available from manufacturers on long order.
The mills consist of a 22-foot diameter x 26-foot long ball mill and a 16.5-foot diameter x 27-foot long semi-
autogenous grinding (SAG) mill, complete with all motors, gearboxes, ancillary fittings, with associated
commissioning spares.
Securing these new mills facilitates the incorporation of SAG milling into the ore processing flowsheet, in place of
the ball milling arrangement selected in the Prieska Project Bankable Feasibility Study (BFS) (refer ASX release 26
June 2019).
The revised ball and SAG mill configuration will allow significant operational flexibility and facilitate processing of
Prieska ore at a rate of up to 20% above design throughput, allowing capacity for future expansion.
The use of SAG milling simplifies plant layout and operation, with significantly reduced upfront capital
expenditure and a reduction in estimated operating cost, removing the requirement for multi-stage crushing and
screening of rock ahead of milling (refer Figures 1, 2 and 3).
Overall capital expenditure for the processing plant has been reduced by approximately AUD15 million from the
total plant capital, originally estimated at AUD109 million and the plant unit operating costs reduced by 5% from
a base estimate of AUD16.10 per tonne (refer ASX release 26 June 2019). This represents a significant improvement
to be incorporated into the optimised and updated BFS Report, due for completion in early Q2 CY2020.
Figure 1: June 2019 BFS ore processing design showing multi-stage crushing and screening section, removable if using SAG milling.
Figure 2: June 2019 BFS ore processing plant layout using ball milling.
Figure 3: Optimised ore processing plant layout on a reduced footprint and using a combination of SAG and ball milling.
For and on behalf of the Board.
Errol Smart
Managing Director and CEO
4 February 2020
ENQUIRIES
Investors Media JSE Sponsor
Errol Smart – Managing Director & CEO Nicholas Read Rick Irving
Denis Waddell – Chairman Read Corporate, Australia Merchantec Capital
T: +61 (0) 3 8080 7170 T: +61 (0) 419 929 046 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: nicholas@readcorporate.com.au E: rick@merchantec.co.za
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 (where
applicable). 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).
Date: 04-02-2020 08:45:00
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