| Tue 3 Jul 2018, 9:30 | | ORION MINERALS LIMITED - Fixed Loop TDEM Results Confirm Compelling Instrusive Ni-Cu Sulphide Targets for Immediate Drill Testing |
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ORN 201807030013A
Fixed Loop TDEM Results Confirm Compelling Instrusive Ni-Cu Sulphide Targets for Immediate Drill Testing
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
FIXED LOOP TDEM RESULTS CONFIRM COMPELLING INTRUSIVE NI-CU SULPHIDE TARGETS FOR IMMEDIATE DRILL TESTING
- Five compelling Ni-Cu-Co sulphide targets identified from Fixed-Loop Electro Magnetic surveys.
- Targets all lie within the Jacomynspan Ni-Cu-Co ultramafic intrusive cluster.
- The modelled high-priority target EM plates have far higher conductance than an orientation survey
conducted over the known Jacomynspan Sulphide Mineral Resource of 6.8Mt at 0.57% Ni, 0.33% Cu and
0.03% Co.
- Plates are interpreted to lie within, or in close proximity to, ultramafic bodies with significant drill-confirmed
Ni-Cu sulphide mineralisation.
- Diamond drill rig mobilising to test the EM plates.
Orion Minerals Limited (ASX/JSE: ORN) (Orion or Company) is pleased to report positive initial Fixed-Loop
Electro-Magnetic (FLEM) survey results over Ni-Cu targets on the Disawell prospecting right (Disawell) in the
Areachap Belt, South Africa (Figure 1). Fixed-Loop Time Domain Electro Magnetic (FLTDEM) surveys and
geological mapping following up on helicopter-borne Electro Magnetic (AEM or SkyTEMTM) anomalies on the
Namaqua – Disawell mineral rights commenced in May 2018 (refer ASX release 1 February 2018). Orion is
targeting high-grade, magmatic intrusive sulphide Ni-Cu-Co-PGE mineralisation with similar geology and age
of mineralisation as the Nova-Bollinger Mine, Fraser Range, Western Australia.
“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.
Historic drilling and field mapping at Orion’s Area 4 and Rok Optel prospects on Namaqua – Disawell mineral
rights confirm the presence of Jacomynspan satellite intrusives with mafic and ultramafic rocks, also hosting
sulphide Ni-Cu mineralisation. Jacomynspan contains a Mineral Resource of 6.8Mt at 0.57% Ni, 0.33% Cu
and 0.03% Co above a 0.4% Ni cut-off (refer ASX release 8 March 2018)1. The Mineral Resource remains
open down dip and along strike.
The Rok Optel and Area 4 conductors have conductance of 850-3150 Siemens (S) and 350-2000 S
respectively, which are orders of magnitude higher than those measured by an orientation loop over the known
Mineral Resource at Jacomynspan, which measured 250-575 S (Table 1) for the 70m-thick, disseminated to
net-textured sulphide Mineral Resource (Figure 3). The higher conductance at Area 4 and Rok Optel are
interpreted to be related to higher-grade base metal sulphide content. Historic
drilling, which intersected Ni-Cu sulphide mineralisation less than 100m away and outside of the new
conductive plates, provides strong support for the targets.
The five high-priority target FLTDEM plates are on five grids named A4 A & B at the Area 4 and grids ROK 1-
3 at Rok Optel (Figure 2). The surveys have been undertaken using equipment, designed specifically to test
for massive sulphide mineralisation at shallow to moderate depths. The data is quality-assessed by Spectral
Geophysics in South Africa and then interpreted by Southern Geoscience Consultants (Perth, WA).
1 Orion is not aware of any new information or data that materially affects the information included in the ASX
release of 8 March 2018. For the Mineral Resource, the Company confirms that all material assumptions and
technical parameters underpinning the estimates in the ASX release of 8 March 2018 continue to apply and
have not materially changed.
Figure 1: Areachap Project summary geology map showing the Masiqhame and Disawell prospecting
rights.
Figure 2: Namaqua - Disawell Project plan illustrating farms boundaries and FLTDEM grids overlain
on the AEM geology interpretation.
VMS/NiS Loop Conductor Plate Plate Approxim
Target Model Dimensions Conductanc ate Plate
(m) e (Siemens) Depth (m)
1000 x
HP2_2022 250 150
1000
1100 x
HP2_2527 325 200
Jacomynspan 1100
NiS HP2A
mineralisation 1000 x
HP2_3032 490 310
1000
1000 x
HP2_3335 575 400
1000
A4A_1820 150 x 90 350 75
A4A A4A_2023 125 x 80 400 75
A4A_2325 150 x 75 450-500 100
Area 4 NiS A4B_1820 400 x 50 650 50
A4B_2023 300 x 50 900 50
A4B A4B_2224 325 x 50 1100 50
A4B_2527 325 x 40 1750-2000 50
ROK1_2528 475 x 95 1600 210
ROK1 ROK1_2729 475 x 85 2300 225
ROK1_2932 475 x 80 3150 250
ROK2_2528 475 x 100 1250 200
Rok Optel NiS ROK2 ROK2_2729 500 x 95 1700 225
ROK2_2932 475 x 85 2900 275
ROK3_2325 130 x 300 850 275
ROK3 ROK3_2527 135 x 250 950 300
ROK3_2729 120 x 275 1250 300
Table 1: Summary table of the FLTDEM grids and plate models including plate sizes, conductance and depth
to the top of the plate
Figure 3: Oblique section looking west of the Jacomynspan Intrusion (Grid HP2A) indicating the
excellent fit between the FLEM data and drilled mineralisation.
An orientation survey over the Jacomynspan deposit resulted in plate models that closely fit the 70m-thick
mineralised zone, proving the suitability of the FLTDEM method to detect this style of mineralisation (Figure 3).
Conductance over the Jacomynspan deposit is low to moderate at 250-575 S.
Conductors on Rok Optel have conductivities greater than 3000 S. The position of the Rok Optel conductors
relative to historic drill holes are shown in Figure 4. Most historic drill holes which tested induced polarisation (IP)
and magnetic targets did not intersect the zones of highest conductance now detected. The drilling intersected
zones of lower conductance on the edges of the new modelled plates (Figure 5). Historic drill hole PUD003
intersected 23.12m at 0.32% Ni and 0.28% Cu from 294m including 5.92m at 0.46%Ni and 0.35% Cu from 303m
and 1.8m at 0.58% Ni and 0.60% Cu from 306m (refer Appendix 1).
Figure 4: Plan showing grids, EM conductors and historic drill holes on the Rok Optel prospect.
Figure 5: Cross section showing historic drill results and conductive plates on the northern side of the
Rok Optel 2 grid.
Area 4 was surveyed using two grids, A4A and A4B. Seven plate models of conductance ranging from 350 –
2000 S, with smaller dimensions characteristic of semi-massive to massive sulphide mineralisation within or on
margins of disseminated sulphide mineralisation have been modelled (Figure 6). Drilling by previous companies
targeting geochemical, magnetic and IP targets and did not test the highly-conductive bodies now detected using
FLTDEM (Figure 7). The plates on Grid A4B lie within 100m of known Ni-Cu sulphide mineralisation intersected
in historic drill hole JAC007. The hole intersected 62.5m of sulphide mineralisation at 0.26% Ni and 0.17% Cu
from 304m (refer Appendix 1).
Figure 6: Plan showing EM conductors and historic drill results on the Area 4 prospect overlain on an
airborne magnetic map.
Figure 7: Section looking east through drill hole JAC007 showing the Ni-Cu sulphide intersection and
newly detected FLTDEM conductors at the Area 4 prospect.
About the Areachap Belt
The Areachap Belt was the focus of two short-lived exploration booms in the 1970s and early 1980s, following
the discovery of the Prieska volcanogenic massive sulphide (VMS) deposit by Anglovaal in 1968. During this
period, several VMS and Ni-Cu-sulphide occurrences were discovered.
The Areachap Belt formed in a complex, long-lived multi-phase orogenic assembly zone, related to the
amalgamation of the Rodinia Supercontinent. Worldwide, super-continent amalgamation episodes are
associated with the emplacement of potentially Ni-Cu sulphide-bearing intrusions and are therefore of high
exploration importance. The event that resulted in the emplacement of the (Ni-Co-Co-PGE sulphide mineralised)
Jacomynspan Complex is part of a global event that hosts several world-class nickel-sulphide deposits such as
Voisey’s Bay, Kabanga and Nova-Bollinger. The geophysical exploration tools being used by Orion in the
Areachap Belt are applicable to both VMS Zn-Cu massive sulphide and Ni-Cu massive sulphide exploration.
Details of TDEM system in use
The AEM survey targets are followed up with a best-in-class electromagnetic (EM) receiver manufactured in
Perth, Western Australia, by Electromagnetic Technologies. The current source is a custom-built Time Domain
Electromagnetic (TDEM) transmitter, capable of transmitting 140 Amps into a 1km-by-1km aluminium wire loop.
This current source is coupled with military-grade fluxgate sensors for shallow exploration and super sensitive,
high-temperature Super Conducting Quantum Interference Devices (SQUIDs) sourced from Germany, which
are state-of-the-art sensors for deep exploration. The system being employed is the best technology available.
The SQUID system, together with the high-powered TDEM transmitter, can detect moderate to super-conductors
to depths of approximately 1,000m. Readings are taken every 50-100m on grid-lines spaced 200m apart.
Orion’s Managing Director and CEO, Errol Smart, commented:
"The FLTDEM survey is rapidly confirming our expectations from the SkyTEMTM survey. The combination of
strong conductors identified in close proximity to known Ni-Cu sulphides is very encouraging. We have mobilised
a diamond drill rig to begin testing these targets immediately.”
Errol Smart
Managing Director and CEO
3 July 2018
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
Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000
Media
Michael Vaughan Barnaby Hayward
Fivemark Partners, Australia Tavistock, UK
T: +61 (0) 422 602 720 T: +44 (0) 207 920 3150
E: michael.vaughan@fivemark.com.au E: orion@tavistock.co.uk
Competent Person Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Richard
Hornsey (Pr.Sci.Nat.) Registration No: 400071/96, a Competent Person who is a member of the South African
Council for Natural Scientific Professionals, a Recognised Overseas Professional Organisation (ROPO). Mr
Hornsey is a Consultant to Orion. Mr Hornsey 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 Hornsey consents to the inclusion in
this announcement of the matters based on his information in the form and context in which it appears.
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).
Appendix 1: Table of intersections >0.1Ni from the Rok Optel and Area 4 Sulphide Ni -Cu prospects in this release.
East North Azimuth Dip End of hole From To Length Ni Cu
Drill hole depth
(UTMz34S) (UTMz34S) (m) (m) (m) (%) (%)
249.80 258.00 8.20 0.23 0.10
No Sample
PUD001 580 533 6 745 751 285 -50 387 284.10 292.04 7.94 0.25 0.10
No Sample
312 318.59 6.59 0.14 0.10
235.90 239.40 3.50 0.31 0.18
No Sample
242.00 244.80 2.80 0.23 0.11
No sample
251.75 271.50 19.75 0.15 0.17
No Sample
346.50 353.55 7.05 0.30 0.32
PUD002 580 630 6 746 045 273 -49 451.77 including
263.50 265.05 1.55 0.54 0.11
No Sample
379.00 389.20 9.75 0.34 0.22
No sample
424.90 432.00 7.10 0.37 0.17
including
426.30 427.50 1.20 0.71 0.16
294.00 317.12 23.12 0.32 0.28
including
303.10 309.02 5.92 0.46 0.35
PUD003 580 607 6 745 954 280 -52 436.40 including
306.00 307.80 1.80 0.58 0.60
320.62 328.57 7.95 0.29 0.17
No sample
418.60 432.00 13.40 0.20 0.12
DDH004 580 525 6 745 672 282 -52 386.79 270.30 278.67 8.37 0.27 0.12
DDH006 580 268 6 745 820 120 -45 318.30 217.10 246.50 29.40 0.15 0.07
446.40 454.31 7.91 0.21 0.14
PUD007 579 990 6 745 574 101 -60 522.90
462.11 466.90 4.79 0.16 0.28
JAC007 582 084 6 754 733 187 -57.2 379.38 304.16 366.66 62.50 0.26 0.17
Appendix 2: The following tables are provided as a requirement under the JORC Code (2012) requirements for the reporting of Exploration Results for the Namaqua-Disawell
Project: Hartebeestpan (Area 4) and Rok Optel Prospects.
Introductory Remarks
HARTEBEESTPAN (AREA 4)
- This information is derived from information supplied to African Nickel Ltd. under an Alliance Agreement with Anglo-American that concluded during 2011. The information
includes data pertaining to Anglo-American’s exploration program for Jacomynspan and Hartebeestpan that started during 1970 and concluded during 1985. The Area 4
Prospect was drilled during 1982, and the available information includes plans with geological mapping, geochemistry and shallow, wagon drill traverses, summary logs
with lithology and composite assay data. The remaining original core was warehoused at the Anglo-American Kimberley core shed and was viewed and photographed by
the Competent Person during 2011. It has subsequently been relocated to Johannesburg.
- The data have been captured from the original documents.
- No details of the sampling or analytical methodologies are available. It is assumed that the work was undertaken according to the standards of the period.
- The drill holes were drilled during the final phase of work during 1982.
ROK OPTEL
- This information is derived from a summary report (Gresse 1977/12; Report on the farm Rok Optel near Marydale, N. W. Cape); 16 pages, 5 Maps, 4 Figures, 4 drill hole
log sections with assay data, 6 IP pseudo sections undertaken by Newmont South Africa Limited. The project was part of the Unimont Joint Venture with Phelps Dodge.
The drill holes were drilled during 1971 by Hochmetals SWA. Newmont subsequently entered into a JV with Phelps Dodge.
- The data have been captured from the original documents.
- No details are supplied of the sampling or analytical methodologies. It is assumed that the work was undertaken according to the standards of the period.
- The drill holes were drilled in two phases. The first was undertaken by Hochmetals SWA (6 holes). In 1977, Drill hole PUD001 was subsequently deepened and PUD007
drilled by Newmont/Phelps Dodge.
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling - Nature and quality of sampling (e.g. cut channels, random chips, or HARTEBEESTPAN (AREA 4)
techniques specific specialised industry standard measurement tools appropriate - Diamond core was continuously sampled in approximately 1 – 1.5m
to the minerals under investigation, such as down hole gamma intervals.
sondes, or handheld XRF instruments, etc.). These examples should - No additional details are supplied of the sampling techniques of the
not be taken as limiting the broad meaning of sampling. historical drilling presented in the figures and tables in this report and
- Include reference to measures taken to ensure sample representivity publicly reported here for the first time. It is assumed that the work was
and the appropriate calibration of any measurement tools or systems undertaken according to the ‘industry standards’ of the period.
used.
- Aspects of the determination of mineralisation that are Material to the ROK OPTEL
Public Report. - The core was sampled in lengths varying from 0.60 to 5.57m, with a mean
- In cases where ‘industry standard’ work has been done this would be of 2.60m. This is appropriate for a reconnaissance-level assessment of
relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 disseminated magmatic sulphide mineralisation.
m samples from which 3 kg was pulverised to produce a 30 g charge - No additional details are supplied of the sampling techniques of the
for fire assay’). In other cases, more explanation may be required, historical drilling presented in the figures and tables in this report and
such as where there is coarse gold that has inherent sampling publicly reported here for this first time. It is assumed that the work was
problems. Unusual commodities or mineralisation types (e.g. undertaken according to the ‘industry standards’ of the period.
submarine nodules) may warrant disclosure of detailed information.
Drilling techniques - Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air HARTEBEESTPAN (AREA 4)
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, - The historical drilling is presented in the figures and tables in this report
triple or standard tube, depth of diamond tails, face-sampling bit or and publicly reported here for this first time.
other type, whether core is oriented and if so, by what method, etc.). - Diamond core drilling was undertaken.
- No details of the drilling companies used are available.
- B-size core was drilled.
- Drill holes JAC005 and JAC007 were drilled at -60° to 082 and -51° to
354 respectively.
- Drill core was not oriented.
ROK OPTEL
- The historical drilling is presented in the figures in this report and publicly
reported here for this first time.
- Percussion drilling with diamond core tails drilling was undertaken.
- No details of the drilling companies used, or the core diameter are
available. The core has been lost or discarded.
- Drill holes were drilled at -45° to -52° (PUD001to 006) and -60°
(PUD007).
- Drill core was not oriented.
Drill sample - Method of recording and assessing core and chip sample recoveries HARTEBEESTPAN (AREA 4) & ROK OPTEL
recovery and results assessed. - No details are available of the core recovery or possible sample bias.
- Measures taken to maximise sample recovery and ensure
representative nature of the samples.
- Whether a relationship exists between sample recovery and grade
and whether sample bias may have occurred due to preferential
loss/gain of fine/coarse material.
Logging - Whether core and chip samples have been geologically and geo- HARTEBEESTPAN (AREA 4)
technically logged to a level of detail to support appropriate Mineral - The drill hole core has been geologically logged to a high standard
Resource estimation, mining studies and metallurgical studies. consistent with the terminology developed for the project by Anglo-
- Whether logging is qualitative or quantitative in nature. Core (or American.
costean, channel, etc.) photography. - The remaining drill hole core was photographed and appended to the drill
- The total length and percentage of the relevant intersections logged. hole database.
ROK OPTEL
- The drill hole core has been geologically logged to a high standard, the
rock terminology is consistent with all other datasets.
- Mineralogical studies were undertaken to confirm the rock
characterisation and sulphide speciation.
- No geotechnical information is available.
- No core photography is available.
Sub-sampling - If core, whether cut or sawn and whether quarter, half or all core HARTEBEESTPAN (AREA 4)
techniques and taken. - The diamond core was split longitudinally in half using a diamond saw.
sample preparation - If non-core, whether riffled, tube sampled, rotary split, etc. and The original detailed sub-sample information is not available. The
whether sampled wet or dry. summarised data have been captured from the drill logs submitted to the
- For all sample types, the nature, quality and appropriateness of the Government Council for Geoscience.
sample preparation technique.
- Quality control procedures adopted for all sub-sampling stages to ROK OPTEL
maximise representivity of samples. - No details are available with respect to sub-sampling techniques and
- Measures taken to ensure that the sampling is representative of the sample preparation.
in-situ material collected, including for instance results for field
duplicate/second-half sampling.
- Whether sample sizes are appropriate to the grain size of the material
being sampled.
Quality of assay data - The nature, quality and appropriateness of the assaying and HARTEBEESTPAN (AREA 4)
and laboratory tests laboratory procedures used and whether the technique is considered - The samples were analysed at the Anglo-American Research
partial or total. Laboratories, Booysens, Johannesburg.
- For geophysical tools, spectrometers, handheld XRF instruments, - No details of the quality control procedures are available.
etc., the parameters used in determining the analysis including
instrument make and model, reading times, calibrations factors ROK OPTEL
applied and their derivation, etc. - No details are available with respect to laboratory, or quality control.
- Nature of quality control procedures adopted (e.g. standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels
of accuracy (i.e. lack of bias) and precision have been established.
Verification of - The verification of significant intersections by either independent or HARTEBEESTPAN (AREA 4) & ROK OPTEL
sampling and alternative company personnel. - No data are available.
assaying - The use of twinned holes.
- Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
- Discuss any adjustment to assay data.
Location of data - Accuracy and quality of surveys used to locate drill holes (collar and HARTEBEESTPAN (AREA 4)
points down-hole surveys), trenches, mine workings and other locations - The drill holes are indicated on the geological maps in the historic report.
used in Mineral Resource estimation. - The collars have been located in the field and surveyed using a handheld
- Specification of the grid system used. Garmin GPS.
- Quality and adequacy of topographic control. - The data are recorded using the WGS84 datum, UTM Zone 36S.
ROK OPTEL
- The drill holes are indicated on the geological maps in the historic report.
- The collars have been located in the field and surveyed using a handheld
Garmin GPS.
- The data are recorded using the WGS84 datum, UTM Zone 36S.
Data spacing and - Data- spacing for reporting of Exploration Results. HARTEBEESTPAN (AREA 4)
distribution - Whether the data-spacing and distribution is sufficient to establish the - The drill holes are scout holes that were sited to test an IP anomaly
degree of geological and grade continuity appropriate for the Mineral supported by geological mapping and surface geochemistry. The spacing
Resource and Ore Reserve estimation procedure(s) and is not sufficient to establish a degree of grade and geological continuity
classifications applied. appropriate for Mineral Resource estimation.
- Whether sample compositing has been applied.
ROK OPTEL
- The drill holes are oriented to drill a NNE-striking zone at spacing of 75-
300m over a strike extent of 670m. The spacing is not sufficient to
establish a degree of grade and geological continuity appropriate for
Mineral Resource estimation.
Orientation of data - Whether the orientation of sampling achieves unbiased sampling of HARTEBEESTPAN (AREA 4)
in relation to possible structures and the extent to which this is known, considering - The host stratigraphy dips steeply to the west intrusive geometry is
geological structure the deposit type. uncertain. Drilling was undertaken from the west and north to intersect
- If the relationship between the drilling orientation and the orientation geophysical anomalies Intersection angles to mineralised units are uncertain.
of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
ROK OPTEL
- The host stratigraphy dips steeply to the West. Intrusive geometry is
uncertain. Drilling was undertaken from the east and west to test IP
anomalies. Intersection angles to mineralised units are uncertain
Sample security - The measures taken to ensure sample security. HARTEBEESTPAN (AREA 4) & ROK OPTEL
- No information is available.
Audits or reviews - The results of any audits or reviews of sampling techniques and data. HARTEBEESTPAN (AREA 4) & ROK OPTEL
- No information is available.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Mineral tenement - Type, reference name/number, location and ownership including HARTEBEESTPAN (AREA 4) & ROK OPTEL
and land tenure agreements or material issues with third parties such as joint - The farms Hartebeestpan 175 and Optel 261 have overlapping rights (in
status ventures, partnerships, overriding royalties, native title interests, respect of differing minerals) held by two companies.
historical sites, wilderness or national park and environmental - Namaqua Nickel Mining (Pty) Ltd (Namaqua) holds mining right NC
settings. 30/5/1/2/2/10032MR over Farm No. 387, the farm Hartebeest Pan 175
- The security of the tenure held at the time of reporting along with any (Portion RE5), Jacomyns Pan 176 (Portion RE1), Rok Optel 261 (Portion
known impediments to obtaining a licence to operate in the area. RE1, Portion RE2, Portion RE3) for the mining of Nickel, Copper, Cobalt,
PGM and Gold. This right was granted on 19 September 2016 subject to
certain conditions, which include local community participation and
environmental financial guarantees, but is not yet executed.
- Disawell (Pty) Ltd (Disawell) holds two prospecting rights namely NC
30/5/1/1/2/11010 PR over Jacomyns Pan 176 (Portion RE, Portion 1,
Portion 2); Rok Optel 261 (RE, Portion 1, Portion 2, Portion 3); Rooi Puts
172 (Portion 2, Portion 3, Portion 4) and NC 30/5/1/1/2/10938 PR over
Hartebeest Pan 175 (RE, Portion 3, Portion 4, Portion 5) and Farm 387,
each for the prospecting of Zinc, Lead and Sulphur.
- Disawell and Namaqua entered into an earn-in agreement with Orion
Minerals, in terms of which Orion (through its subsidiary, Area Metals
Holdings No. 3 (Pty) Ltd) is granted the right to invest in these companies.
- No historical or environmental impediments to obtaining an operating
licence are known.
Exploration done by - Acknowledgment and appraisal of exploration by other parties. HARTEBEESTPAN (AREA 4)
other parties - On Hartebeest Pan 175, exploration has been undertaken by several
parties, although only limited data are available. Mercury Mining (Pty) Ltd,
an Anglovaal subsidiary, undertook exploration during the early 1970s,
including mapping, soil sampling, and geophysics, before drilling several
drill holes adjacent to this area. Limited information is available from this
campaign.
ROK OPTEL
- On Rok Optel 261, exploration has been undertaken by several parties,
although only limited data are available. Hochmetals SWA explored
during the early 1970s and drilled 6 drill holes. Poor quality standardised
and summarised geological drill logs, submitted to the government
Council for Geoscience, are the only information remaining from this
period. The Newmont/Phelps Dodge JV exploration program is reported
by Gresse (1977) which includes geological maps, drill sections and
plans of the geophysical grids for IP survey. Drill hole DDH001 was
deepened, and a new hole PUD007 drilled. The previous drill holes were
all renamed from “DDH” to “PUD” by Newmont.
Geology - Deposit type, geological setting and style of mineralisation. HARTEBEESTPAN (AREA 4)
- The Hartebeestpan mineralisation is contained within portions of a
steeply dipping metamorphosed mafic to ultramafic intrusion several tens
of metres thick containing nickel-copper sulphides. The intrusion is
predominantly harzburgite and pyroxenite, with surrounding norite and
gabbro. The intrusion is enclosed within quartz-feldspar-biotite-garnet
gneiss country rocks and is locally interfingered with late-orogenic
granite.
ROK OPTEL
- The Rok Optel mineralisation is contained within portions of a steeply
dipping metamorphosed mafic to ultramafic intrusion. Several tens of
metres thick, containing nickel-copper sulphides. The intrusion is
predominantly norite, with lenticular bodies of pyroxenite to harzburgite.
The intrusion is enclosed within quartz-feldspar-biotite-garnet gneiss
country rocks.
Drill hole - A summary of all information material to the understanding of the HARTEBEESTPAN (AREA 4) & ROK OPTEL
Information exploration results including a tabulation of the following information - See Appendix 1 for historic drill-hole information.
for all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above sea level in
metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o 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, HARTEBEESTPAN (AREA 4) & ROK OPTEL
methods maximum and/or minimum grade truncations (e.g. cutting of high - The historic drill data have been captured into a standard MS Excel
grades) and cut-off grades are usually Material and should be stated. spreadsheet within which assays are colour coded according to grade.
- Where aggregate intercepts incorporate short lengths of high grade The cut-off grade is defined based upon the Ni analyses only, and no
results and longer lengths of low grade results, the procedure used metal equivalents are applied. No top-cutting is applied. Samples below
for such aggregation should be stated and some typical examples of detection limit are assigned a dummy value of 50% of detection limit, but
such aggregations should be shown in detail. these are generally not included in the composites. The composite
- The assumptions used for any reporting of metal equivalent values intervals are then calculated by selecting the samples within a zone
should be clearly stated. defined by the cut-off grade being applied. No external marginal grade
samples are included within the composite, but internal low-grade zones
may be included if they do not dilute the entire interval to below the cut-
off grade being applied. If density data are available, the assay grades
are weighted by width and density. If no density data are available, width
weighting is applied.
Relationship - These relationships are particularly important in the reporting of HARTEBEESTPAN (AREA 4) & ROK OPTEL
between Exploration Results. - Drilling was undertaken from the south to intersect at a reasonable angle
mineralisation - If the geometry of the mineralisation with respect to the drill hole to dip; however, the geometry of the mineralisation with respect to the
widths and intercept angle is known, its nature should be reported. drill hole angles are not known in enough detail to state the true widths of
lengths - If it is not known and only the down hole lengths are reported, there the interceptions. All mineralised intervals reported here are down-hole
should be a clear statement to this effect (e.g. ‘down hole length, true lengths.
width not known’).
Diagrams - Appropriate maps and sections (with scales) and tabulations of HARTEBEESTPAN (AREA 4) & ROK OPTEL
intercepts should be included for any significant discovery being - The drill holes are illustrated by Figures 4, 5, 6 and 7 and tabulated in
reported. These should include, but not be limited to a plan view of Appendix 1.
drill hole collar locations and appropriate sectional views.
Balanced reporting - Where comprehensive reporting of all Exploration Results is not HARTEBEESTPAN (AREA 4) & ROK OPTEL
practicable, representative reporting of both low and high grades - In the Competent Person’s view, the historic drill results and the
and/or widths should be practiced to avoid misleading reporting of geophysical targets are presented in a balanced manner in this Public
Exploration Results. Report.
Other substantive - Other exploration data, if meaningful and material, should be reported HARTEBEESTPAN (AREA 4) & ROK OPTEL
exploration data including (but not limited to): geological observations; geophysical - Extensive geology mapping, geochemical sampling, and airborne and
survey results; geochemical survey results; bulk samples – size and ground geophysical programmes were undertaken by previous explorers,
method of treatment; metallurgical test results; bulk density, using the equipment and methods available at that time. These
groundwater, geotechnical and rock characteristics; potential geophysical data are not all available, and mainly comprises plans
deleterious or contaminating substances. without the back-up information to verify the data validity. The new
geophysical exploration, using modern technology, supersedes all
previous geophysics. The geology mapping remains valid and has been
digitally captured. The geochemical data have been captured from the
original plans and used where appropriate.
- In 2017 and 2018 Orion undertook a regional SkyTEM TM geophysical
survey. The results are reported in ASX releases 1 February 2018 and 8
March 2018. Interpretation of the results is ongoing.
- Ground FLTDEM surveys are underway.
Further work - The nature and scale of planned further work (e.g. tests for lateral HARTEBEESTPAN (AREA 4) & ROK OPTEL
extensions or depth extensions or large-scale step-out drilling). - Ground-based Fixed Loop Electromagnetic surveys will be undertaken to
- Diagrams clearly highlighting the areas of possible extensions, cover the extent of airborne conductors identified from the recent
including the main geological interpretations and future drilling areas, SkyTEMTM airborne survey. The detailed location and extent of this work
provided this information is not commercially sensitive. is yet to be finalised.
- Modelled TDEM plates will be drill tested to confirm sources of
conductance.
- Diamond drilling is planned to test TDEM plates.
Date: 03/07/2018 09:30:00 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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