| Tue 5 Sep 2023, 8:29 | | ORION MINERALS LIMITED - Orion Awards Trial Mining Contract for Prieska Copper-Zinc Mine to Newrak Mining Group |
|
Orion Awards Trial Mining Contract for Prieska Copper-Zinc Mine to Newrak Mining Group
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 Awards Trial Mining Contract for Prieska Copper-Zinc Mine to Newrak Mining Group
Newrak will operate a trial fleet of ITC equipment together with a full conventional mechanised mining fleet to
compare efficiencies during the trial mining phase
- Newrak Mining Group is an experienced South African contract mining company with 28 years of
operating history.
- A previous Prieska Copper Mine Production Manager, Andy Brown, will be part of the Newrak Team,
bringing irreplaceable operating experience at Prieska.
- Newrak will operate both with a fleet of conventional load, haul & dump loaders and with an innovative
continuous loading machine which has recently been introduced to the South African market and
secured by Orion on demonstration rental.
- The ITC120 continuous loader is expected to bring improved efficiencies to mucking operations and
accelerate access tunnel development and ore drive development.
Orion’s Managing Director and CEO, Errol Smart, commented:
“This is a tremendously exciting period for Orion as we move to active trial mining at Prieska and start our transition
from developer to operating mining company. We have spent the past two months completing essential
preparations, such as installing underground refuge chambers, upgrading hoisting capacity of the emergency
escapeway to surface and sourcing and installing key ventilation equipment.
“With these essential safety and environmental preparations now complete, we can finally mobilise the mining
contractor to commence drilling, blasting and hauling ore to surface.
“The trial mining phase will also see Orion apply our core philosophy of bringing proven, innovative methods
matched with appropriate skills and experience to our operations, while at the same time training and upskilling
our host community members so that we can ultimately source our staff locally. We also aim to develop local
enterprises to service Orion’s mines and the South African mining industry, encouraging our service providers and
contractors to support these endeavours and contribute to the skills transfer and enterprise development.”
Orion Minerals Limited (ASX/JSE: ORN) (Orion or Company) is pleased to advise that it has awarded a 6-month
trial mining contract to P2 Mining (PTY) LTD, a subsidiary of South African mining contractor Newrak Mining Group
(Newrak) to undertake the early works trial underground mining program at the Prieska Copper Zinc-Mine (PCZM)
in the Northern Cape Province.
The trial mining will target the +105 Level Crown Pillar, using conventional and alternative underground mining
methods. The trial mining will comprise 120m of footwall ramp development, before accessing the high-grade
supergene ore of the +105 block with ore development along strike for 150m on either side of the primary access
(refer ASX/JSE release 25 July 2023) as the primary in a cut-and fill mining cycle (Figures 1 and 2).
Figure 1: Access ramp, reef drives and raises in +105 trial Mining Project.
Figure 2: Conceptual Layout of +105 Resource Drift & Fill Mining.
In addition, the Newrak contract also covers the opening of the 143 Level historical stope draw-points for
selective loading and hauling to surface of broken ore remaining in the stopes, in order to perform bulk sampling
and metallurgical trials on the material. If successful, this exercise will continue to build a stockpile on surface for
future processing once the concentrator plant is commissioned.
Part of the trial mining contract with Newrak is to test an ITC120 continuous loader and two 20-tonne bi-directional
trucks in the underground development cycle. This machine trial is being undertaken at Orion’s request with
equipment secured from Germany.
PZCM to test ITC120 Continuous Loader
Orion will be testing an ITC120 continuous loader supported by two specifically paired bi-directional drive trucks
at the PCZM operation. The ITC120 loader shows great promise in delivering improved cycle times and
development rates compared to conventional mechanised rock loading and hauling methods. It is envisaged
that these improvements can deliver significant a positive impact on both the +105 and the Prieska Deeps mining
once dewatering has been completed.
The ITC120 continuous loader and the Paus 20t dump trucks are supplied via Hurst Mine Tec (HMTEC), the newly
established local representative for Swiss group ITC. HMTEC is introducing the proven European tunneling
technology into South Africa for the first time and will support the imported equipment locally (www.h-
mtec.co.za).
During development, the combination of the continuous loader with the two bi-directional drive dump trucks is
expected to show significant improvements in safety, cycle time reduction and lowering development costs,
with one machine doing all scaling, mucking and loading in a face. Direct conveyor loading into dump trucks
driven into the face removes the need for shuttling load haul dumpers and removes the requirement for loading
and passing bays in the development tunnels. The bi-directional drive trucks also improve safety, removing the
need for reversing long distances by load, haul & dump loaders. Importantly, the number of engines running is
reduced, with a resulting decrease in exhaust gases and heat.
The continuous loader and paired bi-directional trucks are anticipated to have particular application in the drift-
and-fill stopes that will be prevalent in both the +105 mining block and in the shallow-dipping Prieska Deeps ore
blocks.
The anticipated improvements in development cycle time and associated cost reductions will be demonstrated
during trial mining and carried forward to the revised BFS for the early mining start and planned future deeps
mining at PCZM.
Photo: ITC Loader and paired Paus bi-directional haul trucks to be used in the trial mining.
Photo: ITC Loader.
Commitment to Local Enterprise Development and Skills Transfer
In awarding this contract, the Company is cognisant of the host community participation framework developed
in consultation with local business chambers and community representatives.
While Newrak will bring experience and skills for the efficient start-up of operations that are not available in our
host community, Orion has ensured that the trial mining will be used as a platform to upskill and train local people.
Newrak will be taking on board members from the host community for training and skills transfer over the trial
mining period. These are members of the host community that have shown an interest in a career in mining and
form part of the first group of 20 trainees selected for Competency B training at the Murray and Roberts Training
Centre in Carletonville. These trainees departed Prieska for their training on 3 September 2023. The 20 trainees
will be considered for ongoing training under Newrak stewardship, when they successfully complete their
competency training.
In addition, the Company, together with Newrak (www.newrakmining.co.za), will engage with the most
competitive of the unsuccessful host community tenderers for the trial mining contract to jointly explore possible
collaboration and capacity building opportunities during the contract period.
Photo: Andre Bergh – Prieska Mine General Manager, with trainees, prior to their departure for the Murray & Roberts Training Centre.
For and on behalf of the Board.
Errol Smart
Managing Director and CEO
5 September 2023
ENQUIRIES
Investors Media JSE Sponsor
Errol Smart – Managing Director & CEO Nicholas Read Monique Martinez
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: monique.martinez@merchantec.com
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: 05-09-2023 08:29:00
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
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
