Orion Minerals Unlocks Value in South Africa's Northern Cape Mineral Belt

• Orion Minerals is focused on developing a brownfield mining site in South Africa, particularly in the Northern Cape, with a strong emphasis on mechanized and modern mining techniques.
• The company has secured funding and aims to take advantage of the growing demand for critical metals, positioning itself as a significant player in copper and nickel production in the region.

About Orion Minerals

Orion Minerals is an Australian mining company unlocking the value of South Africa's prolific Northern Cape mineral belt. Led by managing director and CEO Errol Smart, Orion has systematically acquired overlooked assets and utilized modern exploration techniques to outline significant resources. Importantly, the company is pursuing innovative development strategies to transition projects into production amid a rising commodity price environment.

Exploring a Neglected Copper District

A key asset for Orion is the large Prieska Copper-Zinc Project located near Copperton in the Northern Cape Province. Historically operated by Anglo American, the mine produced over 430,000 tonnes of copper and more than 1 million tonnes of zinc from an underground operation before closing in 1991 when copper prices were low.

Rather than an exhausted ore body, Orion recognized Prieska as a neglected asset with substantial remaining potential. Since acquiring the project in 2017, Orion has undertaken extensive drilling to define a new resource estimate. To date, 31 million tonnes grading 1.2% copper and 3.7% zinc has been outlined at the 4675 meter deep VMS deposit. Importantly, mineralization remains open at depth with the potential to significantly expand the deposit.

Innovative Phased Development Approach

Faced with the challenge of financing a large-scale project restart, Orion devised an innovative phased approach to reduce upfront capital and accelerate cash flow.

The first phase will involve accessing near-surface oxide ore ideal for processing through heap leaching. With low costs of $30 million, the mine will produce 20,000 tonnes of copper over a 6-year period starting in 2024. Profits will fund Phase 2 underground development targeting the larger sulphide resource.

Orion has already raised A$147 million to advance Prieska, including a cornerstone investment from the Tembo Capital Mining Fund. With permits imminent, site preparation is underway and construction will commence in Q1 2023.

Reviving a Prolific Copper Belt

Beyond Prieska, Orion controls an extensive land package covering 70% of the Okiep Copper District. This historically prolific belt produced over 2 million tonnes of copper across 27 mines before operations ceased in the late 1980s.

Significant potential remains within Orion's holdings, which contain an estimated 178 million tonnes grading 1.2% copper across 50 deposits. The company is systematically advancing exploration and development studies to outline project opportunities.

Priority targets include the advanced Kantienpan deposit where 101 million tonnes of sulphide ore is defined and the Vredevoogt prospect with 39 million tonnes of near-surface oxidized ore amenable to heap leaching. Orion aims to establish multiple operations across the district, collectively producing 50,000 to 70,000 tonnes of copper per year.

Critical Minerals Potential

Orion's properties also host potential for critical minerals like nickel, cobalt, zinc and rare earth elements. The company controls over 660,000 hectares in the Areachap belt spanning the Northern Cape and Free State provinces.

At the advanced Jacomynspan project, Orion has outlined 18.9 million tonnes grading 0.34% nickel, 0.05% cobalt and 0.91% zinc. Additional nickel and PGE potential exists across the belt based on sampling and past drilling by Anglo American. Ongoing exploration aims to define resources amenable to open pit mining.

Unlocking Downstream Processing

A key strategic focus for Orion is pursuing downstream processing solutions, including novel techniques for ethical and sustainable mineral extraction. The company has an agreement with Australia's CSIRO to develop an innovative hydrometallurgical process for critical minerals recovery. Additional opportunities exist for establishing refining capacity in South Africa's Northern Cape region to add value and enable ethical supply chains.

Investment Thesis

With its portfolio of advanced projects and disruptive strategies, Orion Minerals represents a unique entry point for investors seeking leverage to rising copper and critical mineral prices. Key advantages include:

• Near-term production and cash flow from the Prieska Project to fund growth
• Large copper resources in a proven mining district
• Critical minerals potential in an emerging European supply hub
• Innovative solutions for sustainable mineral extraction
• Highly experienced management team with decades of experience in South Africa

Orion offers substantial blue-sky upside as commodity prices strengthen. The company estimates its assets could deliver A$15 billion in free cash flow over coming decades as operations scale up. With an enterprise value of approximately A$150 million, Orion provides exceptional leverage to unlocking South Africa's mineral wealth.