JSE- and ASX-listed Orion Minerals' work programmes during the interim period to December 31, 2024, focused on the progression of definitive feasibility studies (DFS) for the company’s flagship Prieska copper/zinc mine (PCZM) and Okiep copper project (OCP), in South Africa, are both scheduled for release in the March quarter.

The company is targeting first production from its key development projects in 2026, with the goal of ramping up copper production to more than 50 000 t/y by the end of the decade.

Work on the DFS for the Flat Mines project (FM Project), the first mine that Orion intends to develop at OCP, was significantly progressed, with the study nearing completion at the end of the reporting period.

An external review is under way by independent technical experts Practara Metals and Mining Advisory.

Once the DFS report is completed to the satisfaction of Practara, the DFS will be considered and approved by the partners of the FM project, including the Industrial Development Corporation (IDC).

The DFS for PCZM, which is also indicated to be well advanced, will follow a similar approval process.

The study is also currently being independently reviewed by Practara and will then move to review and approval from the partners including the IDC, Prieska Resources and Triple Flag Precious Metals.

Although the investment in additional experts to assist the feasibility project team and the allowance for additional time to complete detailed scheduling and mine planning has added to the overall study timeline, these measures are yielding positive outcomes with enhanced project metrics, Orion points out.

At the PCZM, Orion also highlights significant progress made during the period on the focus areas of operation of the mine dewatering infrastructure, the completion of the construction of a 13 ha water storage dam on the tailings storage facility footprint, the operation of the 15 MVA Eskom Cuprum substation, early works on the main shaft (Hutchings), sub-bank preparation for future shaft refurbishment, and above-water-evel shaft infrastructure inspection.

The Jacomynspan nickel/copper/platinum group elements project is Orion’s third project alongside PCZM and OCP. Planning continued in the period for a trial mining exercise to generate a sufficient scale representative bulk sample of Jacomynspan ore to evaluate innovative metallurgical refining/battery precursor production on a pilot scale.

During the reporting period, tenements held within the joint venture with IGO which had been surrendered or voluntarily relinquished, were finalised with the West Australian Department of Mineral Resources.

A write-down of the carrying value of the Fraser Range project by the company was also completed.

The Moving Loop Electromagnetic (MLEM) survey at the Peninsula target area was completed during the reporting period by IGO, with results received following period-end.

The MLEM was testing a target anomaly imaged from a previous airborne electromagnetic survey. Planned works for the forthcoming period on E39/1653 include track rehabilitation.

No field or exploration work was carried out on the Victoria project during the reporting period.

The lost-time injury frequency rate per 200 000 hours worked is 0 for the 2024 calendar year.

At the end of the reporting period, the company achieved 2 054 days without a lost-time injury.

Following extensive community consultation and engagement meetings, a new social and labour plan for PCZM for the period 2025 to 2029 was completed and submitted to the Department of Mineral and Petroleum Resources for approval during the reporting period.

FINANCIAL

Cash on hand at period end was $6.35-million.

The group recorded a loss for the half-year of $6.52-million, driven primarily by contractor and adviser expenses of $1.18-million, exploration expenditure incurred of $2.44-million which, under its deferred exploration, evaluation and development policy, did not qualify to be capitalised and was expensed, and finance income of $2.74-million, principally related to interest receivable on the company’s investment in preference shares, issued to the company (through its subsidiary Agama Exploration and Mining) by Prieska Resources.

Net cash used in operating and investing activities for the half-year totalled $15.74-million and included payments for exploration and evaluation activities.

Net cash from financing activities totalled $13.85-million and included proceeds from the issue of ordinary shares of $11.32-million.

Cash on hand at period-end was $6.35-million.