Orion Minerals Nears DFS Completion, Eyes 2026 Production Leap

Transitioning to Developer Status

Orion Minerals is making significant strides in its evolution from explorer to mine developer, with its flagship projects in South Africa's Northern Cape Province moving closer to production readiness. The company’s December 2024 quarterly report highlights near completion of Definitive Feasibility Studies (DFS) for both the Flat Mines Project at the Okiep Copper Project (OCP) and the Prieska Copper Zinc Mine (PCZM), with independent technical reviews currently underway.

Managing Director Errol Smart emphasised the importance of the extended review process, noting that while the DFS timelines have stretched beyond initial expectations, the rigorous scrutiny will underpin more robust project studies. This, in turn, is expected to facilitate access to diverse funding sources including debt, equity, and offtake agreements.

Definitive Feasibility Studies and Project Milestones

The Flat Mines Project DFS is anticipated to be approved and released in February 2025, marking a critical milestone for the OCP’s first mine development. Concurrently, the PCZM DFS is progressing well, with outcomes expected before the end of the March 2025 quarter. Both studies are undergoing external review by Practara Metals and Mining Advisory, ensuring independent validation of technical and economic assumptions.

On-site progress at PCZM includes the completion of a 13-hectare water storage dam, a key component of the future Tailings Storage Facility (TSF), constructed at a cost below initial contractor estimates. Dewatering efforts have been successful, with pumping rates exceeding 500 cubic meters per hour and forced evaporation rates reaching up to 140 cubic meters per hour, supporting the mine’s water management strategy.

Encouraging Drilling and Exploration Results

Confirmatory diamond drilling at the OCP’s Flat Mines area has yielded positive results, reinforcing the presence of high-grade copper mineralisation. Notably, drill hole OFMSD083 intersected 40.52 meters at 1.34% copper, including a higher-grade 18.52-meter section at 2.00% copper, extending known mineralisation zones. These findings support the DFS assumptions and bolster confidence in the project's long-term potential.

Additional geophysical surveys are underway, with recent data modelling revealing promising targets analogous to the historically significant Carolusberg Deeps deposit. Such exploration success underscores the district’s rich copper endowment and the potential for resource expansion.

Operational Readiness and Community Engagement

Orion’s operational preparations are well advanced, with electrical infrastructure upgrades completed at PCZM, including a 15MVA substation and Eskom grid connection, ensuring reliable power supply free from load shedding interruptions. Underground dewatering infrastructure is fully operational, and early mining methods have been optimised to increase production rates while reducing costs.

Beyond technical progress, Orion continues to engage proactively with local communities. The company has supported youth forums addressing social challenges and skills development, and provided disaster relief following severe storms. The submission of a new Social and Labour Plan for PCZM reflects Orion’s commitment to sustainable development and local economic benefits.

Looking Ahead

With first production targeted for 2026 and an aspirational goal of ramping copper output to over 50,000 tonnes per annum by decade’s end, Orion Minerals is positioning itself as a key player in the base metals sector critical to the clean energy transition. The upcoming DFS releases will be pivotal in shaping investor confidence and securing the necessary funding to advance these projects into operational phases.