Orion Minerals Limited Investor presentation May 2018 BFS & intense regional exploration underway, delivering results in a proven minerals belt Developing world class zinc and copper deposits
DISCLAIMER AND FORWARD LOOKING STATEMENTS Certain statements contained in this presentation, Orion disclaims any intent or obligation to update To the maximum extent permitted by law, Orion and any including information as to the future fjnancial or publicly any forward-looking statements whether as a of its related bodies corporate and affjliates and their operating performance of Orion Minerals Ltd (Orion) result of new information, future events or results or offjcers, employees, agents, associates and advisers: and its projects, are forward-looking statements. Such otherwise. - disclaim any obligations or undertaking to release forward-looking statements: The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, any updates or revisions to the information to - are necessarily based upon a number of ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, refmect any change in expectations or assumptions; estimates and assumptions that, while considered ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar - do not make any representation or warranty, reasonable by Orion Minerals Ltd, are inherently expressions identify forward-looking statements. express or implied, as to the accuracy, reliability subject to signifjcant technical, business, All forward-looking statements made in this or completeness of the information in this economic, competitive, political and social presentation are qualifjed by the foregoing cautionary presentation, or likelihood of fulfjlment of any uncertainties and contingencies; statements. Investors are cautioned that forward- forward-looking statement or any event or results - involve known and unknown risks and looking statements are not guarantees of future expressed or implied in any forward-looking uncertainties that could cause actual events performance and accordingly investors are cautioned statement; and or results to differ materially from estimated or not to put undue reliance on forward-looking statements - disclaim all responsibility and liability for these anticipated events or results refmected in such due to the inherent uncertainty therein. forward-looking statements (including, without forward-looking statements; and All information in respect of Exploration Results limitation, liability for negligence). - may include, among other things, statements and other technical information should be read in Nothing contained in this presentation constitutes regarding targets, estimates and assumptions in conjunction with the relevant ASX announcements investment, legal, tax or other advice. The information respect of metal production and prices, operating released by the Company. does not take into account the investment objectives, costs and results, capital expenditures, mineral Orion is not aware of any new information or data fjnancial situation or particular needs of any recipient. reserves and mineral resources and anticipated that materially affects the information for the Mineral Before making an investment decision, each recipient grades and recovery rates, and are or may be Resource and confjrms that all material assumptions of this presentation should make its own assessment based on assumptions and estimates related to and technical parameters underpinning the estimates and take independent professional advice in relation to future technical, economic, market, political, social in the relevant Orion ASX releases (as referenced in the the information and any action taken on the basis of this and other conditions. presentation) continue to apply and have not materially presentation. changed. Orion confjrms that the form and context in which the Competent Person’s fjndings are presented have not materially changed. 1 Orion Minerals | ASX & JSE: ORN | Zn, Cu, Ni, Au, Ag, PGE
OVERVIEW Connors Arc WHAT WE DO Project Queensland, Australia Orion Minerals is a polymetallic minerals Sold to Evolution exploration and development company Mining (EVN) focusing on zinc, copper, nickel, gold and (May 2018) silver, as well as platinum-group metals with Areachap Projects Fraser Range Northern Cape, South Africa projects in South Africa and Australia Project Western Australia, Australia Orion’s flagship project is the Prieska Zinc - Independence Group (IGO) Becomes strategic partner, Copper Project in the Areachap Terrain, JV with IGO May 2018 (March 2017) Northern Cape, South Africa The Company has a primary listing on the Australian Securities Exchange (ASX: ORN) and a secondary listing on the Johannesburg Stock South African Offices: Exchange (JSE: ORN) Kimberley, Northern Cape Prieska, Northern Cape Australia Head Office: Melbourne, Victoria 2 Orion Minerals | ASX & JSE: ORN | Zn, Cu, Ni, Au, Ag, PGE
ORION CORPORATE SUMMARY ASX primary listing Independence Group (IGO): JSE secondary listing Increased shareholding in ORN to 11% through a A$5M share placement (4) • • Entered into collaborative agreement in respect of ORN’s nickel projects in Capital Structure Summary Significant Holder Name % South Africa Shares on Issue (4) 1,390M Tembo Capital 18.56 Options on Issue 218M Independence Group NL 11.09 Market Capitalisation (4.4cps (ASX)) (1) A$61.2M Tarney Holdings 7.41 Bridge Loan (12% interest, 31 May 2018 Hargreave Hale Ltd 6.00 A$6.0M term) (2) Silja Investment and 4.97 Convertible Notes (2.6 cps convert, 12% Alexander Haller A$6.0M coupon, March 2019 maturity) (3) Significant Holder Total 48.03 AASMF Loan (3) A$1.5M AASMF Preference Shares (3) A$2.1M Cash on hand (at 31 March 2018) (4) A$1.6M (1) Closing price of ORN Shares on the ASX on 25 May 2018. Closing price of ORN Shares on the JSE on 24 May 2018 was ZAR 0.48 (2) Refer to ASX releases 18 August 2017 and 15 November 2017 for additional information. As at 31 March 2018, $4.56M had been drawn down against the Bridge Loan (3) Refer to the Company’s December 2017 Interim Financial Report for information related to the Convertible Notes, along with the Preference Shares Agreement (ZAR15.75M) and a Loan Agreement (ZAR14.25M) that Repli Trading No 27 (Pty) Ltd (a 73.33% owned subsidiary of Agama Exploration & Mining (Pty) Ltd) has entered into with Anglo American Sefa Mining Fund (4) On 2 May 2018, ORN sold its Connors Arc Project to EVN for A$2.5M cash and a 2% NSR gold royalty from the project to a value of A$5M. On 21 May 2018, ORN issued IGO 100M shares at 5cps raising A$5M (5) Mr Alexander Haller is deemed to have a relevant interest in securities held by Silja Investment Ltd 3 Orion Minerals | ASX & JSE: ORN | Zn, Cu, Ni, Au, Ag, PGE
CORPORATE STRATEGY & VISION FOCUSED ON THE RE-DEVELOPMENT OF THE PRIESKA ZN-CU PROJECT 1 • Maiden JORC Resource • Lodge Mining Right and Environmental Application Fast-track Prieska • Complete a Bankable Feasibility Study (BFS) • Expand and upgrade the Prieska Project Mineral Resource 2 • Secured mid-tier miner, IGO as a strategic partner Maximise the opportunity of • Regional exploration opportunity surrounding Prieska the world class • Progress highly prospective regional Nickel-Copper- Cobalt and Zinc-Copper projects Areachap minerals belt 3 Leverage off existing JV • Secured mid-tier miner, IGO as a JV partner partner for Fraser Range • Free carried to completion of pre-feasibility study • Targeting ultramafic nickel / copper discoveries project 4 Orion Minerals | ASX & JSE: ORN | Zn, Cu, Ni, Au, Ag, PGE
FY18 IN REVIEW STRONG PROGRESS MADE ACROSS BUSINESS Prieska Development Projects Fraser Range • Maiden JORC Mineral Resource* • Independence Group (IGO) • Secured strong JV partner IGO in Over 50,000m of drilling resulted in a secures Joint Venture rights 2017 Successfully working a major, regional maiden JORC Mineral Resource of 29.4Mt – IGO have preferential rights should Orion decide to JV or sell any of its scale interpretation, of the geological @ 3.8% Zinc, 1.2% Copper nickel projects framework of the Albany Fraser Orogen • Significant Infrastructure in place – IGO increased shareholding in ORN Detailed engineering assessments to 11% through a $5M share • IGO placement and collaborative working Is responsible for all exploration on confirm the integrity of the main relationship formed between ORN and the tenements, providing regular updates hoisting shaft IGO to enhance ORN’s planned to ORN of its activities and results regional exploration programs within • Mining Right Application the Areachap Belt, South Africa Lodged, April 2018 • Airborne electromagnetic survey • Metallurgical test work Flowsheet development phase of (AEM) metallurgical studies completed Identified several high priority successfully. targets for follow up work Validation and optimisation work underway • Masiqhame & Namaqua -Disawell Provides significant potential to • Ongoing drilling • Ongoing drilling operate as satellite deposits to Prieska Targeting upgrade of Mineral Resource in the future 5 Orion Minerals | ASX & JSE: ORN | Zn, Cu, Ni, Au, Ag, PGE *refer ASX release 9 April 2018
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