Orion Minerals, the ASX and JSE listed mining company, today announced that it has received a notice of the grant of a Mining Right in terms of the Mineral and Petroleum Resources Development Act for the Vardocube extensions of its flagship Prieska Copper-Zinc Project in South Africa’s Northern Cape Province.
“We are extremely pleased that the final regulatory hurdle for the development of the Prieska Copper-Zinc Mine has now been fulfilled. Prieska is now positioned to play a major role in the post-COVID economic recovery of the Northern Cape region of South Africa with the development of a world-class base metals mining operation,” says Orion Minerals MD and CEO Errol Smart.
The Vardocube Mining Right covers 27% of the ore included in the updated Bankable Feasibility Study announced on 26 May 2020 and, importantly, also covers highly prospective exploration upside in the near-mine area. It supplements the Prieska Copper Zinc Mine (formerly Repli) Mining Right granted last year, which covers 73% of the bankable mine plan.
The granting of the Mining Right follows the grant of the Environmental Authorisations over both areas and the Water Use Licence granted on 6 August 2020. Together these constitute the key approvals required to operate the Prieska Mine.
“The achievement of this major milestone is testament to the exceptional geological potential and attractive business operating environment that we have found and made our home in the Northern Cape. In less than five years we have been able to locate, acquire, drill out, complete a high-quality Bankable Feasibility Study and fully permit a world-class modern mine, to international best practice standards,” says Smart.
The project has already seen over R450-million (A$36-million) in foreign direct investment to reach this stage and is now poised to bring in a further investment of over R5,4-billion (A$432-million) over the next three years as Orion constructs a mine projected to deliver more than R40-billion (A$3,2-billion) of mineral exports over an initial 12-year life.
“This is a clear demonstration of the potential of junior mining and exploration and the significant financial benefits that it can mobilise, when working with a supportive host community, strong BEE partners and proactive local and provincial government,” says Smart.
Orion acknowledged the work that has been put in during the COVID-19 lockdown period by officials at the Department of Mineral Resources and Energy, the Department of Environment and the Department of Water and Sanitation, who processed its applications under difficult operating circumstance during the past few months.
“The receipt of this final approval is a strong foundation for our ongoing discussions with potential financiers of the debt and equity components of the construction financing package and we look forward to being able to update our shareholders on progress over the next few months,” says Smart.