Orion Minerals’ Definitive Feasibility Study (DFS-25) for the Prieska Copper Zinc Mine (PCZM) in South Africa reveals strong financial and technical outcomes from a de-risked, two-phase development approach. The study envisions an initial ‘Upper-Level Phase,’ tapping near-surface ore via an existing decline, with first production targeted within 13 months of construction start, lasting 4.3 years. Capital expenditure for this phase is estimated at AUD49 million.
Following the Upper-Level Phase, the ‘Deeps Phase’ will commence after mine de-watering and shaft refurbishment. The Deeps Phase has an 11-year mine life, overlapping with the Upper-Level mining. This gives a combined LoM of 13.2 years.
Key financial highlights include a pre-tax NPV of AUD797 million (8% discount rate), a post-tax NPV of AUD568 million, and an IRR of 31% pre-tax (26% post-tax). The payback period from construction start is projected at 5.8 years. Undiscounted life-of-mine free cash flows are estimated at AUD1,782 million (pre-tax). Peak funding is required to be AUD578 million, with a total project capital expenditure of AUD607 million. Capital intensity is USD9,174 per annual copper equivalent production tonne, with annual production targets of 22kt of copper and 65kt of zinc. All-in-sustaining costs are projected at USD4,550/t of copper equivalent metal sold, dropping to USD2,359/t net of by-product credits. This all-in-sustaining margin is anticipated at 52%, using a copper price of USD9,480/t. Ore processing rates will be 240ktpa for the Upper-Level Phase and 2.4Mtpa for the Deeps Phase.
The mine boasts mineral resources totaling 31.0Mt at 1.2% copper and 3.6% zinc, containing 370kt of copper and 1,120kt of zinc. Probable Ore Reserves stand at 15.6Mt at 1.1% copper and 3.1% zinc, representing 164kt of copper and 458kt of zinc. With its commitment to safety, local employment, and community engagement, Orion is firmly on track to become a near-term base metals producer, contributing significantly to the Northern Cape’s economic development.
