Orion’s Prieska to cost $378m

Orion Minerals has released a bankable feasibility study for its Prieska zinc-copper project in South Africa, which details a $378 million capital cost and 2.4 million tonne per annum operation.

Orion said the project had a net present value of $408 million at an 8 per cent discount rate.

The project has a 10-year ‘foundation phase’, in which it will deliever payable metal production of 189 kilo tonnes of copper and 580 kilo tonnes of zinc.

Prieska will have a payback period from first production of 2.9 years, according to Orion.

Managing director Errol Smart said the company was delighted with the results of the BFS, which confirm the quality and scale of the Prieska project.

“Importantly, the capital payback period is short - at just under three years from first production, with a low unit operating cost base to take advantage of most metal price environments,” he said.

Last month, Orion announced that Wyllie Group became a substantial shareholder in the company.

It holds around 110 million shares in Orion, which equates to a 5.67 per cent stake.

Shares in Orion were up 7.1 per cent at 12.15pm AEST to trade at 3 cents each.