Southern Palladium has seen a 34% jump in total Mineral Resources since drilling began at its Bengwenyama Platinum Group Metal project, located on the Eastern Limb of the world class Bushveld Complex, South Africa.
Southern Palladium Limited is a dual-listed PGM company developing the advanced Bengwenyama PGM project, particularly rich in palladium/rhodium, in South Africa.
In its update to investors released yesterday, the group said the total Mineral Resource, indicated, and inferred, for the project had now increased from a 3PGE+AuInferred Resource of 18.80Moz (million ounces) to a 6PGE+Au Indicated and Inferred Resource of 25.12Moz, comprising 5.11Moz Indicated and 20.01Moz Inferred – an overall increase of 34% since drilling began.
It said Combined PGE Mineral Resource now totalled 25.1Moz (7E basis).
Southern Palladium managing director Johan Odendaal said: “We are pleased to report the interim Mineral Resource update for the shallower Merensky Reef at Bengwenyama which, in combination with the UG2 has contributed to an impressive increase in the broader resource compared to the figures presented in Southern Palladium’s 2022 IPO (initial public offering) prospectus.
"The combined Mineral Resource presented today clearly illustrated the broader potential of the project, with prospective mineralisation in both the UG2 and the shallower Merensky Reef".
He said near-term, the drill program would continue to focus on the defined UG2 Payback Area – the shallow eastern portion of the Bengwenyama project which has been assessed as the approximate resource quantum for the UG2 Reef that could achieve capital payback of the project.
The group said metallurgical test work for the UG2 reef was in progress. Previous metallurgical and process recoveries assumed in the Scoping Study were based on the fact that the mineralisation appeared to be very similar to that mined nearby in operating mines along strikes to the north and south of Bengwenyama.
"The sample is a composite of five core samples from four drill holes and has been submitted to the SGS laboratory in Randfontein, South Africa. The test work comprises flotation efficiency test work (MF2 testing) and bond ball mill work index determinations," it said.
According to the group, more than 13,000 metres of drilling had been completed at the Bengwenyama project, including 47 drill holes and 13 deflections.
"Drilling has been highly successful with only two UG2 intersections being faulted and three intersecting potholes, while in the case of the Merensky Reef, only two drill holes were faulted.
"Drilling has also identified a new UG2 discovery, the Far East Block.
“Drilling overall is progressing well with five drill rigs currently drilling and a sixth drill rig is scheduled to arrive within the next few weeks," the group said.
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