Southern Palladium advances prefeasibility study for Bengwenyama project

Junior Australian miner Southern Palladium says the prefeasibility study at its Bengwenyama project is advancing with more than 30,000m of drilling completed.

The project, on the eastern limb of the Bushveld Complex, which contains more than 70% of the world’s known platinum group metal (PGM) resources, has the potential to produce palladium, rhodium, platinum and iridium.

“With over 30,000m of drilling completed, we are now transitioning towards the completion of a pre-feasibility study (PFS),” said MD Johan Odendaal.

“Notably, the initial target area in Eerstegeluk [was] successfully converted to indicated mineral resources by the end of 2023, marking significant progress,” he said.

“With assay results for the North Horst Block still pending, the project already boasts an existing indicated and inferred mineral resource estimate of 26.22-million ounces.”
Southern Palladium had enlisted SRK Consulting to conduct a comprehensive review of ongoing work, fostering transparency and independence in the project development process, he said.

The environmental impact assessment, a core component of the forthcoming mining right application, was also progressing well and remained on schedule to be submitted for review by mid-2024, Odendaal said.

Results for the final drill holes will be incorporated into an updated mineral resource estimate, which is scheduled for completion early in the company’s third quarter. The updated mineral resource estimate and maiden reserve will form part of the prefeasibility study.

Southern Palladium remains well funded to complete the PFS, with A$8.34m in cash at end-December 2023. Consistent with previous guidance, the study is expected to be completed early in the December quarter.

The company announced in November that it had appointed former Minerals Council CEO Roger Baxter as chair.

“My appointment to the board of Southern Palladium presents a unique opportunity to engage with one of the few remaining PGM development projects of significance globally. The Bengwenyama project has several standout attributes and is now well advanced in terms of transitioning from exploration to development,” Baxter said at the time of his appointment.

Southern Palladium has a market valuation of about R538m on the JSE, where it has a secondary listing; its primary listing is in Australia.

mackenziej@arena.africa