Southern Palladium’s Bengwenyama Project Shows 34% Increase in Mineral Resources

Southern Palladium, a dual-listed platinum group metal (PGM) company, has reported a significant 34% increase in total Mineral Resources at its Bengwenyama Platinum Group Metal project in South Africa. The project is situated on the Eastern Limb of the renowned Bushveld Complex.

The company's recent update to investors revealed that the total Mineral Resource, including both indicated and inferred resources, has risen from a 3PGE+Au Inferred Resource of 18.80 million ounces to a 6PGE+Au Indicated and Inferred Resource of 25.12 million ounces. This includes 5.11 million ounces of indicated resources and 20.01 million ounces of inferred resources, marking a noteworthy overall increase since drilling activities commenced.

The Combined PGE Mineral Resource now stands at 25.1 million ounces (7E basis).

Southern Palladium's managing director, Johan Odendaal, expressed satisfaction with the interim Mineral Resource update, highlighting the impressive increase in the broader resource compared to the figures presented in the company's 2022 IPO prospectus. He emphasized the project's broader potential, with prospective mineralization identified in both the UG2 and the shallower Merensky Reef.

Looking ahead, the company plans to focus its near-term drill program on the defined UG2 Payback Area, which represents the shallow eastern portion of the Bengwenyama project. This area is assessed as the approximate resource quantum for the UG2 Reef that could achieve capital payback for the project.

The group is also conducting metallurgical test work for the UG2 reef to understand its characteristics fully. The ongoing test work comprises flotation efficiency testing (MF2 testing) and bond ball mill work index determinations.

With over 13,000 meters of drilling completed, including 47 drill holes and 13 deflections, the drilling program at the Bengwenyama project has been highly successful. The company reported only two UG2 intersections being faulted and three intersecting potholes. For the Merensky Reef, only two drill holes were faulted. Additionally, the drilling efforts have led to the identification of a new UG2 discovery, the Far East Block.

Southern Palladium's drilling progress remains promising, with five drill rigs currently in operation and a sixth rig expected to arrive in the coming weeks. This ongoing exploration and resource expansion could hold significant potential for the development of the Bengwenyama PGM project.

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