Southern Palladium (ASX:SPD) shows upside at Bengwenyama
February 3, 2023Southern Palladiums’ recent drilling results have shown the potential to significantly extend the life of its Bengwenyama Platinum Group Metal project on the Eastern Limb of the world-class Bushveld Complex in South Africa.
The encouraging first round of results will be a promising sign for the dual-listed Company (ASX:SPD, JSE:SDL) bolstering its development plans for the Bengwenyama project set up an area known to be particularly rich in palladium/rhodium resources.
Four initial assays taken from its Merensky reef prospect have returned positive results for palladium mineralisation averaging 3PGE + Au of 2.30 g/t and 6PGE + Au of 2.56 g/t over an average sampled width of 197 cm.
PGE and gold Assay Result Locations for the Initial Merensky Reef Intersections
“We are pleased to report that the first assays for initial four Merensky Reef intersections returned positive results, with confirmation of PGM mineralisation and prill splits (ratio of PGE’s and gold) that have a higher platinum-to-palladium ratio when compared to the UG2 reef,” Managing Director Johan Odendaal said.
The PGM mineralisation observed further supports the conclusions in our recently completed Scoping Study, where the shallower Merensky reef was recommended for potential future development in addition to the UG2 reef.
“The potential inclusion of the MR for economic resource extraction increases the project’s broader upside potential, and may significantly extend the life of the mine in the area now earmarked for mining.”
About the drilling
UG2 Reef mineralisation has been encountered in 18 of 21 drill holes completed.
Tow holes appear to have faulted out at the expected depth; in one case, the reef was not developed.
Of the 21 drill holes, eight were expected to intersect the MR as they were drilled east of the sub-crop – of these, six intersected the MR, and two were faulted.
Next Steps
Results from 43 Merensky reef samples and 98 UG2 samples (including quality control and footwall samples) from late 2022 are pending.
About Southern Palladium
Southern Palladium Limited (ASX:SPD, JSE:SDL) is a dual-listed platinum group metal (PGM) company developing the advanced Bengwenyama PGM project, particularly rich in palladium/rhodium, in South Africa. The project is located on the Eastern Limb of the Bushveld Complex, which contains more than 70% of the world’s known Platinum Group Metal (PGM) Resources.
With its 70% stake in the project, the Company’s focus will be on the delivery of a Pre-Feasibility study and Mining Right application through a geophysical survey that has recently been completed, a two-phase diamond drill programme which has commenced in August 2022 as well as various technical studies to be completed.
A significant development opportunity in the global PGM market, previous exploration at Bengwenyama has already delivered a JORC 2012-compliant Inferred Mineral Resource of 18.8Moz within two ore horizons – the UG2 chromite and Merensky Reef.
In addition, mining industry consultants CSA Global assessed the total resource potential of Bengwenyama at between 134–201Mt at a grade of 3.5–5.2 (3 PGE + Au g/t). The Company is led by an experienced on-ground management team, including some of South Africa’s most high-profile mining industry executives.
Fundamental Data
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