Southern Palladium, a platinum group metals (PGMs) developer with listings in Johannesburg and Sydney, has submitted a mining right application for the Bengwenyama PGM project located in South Africa’s Bushveld Complex, a region that contains over 70% of global PGM resources.
“This application marks our transition from exploration to development,” commented Johan Odendaal, the company’s Managing Director, in a statement to the Johannesburg Stock Exchange.
Highlighting its potential, the Bengwenyama project boasts rich palladium and rhodium reserves. Previous explorations identified an inferred mineral resource of 25.12 million ounces across the upper group two chromitite reef horizon and the Merensky reef horizon.
Mining Weekly reported that Southern Palladium holds a 70% stake in Miracle Upon Miracle Investments, which owns 100% of the exploration tenement. The comprehensive application covers 5,280 hectares across two farms.
Key next steps involve completing a pre-feasibility study (PFS) and wrapping up the diamond drill project initiated a year ago. The company also focuses on several concurrent technical studies.
Once the Department of Mineral Resources and Energy approves the application, the company will start the social and environmental assessment phase to evaluate the implications of the planned mining activities.
They are currently modeling resources using data from ongoing drilling. As per Mining Weekly, the company plans to release an interim resource update on the existing 25.11 million ounces of resources in Q4.
The mining application includes a range of minerals such as gold, copper, chrome, cobalt, silver, and nickel. The coverage areas are the Nooitverwacht 324 KT and Eerstegeluk 327 KT farms in Limpopo.
A critical geotechnical study, crucial for future mine designs and PFS forecasts, is scheduled for this month. The company also plans metallurgical assessments, including flotation efficiency tests, for Q4.
Intensive drilling on the eastern side of the Eerstegeluk farm aims to refine the resource categorization. Another interim resource update is due in Q4.
Following the second interim resource update’s release, the company plans to share an updated project scoping study in Q1 2024 and hopes to finalize the PFS by Q2 2024.
