JSE- and ASX-listed Southern Palladium says drilling is advancing the prefeasibility study (PFS) for its Bengwenyama platinum group metals (PGMs) project, on the Eastern Limb of the Bushveld Complex, in South Africa.

An extensive scoping study for Bengwenyama by Johannesburg-based mining consultancy Minxcon earlier this year confirmed the continuation of the PFS work.

To date, over 30 000 m of diamond drilling have been completed, consisting of 79 mother holes and 48 deflections.

Recent drilling has targeted the North Horst Block to get a better understanding of that area for the forthcoming PFS and potentially convert more of the inferred resource to indicated status.

Results for the final drill holes will be incorporated into an updated mineral resource estimate (MRE), which is scheduled for completion early in the third quarter.

The updated MRE and maiden reserve will form part of the PFS which is scheduled for completion early in the fourth quarter.

SRK Consulting has been commissioned to review ongoing PFS work to ensure the highest standards of due diligence and quality assurance.

An environmental-impact assessment (EIA) is also under way and advancing on schedule, with submission slated for mid-year.

The company says it remains well funded to complete the PFS from existing cash reserves, with a cash position of $8.34-million as at December 31, 2023.

“With over 30 000 m of drilling completed, we are now transitioning towards the completion of a PFS. Notably, the initial target area in Eerstegeluk has been successfully converted to indicated mineral resources by the end of 2023, marking significant progress.

“With assay results for the North Horst Block still pending, the project already boasts an existing indicated and inferred MRE of 26.22-million ounces,” says MD Johan Odendaal.