JSE- and ASX-listed Southern Palladium has begun its detailed metallurgical and geotechnical drill programmes as part of ongoing field work to support the delivery of a definitive feasibility study (DFS) for the Bengwenyama platinum group metals (PGM) project, in Limpopo.

The company notes that four drill rigs have been secured and mobilised to site, with the first drilling now under way to obtain a 140 kg sample from the UG2 reef for detailed metallurgical study work.

The UG2 sample will be used to determine metallurgical variability across the first stage of the planned development.

The results from this sample will also enable the company to progress discussions with South African PGM smelters.

Once metallurgical drilling is complete, Southern Palladium explains, the rigs will move to assist with deeper underground geotechnical drilling, which will be incorporated into field studies to optimise decline and stoping parameters.

A further two to three rigs will be added for surface geotechnical drilling, beginning with drilling that is needed to optimise the first decline development planning, which is scheduled to start at the beginning of October.

The DFS drill programme will comprise about 10 000 drill metres in total and will include infill drilling to further enhance definition of the maiden Joint Ore Reserves Committee-compliant ore reserve of 6.29-million ounces at 6.17 g/t of ruthenium, rhodium, palladium, osmium, iridium and platinum (6E) PGMs at Bengwenyama.

The company says this work follows the recent completion of an optimised prefeasibility study, which delivered an estimated after-tax net present value of $857-million with a material reduction in peak funding requirement through a staged development approach.

Moreover, Southern Palladium notes that the mining right application review process is ongoing.

With achievement of environmental authorisation approval in the second quarter and the conclusion of the objection period, the granting of the
mining right is anticipated in the near-term.

"We are pleased to announce the commencement of our DFS drill programme following an extensive period of planning and design,” says MD Johan Odendaal.

He reiterates that results from this drill programme will provide important data to further optimise metallurgical processing and mine design for the DFS, which is on schedule for delivery in the first half of 2026.

“We look forward to providing further project updates over the coming weeks.

“Environmental approvals have now been obtained, an important prerequisite for the granting of the mining right. Final acceptance of the social and labour plan should lead to the grant of the mining right within the foreseeable future,” he continues.