Name of the Project 
Bengwenyama platinum group metals (PGM) project.

Location 
Bushveld Complex – greater Tubatse and Sekhukhune district municipalities, in Limpopo, South Africa, covering 5 280 ha on the farms Nooitverwacht 324 KT and Eerstegeluk 327 KT.

Project Owner/s 
Southern Palladium (70% owned).

Project Description 
An optimised prefeasibility study (OPFS) on the advanced, shallow, high-grade PGM project proposes to unlock value through a staged production approach. The approach involves predevelopment of blocks using off-reef twin haulages, drives and centre gulleys (raises).

The project will use underground mining techniques, specifically for the (UG2)  group two reef. 

Stage 1 proposes a production rate of 1.2-million tonnes a year from the South decline only, expanding after four years to 2.4-million tonnes a year in Stage 2 with the introduction of the North decline.

Stage 1 is expected to deliver more than 200 000 oz/y of PGMs in concentrate. Total 6E (platinum, palladium, rhodium, ruthenium, iridium and gold) ounces recovered is estimated at 2.22-million ounces over the 23-year mine life.

Stage 1 and 2 total 6E production is estimated at 7.5-million ounces over the total 33-year life-of-mine (averaging more than 400 000 oz/y from Year 4 or possibly sooner for Stage 2).

A well-established, standard processing technology has been adopted and optimised using current state-of-the-art (two-stage mill-and-float) infrastructure. 

PGM concentrates are expected to be processed at existing downstream refining facilities in South Africa. The company is also exploring off-site processing for Stage 1 to further reduce initial capital requirements.

Potential Job Creation 
Specific numbers are not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value (NPV), at an 8% discount rate, for Stage 1 and 2 of  $857-million and an internal rate of return (IRR) of 26.4%. Stage 1 has an IRR of 21.8% and an NPV of $246-million.

Capital Expenditure 
Peak funding is estimated at $279-million. Stage 1 is estimated at $219-million. Ongoing/expansion capital – Stage 1 and 2 – is estimated at $300-million.

Planned Start/End Date 
Not stated.

Latest Developments 
Southern Palladium has started its detailed metallurgical and geotechnical drill programmes as part of ongoing field work to support the delivery of a definitive feasibility study (DFS).

The results from the drill programmes 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.

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, the rigs will assist with deeper underground geotechnical drilling, which, in turn, 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, starting with drilling that is needed to optimise the first decline development planning that is scheduled to start at the beginning of October.

The DFS drill programme will comprise about 10 000 drill metres 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 6E PGMs.

The company has said this work follows the recent completion of an OPFS.

The mining right application review process is ongoing.

With the environmental authorisation approved in the second quarter and the conclusion of the objection period, the granting of the mining right is expected in the near term.

Key Contracts, Suppliers and Consultants
Minxcon (consultants for OPFS). 

Contact Details for Project Information 
Southern Palladium, email info@southernpalladium.com.