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 lodged an environmental guarantee with South Africa’s Department of Mineral and Petroleum Resources for the development of the project for future rehabilitation of the disturbed area.

Project delivery continues to advance on schedule, with the recent start of a metallurgical and geotechnical drill programme of about 10 000 marking the next phase of definitive feasibility study (DFS) work, in line with the company’s stated development strategy for staged mine development.

The guarantee follows an extensive consultation and execution process with Southern Palladium’s insurance counterparty and government representatives, and reflects the company’s rigorous approach to ensure the highest standards of regulatory compliance for mine development.

“We remain well engaged with key stakeholders and continue to work towards mining right approval, alongside the advancement of our comprehensive DFS works programme in the coming months,”  MD Johan Odendaal has said. 

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

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