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 locked in a A$20-million raise to ramp up work on the project.

This positions the company to accelerate the definitive feasibility study (DFS) and progress towards the final investment decision to advance near-term mine development, Southern Palladium reported on October 20.

Involved in the placement are 18 181 819-million new ordinary shares at A$1.10 a share, which represents a modest 2.7% discount to the 15-day volume weighted average price.

Southern Palladium also intends to conduct a share purchase plan to raise up to A$1-million by offering eligible retail shareholders the opportunity to acquire new shares at the same price as the placement.

Funds raised will support completion of the DFS and near-term mine development activities, including construction of the boxcut and development of a decline to the orebody subject to permitting.

The capital raise will strengthen Southern Palladium’s balance sheet ahead of key near-term milestones, including the expected award of the mining right and updates on the DFS work programme.

Southern Palladium has said that the completion of the capital raise future proofs the company, which is now positioned to execute its mine development strategy.

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

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