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 is reporting steady momentum across all aspects of the definitive feasibility study (DFS), with MD Johan Odendaal emphasising that recent work continues to validate the project’s fundamentals.

Metallurgical sample drilling is under way, with the current UG2 programme focusing on slightly deeper targets in the South and North blocks to secure representative unoxidised material. The company has said intersections so far are in line with expectations and continue to demonstrate consistent UG2 reef continuity at shallow depths. Odendaal describes the metallurgical and geotechnical campaign as a major milestone that further strengthens confidence in the orebody’s quality.

Additional drilling is scheduled for early 2026 to refine understanding of shallow zones, geological structures and rock competency.

Surface geotechnical drilling and pitting have been completed at the north decline and plant site, while work continues at the tailings storage facilities and southern decline to support decline and infrastructure designs.

The board has also opted to fast-track development of the Southern Decline to intersect the shallow UG2 horizon earlier, which Odendaal has said will materially reduce development risk and help position the project for future financing.

Southern Palladium remains fully funded to complete the DFS and move towards a final investment decision for Stage 1, in line with the OPFS. This phase includes reviewing a hybrid engineering, procurement and construction/engineering, procurement and construction management approach, and assessing third-party processing options for the early years versus building its own plant from the start.

A structured handover, from project development to operational readiness, has been mapped out, and the company plans to appoint a project manager shortly. All requirements under Section 23 of the Mineral and Petroleum Resources Development Act for issuing the mining right have now been met, and Southern Palladium is working closely with regulators to expedite the final approval.

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

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