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 
Work is advancing on the delivery of a definitive feasibility study (DFS) in 2026.

Latest Developments 
Southern Palladium reported in December 2025 that Stage 1 delivery had remained on schedule, supported by optimised decline designs, belt-way integration work and progress across operational-readiness streams. 

DFS work is also progressing well, with the mine’s development team having started a detailed metallurgical and geotechnical drilling programme.

Seven drill rigs are on site to collect a 140 kg UG2 bulk sample for DFS testwork. This metallurgical sample drilling has started in the South and North blocks, with deeper UG2 intersections above 80 m “aligning with expectations”.

Further drilling in early 2026 will target shallower zones to confirm geological structure and rock competency.

Bengwenyama’s operational readiness is also progressing, with work under way on explosives licensing, supply chain compliance, operating procedures, codes of practice, and security and medical-screening planning.

The company is assessing a hybrid engineering, procurement and construction management delivery model, and continues to evaluate processing options for early production, including toll treatment through a third party or the construction of its own plant.

In parallel, organisational planning is advancing, with Southern Palladium MD Johan Odendaal confirming that senior operational positions, including a project manager, will be filled as part of a structured handover from the project team to the future mine operations team.

Additional drilling is also under way at the storage facility footprint and the southern decline, with the full programme having been scheduled for completion in December 2025.

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

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