JSE- and ASX-listed Southern Palladium continues to make “strong and steady progress” across all fronts of the definitive feasibility study (DFS) for its Bengwenyama platinum group metals (PGM) project, MD Johan Odendaal says.

Metallurgical sample drilling has started, with current UG2 drilling targeting slightly deeper zones in both the South and North blocks to ensure a representative unoxidised sample. Intersections to date align with expectations.

“The metallurgical and geotechnical drilling programme marks a significant milestone for the Bengwenyama project, and initial results – including consistent UG2 reef intersections at shallow depths – reinforce our confidence in the robustness of the orebody,” Odendaal highlights.

Additional drilling is planned for early 2026 on some of the shallower zones to confirm geological structure and rock competency.

Surface geotechnical drilling and pitting has been completed at the north decline and plant site, with further drilling continuing at the tailings storage facilities and southern decline to support decline and infrastructure design.

The board’s decision to accelerate development of the Southern Decline aimed at intersecting the shallow portion of the UG2 reef will assist in significantly derisking near-term project development and facilitating future financing options, Odendaal points out.

The company remains fully funded to complete the DFS works programme and advance to a final investment decision for Stage 1 mine development in accordance with the optimised prefeasibility study, Odendaal informs.

This includes an evaluation of a hybrid engineering, procurement and construction / engineering, procurement and construction management model and assessment of third-party treatment options for the early years compared to a company-owned facility from the outset.

A structured transition from the project team to a mine operations team is defined. The company will look to appoint a project manager in the near-term.

All conditions under Section 23 of the Mineral and Petroleum Resources Development Act for the granting of the mining right have now been fulfilled.

The company says it remains closely engaged with regulators to expedite the final approval process.