Southern Palladium: Mining Momentum Soars

In a significant stride towards expanding its footprint in the South African mining sector, Southern Palladium Limited (ASX:SPD, JSE:SDL) announced the submission of a Mining Right Application (MRA) to the Department of Mineral Resource and Energy (DMRE) for its 70%-owned Bengwenyama Platinum-Group Metal project. The project, nestled on the Eastern Limb of the Bushveld Complex in South Africa, has witnessed a substantial growth with a recent 34% increase in the total Mineral Resource, reaching a staggering 25.11 million ounces of 6PGE+Au.

The Mining Right application covers a vast area, comprising Platinum Group Metals, Gold, Copper, Chrome, Cobalt, Silver, and Nickel, spanning the Nooitverwacht 324 KT and Eerstegeluk 327 KT farms in the Limpopo Province, totaling 5,280 hectares. This application marks a pivotal juncture in Southern Palladium’s journey, signalling a transition from pure exploration to a development-focused entity. The Managing Director, Johan Odendaal, expressed confidence in the application process, highlighting the recent resource increase as a testament to the project’s potential.

Pending acceptance, the application will initiate an environmental scoping phase followed by a comprehensive Social and Environmental Impact Assessment, along with an Integrated Water Use License process. These phases will include specialist studies to evaluate baseline socio-economic and biophysical conditions and assess the potential impacts of proposed operational activities. The processes are anticipated to conclude within 300 days before the final granting of the right.

Southern Palladium’s proactive approach is underscored by ongoing activities, including a geotechnical study vital for detailed mine designs and Scoping/ Prefeasibility Study (PFS) planning, slated to conclude in October. Simultaneously, metallurgical test work, focusing on flotation efficiency tests (MF2 testing) and bond ball mill work index determinations, is underway, with results expected in the fourth quarter. Drilling operations continue, concentrated on the Eastern side of the Eerstegeluk farm, aiming to convert Inferred to Measured and Indicated resources. The company plans to release a second interim resource update in the fourth quarter of 2023, laying the foundation for a detailed Scoping Study for the Bengwenyama Project, set for release in the first quarter of 2024.

Furthermore, work has commenced on the PreFeasibility Study (PFS), with completion expected in the second quarter of 2024. These strategic initiatives underline Southern Palladium’s commitment to unlocking the vast potential of the Bengwenyama Project and contributing significantly to South Africa’s mining landscape.