Name of the Project
Bengwenyama platinum group metals (PGMs) project.

Location
Eastern limb of the Bushveld Complex, in Limpopo, South Africa. 

Project Owner/s
Southern Palladium (70%).

Project Description
Bengwenyama contains more than 70% of the world’s known PGM resources. The project is described as being particularly rich in palladium and rhodium.

An in-house scoping study has confirmed that a standalone upper group two (UG2) project has the best potential with a prefeasibility study (PFS).

Three other development scenarios were assessed:
Scenario 2 – mining Merensky.
Scenario 3 – mining UG2 and Merensky simultaneously.
Scenario 4 – mining UG2 to completion, followed by Merensky.

The shallow Merensky reef has been recommended for potential future development and might significantly extend the life of the proposed mine in the area now earmarked for mining.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
Southern Palladium disclosed the results of geotechnical testwork conducted at the project on October 23.

The testwork has successfully established a mine design paradigm that aligns with the standards of existing PGM production mines within the Bushveld Complex. 

"The study has yielded promising results, confirming the viability of . . . conventional and mechanised underground mining from a geotechnical perspective. The study's conclusions are reassuring. All parameters are in line with existing Bushveld UG2 operations," Southern Palladium MD Johan Odendaal has said. 

An independent geotechnical study, conducted by consulting firm OHMS, has validated the feasibility of using conventional and mechanised underground mining methods for the UG2 reef. 

The company has emphasised the significance of this study in the ongoing scoping study and in the formulation of a future prefeasibility study (PFS). 

The absence of chromite stringers in the UG2 hanging wall indicates a potential minimum stope width of about 1 m. This observation may result in a reserve grade that surpasses the initial projections, owing to potentially reduced dilution levels. 

The geotechnical study shows that mining operations at depths exceeding 50 m underground will not have any adverse impact on the surface infrastructure. 

For the proposed conventional stope layout, the panel face is estimated to be 26 m in length, with an expected mining extraction rate ranging from 91% at shallow depths down to 78% at a depth of 540 m. 

In the case of mechanised mining, which will use a bord-and-pillar system with a 2 m mining cut, the recommended dimensions are 8 m × 8 m for bords and 6 m × 6 m for pillars.  

This is expected to result in a mining extraction rate of 82% at shallower depths, gradually decreasing to 67% at a depth of 540 m, with the pillar dimensions changing to 8 m × 10 m. 

Southern Palladium has also received confirmation from the Department of Mineral Resources and Energy regarding the acceptance of its mining right application. This grants the company the necessary authorisation to proceed with environmental expert studies and consultations in pursuit of obtaining the mining right. 

Key Contracts, Suppliers and Consultants
Minxcon (internal scoping study).

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