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

Location
The Eastern Limb of South Africa’s Bushveld Complex, near Steelpoort in Limpopo. It covers 5 279.74 ha on the farms Nooitverwacht 324 KT and Eerstegeluk 327 KT. 

Project Owner/s
Southern Palladium holds a 70% interest through its subsidiary, Miracle Upon Miracle Investments. The Bengwenyama-ya-Maswazi community holds a direct interest. 

Project Description
Bengwenyama is an advanced, shallow PGM development project hosting the upper group two (UG2) and Merensky reefs. The project has a Joint Ore Reserves Committee-compliant resource base of 40.25-million ounces of platinum, palladium, rhodium and gold (3PGE+Au), comprising 24.81-million ounces in the UG2 reef and 15.44-million ounces in the Merensky reef. 

The optimised prefeasibility study (OPFS) proposes a staged underground development focused on the UG2 reef. 

Stage 1 is planned at 1.2-million tonnes a year from the South decline, increasing to 2.4-million tonnes a year in Stage 2, with the addition of the North decline. Stage 1 is expected to produce 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).
 
Southern Palladium is refining the plant flowsheet through the definitive feasibility study (DFS), including the addition of dense-media separation (DMS) and improved chrome recovery assumptions following recent metallurgical testwork. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The OPFS estimates an after-tax net present value (NPV), at an 8% discount rate, of $857-million and an internal rate of return (IRR) of 26.4% for Stages 1 and 2. Stage 1 has an estimated after-tax NPV of $246-million and an IRR of 21.8%. 

Capital Expenditure
Peak funding is estimated at $279-million. Stage 1 capital is estimated at $219-million, while ongoing and expansion capital for Stages 1 and 2 is estimated at $300-million. 

Planned Start/End Date
Stage 1 production is expected from 2029. 

Southern Palladium is targeting completion of the DFS by late in the fourth quarter of 2026. 
A final investment decision is expected to follow the DFS and the required approvals. 

Latest Developments
During the March 2026 quarter, Southern Palladium advanced DFS drilling, metallurgical optimisation and mine design work. Six diamond drill rigs were operating on site and 72 drillholes and 45 deflections, totalling 10 250 m, had been completed by quarter-end.

Heavy rain in Limpopo resulted in 29 lost drilling days. 

Metallurgical testwork has improved the project’s chrome recovery assumptions. Chrome recoveries of about 65% have been achieved, compared with the 30% assumed in the OPFS. DMS will now be included in the DFS flowsheet, which is expected to reduce downstream mill-and-flotation requirements. 

The company has also refined the decline design by increasing the planned decline gradient from 6° to 9°, reducing development metres and simplifying the mine layout. 

Requests for quotations have been issued for boxcut and decline development, with contractor appointment targeted for May 2026. 

Early development remains subject to the granting of the mining right and National Environmental Management Act operating approvals. 

Key Contracts, Suppliers and Consultants
Minxcon (consultant for the OPFS); RM Process and MAK Analytical (DFS metallurgical testwork); and Geomech Africa (drill contractor). 

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