Assay results from platinum group metals (PGMs) developer Southern Palladium’s upper group two (UG2) reef on the Bengwenyama PGMs project, located on the eastern limb of the Bushveld Complex, have returned a weighted average four-element (4E) PGMs grade of 8.73 g/t in three of the holes, over an average sampled width of 77 cm, with observed grades exceeding the grade level of 7.7 g/t applied in the 2012 Joint Ore Reserves Committee-compliant inferred mineral resource.

The company said on November 16 that the prill splits were also as expected, comprising 44.3% platinum, 45.1% palladium, 9.1% rhodium and 1.5% gold.

Southern Palladium said the drill programme was ongoing, with further assay samples for the Merensky reef expected soon.

“These initial assay results . . . underpin our belief that the project holds significant potential. The results confirm the consistency of reef grade and width, which is characteristic of the Bushveld Complex – the largest source of platinum and palladium ores in the world,” Southern Palladium MD Johan Odendaal said.

He said the weighted average 4E grade of 8.73 g/t was at the high-end of the UG2 exploration target range of 5.9 g/t to 8.9 g/t, allowing for an expansion of the inferred resource.

“As well as advancing the resource potential of Bengwenyama, these results also bolster the project’s attractive cost metrics. All capital spend is allocated directly for the purpose of increasing our confidence in the orebody. Limited discovery drilling is required, which significantly reduces the discovery cost per ounce,” Odendaal said.

Southern Palladium said the six-element (6E) – platinum, palladium, rhodium, iridium, ruthenium and osmium – PGM grades were still pending, and would employ a nickel sulphate fire assay procedure. The 6E results would be compared with the 4E results once received.

The company said by-product PGMs, base metals and chrome were important “sweeteners to the bottom line”, noting that the price of iridium significantly increased since the start of 2021 owing to supply shortages, combined with its prospective use in the production of green hydrogen.

With its 70% stake in the project, Southern Palladium’s focus is on the delivery of a prefeasibility study and mining right application through the recently completed geophysical survey, as well as a two-phase diamond drill programme, which started in August, as well as various technical studies still to be completed.