Wrap Text
Resource estimate for Far East Block discovery underway; results from 23 UG2 intersections average 9.28g/t (6PGE+Au)
Southern Palladium Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 646 391 899
ASX share code: SPD
JSE share code: SDL
ISIN AU0000220808
(“Southern Palladium” or “the Company”)
Resource estimate for Far East Block discovery underway; results from 23 UG2 intersections
average 9.28g/t (6PGE+Au)
Highlights:
• All assay results for drilling completed to-date at the Bengwenyama project have been received.
• Assay results for 23 UG2 intersections have returned an average 3PGE+Au grade of 7.67g/t and
6PGE+Au of 9.28g/t over 72cm, which continues to confirm the JORC-2012 Inferred Mineral Resource
estimate.
• With additional assays for the Merensky Reef (MR), the MR now averages a 3PGE+Au grade of 2.45
g/t and 6PGE+Au grade of 2.72 g/t over a width of 195 cm.
• Resource estimate underway for new UG2 discovery, the Far East Block (FEB).
• Average depth below surface of 217m makes the FEB potentially accessible from a planned decline
• Drilling has re-commenced following a temporary suspension in early March.
• Continuation of Phase 1, 63-hole drill programme targeting upgrade for a portion of existing Inferred
18.8Moz (4E) resource to Indicated status, ahead of planned Pre-Feasibility Study .
Southern Palladium (ASX:SPD and JSE:SDL), ‘Southern Palladium’ or ‘the Company’) is pleased to
announce assay results for the entirety of the drill programme completed to-date across the MR and UG2
reefs at the Bengwenyama Platinum Group Metal (PGM) project, located on the Eastern Limb of the world
class Bushveld Complex, South Africa.
Managing Director Johan Odendaal, said: “The latest drilling results continue to confirm the consistency
of the grade and continuity of the UG2 reef, and both the grade and reef width correlates well with the
compliant Inferred Mineral Resource. Latest assays from the four intersections in the Far East Block also
show consistent results and this area has significant potential for future resource upgrades. The geological
and estimation model update process has started, and an interim Mineral Resource update should be
finalised shortly. Drilling has once again commenced on the Bengwenyama project with the full support of
the Community Leadership. Our plan is still to deliver our milestones within the projected timeframe.”
Progressive UG2 and Merensky Reef Results
A total of 23 assay results for the UG2 Reef have now been received from the laboratory (refer Appendix
1). These now average a 3PGE+Au grade of 7.67 g/t and 6PGE+Au of 9.28 g/t over 72 cm intersection
width (refer Table 1). The drilling results continue to confirm the consistency of the grade and continuity
of the UG2 reef and continue to correlate well with the compliant Inferred Mineral Resource 3PGE+Au
grade in the MRE of 7.7 g/t over 71 cm.
Additional Merensky Reef (MR) assay results have also continued to confirm the continuity of the MR
(refer Table 2). The observed MR grades of 2.45 g/t (3PGE+Au) are slightly lower than the Inferred Mineral
Resource grade of 2.96 g/, however the sampled area of the MR to date is however only a small portion
of the entire MR area. Therefore, the MR grade could still align closer to the expected Inferred Mineral
Resource grade of 2.96 g/t, as is emerging for the UG2 reef.
Additional resource potential within the newly discovered Far East Block
There are now four intersections (E064, E065, E067 and E071) in the newly discovered Far East Block (FEB)
with an average width of 73 cm and a 6PGE+Au grade of 7.38 g/t (refer Figure 1). The depth of the UG2 in
the Far East Block ranges from 156m to 300m below surface with an average of 217m.
The Far East Block, which is seen as upside potential to the JORC (2012) Inferred Mineral Resource, has
an estimated surface area of approximately 2.75 km2 with an average reef width of 73 cm (average of the
four intersections). The geological modelling and resource estimation has started, and an interim Mineral
Resource for the project including the FEB should be finalised in April/May.
Figure 1: Location of Completed Drillholes
Resumption of drill programme
Drilling has now resumed at the project following unlawful stoppages early in March. The Company is
working closely with the Bengwenyama Community leadership and is receiving the necessary support
from both the Bengwenyama-ya-Maswazi Traditional Council and Royal Family. During this time the
Bengwenyama Leadership held several meetings to inform the local community about the stoppages. At
all the meetings held it received full support from the majority of attendees to continue with the
exploration programme and development of the project.
Ongoing assay results from the Phase 1, 63-hole diamond drill programme at Bengwenyama will
contribute to a planned upgrade of a portion of the Inferred 18.8Moz (4E) resource to Indicated
status and the advancement of a Pre-Feasibility Study, which was initiated during the March quarter
(refer ASX Announcement 24 January 2023).
`
Table 1: Summary of the Progressive UG2 Reef Assay Results
BHID From (m) To (m) UG2 Pt Pd Rh Ir Os Ru Au 3PGE+Au 6PGE+Au Ni (%) Cu Cr2O3
sampled (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%)
width (cm)
E062 31.25 32.30 105 3.80 3.57 0.88 0.32 0.14 0.08 1.43 8.33 10.22 0.15 0.03 29.56
E058 140.86 141.31 45 4.69 5.64 0.82 0.26 0.19 0.22 1.46 11.37 13.28 0.23 0.01 39.37
E019A 315.83 316.64 81 4.25 4.19 0.79 0.26 0.15 0.13 1.31 9.36 11.09 0.16 0.03 30.87
E033 253.60 254.25 65 4.21 5.00 0.84 0.28 0.16 0.17 1.32 10.21 11.98 0.16 0.02 32.64
E028 373.24 373.81 57 3.40 2.93 0.65 0.23 0.15 0.05 1.18 7.03 8.59 0.13 0.00 31.07
E031 416.55 417.22 67 3.30 3.73 0.63 0.19 0.13 0.16 1.09 7.81 9.23 0.22 0.06 29.36
E025 260.40 261.32 92 3.53 3.43 0.85 0.24 0.16 0.10 1.14 7.91 9.46 0.18 0.04 25.86
E071 179.98 180.75 77 2.94 2.59 0.59 0.19 0.13 0.12 0.97 6.24 7.54 0.16 0.04 28.12
E064 156.17 157.07 90 2.36 1.53 0.49 0.16 0.11 0.02 0.83 4.40 5.51 0.12 0.01 26.50
E030 409.53 410.09 56 4.05 5.20 0.96 0.31 0.20 0.19 1.49 10.40 12.40 0.19 0.04 32.46
E007 417.40 418.14 74 3.98 3.31 0.91 0.29 0.19 0.08 1.43 8.29 10.20 0.16 0.04 31.11
E060D1 178.76 179.31 55 4.14 3.49 1.02 0.33 0.23 0.06 1.51 8.72 10.80 0.14 0.02 31.95
E016 449.22 450.03 81 3.18 2.09 0.71 0.22 0.15 0.03 1.08 6.01 7.46 0.15 0.02 29.13
E044 258.73 259.44 71 2.94 3.10 0.59 0.20 0.15 0.13 1.08 6.76 8.19 0.15 0.03 33.63
E065 231.79 232.52 73 3.49 3.44 0.83 0.25 0.17 0.12 1.27 7.87 9.57 0.16 0.04 28.97
E015 291.87 292.65 78 3.14 3.69 0.69 0.24 0.18 0.19 1.20 7.72 9.35 0.17 0.05 32.95
E020 342.88 343.58 70 2.99 3.07 0.66 0.22 0.15 0.18 1.05 6.90 8.32 0.15 0.05 23.98
E067 299.69 300.22 53 2.98 2.35 0.55 0.21 0.15 0.03 1.04 5.92 7.32 0.13 0.01 31.88
E024 278.75 279.28 53 3.46 4.45 0.76 0.24 0.17 0.22 1.20 8.89 10.49 0.16 0.02 32.76
E013 321.24 321.78 54 4.09 3.69 0.82 0.27 0.19 0.11 1.33 8.70 10.49 0.16 0.03 33.23
E041 250.93 251.62 69 3.76 2.92 0.83 0.27 0.18 0.08 1.25 7.58 9.28 0.21 0.02 28.97
E001 548.05 549.23 118 2.83 2.61 0.58 0.21 0.15 0.10 1.01 6.12 7.49 0.17 0.09 23.90
E027 284.45 285.06 61 3.79 3.11 0.82 0.29 0.20 0.09 1.39 7.81 9.68 0.15 0.02 31.56
Weighted Average 72 3.48 3.34 0.74 0.25 0.16 1.20 0.11 7.67 9.28 0.16 0.03 29.86
(3PGE+Au) Prill Split (%) 45.3 43.5 9.7 1.5 100
(6PGE+Au) Prill Split (%) 37.5 36.0 8.0 2.6 1.7 13.0 1.2 100
Table 2: Summary of the Progressive Merensky Reef Assay Results
BHID From To (m) MR Pt Pd Rh Ir Os Ru Au 3PGE+Au 6PGE+Au Ni (%) Cu (%)
(m) sampled (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t)
width
(cm)
E028 66.68 68.68 200 1.49 0.47 0.10 0.03 0.03 0.21 0.08 2.14 2.41 0.09 0.02
E004 210.75 212.92 217 1.15 0.44 0.06 0.02 0.02 0.14 0.07 1.73 1.92 0.10 0.02
E030 142.98 144.77 179 1.66 0.63 0.13 0.04 0.03 0.24 0.15 2.56 2.88 0.13 0.04
E031 122.38 124.31 193 1.69 0.91 0.10 0.03 0.03 0.22 0.16 2.86 3.15 0.14 0.07
E007 100.36 102.56 220 2.15 0.89 0.12 0.04 0.04 0.24 0.11 3.27 3.59 0.19 0.06
*E020 54.18 55.39 121 2.11 1.15 0.12 0.04 0.04 0.23 0.37 3.76 4.06 0.26 0.10
E001 259.8 261.66 186 1.07 0.46 0.14 0.03 0.03 0.19 0.05 1.71 1.96 0.10 0.02
E014 37.26 39.68 242 1.40 0.49 0.10 0.03 0.03 0.19 0.11 2.11 2.35 0.10 0.03
Weighted Average 195 1.57 0.65 0.11 0.03 0.03 0.21 0.13 2.45 2.72 0.13 0.04
(3PGE+Au) Prill Split (%) 63.9 26.6 4.4 5.1 100
(6PGE+Au) Prill Split (%) 57.6 24.0 3.9 1.2 1.1 7.6 4.6 100
*Red Italic figures – Possible incomplete intersection with a potentially faulted bottom contact intersection.
This announcement has been approved for release by the Board of Southern Palladium Limited.
`
About Southern Palladium:
Southern Palladium Limited (ASX:SPD, JSE:SDL) is a dual-listed platinum group metal (PGM) company
developing the advanced Bengwenyama PGM project, particularly rich in palladium/rhodium, in South
Africa. The project is located on the Eastern Limb of the Bushveld Complex, which contains more than
70% of the world’s known Platinum Group Metal (PGM) Resources.
With its 70% stake in the project, the Company’s focus will be on the delivery of a Pre-Feasibility study
and Mining Right application through a geophysical survey that has recently been completed, a two-
phase diamond drill programme which has commenced in August 2022 as well as various technical
studies to be completed.
A major development opportunity in the global PGM market, previous exploration at Bengwenyama
has already delivered a JORC 2012-compliant Inferred Mineral Resource of 18.8Moz within two ore
horizons – the UG2 chromitite and Merensky Reef.
In addition, an assessment by mining industry consultants CSA Global assessed the total resource
potential of Bengwenyama at between 134–201Mt at a grade of 3.5–5.2 (3 PGE + Au g/t). The Company
is led by an experienced on-ground management team including some of South Africa’s most high-
profile mining industry executives.
JORC Statement
The information in this report that relates to Mineral Resources at the Bengwenyama Project is based on
details originally reported in the Independent Technical Assessment Report (ITAR) No. R246.2021
prepared by CSA Global dated 19 April 2022 contained in the Company’s Prospectus and Pre-Listing
Statement dated 22 April 2022. The information in the ITAR that relates to Technical Assessment of the
Mineral Assets, Exploration Targets, or Exploration Results is based on information compiled and
conclusions derived by Dr Brendan Clarke, a Partner and an employee of CSA Global. The information in
the ITAR that relates to Mineral Resources is based on work undertaken by Anton Geldenhuys, a Principal
Consultant and employee of CSA Global. The Prospectus containing the ITAR can be found on the
Company’s website at: https://www.southernpalladium.com/site/investor-centre/prospectus
The Company confirms that it is not aware of any new information or data that materially affects the
information included in the ITAR. The Company also confirms that all material assumptions and technical
parameters underpinning the estimates in the ITAR continue to apply and have not materially changed.
In addition, the Company confirms that the form and context in which the Competent Person’s findings
are presented have not been materially modified.
Competent Person Statement
The scientific and technical information contained in this announcement has been reviewed, prepared
and approved by Mr Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08,
FGSSA). Mr Engelmann is a director of Minxcon (Pty) Ltd and a member of the South African Council for
Natural Scientific Professions, and has sufficient experience relevant to the styles of mineralisation and
activities being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Engelmann has a beneficial interest in Southern Palladium through a shareholding in Nicolas Daniel
Resources Proprietary Limited.
`
For further information, please contact:
Johan Odendaal
Managing Director
Southern Palladium
Phone: +27 82 557 6088
Email: johan.odendaal@southernpalladium.com
30 March 2023
JSE Sponsor
Merchantec Capital
Media & investor relations inquiries: Sam Jacobs, Six Degrees Investor Relations: +61 423 755 909
Follow @SouthernPalladium on Twitter
Follow Southern Palladium on LinkedIn
`
Appendix 1. Reef Intersection Summary for Bengwenyama Drillholes
Drilling Merensky Reef UG2 Reef
BH ID From To (m) Intersection Comment From To (m) Intersection Comment
(m) Width (m) (m) Width (m)
E019 20.25 22.45 2.20 Highly weathered & - - - Hole abandoned
friable, inconclusive
E019A 19.55 22.35 2.80 Highly weathered & 315.85 316.61 0.76 Complete intersection
friable, inconclusive
E060 - - - No MR expected – - - - Core loss
East of MR subcrop
E060_D1 - - - No MR expected – 178.78 179.29 0.51 Complete intersection
East of MR subcrop
E062 - - - No MR expected – 31.27 32.30 1.03 Complete intersection,
East of MR subcrop moderately weathered
E062_D1 - - - No MR expected – 31.45 32.27 0.82 Moderately weathered
East of MR subcrop & faulted. Incomplete
intersection. Core
loss.
E062_D2 - - - No MR expected – 31.16 31.56 0.40 Moderately weathered
East of MR subcrop & faulted. Incomplete
intersection. Core
loss.
E058 - - - No MR expected – 140.88 141.29 0.41 Complete intersection
East of MR subcrop
E033 - - - No MR expected – 253.62 254.25 0.63 Complete intersection
East of MR subcrop
E028 66.70 68.66 1.96 Complete intersection 373.26 373.79 0.53 Complete intersection
E004 210.77 212.90 2.13 Complete intersection 517.33 517.57 0.24 Poorly developed UG2
E004_D1 - - - Deflection below MR 515.83 516.52 0.69 Poorly developed UG2
E030 143.00 144.68 1.68 Complete intersection 409.55 410.07 0.52 Complete intersection
E025 - - - No MR expected – 260.42 261.32 0.90 Complete intersection
East of MR subcrop
E037 - - - No MR expected – - - - Not present / Pothole?
East of MR subcrop
E049 - - - No MR expected – - - - Faulted
East of MR subcrop
E031 122.40 124.29 1.89 Complete intersection 416.57 417.19 0.62 Complete intersection
E044 - - - No MR expected – 258.75 259.42 0.67 Complete intersection
East of MR subcrop
E016 - - - Faulted 449.24 450.01 0.77 Complete intersection
E007 100.38 102.54 2.16 Complete intersection 417.42 418.12 0.70 Complete intersection
E064 - - - No MR expected – 156.19 157.05 0.86 Complete intersection
East of MR subcrop
E071 - - - No MR expected – 180.04 180.73 0.69 Complete intersection
East of MR subcrop
E065 - - - No MR expected – 231.81 232.50 0.69 Complete intersection
East of MR subcrop
E001 259.78 261.44 1.66 Complete intersection 548.07 549.21 1.14 Complete intersection
E015 - - - No MR expected – 291.89 292.63 0.74 Complete intersection
East of MR subcrop
`
E020 54.20 54.57 0.37 MR faulted 342.90 343.56 0.66 Complete intersection
E041 - - - No MR expected – 250.95 251.60 0.65 Complete intersection
East of MR subcrop
E067 - - - No MR expected – 299.70 300.20 0.50 Complete intersection
East of MR subcrop
E013 12.00 18.62 6.62 Highly weathered & 321.26 321.76 0.50 Complete intersection
friable, inconclusive?
(core loss)
E024 - - - No MR expected – 278.77 279.26 0.49 Complete intersection
East of MR subcrop
E069* - - - No MR expected – - - - UG2 expected ~ 240m
East of MR subcrop
E027 - - - No MR expected – 284.47 285.04 0.57 Complete intersection
East of MR subcrop
E014* 37.28 39.68 2.40 Complete intersection - - - UG2 expected ~ 327m
E052* - - - No MR expected – - - - UG2 expected ~ 126m
East of MR subcrop
Red italic with asterix are drillholes in progress.
Appendix 2. JORC Checklist – Table 1 Assessment and Reporting Criteria
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
Sampling Nature and quality of sampling (e.g. cut 20 cm samples are taken within the reef horizon unless there is a
techniques channels, random chips, or specific lithological reason to deviate from this. A single sample is also taken in the
specialised industry standard hanging wall and footwall to test for mineralisation in the direct waste rock.
measurement tools appropriate to the The samples are split with a core saw and one half is submitted to the
minerals under investigation, such as laboratory and the other half keep in the core tray.
down hole gamma sondes, or handheld
XRF instruments, etc.). These
examples should not be taken as
limiting the broad meaning of sampling.
Include reference to measures taken to The core is orientated in such a way that the two halves are equal.
ensure sample representivity and the
appropriate calibration of any
measurement tools or systems used.
Aspects of the determination of The sampling methodology is standard and as per industry practice in the
mineralisation that are Material to the Bushveld Complex (BC). The samples are 20 cm in length and are split
Public Report. In cases where ‘industry into two equal halves with one half being submitted for analysis. The core
standard’ work has been done this size starts as HQ (10 m to 50 m) but is NQ by the time the reef is
would be relatively simple (e.g. ‘reverse intersected.
circulation drilling was used to obtain 1
m samples from which 3 kg was
pulverised to produce a 30 g charge for
fire assay’). In other cases more
explanation may be required, such as
where there is coarse gold that has
inherent sampling problems. Unusual
commodities or mineralisation types
(e.g. submarine nodules) may warrant
disclosure of detailed information.
Drilling techniques Drill type (e.g. core, reverse circulation, The drillholes start with HQ (for approximately 10-50 m) in the weathered
open-hole hammer, rotary air blast, zone but are then drilled NQ once in the fresher material. The drill rigs
auger, Bangka, sonic, etc.) and details being utilised have been the CS 1500, Delta 520 and a smaller Longyear
(e.g. core diameter, triple or standard 44.
tube, depth of diamond tails, face-
sampling bit or other type, whether The drill contractor is Geomech Africa.
core is oriented and if so, by what
method, etc.).
Drill sample Method of recording and assessing Initially the core was scanned in with the software ScanIT which scans the
recovery core and chip sample recoveries and core with high resolution photos and the geologists reconcile the depths
results assessed. and core losses per 3 m run. The Core recoveries and RQD are then
calculated for the drillhole. ScanIT has however been discontinued and
the core is now photographed and the core recovery and RQD is
calculated manually by the geological assistants.
Measures taken to maximise sample The geologist informs the drilling supervisor at what depth the reef is
recovery and ensure representative expected so that they can take extra precautions around the anticipated
nature of the samples. reef depth.
The core recoveries are measured per 3 m run and if there is excessive
core loss in the reef horizon it is marked as a non-representative sample
and will not be used in the resource estimation process.
Whether a relationship exists between Samples have been submitted to the ALS laboratory in Johannesburg, but
sample recovery and grade and there is only limited data available at this stage, so this has not been
whether sample bias may have checked yet. The core recoveries for the intersections however all have
occurred due to preferential loss/gain good core recoveries besides the faulted intersections.
of fine/coarse material.
Logging Whether core and chip samples have The core was initially scanned into ScanIT software which produced high
been geologically and geotechnically resolution images. This has however been discontinued. The logging is
logged to a level of detail to support conducted on paper log sheets or tablets at the core with dropdown
appropriate Mineral Resource menus. Legends have been set up in excel that cover the necessary
estimation, mining studies and detailed required for Mineral Resource estimation. Alpha angles and
metallurgical studies. structure detail is also observed and logged. The beta angle is not
measured as the core is not orientated but the downhole televiewer
survey supplies structural orientation information which is incorporated
into the logs.
Whether logging is qualitative or Core logging is qualitative and utilises excel spreadsheets on tablets.
quantitative in nature. Core (or
costean, channel, etc.) photography.
The total length and percentage of the The total drillhole is geologically logged and photographed and the
relevant intersections logged. televiewer survey is conducted from 100 m above the reef horizon for
additional structural information.
Sub-sampling If core, whether cut or sawn and The core is cut in two equal halves for sampling and storage purposes.
techniques and whether quarter, half or all core taken.
sample preparation
If non-core, whether riffled, tube This project only makes use of core drilling.
sampled, rotary split, etc. and whether
sampled wet or dry.
For all sample types, the nature, quality The sample preparation code at ALS is PREP-31H which has the
and appropriateness of the sample following procedure: -
preparation technique.
Login of samples into the system, weighing, fine crushing of entire sample
to 70% - 2 mm, split off 500 g and pulverize split to better than 85%
passing 75 microns.
Quality control procedures adopted for The QAQC sequence is as follows: -
all sub-sampling stages to maximise
representivity of samples. If the batch is less than 20 samples the batch starts and ends with a blank
and a CRM and duplicate are inserted into the sample stream. If the batch
is great than 20 samples then the batch starts and ends with a blank and
every tenth sample is either a CRM, duplicate or blank. This equates to
between 20% and 10% QAQC samples.
Measures taken to ensure that the The sampling of the reef is reef material only except for the first and last
sampling is representative of the in situ sample of the reef as it will have 2 cm of hanging wall or footwall material
material collected, including for to ensure the entire mineralisation is captured. This 2 cm dilution will be
instance results for field calculated into the reef width. The hanging wall and footwall are sampled
duplicate/second-half sampling. separately to the reef. Hence the reef samples are representative of the in
situ reef horizon. Requested duplicates are pulp duplicates and the CRMs
are material from the UG2 and MR from African Mineral Standards
(AMIS).
Whether sample sizes are appropriate The reef horizon is sampled in 20 cm increments so that the grade
to the grain size of the material being distribution can be observed if a mining cut is required. The UG2 reef is
sampled. approximately 70 cm wide and will have three to four samples which will
be composited later. The MR is wider at around 200 cm and will have
about ten individual samples to determine the grade distribution. These
will also be composited later for Mineral Resource Estimation purposes.
Hanging wall and footwall samples are also taken to check if there is any
mineralisation in the direct surrounding waste rock.
This is industry best practice for the BC.
Quality of assay The nature, quality and The UG2 reef will be assayed for 4E and 6E as well as for Cu, Ni, Co, Cr
data and laboratory appropriateness of the assaying and and Fe. The MR will be assayed for the same except the Cr and Fe as it is
tests laboratory procedures used and not a chromitite seam but a pyroxenite layer.
whether the technique is considered
partial or total. The ALS methods are as follows: -
PGM-ICP23 - Pt, Pd, Au package using lead fire assay with ICP-AES
finish. 30 g nominal sample weight.
Rh-ICP28 - Fire assay fusion using lead flux with Pd collector for Rh
determination by ICPAES. 10 g nominal sample weight.
PGM-MS25NS - The Platinum Group Metals are separated from the
gangue material using the Nickel Sulphide Fire Assay procedure. After
dissolution of the pulp with aqua regia, PGMs are determined by ICP-MS.
ME-XRF26s - Analysis of Chromite ore samples by fused disc / XRF. This
method is suitable for the determination of major and minor elements in
ore samples which require a high dilution digest such as Chromite ores.
Elements that will be analysed are Cr, Cu, Ni, Fe and Co.
All methodologies are total.
For geophysical tools, spectrometers, All analytical work is undertaken by ALS Chemex South Africa (Pty) Ltd,
handheld XRF instruments, etc., the located in Johannesburg, which is part of the ALS group. The South
parameters used in determining the African laboratory is ISO 17025 accredited by SANAS (South African
analysis including instrument make and National Accreditation System).
model, reading times, calibrations
factors applied and their derivation, etc.
Nature of quality control procedures QAQC procedure has been described above.
adopted (e.g. standards, blanks,
duplicates, external laboratory checks)
and whether acceptable levels of
accuracy (i.e. lack of bias) and
precision have been established.
Verification of The verification of significant An umpire laboratory will be utilised as an additional check at a later
sampling and intersections by either independent or stage.
assaying alternative company personnel.
Discuss any adjustment to assay data. No adjustments have been made to the assayed results.
Documentation of primary data, data The assay results are received from the laboratory in pdf format and excel
entry procedures, data verification, format. The excel form is imported into the Minxcon excel database.
data storage (physical and electronic) These are checked by the senior geologist. The assay certificates are
protocols. stored in the project folder.
The use of twinned holes. No twinning has been undertaken to date.
Location of data Accuracy and quality of surveys used Drillhole collar positions are recorded by handheld Garmin GPS. The
points to locate drillholes (collar and down- drillholes will be surveyed in at a later stage.
hole surveys), trenches, mine workings
and other locations used in Mineral
Resource estimation.
Specification of the grid system used. The coordinate system used is LO31.
Quality and adequacy of topographic Regional three-dimensional (3D) topography was constructed from
control. regional surface contours and Shuttle Radar Topography Mission (SRTM)
data. The surface was trimmed 300–500 m beyond the Project perimeter.
`
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
Data spacing and Data spacing for reporting of The final drillhole spacing will be approximately 350 m. The drilling
distribution Exploration Results. completed to date or in progress has a wider spacing to get a better
understanding of the larger structural domains of the project.
Whether the data spacing and Geological continuity is based on the knowledge of the surrounding area
distribution is sufficient to establish the and 3D model constructed from historical data. The 24 of the 26
degree of geological and grade completed drillholes to date have intersected the UG2 which is confirming
continuity appropriate for the Mineral the position of the UG2 reef. Of the 12 drillholes expected to intersect the
Resource and Ore Reserve estimation MR nine have intersected the reef and two have been faulted.
procedure(s) and classifications
applied.
Whether sample compositing has been The 20cm (or larger) samples are composited to obtain the weighted
applied. average of the entire intersection.
Orientation of data Whether the orientation of sampling The drillholes are vertical drillholes and intersect the reef close to right
in relation to achieves unbiased sampling of angles. The sample is therefore unbiased. If the reef is faulted it will be
geological structure possible structures and the extent to noted and if the reef intersection is not representative, it will not be used in
which this is known, considering the Mineral Resource estimations.
deposit type.
If the relationship between the drilling No sampling bias will be introduced based on the drilling orientation as
orientation and the orientation of key they are close to perpendicular.
mineralised structures is considered to
have introduced a sampling bias, this
should be assessed and reported if
material.
Sample security The measures taken to ensure sample Samples are only handled by the drilling contractor and the Minxcon
security. geological staff. There is a strict chain of custody that is followed from the
time the core leaves the drill site to the time the sample is received by the
laboratory.
Audits or reviews The results of any audits or reviews of No audits have been undertaken on the drilling to date.
sampling techniques and data.
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria Explanation Detail
Mineral tenement and Type, reference name/number, location A Preferent Prospecting Right LP002PPR was granted to the
land tenure status and ownership including agreements or Bengwenyama Tribe’s investment vehicle, Miracle Upon Miracle
material issues with third parties such as Investments (Pty) Ltd in 2015 over the farms Eerstegeluk 322 KT and
joint ventures, partnerships, overriding Nooitverwacht 324 KT. This was renewed in early 2021 and is valid until
royalties, native title interests, historical February 2024. The Right covers all elements of potential economic
sites, wilderness or national park and interest.
environmental settings.
The security of the tenure held at the The right is valid until February 2024.
time of reporting along with any known
impediments to obtaining a licence to
operate in the area.
Exploration done by Acknowledgment and appraisal of Drilling was undertaken by Rustenburg Platinum Mines from 1966 to
other parties exploration by other parties. 1985. Trojan exploration completed drilling on Eerstegeluk between 1990
and 1993. Drilling prior to 1994 was not used as part of this Mineral
Resource estimate (MRE) due to the incomplete nature or availability of
the drillhole data. Nkwe completed drillholes in 2007–2008. This drilling
supports the MRE. Reconnaissance mapping has been completed by
previous operators.
Geology Deposit type, geological setting and style The target UG2 and Merensky reefs occur within the Upper Critical Zone
of mineralisation. of the Rustenburg Layered Suite of the BC. These reefs are laterally
continuous for tens to hundreds of kilometres. The UG2 comprises
mineralised chromitite, whereas the Merensky Reef is defined as the
mineralised pyroxenitic zone between upper and lower chromitite
stringers. The BC is the world’s largest igneous intrusion and also the
largest global repository of PGEs and chromitite. Both reefs are stratiform
with relatively minor disruptive structural features and replacement
deposits.
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria Explanation Detail
Drilling
Drillhole A summary of all information material BH ID Date Started Date Completed Easting Northing Elevation
Information From
To (m) Drilled Metres Comment
(m)
to the understanding of the E019 23-Aug-22 05-Sep-22 -86451 -2736870 804 0.00 32.42 32.42 Abandoned, stuck drill rods
exploration results including a E019a 06-Sep-22 05-Oct-22 -86447 -2736870 804 0.00 323.77 323.77 EOH, completed
tabulation of the following information E060 26-Aug-22 19-Oct-22 -85837 -2740292 774 0.00 206.72 206.72 EOH, completed
for all Material drillholes: E060_D1 23-Nov-22 28-Nov-22 -85837 -2740292 635 139.00 185.53 46.53 EOH, completed
EOH, completed, extended to
* easting and northing of the drillhole E062 26-Aug-22 02-Sep-22 -86184 -2740002 777 0.00 120.34 120.34
collar UG1 for stratigraphy
* elevation or RL (Reduced Level – Deflection completed, faulted
elevation above sea level in metres) E062_D1 07-Sep-22 08-Sep-22 -86184 -2740002 759 18.30 34.92 16.62
of the drillhole collar E062_D2 09-Sep-22 10-Sep-22 -86184 -2740002 764 13.30 33.00 19.70
* dip and azimuth of the hole UG2
* down hole length and interception Deflection completed, faulted
depth
* hole length. E058 12-Sep-22 05-Oct-22 -86127 -2740386 777 0.00 158.25 158.25 UG2
EOH, completed
E033 07-Sep-22 15-Oct-22 -85930 -2737823 786 0.00 261.58 261.58 EOH, completed
E028 07-Oct-22 24-Oct-22 -86764 -2736873 806 0.00 383.75 383.75 EOH, completed
E004 14-Oct-22 15-Nov-22 -87547 -2734952 839 0.00 524.50 524.50 EOH, completed
E004_D1 19-Nov-22 24-Nov-22 -87547 -2734952 382 457.00 518.75 61.75 Deflection completed
E030 26-Oct-22 05-Dec-22 -87118 -2737704 801 0.00 413.75 413.75 EOH, completed
E025 18-Oct-22 09-Nov-22 -85963 -2737487 796 0.00 267.58 267.58 EOH, completed
E037 13-Oct-22 02-Nov-22 -86264 -2738274 776 0.00 282.45 282.45 EOH, completed
EOH, completed, extended to
E049 21-Oct-22 19-Nov-22 -85949 -2739599 771 0.00 322.75 322.75
E031 07-Nov-22 22-Nov-22 -87054 -2737306 802 0.00 423.22 423.22
UG1 for stratigraphy
EOH, completed
E044 12-Nov-22 14-Dec-22 -86400 -2739001 775 0.00 263.73 263.73 EOH, completed
E016 28-Nov-22 14-Dec-22 -87174 -2736679 815 0.00 325.68 454.68 EOH, completed
E007 28-Nov-22 10-Dec-22 -87014 -2735562 826 0.00 422.80 422.80 EOH, completed
E064 29-Nov-22 06-Dec-22 -84845 -2738001 750 0.00 166.40 166.40 EOH, completed
E071 07-Dec-22 12-Dec-22 -85047 -2738333 750 0.00 188.80 188.80 EOH, completed
E065 08-Dec-22 15-Dec-22 -85571 -2738426 764 0.00 239.75 239.75 EOH, completed
E001 12-Jan-23 06-Feb-23 -87995 -2734357 858 0.00 554.75 554.75 EOH, completed
E015 12-Jan-23 19-Jan-23 -86172 -2736461 802 0.00 298.72 298.72 EOH, completed
E020 11-Jan-23 21-Jan-23 -86725 -2737285 798 0.00 350.75 350.75 EOH, completed
E041 13-Jan-23 06-Feb-23 -86452 -2738758 770 0.00 258.77 258.77 EOH, completed
E067 12-Jan-23 25-Jan-23 -85465 -2739534 762 0.00 306.45 306.45 EOH, completed
E013 23-Jan-23 01-Feb-23 -86435 -2736523 809 0.00 327.28 327.28 EOH, completed
E024 23-Jan-23 29-Jan-23 -86104 -2737215 800 0.00 284.75 284.75 EOH, completed
E069 27-Jan-23 -85313 -2740516 763 0.00 284.65 284.65 Drilling in progress
E027 01-Feb-23 21-Feb-23 -86331 -2737558 788 0.00 290.75 290.75 EOH, completed
E014 07-Feb-23 -86588 -2736213 811 0.00 106.10 106.10 Drilling in progress
E052 21-Feb-23 -86337 -2739349 775 0.00 3.55 3.55 Drilling in progress
E001D1 -87998 -2734368 350 508.00 0` 0.00 Set-up
8668
All drillholes were drilled -90 degrees. Reef intersection depths are in
appendix 1 of the press release.
If the exclusion of this information is N/A
justified on the basis that the information
is not Material and this exclusion does
not detract from the understanding of the
report, the Competent Person should
clearly explain why this is the case.
Data aggregation In reporting Exploration Results, No updated Mineral Resource or Exploration Target has been completed
methods weighting averaging techniques, utilising this new drilling data.
maximum and/or minimum grade
truncations (e.g. cutting of high grades)
and cut-off grades are usually Material
and should be stated.
Where aggregate intercepts incorporate No aggregation of data has been done at this stage.
short lengths of high grade results and
longer lengths of low grade results, the
procedure used for such aggregation
should be stated and some typical
examples of such aggregations should
be shown in detail.
The assumptions used for any reporting No metal equivalent has been reported.
of metal equivalent values should be
clearly stated.
Relationship between If the geometry of the mineralisation with The intersection lengths stated are the downhole lengths. The drillholes
mineralisation widths respect to the drillhole angle is known, its are drilled at -90 degrees and the reef dip is expected to be approximately
and intercept lengths nature should be reported. 12 degrees. Therefore, the difference should be minimal.
If it is not known and only the down hole
lengths are reported, there should be a
clear statement to this effect (e.g. ‘down
hole length, true width not known’).
Diagrams Appropriate maps and sections (with A map of the drillhole positions is included in the press releases. A
scales) and tabulations of intercepts preliminary stratigraphic column has been completed for the project
should be included for any significant (previous press releases). A section has not been included as the larger
discovery being reported These should structural blocks are still being determined with the drilling.
include, but not be limited to a plan view
of drillhole collar locations and
appropriate sectional views.
Balanced reporting Where comprehensive reporting of all Reef intersection depths for all the drillholes have been reported in the
Exploration Results is not practicable, table below.
representative reporting of both low
and high grades and/or widths should
be practiced to avoid misleading
reporting of Exploration Results.
`
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria Explanation Detail
Drilling Merensky Reef UG2 Reef
Intersection Intersection
BH ID From (m) To (m) Comment From (m) To (m) Comment
Width (m) Width (m)
Highly weathered & friable,
E019 20.25 22.45 2.20 - - - Hole stopped short
inconclusive
Highly weathered & friable,
E019a 19.55 22.35 2.80 315.85 316.61 0.76 Complete intersection
inconclusive
No MR expected - East of MR
E060 - - - - - - Faulted?
sub outcrop
No MR expected - East of MR
E060_D1 - - - 178.78 179.29 0.51 Complete intersection
sub outcrop
No MR expected - East of MR Complete intersection, moderately
E062 - - - 31.27 32.30 1.03
sub outcrop weathered
No MR expected - East of MR Moderately weathered & faulted.
E062_D1 - - - 31.45 32.27 0.82
sub outcrop Incomplete intersection. Core loss.
No MR expected - East of MR Moderately weathered & faulted.
E062_D2 - - - 31.16 31.56 0.40
sub outcrop Incomplete intersection. Core loss.
No MR expected - East of MR
E058 - - - 140.88 141.29 0.41 Complete intersection
sub outcrop
No MR expected - East of MR
E033 - - - 253.62 254.25 0.63 Complete intersection
sub outcrop
E028 66.70 68.66 1.96 Complete intersection 373.26 373.79 0.53 Complete intersection
E004 210.77 212.90 2.13 Complete intersection 517.33 517.57 0.24 Poorly developed UG2
E004_D1 - - - Deflection below MR 515.83 516.52 0.69 Poorly developed UG2
E030 143.00 144.68 1.68 Complete intersection 409.55 410.07 0.52 Complete intersection
No MR expected - East of MR
E025 - - - 260.42 261.32 0.90 Complete intersection
sub outcrop
No MR expected - East of MR
E037 - - - - - - Not present / Pothole
sub outcrop
No MR expected - East of MR
E049 - - - - - - Faulted
sub outcrop
E031 122.40 124.29 1.89 Complete intersection 416.57 417.19 0.62 Complete intersection
No MR expected - East of MR
E044 - - - 258.75 259.42 0.67 Complete intersection
sub outcrop
E016 - - - Faulted 449.24 450.01 0.77 Complete intersection
E007 100.38 102.54 2.16 Complete intersection 417.42 418.12 0.70 Complete intersection
No MR expected - East of MR
E064 - - - 156.19 157.05 0.86 Complete intersection
sub outcrop
No MR expected - East of MR
E071 - - - 180.04 180.73 0.69 Complete intersection
sub outcrop
No MR expected - East of MR
E065 - - - 231.81 232.50 0.69 Complete intersection
sub outcrop
E001 259.78 261.44 1.66 Complete intersection 548.07 549.21 1.14 Complete intersection
No MR expected - East of MR
E015 - - - 291.89 292.63 0.74 Complete intersection
sub outcrop
E020 54.20 54.57 0.37 Faulted 342.90 343.56 0.66 Complete intersection
No MR expected - East of MR
E041 - - - 250.95 251.60 0.65 Complete intersection
sub outcrop
No MR expected - East of MR
E067 - - - 299.70 300.20 0.50 Complete intersection
sub outcrop
Highly weathered & friable,
E013 12.00 18.62 6.62 inconclusive (core loss & No 321.26 321.76 0.50 Complete intersection
stringers)
No MR expected - East of MR
E024 - - - 278.77 279.26 0.49 Complete intersection
sub outcrop
No MR expected - East of MR
E069 - - - - - - UG2 expected ~ 240m
sub outcrop
No MR expected - East of MR
E027 - - - 284.47 285.04 0.57 Complete intersection
sub outcrop
E014 37.28 39.41 2.13 Complete intersection - - - UG2 expected ~ 327m
No MR expected - East of MR
E052 - - - - - - UG2 expected ~ 126m
sub outcrop
E001D1 - - - Deflection below MR - - - UG2 expected ~ 548m
Other substantive Other exploration data, if meaningful and A high-definition helicopter borne Total Magnetic Field (TMF) gradient
exploration data material, should be reported including and gamma-ray spectrometry survey was completed by New Resolution
(but not limited to): geological Geophysics (Pty) Ltd (NRG) in January of 2022 which highlighted the
observations; geophysical survey results; major structural features that could be expected.
geochemical survey results; bulk
samples – size and method of treatment; The total line kilometres flown was 1,425 lkm over the farms Eerstegeluk
metallurgical test results; bulk density, 322 KT and Nooitverwacht 324 KT with the survey being flown at a height
groundwater, geotechnical and rock between 25 m and 80 m due to the topography and residential areas with
characteristics; potential deleterious or an average height of approximately 35 m to 40 m and a line spacing of 50
contaminating substances. m.
Further work The nature and scale of planned further This is the start of the drilling programme, and the extent of the drilling
work (e.g. tests for lateral extensions or programme is shown in previous press releases. The total planned drilling
depth extensions or large-scale step-out meters for phase 1 is approximately 25,000 m.
drilling).
Diagrams clearly highlighting the areas
of possible extensions, including the
main geological interpretations and
future drilling areas, provided this
information is not commercially sensitive.
Date: 30-03-2023 08:59:00
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