Wrap Text
First Merensky Reef Assay Results
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”)
First Merensky Reef Assay Results
Highlights:
• Assays received for the initial four Merensky reef intersections return positive results by confirming
the presence of PGM mineralisation.
• Average Merensky 3PGE + Au grade is 2.30 g/t and 6PGE + Au grade is 2.56 g/t over an average
sampled width of 197 cm.
• Drill activities recommenced on 12 January after the Christmas break. Five rigs are currently
operating on site and better productivity is already being seen, a result of measures taken during
late 2022.
• A total of 43 Merensky reef samples and 98 UG2 samples (including quality control and footwall
samples) were collected and dispatched in late 2022, with results expected shortly.
Southern Palladium (ASX:SPD and JSE:SDL), ‘Southern Palladium’ or ‘the Company’) is pleased to release
the initial Merensky reef (MR) grades on the Bengwenyama Platinum Group Metal (PGM) project located
on the Eastern Limb of the world class Bushveld Complex, South Africa.
In total, 21 drillholes have now been completed to date (Appendix 1). Of these, the UG2 Reef has been
encountered in 18 holes. Two appear to have been faulted out at the expected depth, and in one case the
reef was not developed. Of the 21 drillholes, eight were expected to intersect the MR as they were drilled
east of the subcrop. Of these, six intersected the MR and two were faulted.
Commenting on these results, Managing Director Johan Odendaal, said:
“We are pleased to report that the first assays for initial four Merensky Reef intersections returned
positive results, with confirmation of PGM mineralisation and prill splits (ratio of PGE’s and gold) that
have a higher platinum-to-palladium ratio when compared to the UG2 reef. The PGM mineralisation
observed further supports the conclusions in our recently completed Scoping Study, where the shallower
Merensky reef was recommended for potential future development in addition to the UG2 reef (refer ASX
Announcement 24 January 2023). The potential inclusion of the MR for economic resource extraction
increases the project’s broader upside potential, and may significantly extend the life of the mine in the
area now earmarked for mining.”
Initial Merensky Reef Results
The first Merensky reef assay results for drillholes E004, E028, E030 and E031 have been received from
the accredited ALS laboratory in Johannesburg. The composited samples of the MR intersections are
shown in Table 1. The average sampled width for the four drillholes is 197 cm with a 3PGE+Au grade of
2.30 g/t and 6PGE+Au grade of 2.56 g/t. This is in line with the reef widths of the compliant inferred
Mineral Resource Estimate (MRE) which has an average reef width of 191 cm.
The grade, which has sampled only a small percentage of the lease area, is slightly lower than the inferred
MRE of 2.96 g/t.
Drillhole E019A intersected what is believed to be the highly weathered and friable MR, in the shallow
oxidised zone, with a 3PGE + Au grade of 0.88 g/t over a sample width of 284 cm and was deemed as non-
representative and not included in the table below. The distribution of the initial four MR assay results is
shown in Figure 1.
Table 1: Summary of the Initial Merensky Reef Assay Results
MR
From sampled Pt Pd Rh Ir Os Ru Au 3PGE+Au 6PGE+Au Ni Cu
BHID To (m)
(m) width (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%)
(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
Weighted Average 197 1.49 0.61 0.09 0.03 0.03 0.20 0.11 2.30 2.56 0.12 0.04
(3PGE+Au) Prill Split (%) 64.6 26.4 4.1 4.9 100
(6PGE+Au) Prill Split (%) 58.1 23.7 3.7 1.2 1 7.9 4.4 100
Figure 1: 6PGE+Au Assay Result Locations for the Initial Merensky Reef Intersections
Merensky Reef
The Merensky pyroxenite (Figure 2), containing potentially exploitable platinum group elements (‘PGEs’),
is overlain by spotted anorthosite and underlain by leucocratic norite. Mineralisation in the Merensky
Reef zone includes patchy pyrrhotite and fine pyrite in the areas immediately adjacent to the top reef
contact (“TRC”). In most drillholes, sampling of the Merensky Reef is guided by the presence of two
chromitite stringers namely top and a bottom chromitite stringer marker.
These chromitite stringers are approximately 5 mm wide. The bulk of pyroxenite between these markers
is usually low grade or totally barren. In drillhole E031 only the top chromitite stringer was developed.
Although some disseminated chromitite mineralisation was observed on the drill core, the bottom
stringer marker is either poorly developed and not easily discernible or non-existent. The Merensky Reef
assay results indicate that the PGE mineralisation is top and bottom loaded.
Figure 2: Photo of the Merensky Reef Intersection (yellow polygons) in Drillhole E031
2023 Drilling Activities
A total of 43 Merensky reef samples and 98 UG2 samples (including quality control and footwall samples)
were collected before the December break. These have been dispatched to ALS Chemex South Africa (Pty)
Ltd (“ALS”) and assay results are expected shortly. The drill contractors and geological staff are back on
the project and drilling activities with the five drill rigs are progressing well. Productivity has improved
following the implementation of action plans initiated towards the end of 2022, and the last three weeks
of production have exceeded the planned meters.
A summary of the reef intersections for the completed drillholes to date is presented in Appendix 1.
UG2 and Merensky Reef Intercepts
In total, 21 drillholes have now been completed to date (Appendix 1). Of these, the UG2 Reef has been
encountered in 18 holes, 2 appear to have been faulted out at the expected depth and; in one case the
reef was not developed. Of the 21 drillholes, eight were expected to intersect the MR as they were drilled
east of the subcrop. Of these, six intersected the MR and two were faulted. The 21 drillholes are spread
over the entire resource and target area and have confirmed that the UG2 reef at Bengwenyama is
continuous – a key objective of the Phase 1 drill programme.
Drilling is now well underway, and the new boreholes have assisted in getting a better understanding of
the orebody. A decision was made to drill in the far east corner (Eastern Resource Block) of the orebody
which was previously excluded from the planned Phase 1 drilling programme and resource estimation.
Drillholes E064, E065 and E071 have all intersected the UG2 reef and confirms the UG2 reef does continue
into the Eastern Resource Block.
Figure 3 provides a summary of boreholes drilled to-date, highlighting boreholes that have been
completed and assayed (for both UG2 and Merensky), and boreholes where the UG2 reef has been
intercepted with assays pending.
Figure 3: Location of drillholes which provided initial assay results for both the UG2 Reef and the Merensky Reef
Conferences
Southern Palladium will be attending the Mining Indaba and 121 Conferences from 6-9 February 2023.
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
10 March 2023
(Originally lodged on the Australian Securities Exchange on 3 February 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
Intersection Intersection
BH ID From (m) To (m) Comment From (m) To (m) Comment
Width (m) Width (m)
Highly weathered &
E019 20.25 22.45 2.20 friable, inconclusive - - - Hole abandoned
Highly weathered &
E019A 19.55 22.35 2.80 friable, inconclusive 315.85 316.61 0.76 Complete intersection
No MR expected –
E060 - - - East of MR subcrop - - - Core loss
No MR expected –
E060_D1 - - - East of MR subcrop 178.78 179.29 0.51 Complete intersection
No MR expected – Complete intersection,
E062 - - - East of MR subcrop 31.27 32.30 1.03 moderately weathered
No MR expected – 31.45 32.27 0.82 Moderately weathered &
E062_D1 - - - East of MR subcrop faulted. Incomplete intersection. Core loss.
No MR expected – 31.16 31.56 0.40 Moderately weathered &
E062_D2 - - - East of MR subcrop faulted. Incomplete intersection. Core loss.
No MR expected –
E058 - - - East of MR subcrop 140.88 141.29 0.41 Complete intersection
No MR expected –
E033 - - - East of MR subcrop 253.62 254.25 0.63 Complete intersection
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 –
E025 - - - East of MR subcrop 260.42 261.32 0.90 Complete intersection
No MR expected –
E037 - - - East of MR subcrop - - - Not present / Pothole?
No MR expected –
E049 - - - East of MR subcrop - - - Faulted
E031 122.40 124.29 1.89 Complete intersection 416.57 417.19 0.62 Complete intersection
No MR expected –
E044 - - - East of MR subcrop 258.75 259.42 0.67 Complete intersection
E016 - - - Faulted 449.24 450.01 0.77 Complete intersection
E007 100.38 102.54 2.16 Complete intersection 417.42 418.54 1.12 Complete intersection
No MR expected –
E064 - - - East of MR subcrop 156.19 157.05 0.86 Complete intersection
No MR expected –
E071 - - - East of MR subcrop 180.04 180.73 0.69 Complete intersection
No MR expected –
E065 - - - East of MR subcrop 231.81 232.50 0.69 Complete intersection
No MR expected –
E015 - - - East of MR subcrop 291.89 292.63 0.74 Complete intersection
E020 54.20 54.57 0.37 MR faulted 342.90 343.56 0.66 Complete intersection
Appendix 2. JORC Checklist – Table 1 Assessment and Reporting Criteria
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
Nature and quality of sampling (e.g. cut
channels, random chips, or specific
specialised industry standard 20 cm samples are taken within the reef horizon unless there is a lithological
measurement tools appropriate to the reason to deviate from this. A single sample is also taken in the hanging
minerals under investigation, such as wall and footwall to test for mineralisation in the direct waste rock. The
down hole gamma sondes, or handheld samples are split with a core saw and one half is submitted to the laboratory
XRF instruments, etc.). These examples and the other half keep in the core tray.
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
Sampling techniques mineralisation that are Material to the
Public Report. In cases where ‘industry
standard’ work has been done this
would be relatively simple (e.g. ‘reverse
circulation drilling was used to obtain 1
m samples from which 3 kg was
pulverised to produce a 30 g charge for The sampling methodology is standard and as per industry practice in the
fire assay’). In other cases more Bushveld Complex (BC). The samples are 20 cm in length and are split into
explanation may be required, such as two equal halves with one half being submitted for analysis. The core size
where there is coarse gold that has starts as HQ (10 m to 50 m) but is NQ by the time the reef is intersected.
commodities or mineralisation types
(e.g. submarine nodules) may warrant
disclosure of detailed information.
Drilling techniques Drill type (e.g. core, reverse circulation,
open-hole hammer, rotary air blast,
auger, Bangka, sonic, etc.) and details The drillholes start with HQ (for approximately 10-50 m) in the weathered
(e.g. core diameter, triple or standard zone but are then drilled NQ once in the fresher material.
tube, depth of diamond tails, face- The drill rigs being utilised have been the CS 1500, Delta 520 and a smaller Longyear 44.
sampling bit or other type, whether core
is oriented and if so, by what method, The drill contractor is Geomech Africa.
etc.).
Method of recording and assessing core Initially the core was scanned in with the software ScanIT which scans the
and chip sample recoveries and results core with high resolution photos and the geologists reconcile the depths
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.
Drill sample recovery 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 reef depth.
nature of the samples.
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
sample recovery and grade and whether Samples have been submitted to the ALS laboratory in Johannesburg, but
sample bias may have occurred due to there is only limited data available at this stage, so this has not been
preferential loss/gain of fine/coarse checked yet. The core recoveries for the intersections however all have
material. good core recoveries besides the faulted intersections.
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 menus.
appropriate Mineral Resource Legends have been set up in excel that cover the necessary detailed
estimation, mining studies and required for Mineral Resource estimation. Alpha angles and structure detail
Logging metallurgical studies. 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
quantitative in nature. Core (or costean, Core logging is qualitative and utilises excel spreadsheets on tablets.
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.
If core, whether cut or sawn and The core is cut in two equal halves for sampling and storage purposes.
Sub-sampling whether quarter, half or all core taken.
techniques and
sample preparation If non-core, whether riffled, tube
sampled, rotary split, etc. and whether This project only makes use of core drilling.
sampled wet or dry.
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
The sample preparation code at ALS is PREP-31H which has the following
procedure: -
For all sample types, the nature, quality
and appropriateness of the sample
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.
The QAQC sequence is as follows: -
Quality control procedures adopted for If the batch is less than 20 samples the batch starts and ends with a blank
all sub-sampling stages to maximise and a CRM and duplicate are inserted into the sample stream. If the batch
representivity of samples. 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 instance to ensure the entire mineralisation is captured. This 2 cm dilution will be
results for field duplicate/second-half calculated into the reef width. The hanging wall and footwall are sampled
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).
The reef horizon is sampled in 20c m increments so that the grade
distribution can be observed if a mining cut is required. The UG2 reef is
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
Whether sample sizes are appropriate ten individual samples to determine the grade distribution. These will also
to the grain size of the material being be composited later for Mineral Resource Estimation purposes. Hanging
sampled. mineralisation in the direct surrounding waste rock.
This is industry best practice for the BC.
The nature, quality and appropriateness The UG2 reef will be assayed for 4E and 6E as well as for Cu, Ni, Co, Cr
of the assaying and laboratory and Fe. The MR will be assayed for the same except the Cr and Fe as it is
procedures used and whether the not a chromitite seam but a pyroxenite layer.
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
Quality of assay data samples which require a high dilution digest such as Chromite ores.
and laboratory tests Elements that will be analysed are Cr, Cu, Ni, Fe and Co.
All methodologies are total.
For geophysical tools, spectrometers,
handheld XRF instruments, etc., the All analytical work is undertaken by ALS Chemex South Africa (Pty) Ltd,
parameters used in determining the located in Johannesburg, which is part of the ALS group. The South African
analysis including instrument make and laboratory is ISO 17025 accredited by SANAS (South African National
model, reading times, calibrations Accreditation System).
factors applied and their derivation, etc.
Nature of quality control procedures
adopted (e.g. standards, blanks,
duplicates, external laboratory checks) QAQC procedure has been described above.
and whether acceptable levels of
accuracy (i.e. lack of bias) and precision
have been established.
The verification of significant
intersections by either independent or An umpire laboratory will be utilised as an additional check at a later stage.
alternative company personnel.
Verification of Discuss any adjustment to assay data. No adjustments have been made to the assayed results.
sampling and
assaying Documentation of primary data, data The assay results are received from the laboratory in pdf format and excel
entry procedures, data verification, data format. The excel form is imported into the Minxcon excel database. These
storage (physical and electronic) are checked by the senior geologist. The assay certificates are stored in the
protocols. project folder.
The use of twinned holes. No twinning has been undertaken to date.
Accuracy and quality of surveys used to
locate drillholes (collar and down-hole
surveys), trenches, mine workings and Drillhole collar positions are recorded by handheld Garmin GPS. The
Location of data other locations used in Mineral drillholes will be surveyed in at a later stage.
points Resource estimation.
Specification of the grid system used. The coordinate system used is LO31.
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
Regional three-dimensional (3D) topography was constructed from regional
Quality and adequacy of topographic surface contours and Shuttle Radar Topography Mission (SRTM) data. The
control. surface was trimmed 300–500 m beyond the Project perimeter.
The final drillhole spacing will be approximately 350 m. The drilling
Data spacing for reporting of Exploration completed to date or in progress has a wider spacing to get a better
Results. understanding of the larger structural domains of the project.
Whether the data spacing and
distribution is sufficient to establish the Geological continuity is based on the knowledge of the surrounding area
Data spacing and degree of geological and grade and 3D model constructed from historical data. The 18 of the 21 completed
distribution continuity appropriate for the Mineral drillholes to date have intersected the UG2 which is confirming the position
Resource and Ore Reserve estimation of the UG2 reef. Of the eight drillholes expected to intersect the MR six have
procedure(s) and classifications intersected the reef and two have been faulted.
applied.
Whether sample compositing has been The 20cm (or larger) samples are composited to obtain the weighted
applied. average of the entire intersection.
Whether the orientation of sampling The drillholes are vertical drillholes and intersect the reef close to right
achieves unbiased sampling of possible angles. The sample is therefore unbiased. If the reef is faulted it will be
structures and the extent to which this is noted and if the reef intersection is not representative, it will not be used in
known, considering the deposit type. Mineral Resource estimations.
Orientation of data in
relation to geological If the relationship between the drilling
structure orientation and the orientation of key
mineralised structures is considered to No sampling bias will be introduced based on the drilling orientation as they
have introduced a sampling bias, this are close to perpendicular.
should be assessed and reported if
material.
Samples are only handled by the drilling contractor and the Minxcon
The measures taken to ensure sample geological staff. There is a strict chain of custody that is followed from the
Sample security security. time the core leaves the drill site to the time the sample is received by the
laboratory.
The results of any audits or reviews of
Audits or reviews sampling techniques and data. No audits have been undertaken on the drilling to date.
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria Explanation Detail
Type, reference name/number, location
and ownership including agreements or A Preferent Prospecting Right LP002PPR was granted to the
material issues with third parties such Bengwenyama Tribe’s investment vehicle, Miracle Upon Miracle
as joint ventures, partnerships, Investments (Pty) Ltd in 2015 over the farms Eerstegeluk 322 KT and
Mineral tenement overriding royalties, native title Nooitverwacht 324 KT. This was renewed in early 2021 and is valid until
and land tenure interests, historical sites, wilderness or February 2024. The Right covers all elements of potential economic
status national park and environmental interest.
settings.
The security of the tenure held at the
time of reporting along with any known The right is valid until February 2024.
impediments to obtaining a licence to
operate in the area.
Exploration done by Drilling was undertaken by Rustenburg Platinum Mines from 1966 to
other parties 1985. Trojan exploration completed drilling on Eerstegeluk between
1990 and 1993. Drilling prior to 1994 was not used as part of this
Acknowledgment and appraisal of Mineral Resource estimate (MRE) due to the incomplete nature or
exploration by other parties. availability of the drillhole data. Nkwe completed drillholes in 2007–
2008. This drilling supports the MRE. Reconnaissance mapping has
been completed by previous operators.
The target UG2 and Merensky reefs occur within the Upper Critical
Zone of the Rustenburg Layered Suite of the BC. These reefs are
Deposit type, geological setting and laterally continuous for tens to hundreds of kilometres. The UG2
Geology style of mineralisation. 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.
A summary of all information
material to the understanding of the
exploration results including a
tabulation of the following
information for all Material drillholes:
* easting and northing of the drillhole
collar
* elevation or RL (Reduced Level –
elevation above sea level in metres)
of the drillhole collar
* dip and azimuth of the hole
* down hole length and interception
depth
* hole length.
Drillhole
Information
All drillholes were drilled -90 degrees. Reef intersection depths are in
appendix 1 of the press release.
If the exclusion of this information is
justified on the basis that the
information is not Material and this
exclusion does not detract from the N/A
understanding of the report, the
Competent Person should clearly
explain why this is the case.
In reporting Exploration Results,
weighting averaging techniques,
maximum and/or minimum grade No updated Mineral Resource or Exploration Target has been
truncations (e.g. cutting of high grades) completed utilising this new drilling data.
and cut-off grades are usually Material
and should be stated.
Where aggregate intercepts
Data aggregation incorporate short lengths of high grade
methods results and longer lengths of low grade
results, the procedure used for such No aggregation of data has been done at this stage.
aggregation should be stated and some
typical examples of such aggregations
should be shown in detail.
The assumptions used for any
reporting of metal equivalent values No metal equivalent has been reported.
should be clearly stated.
If the geometry of the mineralisation
with respect to the drillhole angle is
Relationship known, its nature should be reported.
between If it is not known and only the down
mineralisation hole lengths are reported, there should The intersection lengths stated are the downhole lengths. The drillholes
widths and intercept be a clear statement to this effect (e.g. are drilled at -90 degrees and the reef dip is expected to be
lengths ‘down hole length, true width not approximately 12 degrees. Therefore, the difference should be minimal.
known’).
Appropriate maps and sections (with
scales) and tabulations of intercepts A map of the drillhole positions is included in previous press releases. A
should be included for any significant preliminary stratigraphic column has been completed for the project
discovery being reported These should (previous press releases). A section has not been included as the larger
Diagrams include, but not be limited to a plan
view of drillhole collar locations and
appropriate sectional views.
Where comprehensive reporting of
all Exploration Results is not
practicable, representative reporting
Balanced of both low and high grades and/or Reef intersection depths for all the drillholes have been reported in
reporting widths should be practiced to avoid the table below.
misleading reporting of Exploration
Results.
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria Explanation Detail
Other exploration data, if meaningful A high-definition helicopter borne Total Magnetic Field (TMF) gradient
and material, should be reported and gamma-ray spectrometry survey was completed by New Resolution
Other substantive including (but not limited to): geological Geophysics (Pty) Ltd (NRG) in January of 2022 which highlighted the
exploration data observations; geophysical survey major structural features that could be expected.
results; geochemical survey results;
bulk samples – size and method of
treatment; metallurgical test results; The total line kilometres flown was 1,425 lkm over the farms
bulk density, groundwater, geotechnical Eerstegeluk 322 KT and Nooitverwacht 324 KT with the survey being
and rock characteristics; potential flown at a height between 25 m and 80 m due to the topography and
deleterious or contaminating residential areas with an average height of approximately 35 m to 40 m
substances. and a line spacing of 50m.
The nature and scale of planned further
work (e.g. tests for lateral extensions or This is the start of the drilling programme, and the extent of the drilling
depth extensions or large-scale step- programme is shown in previous press releases. The total planned
Further work out drilling). drilling meters for phase 1 is approximately 25,000 m.
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: 10-03-2023 09:01:00
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