Wrap Text
Latest Assay Results: Average UG2 grade now 9.48g/t (6PGE+Au) with Additional Resource Potential in Far East Block
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”)
Latest Assay Results: Average UG2 grade now 9.48g/t (6PGE+Au) with Additional Resource
Potential in Far East Block
Highlights:
• Assay results for 15 UG2 intersections received to-date have returned an average
3PGE+Au grade of 7.86g/t and 6PGE+Au of 9.48g/t over 73cm, which remains above the
grade in the JORC-2012 Inferred Mineral Resource estimate.
• The most economic reef, the UG2, has now been intersected in 24 of the 26 drillholes
completed to date, which, together with the latest assays confirms continuity of the
mineralisation.
• Latest results include three intersections within the newly discovered Far East Block. This
could result in a potential increase in the size of the Mineral Resource at Bengwenyama.
• Additional assays for the Merensky Reef (MR) resulted in an increased average 3PGE+Au
grade for the MR to 2.56 g/t over an impressive width of 202 cm.
• 8,668 metres of drilling to-date from 29 drill-holes, with 26 holes completed and three in
progress.
• Drilling has been halted temporarily at the Bengwenyama project following unlawful
protests. The Company is working closely with the full support of Bengwenyama
community leaders to resume safe operations at the earliest opportunity.
Southern Palladium (ASX:SPD and JSE:SDL), ‘Southern Palladium’ or ‘the Company’) is pleased
to release additional results for the MR and UG2 reefs on the Bengwenyama Platinum Group
Metal (PGM) project located on the Eastern Limb of the world class Bushveld Complex, South
Africa.
Progressive UG2 and Merensky Reef Results
In total, 8,668 meters of drilling has been completed to date from 29 drillholes - 26 completed
and 3 in progress - (refer Appendix 1). Assay results for 15 UG2 reef intersections have been
received (refer Table 1) with the average 3PGE+Au grade now 7.86 g/t over 73 cm (intersection
width). The expanded sample results remain above the expected 3PGE+Au grade in the inferred
Mineral Resource Estimate (MRE) of 7.7 g/t over 71 cm. The 6PGE+Au grade across the 15
intersections is 9.48 g/t.
The additional assay results have continued to confirm the continuity of both the UG2 and MR
on the project. Assay results show the average grade of the two reefs continues to confirm the
reef widths and grade of the JORC compliant inferred MRE.
Managing Director Johan Odendaal, said: “The drill programme has now made significant
progress and we are pleased with the PGM mineralisation observed in assay results for both reefs,
as well as the new Far East Block zone. These results continue to confirm the broader mineralised
structure of the reef in line with the geological model in the Inferred Mineral Resource Estimate
(MRE). The average 3PGE+Au grades also continue to confirm the grades in the MRE - a JORC
2012-compliant Inferred Mineral Resource of 18.8Moz across the UG2 and Merensky reefs. Assay
results for the Far East Block reaffirmed the project’s long-term commercial potential as one of
the last remaining PGM development opportunities in the Bushveld Complex. We look forward to
updating investors with the ongoing progression of the drill programme and the next round of
assay results in the coming weeks, which is forming the base for our Pre-Feasibility Study (PFS)
that commenced earlier this year.”
Drilling summary
Of the 26 completed drillholes, the UG2 Reef has been encountered in 24 holes. One drillhole
appears to have been faulted out at the expected depth, and in one case the reef was not
developed. This is considered very encouraging, given the typical distribution of potholes in the
UG2 on the Eastern Limb in this area.
Of the 26 drillholes, 12 were expected to intersect the Merensky Reef (MR) as they were drilled
east of the subcrop. Of these, nine intersected the MR and two were faulted with one
intersection (E013) being inconclusive at this stage.
The distribution of the completed drillholes is shown in Figure 1. The drillholes with assay results
are also highlighted in Figure 1 below.
Southern Palladium notes that drilling has been halted temporarily at the Bengwenyama project
following unlawful protests. The Company is working closely with the full support of
Bengwenyama community leaders and its advisors to resume safe operations at the earliest
opportunity.
Additional resource potential within the Far East Block
The latest assays also included results for three intersections east of the dyke in the Far East Block
(refer Figure 1). This area was originally thought not to host the UG2 reef, and the confirmation
of UG2 intersections in the Far East Block (refer ASX Announcement 20 December 2022) could
result in a potential increase in the size of the Mineral Resource at Bengwenyama.
Assays for three drillholes (E064, E071 and E065) in the Far East Block confirm the presence of
PGM mineralisation, including 7.87g/t 3PGE+Au from a sample width of 73cm (E065). Early
indications are that the prill split in this block could change, with the prill split for these three
drillholes showing increased levels of Platinum where Pt:Pd:Rh:Au is 49:39:11:1. This compares
to the prill split of the 12 drillholes west of the dyke being 44.5:44.5:9.6:1.4.
Figure 1: Location of Completed Drillholes
Table 1: Summary of the Progressive UG2 Reef Assay Results
From UG2 Pt Pd Rh Ir Os Ru Au 3PGE+Au 6PGE+Au Ni Cu Cr2O3
BHID (m) To (m) sampled
width(cm) (g/t)(g/t)(g/t)(g/t)(g/t)(g/t)(g/t) (g/t) (g/t) (%) (%) (%)
E062 31.25 32.30 105 3.80 3.57 0.88 0.32 0.14 1.43 0.08 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 1.46 0.22 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 1.31 0.13 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 1.32 0.17 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 1.18 0.05 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 1.09 0.16 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 1.14 0.10 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 0.97 0.12 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 0.83 0.02 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 1.49 0.19 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 1.43 0.08 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 1.51 0.06 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 1.08 0.03 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 1.08 0.13 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 1.27 0.12 7.87 9.57 0.16 0.04 28.97
Weighted Average 73 3.56 3.43 0.76 0.25 0.16 1.22 0.10 7.86 9.48 0.16 0.03 30.22
(3PGE+Au) Prill Split (%) 45.3 43.7 9.7 1.3 100
(6PGE+Au) Prill Split (%) 37.5 36.1 8.1 2.6 1.7 12.9 1.1 100
One more MR intersection assay result (E007) has been received since the previous
announcement (refer Table 2). This has resulted in the average 3PGE+Au grade for the MR to
date increasing to 2.56 g/t over 202cm, thereby moving closer to the expected 3PGE+Au grade
of 2.96 g/t over 191cm.
Table 2: Summary of the Progressive Merensky Reef Assay Results
MR
From sampled Pt Pd Rh Ir Os Ru Au 3PGE+Au 6PGE+Au
BHID To (m) width Ni (%) Cu (%)
(m) (cm) (g/t)(g/t)(g/t)(g/t)(g/t)(g/t)(g/t) (g/t) (g/t)
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
Weighted Average 202 1.63 0.67 0.10 0.03 0.03 0.21 0.11 2.51 2.78 0.13 0.04
(3PGE+Au) Prill Split (%) 64.9 26.6 4.0 4.5 100
(6PGE+Au) Prill Split (%) 58.6 24.0 3.6 1.2 1.1 7.5 4.0 100
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 2 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
Intersection Intersection
BH ID From (m) To (m) Width (m) Comment From (m) To (m) Width (m) Comment
Highly weathered &
E019 20.25 22.45 2.20 friable, inconclusive - - - Hole abandoned
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
No MR expected – Complete intersection,
E062 - - - East of MR subcrop 31.27 32.30 1.03 moderately weathered
No MR expected – Moderately weathered &
E062_D1 - - - East of MR subcrop 31.45 32.27 0.82 faulted. Incomplete
intersection. Core loss.
No MR expected – Moderately weathered &
E062_D2 - - - East of MR subcrop 31.16 31.56 0.40 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 417.42 418.12 0.70 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
E001 259.78 261.44 1.66 Complete intersection 548.07 549.21 1.14 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
No MR expected –
E041 - - - East of MR subcrop 250.95 251.60 0.65 Complete intersection
No MR expected –
E067 - - - East of MR subcrop 299.70 300.20 0.50 Complete intersection
Highly weathered &
E013 12.00 18.62 6.62 friable, inconclusive? 321.26 321.76 0.50 Complete intersection
(core loss)
No MR expected –
E024 - - - East of MR subcrop 278.77 279.26 0.49 Complete intersection
No MR expected –
E069* - - - East of MR subcrop - - - UG2 expected ~ 240m
No MR expected –
E027 - - - East of MR subcrop 284.47 285.04 0.57 Complete intersection
E014* 37.28 39.41 2.13 Complete intersection - - - UG2 expected ~ 327m
No MR expected –
E052* - - - East of MR subcrop - - - UG2 expected ~ 126m
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
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
ensure sample representivity and the The core is orientated in such a way that the two halves are equal.
appropriate calibration of any
measurement tools or systems used.
Sampling techniques Aspects of the determination of
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 The sampling methodology is standard and as per industry practice in the
pulverised to produce a 30 g charge for Bushveld Complex (BC). The samples are 20 cm in length and are split into
fire assay’). In other cases more two equal halves with one half being submitted for analysis. The core size
explanation may be required, such as starts as HQ (10 m to 50 m) but is NQ by the time the reef is intersected.
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.
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. The drill rigs being
Drilling techniques tube, depth of diamond tails, face- 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.).
Initially the core was scanned in with the software ScanIT which scans the
core with high resolution photos and the geologists reconcile the depths
Method of recording and assessing core and core losses per 3 m run. The Core recoveries and RQD are then
and chip sample recoveries and results calculated for the drillhole. ScanIT has however been discontinued and the
assessed. core is now photographed and the core recovery and RQD is calculated
manually by the geological assistants.
The geologist informs the drilling supervisor at what depth the reef is
expected so that they can take extra precautions around the anticipated
Measures taken to maximise sample reef depth.
Drill sample recovery recovery and ensure representative
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 Samples have been submitted to the ALS laboratory in Johannesburg, but
sample recovery and grade and whether there is only limited data available at this stage, so this has not been
sample bias may have occurred due to checked yet. The core recoveries for the intersections however all have
preferential loss/gain of fine/coarse good core recoveries besides the faulted intersections.
material.
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
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
Logging 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 drillhole is geologically logged and photographed and the
The total length and percentage of the televiewer survey is conducted from 100 m above the reef horizon for
relevant intersections logged. 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.
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 20 cm 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. 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.
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 Discuss any adjustment to assay data. No adjustments have been made to the assayed results.
of
sampling and Documentation of primary data, data The assay results are received from the laboratory in pdf format and excel
assaying 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 Drillhole collar positions are recorded by handheld Garmin GPS. The
Location of data surveys), trenches, mine workings and drillholes will be surveyed in at a later stage.
points other locations used in Mineral
Resource estimation.
Specification of the grid system used. The coordinate system used is LO31.
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 24 of the 26 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 12 drillholes expected to intersect the MR nine 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 If the relationship between the drilling
relation to geological orientation and the orientation of key
structure 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.
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
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
overriding royalties, native title Nooitverwacht 324 KT. This was renewed in early 2021 and is valid until
Mineral tenement interests, historical sites, wilderness or February 2024. The Right covers all elements of potential economic
and land tenure national park and environmental interest.
status 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.
Drilling
BH ID Date Started Date Completed Easting Northing Elevation From To (m) Drilled Metres Comment
A summary of all information (m)
material 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 E060 26-Aug-22 19-Oct-22 -85837 -2740292 774 0.00 206.72 206.72 EOH, completed
information 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 UG1 for stratigraphy
collar Deflection completed, faulted
* elevation or RL (Reduced Level – E062_D1 07-Sep-22 08-Sep-22 -86184 -2740002 759 18.30 34.92 16.62 UG2
elevation above sea level in metres) E062_D2 09-Sep-22 10-Sep-22 -86184 -2740002 764 13.30 33.00 19.70 Deflection completed, faulted
of the drillhole collar UG2
* dip and azimuth of the hole E058 12-Sep-22 05-Oct-22 -86127 -2740386 777 0.00 158.25 158.25 EOH, completed
* down hole length and interception E033 07-Sep-22 15-Oct-22 -85930 -2737823 786 0.00 261.58 261.58 EOH, completed
depth E028 07-Oct-22 24-Oct-22 -86764 -2736873 806 0.00 383.75 383.75 EOH, completed
* hole length. 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 UG1 for stratigraphy
E031 07-Nov-22 22-Nov-22 -87054 -2737306 802 0.00 423.22 423.22 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
Drillhole E001 12-Jan-23 06-Feb-23 -87995 -2734357 858 0.00 554.75 554.75 EOH, completed
Information 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
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
incorporate short lengths of high grade
Data aggregation results and longer lengths of low grade
methods 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. The intersection lengths stated are the downhole lengths. The drillholes
between If it is not known and only the down are drilled at -90 degrees and the reef dip is expected to be
mineralisation hole lengths are reported, there should approximately 12 degrees. Therefore, the difference should be minimal.
widths and intercept be a clear statement to this effect (e.g.
lengths ‘down hole length, true width not
known’).
Appropriate maps and sections (with
scales) and tabulations of intercepts
A map of the drillhole positions is included in the press releases. A
should be included for any significant preliminary stratigraphic column has been completed for the project
Diagrams discovery being reported These should (previous press releases). A section has not been included as the larger
include, but not be limited to a plan structural blocks are still being determined with the drilling.
view of drillhole collar locations and
appropriate sectional views.
Where comprehensive reporting of
all Exploration Results is not
Balanced practicable, representative reporting Reef intersection depths for all the drillholes have been reported in
reporting of both low and high grades and/or the table below.
widths should be practiced to avoid
misleading reporting of Exploration
Results. Drilling Merensky Reef UG2 Reef
BH ID From (m) To (m) Intersection Comment From (m) To (m) Intersection
Width (m) Width (m) Comment
E019 20.25 22.45 2.20 Highly weathered & friable,
inconclusive - - - Hole stopped short
Highly weathered & friable,
E019a 19.55 22.35 2.80 inconclusive 315.85 316.61 0.76 Complete intersection
No MR expected - East of MR
E060 - - - sub outcrop - - - Faulted?
No MR expected - East of MR
E060_D1 - - - sub outcrop 178.78 179.29 0.51 Complete intersection
No MR expected - East of MR Complete intersection, moderately
E062 - - - sub outcrop 31.27 32.30 1.03 weathered
No MR expected - East of MR Moderately weathered & faulted.
E062_D1 - - - sub outcrop 31.45 32.27 0.82 Incomplete intersection. Core loss.
No MR expected - East of MR Moderately weathered & faulted.
E062_D2 - - - sub outcrop 31.16 31.56 0.40 Incomplete intersection. Core loss.
No MR expected - East of MR
E058 - - - sub outcrop 140.88 141.29 0.41 Complete intersection
No MR expected - East of MR
E033 - - - sub outcrop 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 - East of MR
E025 - - - sub outcrop 260.42 261.32 0.90 Complete intersection
No MR expected - East of MR
E037 - - - sub outcrop - - - Not present / Pothole
No MR expected - East of MR
E049 - - - sub outcrop - - - Faulted
E031 122.40 124.29 1.89 Complete intersection 416.57 417.19 0.62 Complete intersection
No MR expected - East of MR
E044 - - - sub outcrop 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 417.42 418.12 0.70 Complete intersection
No MR expected - East of MR
E064 - - - sub outcrop 156.19 157.05 0.86 Complete intersection
No MR expected - East of MR
E071 - - - sub outcrop 180.04 180.73 0.69 Complete intersection
No MR expected - East of MR
E065 - - - sub outcrop 231.81 232.50 0.69 Complete intersection
E001 259.78 261.44 1.66 Complete intersection 548.07 549.21 1.14 Complete intersection
No MR expected - East of MR
E015 - - - sub outcrop 291.89 292.63 0.74 Complete intersection
E020 54.20 54.57 0.37 Faulted 342.90 343.56 0.66 Complete intersection
No MR expected - East of MR
E041 - - - sub outcrop 250.95 251.60 0.65 Complete intersection
No MR expected - East of MR
E067 - - - sub outcrop 299.70 300.20 0.50 Complete intersection
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 - - - sub outcrop 278.77 279.26 0.49 Complete intersection
No MR expected - East of MR
E069 - - - sub outcrop - - - UG2 expected ~ 240m
No MR expected - East of MR
E027 - - - sub outcrop 284.47 285.04 0.57 Complete intersection
E014 37.28 39.41 2.13 Complete intersection - - - UG2 expected ~ 327m
No MR expected - East of MR
E052 - - - sub outcrop - - - UG2 expected ~ 126m
E001D1 - - - Deflection below MR - - - UG2 expected ~ 548m
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
including (but not limited to): geological Geophysics (Pty) Ltd (NRG) in January of 2022 which highlighted the
Other substantive observations; geophysical survey major structural features that could be expected.
exploration data results; geochemical survey results;
bulk samples – size and method of The total line kilometres flown was 1,425 lkm over the farms
treatment; metallurgical test results; Eerstegeluk 322 KT and Nooitverwacht 324 KT with the survey being
bulk density, groundwater, flown at a height between 25 m and 80 m due to the topography and
geotechnical and rock characteristics; residential areas with an average height of approximately 35 m to 40 m
potential deleterious or contaminating and a line spacing of 50 m.
substances.
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
Further work depth extensions or large-scale step- drilling meters for phase 1 is approximately 25,000 m.
out 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: 10-03-2023 09:02:00
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