Wrap Text
UG2 Mineral Resource increases by 39% to 11.65Moz (4E), including 2.56Moz (4E) upgraded to Indicated status.
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”)
UG2 Mineral Resource increases by 39% to 11.65Moz (4E), including 2.56Moz (4E) upgraded to
Indicated status.
Highlights:
• An interim UG2 Mineral Resource update at the Bengwenyama Platinum Group Metals (PGM)
Project has resulted in a 39% increase in the total UG2 Mineral Resource on a 3PGE+Au (4E) basis,
increasing from 8.38Moz to 11.65 Moz.
• A maiden Resource of 14.13Moz expressed on a 6PGE+Au (7E) basis has been established.
• 2.56Moz of the UG2 Reef has now been converted to an Indicated Mineral Resource at a 3PGE+Au
(4E) grade of 7.65 g/t, in line with previous grade expectations, and a 6PGE+Au (7E) grade of 9.24
g/t.
• UG2 3D geological model has been updated which suggests that the eastern area of the Project is
less structurally complex than originally thought.
• Drilling is continuing with a sixth drill rig likely on site in July to increase the monthly drill meters.
• The sixth drill rig will be employed to investigate a second entry point for a faster production ramp
up which is expected to be incorporated in an Updated Scoping Study.
• Submission of a Mining Right Application is on track for Q3 CY2023, five months ahead of the original
schedule.
Southern Palladium (ASX:SPD and JSE:SDL), ‘Southern Palladium’ or ‘the Company’) is pleased to
announce its first interim UG2 Mineral Resource update at the Bengwenyama Platinum Group Metal
(PGM) project, located on the Eastern Limb of the world class Bushveld Complex, South Africa since it
listed on 8th June 2022.
Managing Director Johan Odendaal, said:
“The first interim UG2 Mineral Resource update at the Bengwenyama project has shown an impressive
39% increase from the resource presented in the SPD prospectus last year. It is also pleasing to note that
2.56 million ounces of the UG2 Reef has now been converted to Indicated status at a grade in line with
expectations. The rate of conversion of Inferred to Indicated is high. We have also been very pleased with
the Far East Block discovery which has contributed a significant upgrade to the resource base. This takes
us a step closer to reaching our first milestone target of a 2-million-ounce reserve."
“The immediate aim is to convert more of the resource from Inferred to Indicated on the shallow eastern
portion, known as the Payback Area Block, so we can reach an acceptable confidence level in our
Prefeasibility Cashflow Model.
The updated structural model provides a valuable insight into locating where the most feasible
underground access areas are on the Eastern portion of the orebody. With our knowledge of this area of
the orebody now well-established, one drilling rig will move to the western portion of the Eerstegeluk farm
in the coming months to gain a better understanding of the uplifted Horst Block area.”
Updated UG2 Mineral Resource
The Phase 1 drilling programme, based on a 350m drilling grid, was approached in two stages – Phase 1a
and Phase 1b. Phase 1a was designed with wider drill spacing that covered a larger area, to obtain a better
understanding of the structures and grade distribution in the shallow eastern portion of Eerstegeluk. This
has now been completed. Within the Phase 1a drilling grid there are areas of closer spaced drilling where
assay results have confirmed the maiden Indicated Mineral Resource upgrade. Phase 1b, comprising the
remainder of the 63 planned drillholes, has commenced and will focus on closer spaced infill drilling of
phase 1a, to convert additional Inferred Mineral Resource to Indicated Mineral Resource.
The recent drilling programme has allowed for the validation of the historical drill hole database. A
statistical analysis has been completed on the historical and new databases and has established a 96.4%
correlation between the two datasets.
The datasets were combined for the Mineral Resource Estimate (MRE) which used Ordinary Kriging in the
estimation process. This estimation is detailed in the Mineral Resource Estimation section, below.
Table 1 below shows the consolidated UG2 Mineral Resource as at 30 May 2023. Geological losses have
been applied and the resource is declared at a pay limit of 1.9 g/t using a 4E basket price of US$2,654/oz.
Importantly, no Mineral Resource falls below the pay limit. No mining cut has been applied at this stage
as the geotechnical work still needs to be completed. However, it is envisaged that the resource mining
cut will be around 1 metre based on the observation that chromitite stringers are commonly absent in the
drilled area and by comparison with other mines in the area.
The hanging wall contact is distinct. The LPP or the Leuconorite parting plane forms a sharp hanging wall
contact with no chromitite stringers in the hanging wall.
The full mining width will be determined as part of future mining studies and will incorporate dilution by
low or nil grade hanging wall and footwall dilution, as is seen in most operations in the Bushveld Complex.
Table 1: UG2 Mineral Resource as at 30 May 2023
Reef Pt Pd Rh Au Ir Os Ru 4E 7E Cu Ni Cr2O3 (4E) (7E)
Resource Tonnes
width
Classification (Mt) (g/t) (%) Moz
(cm)
Indicated 10.76 71 3.48 3.34 0.75 0.12 0.25 0.16 1.19 7.65 9.24 0.03 0.16 30.53 2.56 3.09
Inferred 39.09 69 3.47 3.17 0.74 0.10 0.25 0.16 1.21 7.49 9.10 0.03 0.16 28.22 9.09 11.04
Note: All elements have been estimated individually and their combined grade will vary slightly from the estimated composite 4E and 7E modelled
grades
Table 2 provides a summary of the UG2 Exploration Target as at 30 May 2023. The UG2 Exploration Target
is based on the estimated kriged value of the drillhole database with a 20% range applied.
The potential quantity and grade are conceptual in nature and there has been insufficient exploration to
estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a
Mineral Resource.
Table 2: UG2 Exploration Target as at 30 May 2023
Maximum
Category Reef Minimum Maximum Minimum grade grade (3PGE+Au
tonnes (Mt) tonnes (Mt) (3PGE+Au g/t) g/t)
Exploration Target UG2 37 56 6.2 9.2
Table 3 is a reconciliation between the 01 July 2021 Mineral Resource in the Prospectus and the 30 May
2023 Mineral Resource for the UG2 Reef. The Indicated and Inferred mineral resources have been
consolidated for the purposes of the reconciliation. The interim UG2 resource update has resulted in a
39% increase in contained ounces for the UG2 Mineral Resource.
Table 3: UG2 Mineral Resource Reconciliation with the 01 July 2021 UG2 Mineral Resource Estimate
Tonnes 3PGE+Au Reef width
Total Resource Reef
(Mt) g/t Moz (cm)
2021 33.87 7.70 8.38 71
2023 UG2 49.85 7.52 11.65 69
Variance 15.98 -0.18 3.27 -2
% Variance 47% -2% 39% -2%
Figure 1 shows the location of the drillholes used in the geological modelling (48 drill holes) and Mineral
Resource estimation (34 drillholes).
Figure 1: Drillholes used in the Modelling.
Updated 3D Structural Model
The Bengwenyama structural model has been updated with the combined historical drillhole data and the
new SPD drillhole data. The biggest change in the geological model is that the average dip of the UG2 Reef
was revised down to approximately 6 degrees, from the previous measure of 12 degrees.
Figure 2 is a NW – SE section line through Eerstegeluk, the location of which is shown in Figure 1. The
section illustrates the previous (black line) and updated (purple line) structural model, showing the
inclusion of the newly discovered Far East Block (FEB). Also highlighted is the Horst Block, which will be
the target of drilling in forthcoming months.
Figure 2: NW-SE Cross Section of the UG2 Reef Horizon
The recent drilling has also shown that the throws on the major north/south faults and dykes in the north-
eastern portion of Eerstegeluk are not as large as initially modelled. There has been a large gain in UG2
Reef towards the eastern boundary of Eerstegeluk which, in previous press releases, has been termed the
Far East Block (FEB) (refer ASX Announcement 3 February 2023).
In the previous structural model, it was assumed that the UG2 was not present in the FEB. This area has
been a significant contributor (approximately 1.3Moz – see figure 7) to the current resource upgrade.
There has also been a reduction in the Exploration Target in the “Dome” area. Recent drilling around the
Dome has indicated that this is an uplifted area where the UG2 Reef is unlikely to be present. (See Figures
3 and 6). The gap in the dome area shows the area of the UG2 that has been excluded from the Exploration
Target. It had not been a part of the earlier Inferred Resource.
Figure 3: Updated UG2 3D Geological Model
Figure 4 shows a 3D oblique section of the UG2 Reef horizon looking north, showing the gentler modelled
dip toward the south-west.
Figure 4: 3D Geological Section of the UG2
The geological model has allowed for the delineation of larger structural blocks for mine design purposes.
These structural blocks have been outlined in Figure 5.
Figure 5: Structural Blocks of the UG2 Reef
UG2 Mineral Resource Estimation
The UG2 geological and estimation models have been updated to include drilling and assaying data as at
end of March 2023. The estimation model utilised 10 historical Nkwe drillholes and 24 SPD drillholes.
Previously the Mineral Resource was based on an Inverse Distance estimation but with the increase in the
number of drillhole data points an Ordinary Kriged estimate was now possible. Figure 6 shows the
3PGE+Au g/t resultant model with the drillhole positions used in the estimation. The statistical analysis
showed that no capping was required for the estimation. The kriging neighbourhood analysis (KNA)
recommended a block size of 350m with a minimum and maximum number of samples of 5 and 15
respectively for the first search volume. Three search volumes with decreasing samples were used for the
estimation.
All elements (Pt, Pd, Rh, Au, Ir, Os, Ru, Cu, Ni, Cr and Fe) were estimated individually as well as a combined
4E (Pt, Pd, Rh & Au) and 7E (Pt, Pd, Rh, Ir, Os, Ru & Au). The average 4E prill splits for Pt:Pd:Rh:Au of 46.2%
: 42.6% : 9.9% : 1.4% were determined using these estimates. The Cr:Fe ratio of the UG2 chromitite
horizon, from modelled Cr and Fe analysis, is 1.19. A density of 3.93 t/m3 was used in the tonnage estimate
which was determined from the reef intersections using the Archimedes methodology.
Figure 6: Modelled 3PGE+Au g/t Plot of the UG2 Reef
Mineral Resource Categories
The Mineral Resource categories (Figure 7) were determined based on the QAQC, slope of regression
(SOR), kriging efficiency (KE) and continuity of the UG2 Reef horizon. The Indicated Mineral Resource was
based on a SOR of greater than 0.6 and KE of greater than 0.3 with high confidence in UG2 continuity. The
inferred Mineral Resource was based on a SOR of greater than 0.3 and extrapolated reef continuity from
known reef intersections. The Exploration Target Range is extrapolated from the boundary of the inferred
Mineral Resource to the project perimeter. The insert in Figure 7 illustrates the 2021 Mineral Resource
classification of inferred Mineral Resource (dark blue) and Exploration Target for comparison. This shows
the excellent conversion ratio from Inferred to Indicated.
Much of the resource addition has come from the newly discovered Far East Block (Figure 7 where the
UG2 was previously not recognised. This area is currently at Inferred status and will be upgraded to
Indicated in the next few months.
Figure 7: UG2 Mineral Resource Categories
The potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient
exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a
Mineral Resource.
Geological Losses
Geological losses have been applied to the resource to account for the effects of faults, dykes and potholes
on the UG2 Reef. These are geological features common throughout the reefs of the Bushveld Intrusive
Complex. This was estimated by considering the successful drillhole intersections, major identified faults
and dykes from the geophysics and assumed additional minor fault losses. The project area was divided
into larger blocks representing various degrees of geological losses. The geological losses range from 16%
to 40% for the Exploration Target area. The “dome” area has been excluded completely at this stage.
These blocks can be seen in Figure 8.
Figure 8: UG2 Reef Geological Losses (%)
Near term drilling
The Phase 1a drill program focused on obtaining reef intersections across the shallow eastern portion of
the UG2 Reef on the farm Eerstegeluk to better understand the overall grade distribution and to develop
a more accurate geological model. This has been achieved and the focus now shifts to converting the
inferred UG2 Mineral Resource in a block defined as the ‘Payback Area’ to an Indicated Mineral Resource
(Figure 9). The Payback Area has been assessed as the approximate resource quantum for the UG2 Reef
which can achieve capital payback of the project.
In addition, deflections are being drilled at selected locations for the scoping and pre-feasibility studies,
geotechnical studies and for metallurgical samples, flotation efficiency test work (MF2 testing) and bond
ball mill work index determinations. This work is in progress, and the metallurgical sample collection has
been completed which will be submitted to the laboratory in June. The geotechnical studies will be used
for mine design purposes and also to better understand the potential mining cuts for Mineral Resource.
As part of the near-term drilling programme (4 to 6 months) the deeper western portion of Eerstegeluk
needs to be drilled to understand the structures and reef in the Horst Block which currently lies within the
Exploration Target (see location in Figure 5) with no drilling data in the southern horst block (Figure 9).
The Horst Block could be incorporated as a second entry point (for faster production ramp up) into the
early stages of the mine plan and hence the structural understanding is important for the early mine
designs for a concept study and pre-feasibility study (PFS).
A sixth drilling rig is being refurbished by the drilling company and is scheduled to be on site in July.
Figure 9: Completed Drillholes with Immediate Drilling Focus Area (Payback Area)
Exploration and pre-development schedule
Submission of a Mining Right Application (MRA) is on track for 3Q CY2023, 5 months ahead of the initial
planned date. The MRA requires a work programme, environmental scoping study and social and labour
plan, all of which are currently in preparation. In parallel, the Company will work on an Updated Scoping
Study using the results of this resource upgrade and a potential second entry point, followed by a PFS.
The updated structural model for the Bengwenyama project provides a valuable insight into locating the
most feasible underground access areas on the Eastern portion of the orebody and the immediate aim is
to convert more Inferred to Indicated resource on the shallow eastern portion, known as the Payback
Area Block (Figure 9). Drilling for the next 4 months will be directed towards this area. Management is
confident that the payback area could, in addition to the current Indicated resource, provide enough
resource ounces to reach the milestone of 2Moz 4E once converted to Reserve.
As well, one drill rig will move to an area in the south-western portion of the Eerstegeluk farm to get a
better understanding of the uplifted Horst Block. This drilling is crucial to finalise the mine design and plan
for the Eerstegeluk area for the Updated Scoping Study.
A second interim resource update is targeted for Q4 CY2023, followed by the release of an updated
scoping study in Q1 CY2024.
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.
The Company is led by an experienced on-ground management team including some of South Africa’s
most high-profile mining industry executives.
Competent Person Statement
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources
or Ore Reserves is based on information compiled 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. Minxcon provides geological consulting
services to Southern Palladium Limited. Mr. Engelmann has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and to the activity 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 consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears. 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 May 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. 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, The drillholes start with HQ (for approximately 10-50 m) in the weathered
auger, Bangka, sonic, etc.) and details zone but are then drilled NQ once in the fresher material. The drill rigs being
(e.g. core diameter, triple or standard utilised have been the CS 1500, Delta 520 and a smaller Longyear 44.
Drilling techniques tube, depth of diamond tails, face-
sampling bit or other type, whether core The drill contractor is Geomech Africa.
is oriented and if so, by what method,
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.
whether quarter, half or all core taken.
If non-core, whether riffled, tube
Sub-sampling sampled, rotary split, etc. and whether This project only makes use of core drilling.
techniques and sampled wet or dry.
sample preparation
For all sample types, the nature, quality The sample preparation code at ALS is PREP-31H which has the following
and appropriateness of the sample procedure: -
preparation technique.
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
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 7E 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
samples which require a high dilution digest such as Chromite ores.
Quality of assay data Elements that will be analysed are Cr, Cu, Ni, Fe and Co.
and laboratory tests
The overall pass rate of the various QAQC samples is 90%.
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 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
surveys), trenches, mine workings and drillholes will be surveyed in at a later stage.
other locations used in Mineral
Location of data Resource estimation.
points
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 and Data spacing for reporting of Exploration completed to date or in progress has a wider spacing to get a better
distribution Results. understanding of the larger structural domains of the project.
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
Whether the data spacing and
distribution is sufficient to establish the Geological continuity is based on the knowledge of the surrounding area
degree of geological and grade and 3D model constructed from historical data. The 24 of the 26 completed
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.
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 327 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
laterally continuous for tens to hundreds of kilometres. The UG2
comprises mineralised chromitite, whereas the Merensky Reef is
Deposit type, geological setting and defined as the mineralised pyroxenitic zone between upper and lower
Geology style of mineralisation. 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
A summary of all information BH ID Date Started Date Completed Easting Northing Elevation
From
To (m) Drilled Metres Comment
(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
Deflection completed, faulted
E062_D1 07-Sep-22 08-Sep-22 -86184 -2740002 759 18.30 34.92 16.62 UG2
collar E062_D2 09-Sep-22 10-Sep-22 -86184 -2740002 764 13.30 33.00 19.70 Deflection completed, faulted
UG2
* elevation or RL (Reduced Level – E058 12-Sep-22 05-Oct-22 -86127 -2740386 777 0.00 158.25 158.25 EOH, completed
elevation above sea level in metres) E033 07-Sep-22 15-Oct-22 -85930 -2737823 786 0.00 261.58 261.58 EOH, completed
of the drillhole collar 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
* dip and azimuth of the hole 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
* down hole length and interception 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
depth E049 21-Oct-22 19-Nov-22 -85949 -2739599 771 0.00 322.75 322.75 UG1 for stratigraphy
* hole length. 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
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
Drillhole E067 12-Jan-23 25-Jan-23 -85465 -2739534 762 0.00 306.45 306.45 EOH, completed
Information 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.
The UG2 geological and estimation models have been updated to
include drilling and assaying data as at end of March 2023. The
structural / geological model utilised 20 historical Nkwe drillholes and
28 SPD drillholes while the estimation model utilised 10 historical
Nkwe drillholes and 24 SPD drillholes.
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,
With the Mineral Resource update the statistical analysis recommended
weighting averaging techniques, no top cutting of the grade. The Mineral Resource has been declared at
maximum and/or minimum grade a paylimit of 1.9 g/t.
truncations (e.g. cutting of high grades) The exploration target range is based on the kriged estimated value with
and cut-off grades are usually Material a 20% range applied to it.
and should be stated.
Where aggregate intercepts
Data aggregation incorporate short lengths of high-grade
methods results and longer lengths of low-grade The individual 20cm samples are combined per drillhole per reef
results, the procedure used for such intersection for the composite grades used in the estimation process.
aggregation should be stated and some
typical examples of such aggregations
should be shown in detail.
The assumptions used for any No metal equivalent has been reported but the various elements have
reporting of metal equivalent values been combined for 3PGE+Au grades (4E) and 6PGE+au grades (7E).
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 The intersection lengths stated are the downhole lengths. The drillholes
mineralisation If it is not known and only the down are drilled at -90 degrees and the reef dip is expected to be
widths and intercept hole lengths are reported, there should approximately 6 degrees. Therefore, the difference should be minimal.
lengths be a clear statement to this effect (e.g.
‘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 release. 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 been included in the press
include, but not be limited to a plan release.
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
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria Explanation Detail
Drilling Merensky Reef UG2 Reef
misleading reporting of Exploration BH ID From (m) To (m)
Intersection
Comment From (m) To (m)
Intersection
Comment
Width (m) Width (m)
Results. E019 20.25 22.45 2.20
Highly weathered & friable,
inconclusive
- - - Hole stopped short
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 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
observations; geophysical survey major structural features that could be expected.
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 327 KT and Nooitverwacht 324 KT with the survey being
bulk density, groundwater, geotechnical flown at a height between 25 m and 80 m due to the topography and
and rock characteristics; potential residential areas with an average height of approximately 35 m to 40 m
deleterious or contaminating and a line spacing of 50 m.
substances.
Other substantive
exploration data
The nature and scale of planned further Phase 1a has been completed which was approximately 10,000m of
work (e.g. tests for lateral extensions or drilling. This phase tested the wider area for the grade distribution and
depth extensions or large-scale step- bigger picture structural understanding. Phase 1b will now focus on the
Further work out drilling). PFS payback area to convert the inferred resource in this area to
indicated resources. Deflections are also being drilled for metallurgical
and geotechnical studies. The drilling programme is still for
approximately 25,000m in total.
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria Explanation Detail
Diagrams clearly highlighting the areas
of possible extensions, including the
main geological interpretations and
future drilling areas, provided this
information is not commercially
sensitive. Above are the structural blocks modelled from the drillhole database.
The entire area is either in Mineral Resource (indicated or inferred) or
Exploration Target so there is limited upside potential within the project
boundaries.
SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
Criteria Explanation Detail
Measures taken to ensure Geological data in the form of drillhole collar surveys, downhole surveys and
that data has not been geological logs captured on paper records was compared to data captured and
corrupted by, for example, saved in soft copy Excel spreadsheets that form the geological repository which
transcription or keying informs the modelling database. Any errors, omissions, and invalid transcriptions
errors, between its initial identified were returned to the exploration team for rectification before the data
collection and its use for was processed any further for use in 3D-structural modelling and grade
Mineral Resource estimation processes.
Database estimation purposes.
integrity
Base geological data informing the estimate was validated using in-built
functionality in Datamine StudioRM software. Validation routine involved
checking spatial location of drillholes collars and intersections, validity of
Data validation procedures stratigraphic logging, checking for repetition of logged intersections, reasons for
used. the absence of analytical data, negative thicknesses and an assessment of the
correlation of all aspects of the new drilling data to the historic drilling data from
the Nkwe drillhole database.
Comment on any site visits
undertaken by the The Competent Person regularly visits the project site with the latest visit having
Competent Person and the been carried out over the period from 16 to 17 May 2023.
Site visits outcome of those visits.
If no site visits have been
undertaken indicate why this Refer to above.
is the case.
The Bengwenyama project is bounded to the northern extremity by a mine that is
Confidence in (or in current operation and economically exploiting the same UG2 reef. Several
conversely, the uncertainty SPD drillholes are sited in areas in which similar drilling was completed by Nkwe
of) the geological Platinum during the early 2000s. Geological interpretation as informed from the
interpretation of the mineral current SPD holes, correlates reasonably well with interpretation from the historic
deposit. Nkwe drill data.
The consolidated SPD database informing this estimate incorporates data from
historic Nkwe drilling. This data was compiled by transcribing information from
Nature of the data used and documents available in the public domain. Analytical data in the Nkwe drillholes
of any assumptions made. is presented as 4E only. Individual PGEs were not reported. Results from QQ
plots (R2=0.93) suggest that SPD data is highly comparable to the Nkwe data.
Accordingly, the data has been consolidated into a single geological database.
Literature from the public domain suggests absence of UG2 reef in the
The effect, if any, of Eerstegeluk Dome area. In contrast, recent SPD drilling (drillhole E057) located
Geological alternative interpretations on within the area, intersected the UG2 reef at a depth of approximately 30m below
interpretation Mineral Resource surface. This implies the SPD drilling in the area is presenting an opportunity to
estimation. validate the theory or potentially offer an alternative interpretation of this
structurally complex area of the project.
Contouring of the elevation of the UG2 reef top contact as interpreted from
geological logging, knowledge of the regional structural geology, incorporation of
The use of geology in mapped faults, dykes, sills, and the use of data from the TMF gradient and
guiding and controlling gamma-ray spectrometry survey completed by New Resolution Geophysics (Pty)
Mineral Resource Ltd (NRG) in January of 2022, highlighting the major structural features, guided
estimation. delineation of 20 fault blocks and culminated in the generation of the associated
UG2 3D wireframe model.
The project area is bisected by faults and several dyke swarms with throws in
The factors affecting excess of 200m. Current structural interpretation postulates the Eerstegeluk
continuity both of grade and Dome area comprises a stack of several upthrow faults culminating in an overall
geology. upthrow of the UG2 reef to a location as shallow as 30m below surface. Other
SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
Criteria Explanation Detail
than potholing observed in the areas limited to the northern periphery, the PGE
grades appear unaffected.
The extent and variability of The Bengwenyama project covers an area of approximately 52.9km 2. with a
the Mineral Resource strike of approximately 4km. Data from the Nkwe drillholes suggests a down-dip
expressed as length (along continuity of UG2 reef over approximately 11km at an average true dip of
strike or otherwise), plan approximately 6-7°, north-west.
width, and depth below
surface to the upper and
lower limits of the Mineral
Resource.
Dimensions Location of the UG2 reef is shallowest in the south-east corner of the project
area at approximately 30m below surface and deepest in the north-west corner
where it is located in excess of 1,000m below surface.
The nature and The statistical analysis on the base geological data informing the estimate
appropriateness of the suggests that no capping or treatment of extreme values is necessary. Owing to
estimation technique(s) the low density of drilling data available to date geological domains, possible
applied and key facies and anisotropy has not been identified.
assumptions, including
treatment of extreme grade Ordinary Kriging, an industry best choice for evaluation of PGEs, has been
values, domaining, successfully applied for all grade interpolation with all 3D wireframe modelling
interpolation parameters and grade estimation processes completed in Datamine StudioRM Version
and maximum distance of 1.11.65.0 geological modelling software.
extrapolation from data
points. If a computer Kriging neighbourhood analysis (KNA) recommended a parent block size of
assisted estimation method 350m (in X and Y directions) with a minimum and maximum number of samples
was chosen include a of 5 and 15 respectively for the first search volume which is matched to the
description of computer range of the 4E modelled variogram (approximately 2,000m). Three search
software and parameters volumes with decreasing samples were used for the estimation.
used.
All PGE elements, Pt, Pd, Rh, Au, Ir, Os and Ru as well as base metals Cu, Ni,
Cr and Fe were individually estimated in addition to estimation of combined 4E
(Pt, Pd, Rh & Au) and 7E (Pt, Pd, Rh, Ir, Os, Ru & Au) grades.
Extrapolation has been carried out to half the average drillhole spacing and
where applicable terminated on the major geological structures.
The availability of check The Bengwenyama Project is a green field project with no mining activity ever
estimates, previous recorded. As such no depletion of Mineral Resources is applicable.
estimates and/or mine
production records and The previous estimate for the Bengwenyama Project was declared on 01 July
whether the Mineral 2021 and presented 33.87Mt at 7.7g/t 4E and 8.38Moz in Inferred Resources.
Estimation Resource estimate takes
and modelling appropriate account of such Taking into account the impact of the additional SPD drilling completed to date,
techniques data. the previous estimate correlates reasonably well with the current and updated
estimate of 39.09Mt at 7.5g/t 4E and 9.09Moz of Inferred Resources.
Metallurgical test work is currently underway to establish the viability of recovery
The assumptions made of any by-products, in particular chrome. There is no record of previous similar
regarding recovery of by- test work completed in the Bengwenyama project area. However, the UG2 on
products. the eastern limb of the BC is well known and understood and the average
recoveries have been assumed for now.
Estimation of deleterious
elements or other non-grade Other than the base metals Cu, Ni and Fe, no deleterious elements have been
variables of economic identified. The base metals have all been estimated on elemental basis with the
significance (e.g. sulphur for Cr:Fe ratio of the UG2 chromitite horizon, from modelled Cr and Fe analysis,
acid mine drainage observed to be around 1.19.
characterisation).
In the case of block model Drillhole spacing is not on a defined grid owing to challenges drilling in populated
interpolation, the block size space. The well drilled areas are typically informed by an average drillhole
in relation to the average spacing of approximately 350m with poorly informed areas informed by drilling
sample spacing and the spacing in excess of 1,000m.
search employed.
Kriging neighbourhood analysis (QKNA) recommended a parent block size of
350m (in X and Y directions) with a minimum and maximum number of samples
of 5 and 15 respectively for the first search volume which is matched to the
range of the 4E modelled variogram (approximately 2,000m). Three search
volumes with decreasing samples were used for grade estimation.
A study to test the viability of several possible options and in some cases
Any assumptions behind combinations of mining methods is currently underway. The current modelling
modelling of selective does not incorporate guidance from knowledge of any possible proposed mining
mining units. method or selective mining approach.
SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
Criteria Explanation Detail
The QQ plot results (R2=0.93) suggest SPD data is highly comparable to the
Nkwe historic drill data.
Any assumptions about
correlation between
variables. Accordingly, the data was consolidated into a single database. The consolidation
enabled expansion of the database to incorporate back-calculated individual Pt,
Pd, Rh and Au grades from the single analytical 4E grade in the Nkwe drillholes
basing on prill splits as established from the complete empirical SPD analytical
dataset. The grades for Os, Ir and Ru were then determined from regression
relationships enabling the estimation and eventual reporting to 7E grade and
including base metals.
Major structural discontinuities were identified from interpretation of the TMF
gradient and gamma-ray spectrometry survey, field mapping and contouring of
elevation of the UG2 reef top contact. Knowledge of regional structural geology
Estimation and regional geological losses guided delineation of 20 fault blocks and the
and modelling generation of the resultant UG2 3D wireframe model.
techniques
(continued)
Description of how the
geological interpretation
was used to control the
resource estimates. Application of results such as the modelled variogram ranges, spatial continuity
of kriging efficiencies and the slope of regression results, the sample search
volume used and the number of samples informing a grade estimate constrained
grade extrapolations beyond known drill data.
Statistical analysis on the raw data informing the estimate suggests that no
Discussion of basis for capping or treatment of extreme values is necessary and does show reasonable
using or not using grade support for geological domaining or any possible anisotropy.
cutting or capping.
The process of validation, Integrity of grade estimation was validated through swath plots in the X and Y
the checking process used, directions, sample-to-model box-whisker plots on global means for all estimated
the comparison of model grades and the visual analysis of grade plans for the 4E and 7E grades as well
data to drillhole data, and as plans showing the spatial distribution of the UG2 reef thickness, Slope of
use of reconciliation data if Regression, Kriging Efficiencies, Search Volume and the number of samples
available. used to inform grades estimates.
Whether the tonnages are
estimated on a dry basis or
Moisture with natural moisture, and All tonnages are reported on a dry basis.
the method of determination
of the moisture content.
Zone specific geological losses have been applied and the UG2 Reef Mineral
Resources declared at a paylimit of 1.9 g/t 4E using a basket price of USD
The basis of the adopted 2,654/oz. No mining cut has been applied at this stage as the supporting
Cut-off cut-off grade(s) or quality geotechnical work is still in progress.
parameters parameters applied. Below are the parameters used for the basket price and pay limit calculation.
SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
Criteria Explanation Detail
Element Resource price (USD/oz) 4E prill split 7E prill split Recovery Payability
Platinum 1,025 45.3% 37.5% 85% 86%
Palladium 2,200 43.5% 36.0% 85% 86%
Rhodium 12,400 9.7% 8.0% 85% 86%
Gold 2,000 1.5% 1.2% 85% 86%
Ruthenium 465 0.0% 13.0% 71% 55%
Iridium 4,600 0.0% 2.6% 75% 45%
Osmium 400 0.0% 1.7% 75% 45%
Assumptions made
regarding possible mining
methods, minimum mining
dimensions and internal (or,
if applicable, external)
mining dilution. It is always
necessary as part of the It is envisaged that the Mineral Resource mining cut will be approximately 1m
process of determining due to the absence of stringers in footprint of the currently drilled area. The
reasonable prospects for hanging wall contact is a distinct Leuconorite plane referred to as the
eventual economic Leuconorite Parting Plane (LPP) and forms a distinct sharp hanging wall contact
Mining factors extraction to consider with no chromitite stringers above it. Mining studies on the possible practical
or potential mining methods, mining methods or a combination thereof are currently being concluded.
assumptions but the assumptions made
regarding mining methods The current geological modelling does not incorporate any assumptions or
and parameters when provide any form of guidance for a chosen specific mining method.
estimating Mineral
Resources may not always
be rigorous. Where this is
the case, this should be
reported with an explanation
of the basis of the mining
assumptions made.
The basis for assumptions
or predictions regarding
metallurgical amenability. It
is always necessary as part
of the process of
determining reasonable
prospects for eventual
economic extraction to
consider potential Samples for metallurgical test work are currently being collected from site to
Metallurgical metallurgical methods, but establish the most optimal recovery method or a combination thereof.
factors or the assumptions regarding
assumptions metallurgical treatment The current geological modelling supporting this estimate does not incorporate
processes and parameters any assumptions or provide guidance for a specific recovery method.
made when reporting
Mineral Resources may not
always be rigorous. Where
this is the case, this should
be reported with an
explanation of the basis of
the metallurgical
assumptions made.
Assumptions made
regarding possible waste
and process residue
disposal options. It is always
necessary as part of the
process of determining
reasonable prospects for
eventual economic
extraction to consider the
potential environmental A series of specialised environmental studies are in the process of being
impacts of the mining and commissioned to establish a balance between compliance of the eventual
processing operation. While chosen mining method to environmental regulations against optimal and
Environmental at this stage the practical extraction that will achieve the least environmental impact.
factors or determination of potential
assumptions environmental impacts, The current geological modelling supporting this estimate does not incorporate
particularly for a greenfields any assumptions or provide guidance to achieve the least environmental impact.
project, may not always be
well advanced, the status of
early consideration of these
potential environmental
impacts should be reported.
Where these aspects have
not been considered this
should be reported with an
explanation of the
environmental assumptions
made.
SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
Criteria Explanation Detail
Whether assumed or
determined. If assumed, the A density of 3.93 t/m3 was used in the tonnage estimation. The density was
basis for the assumptions. If determined empirically using the Archimedes method on UG2 reef intersection
determined, the method samples from a population from 45 diamond drill core samples from 14 SPD
used, whether wet or dry, drillholes. The determination of density is an ongoing exercise conducted by the
the frequency of the field exploration team to expand the database for use to support tonnage
measurements, the nature, estimates.
size and representativeness
of the samples.
The bulk density for bulk
material must have been
Bulk density measured by methods that
adequately account for void The density was determined empirically using the Archimedes method on UG2
spaces (vugs, porosity, reef intersection samples.
etc.), moisture and
differences between rock
and alteration zones within
the deposit.
Discuss assumptions for
bulk density estimates used Not applicable
in the evaluation process of
the different materials.
The Mineral Resource categories were determined based on the QAQC, slope of
regression (SOR), kriging efficiency (KE) and knowledge of the continuity of the
UG2 reef horizon.
The basis for the
classification of the Mineral
Classification
Resources into varying
confidence categories. The Indicated Mineral Resources are based on a SOR greater than 0.6, a KE
greater than 0.3, a search volume less than 2.5 as well as application of local
knowledge of areas with high confidence in UG2 reef continuity.
The Inferred Mineral Resources are based on a SOR of greater than 0.3,
extrapolation based on half the distance of the range of the 4E grade variogram
with termination onto the major structural discontinuities. The footprint of the
Exploration Target Range is extrapolated from the boundary of Inferred Mineral
Resources to the project perimeter fence.
Whether appropriate Geological losses have been applied to the resource to account for the effects of
account has been taken of faults, dykes, and potholes. This was estimated by considering the successful
all relevant factors (i.e. drillhole intersections, identified major faults and dykes from the TMF geophysics
relative confidence in and additional minor losses. The project area was divided into larger blocks
tonnage/grade estimations, representing various degrees of geological losses. The geological losses range
reliability of input data, from 16% to 40% for the Exploration Target area with the Eerstegeluk Dome
confidence in continuity of area completely excluded at this stage of reporting.
geology and metal values,
quality, quantity and
distribution of the data).
Whether the result The CP is of the opinion that the Mineral Resource classification criteria and
appropriately reflects the associated results are a true reflection of the Bengwenyama orebody and
Competent Person’s view of demonstrate the current levels of confidence as informed by drill data.
the deposit.
The Mineral Resources estimate, as well as processes associated with
The results of any audits or estimation work as contained in this press release has been reviewed by an
Audits or reviews of Mineral Resource independent third party, Mr. Garth Mitchell, of ExplorMine Consultants (Pty) Ltd.
reviews estimates. Mr. Mitchell confirms validity and reasonableness of estimate and confirms that
due care and diligence was applied in the compilation.
Where appropriate a The QQ plot results (R2=0.93) suggest the SPD data is highly comparable to the
Discussion of statement of the relative Nkwe historic drill data and that the two datasets can be consolidated into a
relative accuracy and confidence single database without any issues.
accuracy/ level in the Mineral
confidence Resource estimate using an The consolidation enabled back-calculation of individual Pt, Pd, Rh and Au
approach or procedure grades from the single analytical 4E grade in the Nkwe drillholes basing on prill
SECTION 3: ESTIMATION AND REPORTING OF MINERAL RESOURCES
Criteria Explanation Detail
deemed appropriate by the splits established from the complete empirical SPD analytical dataset as well at
Competent Person. For determining individual grades for Os, Ir and Ru from regression relationships.
example, the application of This has enabled reporting to 7E grade.
statistical or geostatistical
procedures to quantify the The UG2 Exploration Target is based on the estimated kriged value of the
relative accuracy of the drillhole database with a 20% range applied to it.
resource within stated
confidence limits, or, if such
an approach is not deemed
appropriate, a qualitative
discussion of the factors
that could affect the relative
accuracy and confidence of
the estimate.
The statement should
specify whether it relates to
global or local estimates,
and, if local, state the
relevant tonnages, which The CP is of the opinion that geological modelling underlying the estimate
should be relevant to contained in this press release is a true reflection of the Bengwenyama orebody
technical and economic and considers the grade and tonnage estimates robust.
evaluation. Documentation
should include assumptions
made and the procedures
used.
These statements of relative
accuracy and confidence of
the estimate should be Not applicable
compared with production
data, where available.
Date: 30-05-2023 09:20:00
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