Wrap Text
Quarterly Activities Report for 30 September 2022
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
28 October 2022
ASX:SPD, JSE:SDL
Quarterly Activities Report for 30 September
2022
ACN: 646 399 891
Corporate Directory SEPTEMBER QUARTER HIGHLIGHTS
Chairman Operational:
Terence Goodlace
• Phase 1 drilling at the Bengwenyama project, aimed at increasing the
Managing Director confidence in the orebody and converting a portion of the Inferred Resource
Johan Odendaal and Exploration Target into Indicated Mineral Resources, commenced in
August 2022
Non-Executive Directors
Mike Stirzaker • 31 boreholes will be drilled as part of the wider spaced Phase 1a programme.
Rob Thomson The initial wider spacing is aimed at confirming the 3D structural model
Daan van Heerden
Geoff Hiller • Infill drilling (phase 1b) will follow to complete a total of 63 boreholes for
Phase 1
Company Secretary • UG2 reef intersection has confirmed the presence of the UG2 reef on the
Andrew Cooke farm Eerstegeluk 327 KT
Top 5 Shareholders • As at quarter end 711 metres were drilled on five drillholes
Nicholas Daniel Resources Pty ltd • Three drill rigs on site at 30 September 2022 and now increased to five rigs
Nurinox Investments Pty Ltd
Citicorp Nominees Pty Ltd Corporate:
Legacy Platinum Corporation • During the quarter, payments for exploration, evaluation and development
UBS Nominees Pty Ltd totalled approximately $862,000.
Company Overview • As at 30 September 2022, Southern Palladium held $15.9 million (30 June
2022: $17.9 million) in cash.
Dual-listed platinum group metal
(PGM) company developing the
advanced Bengwenyama PGM
project, particularly rich in
palladium/rhodium, located in South
Africa’s prolific Bushveld Complex.
Contact:
E: info@southernpalladium.com
W: www.southernpalladium.com
Southern Palladium (ASX: SPD, “Southern Palladium” or the “Company”) is pleased to announce its quarterly activities
summary for the three months ended 30 September 2022.
The Company’s primary focus is the advancement of its exploration programme at the Bengwenyama PGM (platinum group
metals) project, in which it holds a direct 70% stake.
Following its successful ASX listing on 8th June 2022, Southern Palladium is well-funded to accelerate a multi-phase
exploration programme at Bengwenyama, which already contains at Inferred Mineral Resource Estimate of 18.8Moz
(3PGE+Au). The Company is led by an experienced on-ground management team including some of South Africa’s most high-
profile mining industry executives.
The Bengwenyama project is a large shallow advance exploration/ predevelopment Platinum- Group Metal opportunity
situated on the Eastern Limb of the Bushveld Complex in South Africa.
Overview of September Quarter Activities
Phase 1 drill programme
Exploration drilling on the Bengwenyama project started in August 2022. The drilling contractor, GeoMech (Pty) Ltd,
mobilised the first three rigs for the commencement of the Phase 1 which comprises a 63-hole drill programme.
The Phase 1a programme comprises a wider spaced drilling grid (~750m grid), consisting of the initial 31 drillholes. The aim
of the programme is to confirm and refine the existing 3D structural model for the shallower areas on the Eastern portion of
the farm Eerstegeluk 327 KT where the depths are expected to range from approximately 60m to 550m, with an average
depth of around 288m. This will be followed by the Phase 1b programme (32 drillholes), which will comprise infill drilling
across a narrower drilling grid (~350m grid).
Infill drilling will improve the confidence in the grade distribution and is aimed at converting the targeted shallow portion of
Eerstegeluk 327 KT to a JORC 2012-compliant Indicated Mineral Resource.
A successful resource upgrade will then form the basis of the forthcoming Mining Right application.
The drill rigs in operation are an Atlas Copco CS-1500, a Delta 520 and a YWE D90R. The three drill rigs are capable of drilling
800m, 180m and 100m respectively, and give Southern Palladium the requisite capabilities to complete Phase 1 drilling as
planned. All three rigs in operation are small track mounted drill rigs, designed for increased manoeuvrability in confined
spaces.
Figure 1: Atlas Copco drilling E019
Figure 2: YWE D90R at E60
Figure 3: Delta 520 at E082
Post quarter-end, the Company confirmed that drillhole E062 has intersected the first UG2 reef at 31.2m below surface as
part of the drilling programme1. The mother-hole was completed with an end-of-hole depth of 119.8m and it matched
stratigraphic models for the region.
The massive UG2 chromitite reef intersection (NQ core size) in drillhole E062 has a downhole length (not true width) of 87cm
(
Figure 5 shows the UG1 reef, which was used as a marker to confirm the position of the UG2 reef. The UG1 layer appears to
have three chromitite seams in the anorthosite host, from depths of approximately 90.30m to 99.30m (yellow brackets):
Figure ), with a pegmatoidal pyroxenite as footwall underlain by a poikilitic pyroxenite. These characteristics also assist in the
identification of the UG2 reef. The intersected UG2 width is in line with expectations, and consistent with the average reef
width of 71 cm estimated in the JORC-2012 compliant Inferred UG2 Mineral Resource. These reef widths lend themselves to
the conventional mining methods utilised in South Africa for narrow tabular orebodies.
Figure 5 shows the UG1 reef, which was used as a marker to confirm the position of the UG2 reef. The UG1 layer appears to
have three chromitite seams in the anorthosite host, from depths of approximately 90.30m to 99.30m (yellow brackets):
1ASX / JSE Announcement – Bengwenyama PGM Drilling Programme Intersects UG2 Reef, 5 September 2022
Figure 4: UG2 Intersection (yellow box) in Drillhole E062
Figure 5: UG1 Marker Reef
The three drill rigs have conducted drilling operations as indicated in Figure below (green stars).
Figure 6: Drilling Locations
Logistics
The primary network of equipment and workers are now in place to support the Phase 1 drill programme. Further upgrades
have been completed to the on-site building which will serve as the exploration site office and drilling laydown area, with the
water supply, back up electrical supply, office Wifi and core logging and cutting facilities now in place.
Figure 7 (A) is a photograph showing a section of the core logging area, and Figure 7 (B) is a photo of the construction
development for the drillers camp.
Water supply for the drilling has been secured and the water draw-point has been installed for use.
Figure 7: Core Logging (A) Area and Drillers Camp (B)
Environmental, Social and Governance
There were no significant environmental or safety incidents during the quarter.
The drilling programme is being undertaken in close proximity to the Bengwenyama community and the process of finalising
mutually acceptable plans is vital to the long-term success of the project.
A Framework and Cooperation Agreement Term Sheet has been signed by Southern Palladium subsidiary Miracle Upon
Miracle Investments (“MUM”) and the Bengwenyama Community. The Term Sheet addresses essential principles relating to
how MUM and the Community will work together and cooperate to help ensure the broader success of the project. Key items
tabled in the Term Sheet include the scope and nature of MUM's proposed prospecting and mining activities on locally owned
farms, in conjunction with the Community's right to live, farm and raise livestock on the farms.
December 2022 Quarter Planned Activities
- Drilling and exploration activities will continue on the Bengwenyama Project;
- Number of drilling rigs have increased from three to five; and
- First batch of samples sent to ALS Chemex South Africa (PTY) Ltd, located in Johannesburg, which is part of the ALS
group. The South African laboratory is ISO 17025 accredited by SANAS (South African National Accreditation System).
Corporate
Expenditure Summary
A summary of the exploration and project evaluation expenditures for the quarter is provided as follows:
For the purpose of ASX Listing Rule 5.3.1, payments for exploration, evaluation and development during the quarter totalled
approximately $862,000. Phase 1a drilling programme, and facilities set up and details of activities undertaken during the
quarter are as described in this report.
For the purpose of ASX Listing Rule 5.3.2, the Company confirms there were no mining production and development activities
undertaken during the quarter.
For the purpose of ASX Listing Rule 5.3.5, payments to directors of Southern Palladium Limited during the quarter totalled
approximately $140,000. The payments were in respect of directors’ salaries, fees and superannuation. Payment to Miracle
Upon Miracle Investments (Pty) Limited, a related party of Southern Palladium Limited during the quarter totalled
approximately $1,468,000. The payments were in respect of expenses incurred for the Bengwenyama Project.
Pursuant to ASX Listing Rule 5.3.4, the Company provides its actual expenditure on the individual items in the two year “use
of funds” statement in its IPO Prospectus since the date of its admission to ASX’s Official List (being 8 June 2022) against the
estimated expenditure on those items and an explanation of any differences.
Use of Funds Prospectus Maximum Actual use from 8 June 2022 Variance
Subscription to quarter end
Phase 1 drilling $7,716,000 $861,942 $6,854,058
Phase 2 drilling $3,805,000 0 $3,805,000
Other technical work on the Project $1,677,000 0 $1,677,000
Corporate and other related costs $3,918,000 $694,380 $3,223,620
Costs of the Offer $1,737,000 $1,406,949 $330,051
Total funds raised $18,853,000 $2,963,271 $15,889,729
The variances are a result of the Company being admitted to the Official Listing on 8 June 2022, therefore actual expenditure
for only 117 days is represented against the two year “use of funds” statement. The Company believes it is on schedule to
achieve its objectives as stated in its IPO Prospectus.
Cash
As at 30 September 2022, Southern Palladium held approximately $15.9 million (30 June 2022: $17.9 million) in cash.
September 2022 Quarter – ASX Announcements
This Quarterly Activities Report contains information extracted from ASX market announcements reported in accordance
with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”
(“2012 JORC Code”). Further details can be found in the following announcements lodged on the ASX:
20-Jul-2022 Drilling Operations Update - Bengwenyama PGM Project
29-Jul-2022 Quarterly Activities and Cashflow Reports - June 22 Qtr
25-Aug-2022 Phase 1a Drilling Commences at Bengwenyama PGM Project
30-Aug-2022 2022 Africa Down Under Presentation
7-Sep-2022 Bengwenyama PGM Drilling Programme Intersects UG2 Reef
28-Sep-2022 Financial Report YE 30 June 2022
Tenements
The Company held the following tenement during the quarter. The Project comprises the full extent of the farms
Nooitverwacht 324 KT and Eerste Geluk 327 KT, both of which are in the Limpopo Province of South Africa. The Project is
located 250 km east-northeast of Pretoria. The Exploration tenements is 100% held through Miracle Upon Miracle (Pty) Ltd
the 70% subsidiary of SPD.
The Company did not enter into any farm-in or farm-out agreements during the quarter.
The following information is provided pursuant to Listing Rule 5.3.3 for the quarter:
Prospecting Right Prospecting Right Interest at beginning Interest at end of
Farm name Extent (ha) number expiry date of quarter quarter
Nooitverwacht 324 KT 2,971.01
Eerste Geluk 327 KT 2,308.73 LP30/5/1/1002PPR 12-Feb-24 0% 70%
Total 5,279.74
No tenement has been disposed during the quarter.
JORC Competent Persons 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.
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, MGSSA). 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
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
Date: 28-10-2022 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
