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Drilling Operations Update - Bengwenyama PGM Project
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”)
Drilling Operations Update - Bengwenyama PGM Project
Key highlights:
• Detailed planning and community engagement initiatives continue to progress well, ahead of the two
phase drill programme at the Bengwenyama PGM project;
• The appointed drilling contractor, GeoMech Africa (Pty) Ltd, will mobilise up to three drill rigs once pre-
drilling preparations have been finalised;
• It is contemplated that the drilling programme will now commence in August 2022;
• A Term Sheet for a Framework and Cooperation Agreement has been agreed and signed with the host
community;
• Key project elements underway include property access, employment initiatives, tender processes and
exploration related construction projects in accordance with benchmarks agreed with the Bengwenyama
community and in accordance with management’s long-term development strategy.
Southern Palladium (ASX:SPD, ‘Southern Palladium’ or ‘the Company’) provides the following update on its
Phase 1 drilling programme at the Bengwenyama PGM project located on the Eastern Limb of the world class
Bushveld Complex, South Africa.
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 now 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. The Term Sheet also facilitates the establishment of a cooperation committee, the
recruitment and employment processes to be followed during MUM's prospecting activities and the
procurement and sub-contracting processes to be followed during MUM's proposed prospecting activities
Water supply for the drilling has been secured and the water draw-point has been installed and is ready for use.
In addition, rehabilitation and upgrading of a building that will serve as the exploration site office has commenced
as has the infrastructure for a back-up generator.
The drilling contractor, GeoMech (Pty) Ltd, is about to mobilise the first three rigs for the commencement of the
Phase 1 which comprises a 63-hole drill programme. The exploration drilling is planned to start in August 2022.
Commenting on Southern Palladium’s operations update, Managing Director Johan Odendaal, said:
“This announcement serves to highlight the extent of on-ground planning and recent community engagement
activities undertaken by the Southern Palladium management team. Upon its commencement, the 2-phase drill
programme at Bengwenyama will mark one of the largest drilling operations undertaken in South Africa’s mining
sector in recent years.
In turn, it requires a planning process that adheres to the requirements of multiple stakeholders including the
drilling company, Community representatives, and contractor procurement processes – all of which have been
carried out to ensure a successful long term community based drilling programme.
Although this has served to lengthen the initial timeline regarding the commencement of the exploration
programme, the management team is pleased with the progression of these planning initiatives, which align with
the board’s long-term strategic vision to facilitate a streamlined exploration project underpinned by the highest
level of community engagement and corporate governance standards.”
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 due to commence early next month 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 33.9Moz and 52.4Moz. The Company is led by an
experienced on-ground management team including some of South Africa’s most high-profile mining industry
executives.
For further information, please contact:
Johan Odendaal
Managing Director
Southern Palladium
Phone: +27 82 557 6088
Email: johan.odendaal@southernpalladium.com
20 July 2022
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: 20-07-2022 07:58:00
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