Wrap Text
Positive Results from Geophysical Survey and Drilling Contractor Appointed
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”)
POSITIVE RESULTS FROM GEOPHYSICAL SURVEY AND DRILLING CONTRACTOR APPOINTED
Key highlights:
• High-definition helicopter-borne Total Magnetic Field (TMF) gradient and gamma-ray spectrometry
survey completed at the Bengwenyama Project
• TMF data confirms previous structural model of the UG2 and Merensky Reefs, which forms the
framework of the Inferred Mineral Resource 18.8Moz (3PGE+Gold)
• Imaging also confirms absence of anomalous (Loss of Reef) features in the target area for phase 1 drill
programme
• Confirmation underpins confidence in the existing geological structure of the reef upon which the Phase
1 drilling programme has been planned
• A contract has been signed with Geomech Africa Proprietary Limited (Geomech) for the Phase 1 drilling
programme, which is scheduled to commence early July
Southern Palladium (ASX:SPD, JSE:SDL, ‘Southern Palladium’ or ‘the Company’) is pleased to announce
results of a high-definition, helicopter-borne TMF gradient and gamma-ray spectrometry survey at the
Bengwenyama platinum group metals (PGMs) project.
The TMF survey was carried out with the following dual aim:
1. Confirmation of the existing structural model, that was developed based on historical geophysical
information available in the public domain, and;
2. To investigate evidence of anomalous magnetic features that could indicate any loss-of-ground geological
features or other geological discontinuities.
The Company confirms that TMF data supports and enhances previous structural modelling, which formed
the framework of the existing JORC 2012-compliant Inferred Mineral Resource of 18.8Moz (3PGE + Gold),
situated within the UG2 and Merensky Reefs.
In addition, imaging shows that there are almost no anomalous magnetic features which would indicate large
areas of potential loss-of-ground geological features in the eastern part of Eerstegeluk, where the phase 1
drilling is planned. Anomalies observed over the phase 2 portion have been interpreted to be shallow and
above the reef in the far southwest corner and is not expected to impact our target ounces.
Commenting on Southern Palladium’s dual-listing and exploration plans, Managing Director Johan
Odendaal, said:
“We are pleased to present the results of a detailed Total Magnetic Field (TMF) survey at Bengwenyama. The
central aim of the survey – to confirm the structural integrity of the Inferred mineral resource, and investigate
any potential loss-of-ground disruptions – were both achieved. We can now commence the Phase 1 drilling
programme with the appropriate degree of confidence around the mineralised structure of the drill site. With
the appointment of Geomech as the drill contractor, mobilisation in collaboration with our host community is
underway and we expect to commence drilling operations by July 2022.”
Results of Geophysical Survey
A schematic of the current three dimensional (3D) structural model is presented in Figure 1 which shows the
major structural features interpreted to have been dykes or faults. These structural features were further
interpreted to throw the PGM reef horizons up to more shallow depths in the project area, which would be
of material benefit to the economics of the project.
Figure 1: Structural features attributed to mineralisation at shallow depths
These structures are clearly visible in the Total Magnetic Field (TMF) imaging (shown in Figure 2) which are
almost identical to the historical information that was used for the geological model.
Figure 2 also confirms that the Eastern section of the Eerstegeluk, which comprises the target 2 Moz Reserve
from phase 1 drilling, is almost completely free of any iron rich ultramafic pegmatites (IRUPs) disruptions or
magnetic features indicative of potential loss-of-ground features.
Figure 2: Imaging shows presence of magnetic bodies over the entire prospecting area
This confirmation has increased confidence ahead of the Phase 1 drilling programme scheduled to commence
in early July 2022.
Based on the results of the new survey, there will be limited changes to the planned collar positions with
respect to the geological model. Some small shifts may be required to distance the collar position from
interpreted faults and dykes, but the existing plan for a 350m x 350m drilling grid will remain intact.
An outline of the drill programme is shown in Figure 3 on the following page.
Figure 3: Map of a 2-phase drill programme targeting a shallow 2Moz Ore Reserve, and Inferred Mineral
Resource for the remainder of the project area
The geophysical survey comprised a total of 1,425 line kilometres flown over two farms; Eerstegeluk 322 KT
and Nooitverwacht 324 KT.
The survey was flown at a height between 25m and 80m due to the topography and residential areas, with
an average height of approximately 35m to 40m and a line spacing of 50m.
The survey flight was carried out by South African based New Resolution Geophysics (Pty) Ltd, using a turbine
AS350B series helicopter.
EXIGE (Pty) Ltd (based in South Africa and Australia) managed the survey, as well as the QA/QC and
interpretation of the processed survey data.
Drilling contractor appointed
A contract with drilling services group Geomech Africa Proprietary Limited, has been signed, and Southern
Palladium is now in the advanced stages of logistical planning.
It is envisaged that the phase 1 drilling (63 diamond drillholes) will start at the beginning of July 2022.
Investor Webinar
As announced to the ASX on 10 June 2022, Southern Palladium will also be hosting an investor webinar at 2
PM AEST on Wednesday 15 June 2022.
For anyone wishing to attend the webinar, please register using the below link.
Register via: https://attendee.gotowebinar.com/register/1943382827663990285
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 target the delivery of an established 2Moz Ore Reserve at Bengwenyama through
metallurgical studies, geophysical mapping and a two-phase diamond drill programme.
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 reefs – UG2
and Merensky. 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
15 June 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: 15-06-2022 07:57:00
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