Wrap Text
Bengwenyama drilling and PFS progress update: Combined PGE Mineral Resource now totals 25.1Moz (7E basis)
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”)
Bengwenyama drilling and PFS progress update: Combined PGE Mineral Resource now totals
25.1Moz (7E basis)
Highlights:
• Over 13,000 metres of drilling has been completed at the Bengwenyama project, including 47
drillholes and 13 deflections.
• Drilling has been highly successful with only two UG2 intersections being faulted and three
intersecting potholes, while in the case of the Merensky Reef (MR) only two drillholes were faulted.
• Drilling has also identified a new UG2 discovery, the Far East Block.
• Drilling overall is progressing well with five drill rigs currently drilling and a sixth drill rig is scheduled
to arrive within the next few weeks.
• The total Mineral Resource (Indicated and Inferred) for the project has now increased from a
3PGE+Au Inferred Resource of 18.80Moz to a 6PGE+Au Indicated and Inferred Resource of 25.12Moz,
an increase of 34% since drilling began.
• Limited drill testing of two potentially economic chromite seams in the “Dome” block. Two drillholes
intersected both the LG6 and LG6A chromitite seams.
• Drilling is now focused on the UG2 Payback Area as part of confirming the mine planning areas to be
further evaluated in detail as part of the Prefeasibility Study (PFS)
• Metallurgical and geotechnical test work and studies are both underway as part of the PFS.
• The Mining Right Application remains on schedule for submission in Q3 CY2023.
Southern Palladium (ASX:SPD and JSE:SDL), ‘Southern Palladium’ or ‘the Company’) is pleased to update
investors on the on-going exploration programme and PFS work now underway at the Bengwenyama
project. The company also announces its first interim combined Mineral Resource update for the MR and
UG2 at the Bengwenyama Platinum Group Metal (PGM) project, located on the Eastern Limb of the world
class Bushveld Complex, South Africa.
The total Mineral Resource (Indicated and Inferred) for the project has now increased from a 3PGE+Au
Inferred Resource of 18.80Moz to a 6PGE+Au Indicated and Inferred Resource of 25.12Moz, comprising
5.11Moz Indicated and 20.01Moz Inferred – an overall increase of 34% since drilling began. These Mineral
Resources include 14.62Moz indicated and inferred for the UG2 reef as shown in Table 1 below (also refer
ASX Announcement 30 May 2023).
Managing Director Johan Odendaal, said: “We are pleased to report the interim Mineral Resource update
for the shallower Merensky Reef at Bengwenyama which, in combination with the UG2 has contributed to
an impressive increase in the broader resource compared to the figures presented in Southern Palladium’s
2022 IPO prospectus. The combined Mineral Resource presented today clearly illustrated the broader
potential of the project, with prospective mineralisation in both the UG2 and the shallower Merensky Reef.
Near-term, the drill program will continue to focus on the defined UG2 Payback Area – the shallow eastern
portion of the Bengwenyama project which has been assessed as the approximate resource quantum for
the UG2 Reef that can achieve capital payback of the project.
Exploration Update
Figure 1 is a summary of the drilling status showing the completed drillholes, drillholes in progress,
historical Nkwe drillholes and the larger remaining drilling programme.
To date 13,776m of drilling has been completed from 47 drillholes (of which five are in progress) and 13
deflections. The success rate of the drilling has been pleasing with only two UG2 intersections being
faulted and three intersecting potholes, while in the case of the MR only two drillholes were faulted.
Drilling is still focused on the UG2 Payback Area (refer ASX Announcement 30 May 2023) and is progressing
well with all five drill rigs currently drilling within the Payback Area (Figure 1).
Figure 1: Drilling Programme Status
The current focus is to convert the UG2 Payback Area to Indicated Mineral Resource status and then move
the drill rigs to areas surrounding the Payback Area and the Horst blocks to the west. There is limited
information on the geological structure within the Southern Horst Block (mainly historical collars only)
and it is important to improve the understanding of the geological structure in this area. Drilling is
expected to commence within 3 to 4 weeks.
A sixth drill rig is scheduled to be on site in late-July / early-August.
Assays are awaited for 15 drillholes. These are expected to start being reported in a week, and all should
be available by early August.
Prefeasibiity (PFS) study
Metallurgical test work for the UG2 reef is in progress. Previous metallurgical and process recoveries
assumed in the Scoping Study were based on the fact that the mineralisation appears to be very similar
to that mined nearby in operating mines along strike to the north and south of Bengwenyama. The sample
is a composite of five core samples from four drillholes and has been submitted to SGS in Randfontein,
South Africa. The test work comprises flotation efficiency test work (MF2 testing) and bond ball mill work
index determinations.
Geotechnical study-work has commenced and will provide the basis of detailed mine-designs and planning
for the PFS. Open House Management Solutions (Pty) Ltd has been appointed to complete the
geotechnical study for the PFS. They are completing the geotechnical logging and rock mass classification
for the high-level design criteria and stress modelling. Core samples have been sent to Rocklab Rock
Mechanics in Pretoria, South Africa where Uniaxial Compressive Strength (UCS), Triaxial Compressive
Strength (TCS), Base Friction Angle and Brazilian Tensile Strength tests will be undertaken. The results are
expected by mid July.
Mineral Resource Update
The Phase 1a drilling programme was focused on the shallow UG2 reef which resulted in a significantly
higher total Mineral Resource (refer ASX Announcement 30 May 2023).
The drilling programme also intersected the Merensky Reef (MR) approximately 260m above the UG2
reef. These drillholes intersected the MR from the subcrop position, from a depth of approximately 20m
to a maximum depth of around 260.
Table 1 is the total combined Mineral Resource for the UG2 and MR as at 10 July 2023. The combined
Indicated Mineral Resource for the project, on a 6PGE+Au basis, is now 5.11 Moz ounces with a combined
Inferred Mineral Resource of 20.01 Moz. The total Mineral Resource (Indicated and Inferred) is now 25.12
Moz. These Mineral Resources include 14.62Moz indicated and inferred for the UG2 reef.
Table 1: Combined UG2 and MR Mineral Resource as at 10 July 2023
Resource Tonnes Thickness Pt Pd Rh Au Ir Os Ru 4E 7E Cu Ni Moz Moz
Reef
Category Mt (m) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (4E) (7E)
Merensky Indicated 21.59 2.05 1.59 0.65 0.10 0.12 0.03 0.03 0.21 2.48 2.75 0.038 0.125 1.72 1.91
Merensky Inferred 77.90 1.97 2.01 0.81 0.13 0.15 0.04 0.04 0.25 3.10 3.43 0.035 0.119 7.77 8.60
Total Merensky 99.49 1.99 1.92 0.78 0.12 0.14 0.04 0.04 0.24 2.97 3.28 0.035 0.120 9.49 10.50
UG2 Indicated 10.76 0.71 3.48 3.34 0.75 0.12 0.25 0.16 1.19 7.65 9.24 0.031 0.160 2.64 3.20
UG2 Inferred 39.09 0.69 3.47 3.16 0.74 0.1 0.25 0.16 1.21 7.48 9.08 0.032 0.156 9.40 11.42
Total UG2 49.85 0.69 3.47 3.20 0.74 0.10 0.25 0.16 1.20 7.51 9.12 0.032 0.157 12.04 14.61
Total 149.34 1.56 2.44 1.59 0.33 0.13 0.11 0.08 0.56 4.48 5.23 0.034 0.133 21.53 25.12
Note: All elements have been estimated individually and their combined grade will vary slightly from the estimated composite 4E and 7E modelled
grades.
The overall increase in the UG2 Mineral Resource is largely a result of the addition of the Far East Block
(refer ASX Announcement 30 May 2023) and the conversion of the exploration target to Inferred
Resources.
The MR is not the main focus of the project but has been updated to be included in the total Mineral
Resource for the Bengwenyama Project. The MR modelling has once again confirmed the geological model
for the project area which forms the basis for the ongoing drilling programme. Details of the MR modelling
and estimation are supplied in Appendix 1.
There has been a decrease in the MR Mineral Resource for two main reasons.
• Increased geological losses have been applied to the Mineral Resource from 10% to 18% and 36%
(Figure 7), due to faulting.
• There were relatively few new MR intersections in the recent program so the geological losses
were not offset by a conversion from Exploration Target to Resources. Further drilling planned to
the west of the subcrop should increase the MR Mineral Resource going forward.
Table 2 is a reconciliation between the 01 July 2021 Mineral Resource in the Prospectus and the 10 July
2023 Mineral Resource for the UG2 Reef and Merensky Reef. The Indicated and Inferred Mineral
Resources have been consolidated for the purposes of the reconciliation. The combined UG2 and MR
3PGE+Au Mineral Resource update has resulted in a 15% increase in contained ounces and a 34% increase
if compared to the 6PGE+Au contained ounces. More importantly is the Mineral Resource increase for the
UG2 of 44% on a 3PGE+Au basis and a 74% increase on a 6PGE+Au basis which is the main targeted reef
for the future mining.
Table 2: UG2 and MR Mineral Resource Reconciliation with the Prospectus Mineral Resource Estimate
Tonnes 3PGE+Au 6PGE+Au
Total Resource Reef
(Mt) g/t Moz g/t Moz
UG2 33.87 7.7 8.38 7.70 8.38
2021 MR 110.02 2.96 10.42 2.96 10.42
UG2 & MR 143.89 4.07 18.8 4.07 18.8
UG2 49.85 7.51 12.04 9.12 14.61
2023 MR 99.49 2.97 9.49 3.28 10.50
UG2 & MR 149.34 4.48 21.53 5.23 25.12
UG2 15.98 -0.19 3.66 1.42 6.23
Variance MR -10.53 0.01 -0.93 0.32 0.08
UG2 & MR 5.45 0.41 2.73 1.16 6.32
UG2 47% -2% 44% 18% 74%
% Variance MR -10% 0% -9% 11% 1%
UG2 & MR 4% 10% 15% 29% 34%
Note: There has been a 4% increase in the UG2 ounces since the press release of 30 May 2023 due to an adjustment in the ounce conversion.
LG6A and LG6 Chromitite Reefs
Two drillholes, E056 and E057 (Figure 1), were drilled in the “dome” area to investigate the lower group
(LG) chromitite seams which are exploited for their Cr2O3. The main LG chromitite seam that is mined
economically for its Cr2O3 is the LG6, which is comprised of the LG6A and LG6. Note these seams do not
carry any economical PGEs but may be economic with respect to their Cr2O3.
In drillhole E057, the LG6A was intersected at 237.73m below surface, approximately 210m below the
UG2, while in drillhole E056 it was intersected approximately 325 m below surface.
The available information suggests that the LG6A is approximately 30cm thick with a 20 cm pyroxenite
middling between the LG6A and the LG6. The LG6 seems to be split with an upper seam of 30cm with a
thin pyroxenite parting with the bottom LG6 seam being approximately 120cm thick. These have been
sampled and submitted to the laboratory for analysis.
The aim of these two drillholes was to test for the presence and depth of the LG6’s in the dome structural
block and the potential access for mining the LG6’s from the UG2 underground mining infrastructure. The
intersections have shown that the LG6’s could be accessible from the UG2 underground mining
development due to the up thrown structural blocks. This will require further drilling and investigations.
Once the results have been received from the laboratory, further work will be done on the viability of the
LG6A and LG6 as an additional source of Cr2O3 at the Bengwenyama Project which will be included in the
Mining Right application.
Figure 2: Project Stratigraphic Column Showing the LG6A and LG6
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 been completed in 2022, and a
diamond drill programme which has commenced in August 2022 as well as various technical studies to
be completed.
A major development opportunity in the global PGM market, previous exploration at Bengwenyama
has already delivered a JORC 2012-compliant Inferred Mineral Resource of 18.8Moz within two ore
horizons – the UG2 chromitite and Merensky Reef in 2021.
5
In addition, an assessment by mining industry consultants CSA Global assessed the total resource
potential of Bengwenyama at between 134–201Mt at a grade of 3.5–5.2 (3 PGE + Au g/t). The Company
is led by an experienced on-ground management team including some of South Africa’s most high-
profile mining industry executives.
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
10 July 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. Merensky Reef Estimation
The recent drilling programme has allowed for the validation of the historical drill hole database for the
MR. A statistical analysis has been completed on the historical and new databases and has established a
90% 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.
Figure 3 shows the location of the drillholes used in the MR geological modelling (28 drill holes) and
Mineral Resource estimation (18 drillholes) in relation to the MR subcrop.
Figure 3: Drillholes used in the MR Modelling.
Figure 4 is a NW – SE section line through Eerstegeluk, the location of which is shown in Figure 3. The
section illustrates the MR subcrop and the MR in relation to the UG2.
Figure 4: NW-SE Cross Section of the MR and UG2 Reef Horizons
Merensky Reef (MR) Mineral Resource Estimation
The MR 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 8 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 5 shows the
3PGE+Au g/t resultant model with the drillhole positions used in the estimation. The statistical analysis
showed that capping of one drillhole 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 64.9%
: 26.2% : 4.1% : 4.8% were determined using these estimates. A density of 3.28 t/m3 was used in the
tonnage estimate which was determined from the reef intersections using the Archimedes methodology.
Figure 5: Modelled 3PGE+Au g/t Plot of the MR Reef
Mineral Resource Categories
The Mineral Resource categories (Figure 6) were determined based on the QAQC, slope of regression
(SOR), kriging efficiency (KE) and continuity of the MR 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 MR 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 6 illustrates the 2021 Mineral Resource
classification of inferred Mineral Resource (dark blue) and Exploration Target for comparison. This shows
the bulk of the recent drilling was completed in an area that was already in the Inferred Mineral Resource
category and hence there was no additional Mineral Resource from the conversion from exploration
target to Inferred Mineral Resource. However, there was some conversion from the Inferred category to
the Indicated category. Figure 6 also shows the weathered area (oxide) down to 40m vertical depth, which
has been excluded from the Mineral Resources.
Figure 6: MR 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 MR 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 18%
to 40% for the Exploration Target area. These larger geological loss areas and smaller fault blocks can be
seen in Figure 7.
Figure 7: MR Reef Geological Losses (%)
Appendix 2. JORC Checklist – Table 1 Assessment and Reporting Criteria
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
Nature and quality of sampling (e.g. cut
channels, random chips, or specific
specialised industry standard 20 cm samples are taken within the reef horizon unless there is a lithological
measurement tools appropriate to the reason to deviate from this. A single sample is also taken in the hanging
minerals under investigation, such as wall and footwall to test for mineralisation in the direct waste rock. The
down hole gamma sondes, or handheld samples are split with a core saw and one half is submitted to the laboratory
XRF instruments, etc.). These examples and the other half keep in the core tray.
should not be taken as limiting the broad
meaning of sampling.
Include reference to measures taken to
ensure sample representivity and the
The core is orientated in such a way that the two halves are equal.
appropriate calibration of any
measurement tools or systems used.
Aspects of the determination of
Sampling techniques 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 The sampling methodology is standard and as per industry practice in the
m samples from which 3 kg was Bushveld Complex (BC). The samples are 20 cm in length and are split into
pulverised to produce a 30 g charge for two equal halves with one half being submitted for analysis. The core size
fire assay’). In other cases more starts as HQ (10 m to 50 m) but is NQ by the time the reef is intersected.
explanation may be required, such as
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
Drilling techniques (e.g. core diameter, triple or standard utilised have been the CS 1500, Delta 520 and a smaller Longyear 44.
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.
Sub-sampling whether quarter, half or all core taken.
techniques and
sample preparation If non-core, whether riffled, tube
sampled, rotary split, etc. and whether This project only makes use of core drilling.
sampled wet or dry.
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
The sample preparation code at ALS is PREP-31H which has the following
procedure: -
For all sample types, the nature, quality
and appropriateness of the sample
Login of samples into the system, weighing, fine crushing of entire sample
preparation technique. 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.
of Discuss any adjustment to assay data. No adjustments have been made to the assayed results.
Verification
sampling and Documentation of primary data, data The assay results are received from the laboratory in pdf format and excel
assaying entry procedures, data verification, data format. The excel form is imported into the Minxcon excel database. These
storage (physical and electronic) are checked by the senior geologist. The assay certificates are stored in the
protocols. project folder.
The use of twinned holes. No twinning has been undertaken to date.
Accuracy and quality of surveys used to
locate drillholes (collar and down-hole Drillhole collar positions are recorded by handheld Garmin GPS. The
Location of data surveys), trenches, mine workings and drillholes will be surveyed in at a later stage.
points other locations used in Mineral
Resource estimation.
Specification of the grid system used. The coordinate system used is LO31.
Regional three-dimensional (3D) topography was constructed from regional
Quality and adequacy of topographic surface contours and Shuttle Radar Topography Mission (SRTM) data. The
control. surface was trimmed 300–500 m beyond the Project perimeter.
The final drillhole spacing will be approximately 350 m. The drilling
Data spacing for reporting of Exploration completed to date or in progress has a wider spacing to get a better
Results. understanding of the larger structural domains of the project.
Whether the data spacing, and
distribution is sufficient to establish the Geological continuity is based on the knowledge of the surrounding area
Data spacing and degree of geological and grade and 3D model constructed from historical data. The 24 of the 26 completed
distribution continuity appropriate for the Mineral drillholes to date have intersected the UG2 which is confirming the position
Resource and Ore Reserve estimation of the UG2 reef. Of the 12 drillholes expected to intersect the MR nine have
procedure(s) and classifications intersected the reef and two have been faulted.
applied.
Whether sample compositing has been The 20cm (or larger) samples are composited to obtain the weighted
applied. average of the entire intersection.
Whether the orientation of sampling The drillholes are vertical drillholes and intersect the reef close to right
achieves unbiased sampling of possible angles. The sample is therefore unbiased. If the reef is faulted it will be
structures and the extent to which this is noted and if the reef intersection is not representative, it will not be used in
known, considering the deposit type. Mineral Resource estimations.
Orientation of data in If the relationship between the drilling
relation to geological orientation and the orientation of key
structure mineralised structures is considered to No sampling bias will be introduced based on the drilling orientation as they
have introduced a sampling bias, this are close to perpendicular.
should be assessed and reported if
material.
Samples are only handled by the drilling contractor and the Minxcon
The measures taken to ensure sample geological staff. There is a strict chain of custody that is followed from the
Sample security security. time the core leaves the drill site to the time the sample is received by the
laboratory.
Audits or reviews The results of any audits or reviews of No audits have been undertaken on the drilling to date.
sampling techniques and data.
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria Explanation Detail
Type, reference name/number, location
and ownership including agreements or A Preferent Prospecting Right LP002PPR was granted to the
material issues with third parties such Bengwenyama Tribe’s investment vehicle, Miracle Upon Miracle
as joint ventures, partnerships, Investments (Pty) Ltd in 2015 over the farms Eerstegeluk 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
Geology Deposit type, geological setting and comprises mineralised chromitite, whereas the Merensky Reef is
style of mineralisation. defined as the mineralised pyroxenitic zone between upper and lower
chromitite stringers. The BC is the world’s largest igneous intrusion and
also the largest global repository of PGEs and chromitite. Both reefs are
stratiform with relatively minor disruptive structural features and
replacement deposits.
A summary of all information Drilling
Drilled
material to the understanding of the BHID Date Started Date Completed From (m) To (m)
Metres
Comment
exploration results including a E019 23-Aug-22 05-Sep-22 0.00 32.42 32.42
Abandoned, s tuck drill
rods
tabulation of the following E019a 06-Sep-22 05-Oct-22 0.00 323.77 323.77 EOH, completed
information for all Material drillholes: E060 26-Aug-22 19-Oct-22 0.00 206.72 206.72 EOH, completed
* easting and northing of the drillhole
E060D1 23-Nov-22 28-Nov-22 139.00 185.53 46.53 EOH, completed
collar EOH, completed,
* elevation or RL (Reduced Level – E062 26-Aug-22 02-Sep-22 0.00 120.34 120.34 extended to UG1 for
s tratigraphy
elevation above sea level in metres) E062D1 07-Sep-22 08-Sep-22 18.30 34.92 16.62
Deflection completed,
faulted UG2
of the drillhole collar E062D2 09-Sep-22 10-Sep-22 13.30 33.00 19.70
Deflection completed,
faulted UG2
* dip and azimuth of the hole E058 12-Sep-22 05-Oct-22 0.00 158.25 158.25 EOH, completed
* down hole length and interception
depth E033 07-Sep-22 15-Oct-22 0.00 261.58 261.58 EOH, completed
* hole length. E028 07-Oct-22 24-Oct-22 0.00 383.75 383.75 EOH, completed
E004 14-Oct-22 15-Nov-22 0.00 524.50 524.50 EOH, completed
E004D1 19-Nov-22 24-Nov-22 457.00 518.75 61.75 Deflection completed
E030 26-Oct-22 05-Dec-22 0.00 413.75 413.75 EOH, completed
E025 18-Oct-22 09-Nov-22 0.00 267.58 267.58 EOH, completed
E037 13-Oct-22 02-Nov-22 0.00 282.45 282.45 EOH, completed
EOH, completed,
E049 21-Oct-22 19-Nov-22 0.00 322.75 322.75 extended to UG1 for
s tratigraphy
E031 07-Nov-22 22-Nov-22 0.00 423.22 423.22 EOH, completed
E044 12-Nov-22 14-Dec-22 0.00 263.73 263.73 EOH, completed
E016 28-Nov-22 14-Dec-22 0.00 454.68 454.68 EOH, completed
E007 28-Nov-22 10-Dec-22 0.00 422.80 422.80 EOH, completed
E064 29-Nov-22 06-Dec-22 0.00 166.40 166.40 EOH, completed
E071 07-Dec-22 12-Dec-22 0.00 188.80 188.80 EOH, completed
E065 08-Dec-22 15-Dec-22 0.00 239.75 239.75 EOH, completed
E001 12-Jan-23 06-Feb-23 0.00 554.75 554.75 EOH, completed
E015 12-Jan-23 19-Jan-23 0.00 298.72 298.72 EOH, completed
E020 11-Jan-23 21-Jan-23 0.00 350.75 350.75 EOH, completed
E041 13-Jan-23 06-Feb-23 0.00 258.77 258.77 EOH, completed
E067 12-Jan-23 25-Jan-23 0.00 306.45 306.45 EOH, completed
E013 23-Jan-23 01-Feb-23 0.00 327.28 327.28 EOH, completed
Drillhole E024 23-Jan-23 29-Jan-23 0.00 284.75 284.75 EOH, completed
Information E069 27-Jan-23 29-Mar-23 0.00 305.45 305.45 EOH, Completed
E027 01-Feb-23 21-Feb-23 0.00 290.75 290.75 EOH, completed
E014 07-Feb-23 10-Apr-23 0.00 354.10 354.10 EOH, completed
E069D1 04-Apr-23 06-Apr-23 180.00 251.65 71.65 EOH, Completed
E001D1 13-Apr-23 18-Apr-23 508.00 552.02 44.02 EOH, Completed
E014D1 15-Apr-23 18-Apr-23 302.00 344.04 42.04 EOH, Completed
E014D2 24-Apr-23 27-Apr-23 292.00 346.55 54.55 EOH, Completed
E032 12-Apr-23 04-May-23 0.00 467.75 467.75 EOH, Completed
**E057 08-Apr-23 22-Apr-23 0.00 299.68 299.68 EOH, Completed
E045 01-May-23 10-May-23 0.00 206.55 206.55 EOH, Completed
**E056 26-Apr-23 12-May-23 0.00 335.70 335.70 EOH, Completed
E052 21-Feb-23 31-May-23 0.00 252.55 255.55 EOH, Completed
E072 10-May-23 17-May-23 0.00 254.75 254.75 EOH, Completed
E072D1 19-May-23 22-May-23 208.00 251.75 43.75 EOH, Completed
E072D2 23-May-23 24-May-23 203.00 251.75 48.75 EOH, Completed
E029 15-May-23 01-Jun-23 0.00 320.78 320.78 EOH, Completed
E050D1 31-May-23 07-Jun-23 185.00 279.98 94.98 EOH, Completed
E076 31-May-23 08-Jun-23 0.00 239.75 239.75 EOH, Completed
E029D1 03-Jun-23 09-Jun-23 248.00 320.78 72.78 EOH, Completed
E066 10-May-23 09-Jun-23 0.00 225.32 225.32 EOH, Completed
E066D1 12-Jun-23 15-Jun-23 161.00 225.62 64.62 EOH, Completed
E046 10-Jun-23 21-Jun-23 0.00 245.68 245.68 EOH, Completed
E048 09-Jun-23 19-Jun-23 0.00 236.70 236.70 EOH, Completed
E054 10-Jun-23 19-Jun-23 0.00 287.57 287.57 EOH, Completed
E059 02-Jun-23 24-Jun-23 0.00 99.55 99.55 EOH, Completed
E039 19-Jun-23 26-Jun-23 0.00 249.30 249.30 EOH, Completed
All drillholes were drilled -90 degrees.
The UG2 and MR 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 for the UG2 and 10
historical Nkwe drillholes and 8 SPD drillholes for the MR.
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. In the case of the MR there was one sample
maximum and/or minimum grade that was capped. The Mineral Resource has been declared at a paylimit
truncations (e.g. cutting of high grades) of 1.9 g/t for the UG2 and 1.6 g/t for the MR.
and cut-off grades are usually Material The exploration target range is based on the kriged estimated value with
and should be stated. a 20% range applied to it.
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 If it is not known and only the down The intersection lengths stated are the downhole lengths. The drillholes
mineralisation hole lengths are reported, there should are drilled at -90 degrees and the reef dip is expected to be
widths and intercept be a clear statement to this effect (e.g. approximately 6 degrees. Therefore, the difference should be minimal.
lengths ‘down hole length, true width not
known’).
Appropriate maps and sections (with
scales) and tabulations of intercepts
should be included for any significant A map of the drillhole positions is included in this and the previous press
Diagrams discovery being reported These should release. A stratigraphic column has been completed for the project (in
include, but not be limited to a plan press releases). A section has been included in the press release.
view of drillhole collar locations and
appropriate sectional views.
Where comprehensive reporting of
all Exploration Results is not
Balanced practicable, representative reporting
reporting of both low and high grades and/or Reef intersection depths for all the drillholes have been reported in
widths should be practiced to avoid the table below.
misleading reporting of Exploration
Results.
Drilling Merensky Reef UG2 Reef
Intersection Intersection
BHID From (m) To (m) Comment From (m) To (m) Comment
Width (m) Width (m)
Highly weathered & friable,
E019 20.25 22.45 2.20 - - - Hole stopped short
inconclusive
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?
subcrop
No MR expected - East of MR
E060D1 - - - 178.78 179.29 0.51 Complete intersection
subcrop
No MR expected - East of MR Complete intersection, moderately
E062 - - - 31.27 32.30 1.03
subcrop weathered
No MR expected - East of MR Moderately weathered & faulted.
E062D1 - - - 31.45 32.27 0.82
subcrop Incomplete intersection. Core loss.
No MR expected - East of MR Moderately weathered & faulted.
E062D2 - - - 31.16 31.56 0.40
subcrop Incomplete intersection. Core loss.
No MR expected - East of MR
E058 - - - 140.88 141.29 0.41 Complete intersection
subcrop
No MR expected - East of MR
E033 - - - 253.62 254.25 0.63 Complete intersection
subcrop
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
E004D1 - - - 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
subcrop
No MR expected - East of MR
E037 - - - - - - Not present / Pothole
subcrop
No MR expected - East of MR
E049 - - - - - - Faulted
subcrop
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
subcrop
E016 - - - Faulted 449.24 450.01 0.77 Complete intersection
E007 100.38 102.54 2.16 Complete intersection 417.42 418.54 1.12 Complete intersection
No MR expected - East of MR
E064 - - - 156.19 157.05 0.86 Complete intersection
subcrop
No MR expected - East of MR
E071 - - - 180.04 180.73 0.69 Complete intersection
subcrop
No MR expected - East of MR
E065 - - - 231.81 232.50 0.69 Complete intersection
subcrop
E001 259.82 261.64 1.82 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
subcrop
E020 54.20 55.39 1.19 Faulted 342.90 343.56 0.66 Complete intersection
No MR expected - East of MR
E041 - - - 250.95 251.60 0.65 Complete intersection
subcrop
No MR expected - East of MR
E067 - - - 299.70 300.20 0.50 Complete intersection
subcrop
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
subcrop
No MR expected - East of MR
E069 - - - 240.98 241.39 0.41 Incomplete intersection
subcrop
No MR expected - East of MR
E027 - - - 284.47 285.04 0.57 Complete intersection
subcrop
E014 37.28 39.68 2.40 Complete intersection 342.62 343.68 1.06 Complete Intersection
No MR expected - East of MR
E069D1 - - - 241.33 241.63 0.30 Complete Intersection
subcrop
E001D1 - - - Deflection below MR 547.78 548.26 0.48 Complete Intersection
Incomplete intersection, core loss &
E014D1 - - - Deflection below MR 343.29 343.74 0.45
grinding
E014D2 - - - Deflection below MR 342.19 343.06 0.88 Complete Intersection
E032 171.69 173.78 2.09 Complete intersection 462.66 463.98 1.32 Complete Intersection
Highly weathered & friable,
- - - 29.96 30.44 0.48
inconclusive
- - - 237.73 238.06 0.33 LG6A reef
No MR expected - East of MR
**E057
subcrop
- - - 238.3 238.63 0.33 LG6 reef
- - - 238.66 239.85 1.19 LG6 reef
No MR expected - East of MR
E045 - - - 202.205 202.82 0.615 Complete Intersection
subcrop
- - - 324.59 325.02 0.43 LG6A reef
No MR expected - East of MR
**E056 - - - 325.29 325.56 0.27 LG6 reef
subcrop
- - - 325.82 326.54 0.72 LG6 reef
No MR expected - East of MR
E052 - - - 246.01 247.04 1.03 Complete Intersection
subcrop
No MR expected - East of MR Incomplete intersection, core loss &
E072 - - - 248.48 249.07 0.59
subcrop grinding
No MR expected - East of MR
E072D1 - - - 248.71 249.44 0.73 Complete Intersection
subcrop
No MR expected - East of MR
E072D2 - - - 248.64 249.28 0.64 Complete Intersection
subcrop
core loss, top stringer only,
E029 40.02 42.62 2.60 314.68 314.88 0.20 Pothole
inconclusive
No MR expected - East of MR
E050D1 - - - 276.37 276.90 0.53 Complete Intersection
subcrop
No MR expected - East of MR
E076 - - - 233.22 233.77 0.55 Complete Intersection
subcrop
No MR expected - East of MR
E029D1 - - - subcrop
315.08 315.10 0.02 Pothole
No MR expected - East of MR
E066 - - - subcrop
221.30 221.64 0.34 Incomplete Intersection Faulted
No MR expected - East of MR
E066D1 - - - subcrop
221.19 221.63 0.44 Complete Intersection
No MR expected - East of MR
E046 - - - subcrop
238.66 239.22 0.56 Complete Intersection
No MR expected - East of MR
E048 - - - subcrop
229.77 230.57 0.80 Complete Intersection
No MR expected - East of MR
E054 - - - subcrop
280.52 280.94 0.42 Complete Intersection
No MR expected - East of MR
E059 - - - subcrop
95.17 95.70 0.53 Complete Intersection
No MR expected - East of MR Incomplete intersection, core loss &
E039 - - - subcrop
226.54 226.89 0.35
Faulted
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
Other substantive including (but not limited to): geological Geophysics (Pty) Ltd (NRG) in January of 2022 which highlighted the
exploration data observations; geophysical survey major structural features that could be expected.
results; geochemical survey results;
bulk samples – size and method of
treatment; metallurgical test results; The total line kilometres flown was 1,425 lkm over the farms
bulk density, groundwater, geotechnical Eerstegeluk 327 KT and Nooitverwacht 324 KT with the survey being
and rock characteristics; potential flown at a height between 25 m and 80 m due to the topography and
deleterious or contaminating residential areas with an average height of approximately 35 m to 40 m
substances. and a line spacing of 50 m.
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
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 proramme is still for approximately
25,000m in total.
Diagrams clearly highlighting the areas
of possible extensions, including the
main geological interpretations and
future drilling areas, provided this
information is not commercially
sensitive.
Further work Above are the structural blocks modelled from the drillhole database
(UG2 on top and MR the second). 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.
estimation purposes.
Database Base geological data informing the estimate was validated using in-built
integrity functionality in Datamine StudioRM software. Validation routine involved
checking spatial location of drillholes collars and intersections, validity of
stratigraphic logging, checking for repetition of logged intersections, reasons for
Data validation procedures the absence of analytical data, negative thicknesses and an assessment of the
used. correlation of all aspects of the new drilling data to the historic drilling data from
the Nkwe drillhole database. The Nkwe database was inspected for erroneous /
non representative datapoints and removed based on the knowledge gained
from the recent SPD drilling.
Comment on any site visits The Competent Person regularly visits the project site with the latest visit having
undertaken by the been carried out over the period from 13 to 14 June 2023 and again on the 27th
Competent Person and the of June 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
documents available in the public domain. Analytical data in the Nkwe drillholes
Nature of the data used and is presented as 4E only. Individual PGEs were not reported. Results from QQ
of any assumptions made. plots (R2=0.93 for the UG2 and R2=0.81 for the MR) 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 and MR top contact as interpreted
from geological logging, knowledge of the regional structural geology,
The use of geology in incorporation of mapped faults, dykes, sills, and the use of data from the TMF
guiding and controlling gradient and gamma-ray spectrometry survey completed by New Resolution
Mineral Resource Geophysics (Pty) Ltd (NRG) in January of 2022, highlighting the major structural
estimation. features, guided 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
excess of 200m. Current structural interpretation postulates the Eerstegeluk
The factors affecting Dome area comprises a stack of several upthrow faults culminating in an overall
continuity both of grade and upthrow of the UG2 reef to a location as shallow as 30m below surface. Other
geology. 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 and MR reef over approximately 11km at an average true dip
strike or otherwise), plan of 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 in excess of 1,000m below surface. The MR is approximately 260m
above the UG2 reef and subcrops in the central portion of the farm Eerstegeluk.
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. However, for the MR one sample
assumptions, including was capped back to 4.68 g/t for the 4E grade (see below).
treatment of extreme grade
values, domaining,
interpolation parameters
and maximum distance of
extrapolation from data
points. If a computer Ordinary Kriging, an industry best choice for evaluation of PGEs, has been
assisted estimation method successfully applied for all grade interpolation with all 3D wireframe modelling
was chosen include a and grade estimation processes completed in Datamine StudioRM Version
description of computer 1.11.65.0 geological modelling software.
software and parameters
used. Kriging neighbourhood analysis (KNA) 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 the estimation.
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
Estimation production records and The previous estimate for the Bengwenyama Project was declared on 01 July
and modelling whether the Mineral 2021 and presented 33.87Mt at 7.7g/t 4E and 8.38Moz in Inferred Resources.
techniques
Resource estimate takes
appropriate account of such Taking into account the impact of the additional SPD drilling completed to date,
data. the previous estimate correlates reasonably well with the current and updated
estimate of 49.85Mt at 7.51g/t 4E and 12.040Moz of Indicated and Inferred
Resources for the UG2 with the MR also having very similar results.
Metallurgical testwork is currently underway to establish the viability of recovery
The assumptions made of any by-products, in particular chromite. There is no record of previous similar
regarding recovery of by- testwork completed in the Bengwenyama project area. However, the UG2 on the
products. 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.
Any assumptions about The QQ plot results (R2=0.93 for the UG2 and R2=0.81 for the MR) suggest SPD
Estimation correlation between data is highly comparable to the Nkwe historic drill data.
and modelling 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
and regional geological losses guided delineation of 20 fault blocks and the
generation of the resultant UG2 and MR 3D wireframe model.
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, other than one sample for
using or not using grade the MR, and does show reasonable support for geological domaining or any
cutting or capping. possible anisotropy.
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 Mineral Resources
are declared at a paylimit of 1.9 g/t and 1.6 g/t 4E using a basket price of USD
2,654/oz and USD 1,888/oz for the UG2 Reef and MR respectively. No mining
cut has been applied at this stage as the supporting geotechnical work is still in
progress.
Below are the parameters used for the basket price and pay limit calculation.
The basis of the adopted Element Resource price (USD/oz) 4E prill split 7E prill split Recovery Payability
Cut-off cut-off grade(s) or quality
parameters Platinum 1,025 45.3% 37.5% 85% 86%
parameters applied. 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) It is envisaged that the Mineral Resource mining cut will be approximately 1m for
mining dilution. It is always the UG2 due to the absence of stringers in footprint of the currently drilled area.
necessary as part of the The hanging wall contact is a distinct Leuconorite plane referred to as the
process of determining Leuconorite Parting Plane (LPP) and forms a distinct sharp hanging wall contact
reasonable prospects for with no chromitite stringers above it. For the MR the mining cut will probably be
Mining factors eventual economic the reef width, which is approximately 2,00m plus 10cm hanging wall and 10cm
or extraction to consider footwall dilution.
assumptions potential mining methods,
but the assumptions made Mining studies on the possible practical mining methods or a combination thereof
regarding mining methods are currently being concluded.
and parameters when
estimating Mineral The current geological modelling does not incorporate any assumptions or
Resources may not always provide any form of guidance for a chosen specific mining method.
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 Samples for metallurgical testwork for the UG2 have been collected from site
consider potential and submitted to the SGS laboratory to establish the most optimal recovery
Metallurgical metallurgical methods, but 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 A series of specialised environmental studies are in the process of being
disposal options. It is always commissioned to establish a balance between compliance of the eventual
necessary as part of the chosen mining method to environmental regulations against optimal and
Environmental process of determining practical extraction that will achieve the least environmental impact.
factors or reasonable prospects for
assumptions eventual economic The current geological modelling supporting this estimate does not incorporate
extraction to consider the any assumptions or provide guidance to achieve the least environmental impact.
potential environmental
impacts of the mining and
processing operation. While
at this stage the
determination of potential
environmental impacts,
particularly for a greenfields
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.
Whether assumed or
determined. If assumed, the A density of 3.93 t/m3 for the UG2 and 3.28 t/m3 for the MR was used in the
basis for the assumptions. If tonnage estimation. The density was determined empirically using the
determined, the method Archimedes method on UG2 reef and MR intersection samples from a population
used, whether wet or dry, from 45 and 81 diamond drill core samples respectively from 14 SPD drillholes.
the frequency of the The determination of density is an ongoing exercise conducted by the field
measurements, the nature, exploration team to expand the database for use to support tonnage 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 and MR 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 for the
reliability of input data, UG2 range from 16% to 40% for the Exploration Target area with the
confidence in continuity of Eerstegeluk Dome area completely excluded at this stage of reporting.
geology and metal values, For the MR the geological losses range from 18% to 40% for the Exploration
quality, quantity and Target area and the top 40m (vertically) at the subcrop for the MR is also
distribution of the data). excluded due to weathering and oxidation.
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
statement of the relative
accuracy and confidence
level in the Mineral The QQ plot results (R2=0.93 for the UG2 and R2=0.81 for the MR) suggest the
Resource estimate using an SPD data is highly comparable to the Nkwe historic drill data and that the two
approach or procedure datasets can be consolidated into a single database without any issues.
deemed appropriate by the
Competent Person. For The consolidation enabled back-calculation of individual Pt, Pd, Rh and Au
example, the application of grades from the single analytical 4E grade in the Nkwe drillholes basing on prill
statistical or geostatistical splits established from the complete empirical SPD analytical dataset as well at
procedures to quantify the determining individual grades for Os, Ir and Ru from regression relationships.
relative accuracy of the This has enabled reporting to 7E grade.
resource within stated
confidence limits, or, if such The UG2 Exploration Target is based on the estimated kriged value of the
Discussion of an approach is not deemed drillhole database with a 20% range applied to it.
relative appropriate, a qualitative
accuracy/ discussion of the factors
confidence 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: 10-07-2023 09:56:00
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