Wrap Text
Bengwenyama PGM Drilling Programme Intersects UG2 Reef
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 PGM Drilling Programme Intersects UG2 Reef
Key highlights:
• UG2 reef intersection confirmed as part of the Phase 1a drilling programme
• The UG2 intersection width of 87cm is in line with expectations
• Project geological stratigraphy will develop with the new drilling information
• Three drill rigs now in operation
Southern Palladium (ASX:SPD, ‘Southern Palladium’ or ‘the Company’) provides the following update on its
recently commenced Phase 1 drilling programme at the Bengwenyama PGM project located on the Eastern
Limb of the world class Bushveld Complex, South Africa
The Company confirms that drillhole E062 has intersected the first UG2 reef at 31.2m below surface as part of
the drilling programme. The mother-hole was completed on 1 September 2022 with an end-of-hole depth of
119.8m and matches stratigraphic models.
Marking, logging and scanning of the drillhole is in progress. A Down-hole acoustic televiewer survey will be
completed next and this will be followed by drilling two short non directional deflections on the UG2 reef.
Assaying of the reef will commence once all deflections, logging and core scanning is complete. Samples will
be 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).
The massive UG2 chromitite reef intersection (NQ core size) in drillhole E062 has a downhole length (not true
width) of 87cm (figure 1), 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 1: UG2 Intersection (yellow box) in Drillhole E062
Figure 2 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 2: UG1 Marker Reef
Three drill rigs have now been mobilised and are conducting drilling operations as indicated in figure 3 below.
Figure 3 shows the location of the three drillholes currently being drilled (green stars).
Figure 3: Drilling Locations
Upgrades of the community centre for the driller’s laydown area, the geological office and the core yard are
continuing, and are making good progress. Figure 4A is a photograph showing a section of the core logging
area, and Figure 4B is a photo of the construction development for the drillers camp.
Figure 4A/B: Core Logging Area and Drillers Camp
Plans are progressing for the pending mobilisation of the two additional drill rigs on-site as part of phase 1a.
Commenting on the UG2 intersection, Managing Director Johan Odendaal, said:
“Confirmation of the UG2 Reef intersection is an important early barometer for the Company as it advances
the Phase 1a drill programme. The initial results provide further evidence that the position of the UG2 Reef is
in line with the geological model developed from historical information, and which forms the basis of the JORC-
2012 compliant Inferred UG2 Mineral Resource. Pleasingly, the broader project infrastructure is also
progressing well as the Company continues to execute on its near-term operational targets. The management
team looks forward to providing additional updates once assaying gets underway, following the completion of
the down-hole acoustic televiewer survey.”
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. A geophysical survey has been completed and a two-phase diamond drill
programme commenced in August 2022.
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 Reef and the Merensky Reef.
In addition to the Inferred Resource, an assessment by mining industry consultants CSA Global assessed
the total Exploration Target potential of Bengwenyama at between 134–201Mt at a grade of 3.5–5.2 g/t (3
PGE + Au). The Company is led by an experienced on-ground management team including some of South
Africa’s most high-profile mining industry executives.
JORC 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.
Competent Person Statement
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
5 September 2022
JSE Sponsor
Merchantec Capital
Media & investor relations inquiries: Sam Jacobs, Six Degrees Investor Relations: +61 423 755 909
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Date: 05-09-2022 07:17:00
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