Southern Palladium has released a second mineral resource update for the UG2 Reef for the Bengwenyama platinum group metals (PGM) project. Southern Palladium is an Australian public company that has acquired a 70% interest in the Bengwenyama palladium/rhodium dominated PGM project located on the eastern limb of the Bushveld complex in South Africa.
Palladium, rhodium and platinum are critical metals in the clean energy transition.
Highlights:
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The UG2 indicated mineral resource for the Bengwenyama project has doubled to 5.40 Moz (4E) or 6.52 Moz (7E) at a grade of 8.08 g/t and 9.75 g/t respectively. Total UG2 mineral resource ounces (indicated and inferred) are now 12.99 Moz (4E) and 15.72 Moz(7E).
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Total UG2 and Merensky Reef mineral resource ounces (indicated and inferred) are now 26.22 Moz.
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The total UG2 4E resource grade is now 7.95g/t – 5.9% higher than the earlier resource. The total UG2 7E grade is 5.6% higher at 9.63g/t.
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New drilling focus is to convert more inferred mineral resources to indicated mineral resources in the North Horst Block.
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The resource upgrade will contribute to an updated scoping study, which is now well underway and is scheduled for release in January 2024.
Managing director Johan Odendaal says: “The planned conversion of the shallow eastern portion of the Eerstegeluk UG2 Reef has now been successfully completed, resulting in the upgrade of indicated mineral resources. The indicated mineral resource has doubled to 6.52 Moz at a 7E grade of 9.75g/t, contributing to a total mineral resource (indicated and inferred) of 26.22 Moz. The indicated resource now represents 41.6% of the 13Moz total UG2 mineral resource estimate. Pleasingly, the results not only doubled the indicated resource, they were also accompanied by a 5% to 6% increase in grade.
“Combined with the strong metallurgical test results released in December 2023, the resource upgrade further confirms Bengwenyama’s standing as a significant PGM development project. These results will allow the publication of production forecasts and economic parameters from the forthcoming scoping study, due for release early next year.
“The drilling focus has now shifted to the North Horst Block to convert the inferred mineral resource and exploration target into indicated mineral resources for the upcoming pre-feasibility study. The Northern Horst Block will potentially convert both the Merensky Reef as well as the UG2 Reef, as this area falls west of the Merensky Reef sub-crop,” he concludes.