Mining Right Pending as Southern Palladium Advances Bengwenyama Drilling and DFS
Southern Palladium has initiated a comprehensive drilling campaign at its Bengwenyama PGM project, marking a critical step toward completing its Definitive Feasibility Study in early 2026. The program aims to refine metallurgical data and mine design while regulatory approvals edge closer.
- Commencement of ~10,000m metallurgical and geotechnical drilling at Bengwenyama
- Four drill rigs operational, targeting 140kg bulk sample from UG2 Reef
- Drilling supports Definitive Feasibility Study scheduled for H1 2026
- Additional rigs to start surface geotechnical drilling in October
- Mining Right expected soon following environmental approvals
Drilling Campaign Kicks Off
Southern Palladium Limited has officially commenced a significant metallurgical and geotechnical drilling program at its Bengwenyama Platinum Group Metals (PGM) project in South Africa. The campaign involves approximately 10,000 metres of drilling, with four rigs already active on site. This phase is a pivotal part of the Definitive Feasibility Study (DFS), which is on track for completion in the first half of 2026.
The initial focus is on extracting a 140-kilogram bulk sample from the UG2 Reef, a key ore body within the project. This sample will undergo detailed metallurgical testing to assess variability and inform processing strategies. The results are also expected to strengthen Southern Palladium’s position in concentrate off-take negotiations with South African PGM smelters, a crucial step toward commercialisation.
Strategic Staged Development
Following metallurgical drilling, the rigs will transition to deeper underground geotechnical drilling. This work will help optimise mine design parameters such as decline and stoping methods, ensuring efficient and safe extraction. By October, additional rigs will be mobilised to commence surface geotechnical drilling, focusing on infrastructure planning for the first decline and surface facilities.
This drilling campaign builds on the company’s recently completed Pre-Feasibility Study, which delivered an after-tax net present value (NPV) of US$857 million. The study highlighted a staged development approach that significantly reduces peak funding requirements, aligning with Southern Palladium’s strategy to advance the project prudently.
Regulatory Progress and Outlook
On the regulatory front, Southern Palladium has achieved a key milestone with the granting of Environmental Authorisation and the conclusion of the objection period. These developments pave the way for the anticipated near-term granting of the Mining Right, a critical legal prerequisite for full-scale mining operations.
Managing Director Johan Odendaal emphasised the importance of the drilling program in refining the DFS and advancing the project toward production. He also noted that final acceptance of the Social and Labour Plan is expected soon, which will further facilitate the Mining Right approval.
With the DFS drilling underway and regulatory approvals progressing, Southern Palladium is positioning itself to unlock the substantial value embedded in the Bengwenyama project’s 6.29 million ounce JORC Ore Reserve at a grade of 6.17 grams per tonne PGM.
Bottom Line?
As Southern Palladium drills deeper into Bengwenyama’s potential, investors await metallurgical results and Mining Right approval to validate the project’s promising economics.
Questions in the middle?
- How will metallurgical variability impact processing costs and concentrate quality?
- What timeline can investors expect for the final Mining Right grant and project financing?
- Will the staged development approach effectively mitigate funding and operational risks?
