Southern Palladium fast-tracks development at its Bengwenyama PGM Project, advancing drilling and infrastructure plans while securing key regulatory approvals.
- Metallurgical and geotechnical drilling progressing with positive UG2 reef intersections
- Stage 1 development accelerated focusing on Southern Decline to access shallow UG2 reef
- All conditions for Mining Right under MPRDA fulfilled, awaiting final approval
- Evaluation ongoing for processing options – third-party treatment vs SPD-owned facility
- Operational readiness and organizational planning advancing, Project Manager appointment imminent
Steady Progress on Bengwenyama’s Definitive Feasibility Study
Southern Palladium Limited (ASX, SPD) has provided a comprehensive update on its Bengwenyama Platinum Group Metals (PGM) Project, highlighting significant strides in both technical and regulatory fronts. The company is advancing its Definitive Feasibility Study (DFS) with a focus on metallurgical and geotechnical drilling, which has yielded encouraging results aligned with geological expectations.
Drilling efforts are concentrated on the UG2 reef, a key orebody component, with current operations targeting deeper zones beyond 80 metres to secure representative unoxidised samples. These samples are critical for definitive metallurgical testing, underpinning confidence in the resource’s quality. Additional drilling planned for early 2026 will explore shallower zones to further validate geological structures and rock competency.
Accelerated Stage 1 Development and Infrastructure Planning
In a strategic move, Southern Palladium’s board has decided to fast-track the development of the Southern Decline, aiming to intercept the shallow portion of the UG2 reef sooner than initially planned. This acceleration is designed to de-risk near-term project development and enhance financing prospects. The Stage 1 development encompasses establishing the South Site, constructing the South Box-Cut, and developing the decline to reach the first UG2 reef intersection.
Supporting infrastructure planning is well underway, with surface geotechnical drilling and pitting completed at key sites including the North Decline and Plant Site. These investigations inform the design of declines and tailings storage facilities, ensuring robust engineering foundations for the mine’s operational phase.
Regulatory Milestone, Mining Right Conditions Fulfilled
On the regulatory front, Southern Palladium has fulfilled all outstanding conditions under Section 23 of South Africa’s Mineral and Petroleum Resources Development Act (MPRDA) for the granting of its Mining Right. The company lodged an Environmental Guarantee covering rehabilitation provisions for both Stage 1 and Stage 2, a key requirement for approval. While the final granting of the Mining Right is pending, Southern Palladium is actively engaging with regulators to expedite this critical milestone, which is expected to unlock significant project value.
Evaluating Processing and Delivery Models
Southern Palladium continues to assess optimal project delivery and processing strategies. The company is considering a hybrid engineering, procurement, and construction (EPC/EPCM) model that integrates mining contractor expertise with specialist support. Processing options remain under review, weighing the benefits of third-party toll treatment against constructing an SPD-owned processing facility. These decisions will shape the project’s cost structure and operational flexibility in its early years.
Operational readiness activities are progressing in parallel, including compliance with explosives licensing, development of operating procedures, and planning for security and medical screening. Organizationally, Southern Palladium is preparing for a smooth transition from project development to mine operations, with a Project Manager appointment imminent to oversee this critical phase.
Overall, Southern Palladium’s update reflects a company methodically advancing its flagship project with a clear eye on technical validation, regulatory compliance, and strategic execution.
Bottom Line?
With drilling success and regulatory hurdles cleared, Southern Palladium is poised for a pivotal phase in Bengwenyama’s development.
Questions in the middle?
- When will the final Mining Right approval be granted, and what conditions remain?
- Which processing option, third-party treatment or SPD-owned facility, will the company ultimately select?
- How will the accelerated Southern Decline development impact project timelines and capital requirements?