Southern Palladium’s Bengwenyama DFS Reveals Major Chrome Recovery Gains

Significant Upside in Chromite Recovery

Southern Palladium (ASX:SPD) has reported a material uplift in chromite concentrate recoveries from its Bengwenyama platinum group metals (PGM) project, with definitive feasibility study (DFS) metallurgical tests showing recoveries of 65% compared to the 30% assumed in the earlier Optimised Pre-Feasibility Study (OPFS). This doubling of chromite recovery, driven by a coarser grind size in the spiral feed, could substantially boost project revenues, given chrome accounted for 12% of revenue in the OPFS.

Inclusion of Dense Media Separation Circuit

The test work also validated the addition of a Dense Media Separation (DMS) circuit, which was not part of the OPFS flowsheet. DMS effectively rejects a significant proportion of waste rock, including non-mineralised and disseminated footwall material, thereby increasing feed grade and reducing the size and load of the downstream mill and flotation circuits. This optimisation is expected to yield operational efficiencies and cost savings.

According to Managing Director Johan Odendaal, these results reinforce confidence in the orebody's robustness and highlight material upside potential for high-grade chrome production and improved PGM recoveries. This follows the company’s steady progress in drilling and feasibility activities, including consistent UG2 reef intersections at shallow depths, as detailed in their recent capital raise and mining right progress updates.

Metallurgical Samples Confirm Resource Grade

The metallurgical samples underpinning these results are representative of the first 10 years of planned production, with a composite UG2 sample returning a 3E PGM grade of 7.36 g/t and a chromium oxide (Cr2O3) grade of 28.92%. These figures closely match the mineral resource estimates, which report an average 3E grade of 7.35 g/t and Cr2O3 grade of 29.71%, confirming the sample’s representativity and supporting the reliability of resource models.

Gravity Test Work Supports Coarser Grind Strategy

Gravity separation test work using shaking tables revealed that a coarser grind (20% passing 75 microns) yields higher chromite recovery (65.7%) at a concentrate grade of 39.6%, compared to a finer grind (40% passing 75 microns) which yielded 46.4% recovery. This coarser grind approach also reduces chromite fines that can contaminate PGM concentrate, potentially avoiding penalties on concentrate quality.

Ongoing DFS Refinement and Project Implications

The interim metallurgical report from RM Process Pty Ltd and MAK Analytical is feeding into the final DFS plant design and economic modelling. The inclusion of DMS and the improved chromite recovery are expected to reduce capital and operating costs by downsizing the milling and flotation circuits. While final DFS outcomes are pending, these metallurgical advances mark a significant step forward in optimising Bengwenyama’s development pathway.

Southern Palladium's resource update and capital raising activities earlier this year have positioned the company well to advance the project, with mining right applications progressing and detailed mine planning underway. The metallurgical improvements dovetail with these developments, potentially enhancing project valuation and investment appeal.