Significant technical study workstreams continue across multiple fronts at Southern Palladium’s (ASX:SPD) Bengwenyama Platinum Group Metals (PGM) Project to ensure early development (stage one) remains on track.
Southern Palladium is continuing works as part of the Definitive Feasibility Study (DFS) and ongoing drill programs at Bengwenyama, which is located on the Eastern Limb of South Africa’s Bushveld Complex.
Stage one will include establishing the South Site, constructing the South Box-Cut, and developing the South Decline down to reach the first UG2 reef intersection.
The company says the DFS continues to be supported by a suite of technical service providers, including EcoElementum, RMProcess, OHMS Engineering, EIC/Electrical, MVB Consult, Minxcon and OMI, spanning geotechnical, metallurgy, infrastructure, water, electrical, mining, and environmental disciplines.
Operational readiness also progressed, supported by ongoing work on explosives licensing, supply and storage compliance, development of operating procedures and codes of practice, and planning for security and medical screening requirements.
DFS works have been led by the start of a detailed metallurgical and geotechnical drilling programme. A total of 62 drillholes and 57 deflections, totalling 10,863m, are planned for the program.
Seven drill rigs are currently deployed, with drilling focussed on obtaining a 140kg bulk UG2 sample for definitive metallurgical test work.
The current UG2 drilling is targeting slightly deeper zones (>80m) in both the South and North Blocks to ensure a representative unoxidised sample.
The intersections in the boreholes drilled to date align with expectations. Additional drilling for early 2026 is planned on some of the shallower zones (<50–80m) to confirm geological structure and rock competency.
In early October 2025, Southern Palladium lodged its Environmental Guarantee with the Department of Mineral and Petroleum Resources (DMPR), fulfilling a key requirement under mine development and rehabilitation financial provision regulations.
The guarantee amount of R91 million ($8.14 million) covers the rehabilitation provision for both stage one and stage two. The company has now met all outstanding conditions under Section 23 of the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA) for the granting of a Mining Right.
The company notes the granting of the mining right remains an important value catalyst, and Southern Palladium is actively and directly engaged with both regional and head office structures to expedite the process.
Southern Palladium’s strategy is to unlock the potential of the Bengwenyama project as a “long-life, world-class operation”. By combining geological potential with strong partnerships and disciplined governance, Southern Palladium aims to deliver a project that is not only commercially robust but also socially and environmentally sustainable.
Most palladium is used in catalytic converters for cars. It’s also used in jewellery and some dental fillings and crowns.
Palladium has a wide variety of applications in the electronics industry such as in ceramic capacitors, found in laptop computers, and smartphones. These consist of layers of palladium sandwiched between layers of ceramic.
Finely divided palladium is a good catalyst and is used for hydrogenation and dehydrogenation reactions.
Write to Adam Orlando at Mining.com.au
Images: Southern Palladium
