Southern Palladium's Bengwenyama Project: A Major Resource Upgrade
SPD (SPD) Share Update October 2024 Friday 25th
Southern Palladium Announces Significant Resource Upgrade at Bengwenyama Project
Southern Palladium Limited (ASX: SPD) has announced a substantial upgrade to its mineral resource estimates at the Bengwenyama PGM project, highlighting a 35% increase in total combined UG2 and Merensky Reef resources.
Instant Summary:
- Total combined UG2 and Merensky Reef Mineral Resource ounces now 40.25 Moz.
- UG2 Measured and Indicated Mineral Resource increased by 25% to 8.17 Moz.
- Formal submission of Environmental Impact Assessment Report acknowledged by DMRE.
- Pre-Feasibility Study on track for completion in Q4 2024.
Resource Upgrade Details
Southern Palladium's latest update reveals a significant increase in the mineral resources at their Bengwenyama project. The UG2 Measured and Indicated Mineral Resource has grown by 25% to 8.17 Moz at a grade of 9.89 g/t over 73 cm, with 2.3 Moz now at Measured status. This upgrade is a result of extensive drilling and geological analysis conducted in the Northern Horst Block.
The total combined Mineral Resource for the UG2 and Merensky Reef now stands at 40.25 Moz, a 35% increase from previous estimates. This includes a 17% rise in the Merensky Reef Indicated resource to 2.23 Moz. The resources have been independently audited, adding credibility to these findings.
Environmental and Corporate Developments
Southern Palladium has also made strides in its environmental compliance, with the formal submission of the Environmental Impact Assessment (EIA) Report to the Department of Mineral Resource and Energy (DMRE) acknowledged in July 2024. This marks a critical step towards obtaining the necessary mining rights.
On the corporate front, Roger Baxter has transitioned into the role of Executive Chairman, focusing on investor and government relations, complementing the technical leadership of Managing Director Johan Odendaal.
Financial Position and Future Outlook
As of 30 September 2024, Southern Palladium holds approximately A$4.73 million in cash, ensuring they are well-funded to complete the Pre-Feasibility Study (PFS) scheduled for release in Q4 2024. The PFS is expected to build on the Scoping Study results, which projected a 36-year mine life with an NPV8% of US$700 million.
The 35% increase in mineral resources is a positive development for Southern Palladium, potentially enhancing the project's valuation and attractiveness to investors. The completion of the PFS could further solidify the project's economic viability, potentially boosting the company's stock price.
Investor Reaction:
Analysts are likely to view the resource upgrade favorably, as it strengthens Southern Palladium's position in the PGM market. The ongoing environmental and feasibility work will be crucial in maintaining investor confidence.
Conclusion:
Investors should keep a close eye on the upcoming Pre-Feasibility Study results and any further developments in the environmental approval process. Southern Palladium's strategic advancements at Bengwenyama could offer significant long-term value.