Name of the Project 
Bengwenyama platinum group metals (PGM) project.

Location 
Bushveld Complex – greater Tubatse and Sekhukhune district municipalities, in Limpopo, South Africa, covering 5 280 ha on the farms Nooitverwacht 324 KT and Eerstegeluk 327 KT.

Project Owner/s 
PGM company Southern Palladium (70%-owned).

Project Description 
An optimised prefeasibility study (OPFS) on the advanced, shallow, high-grade PGM project proposes to unlock value through a staged production approach. The approach involves the predevelopment of blocks using off-reef twin haulages, drives and centre gulleys (raises).

The project will use underground mining techniques, specifically for the upper group two (UG2) reef. 

Stage 1 proposes a production rate of 1.2-million tonnes a year from the South decline only, expanding after four years to 2.4-million tonnes a year in Stage 2 with the introduction of the North decline.

Stage 1 is expected to deliver more than 200 000 oz/y of PGMs in concentrate. Total 6E (platinum, palladium, rhodium, ruthenium, iridium and gold) ounces recovered is estimated at 2.22-million ounces over the 23-year mine life.

Stage 1 and 2 total 6E production is estimated at 7.5-million ounces over the total 33-year life-of-mine (averaging more than 400 000 oz/y from Year 4 or possibly sooner for Stage 2).

A well-established, standard processing technology has been adopted and optimised using current state-of-the-art (two-stage mill-and-float) infrastructure. 

PGM concentrates are expected to be processed at existing downstream refining facilities in South Africa. The company is also exploring off-site processing for Stage 1 to further reduce initial capital requirements.

Potential Job Creation 
Specific numbers are not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value (NPV), at an 8% discount rate, for Stage 1 and 2 of  $857-million and an internal rate of return (IRR) of 26.4%. Stage 1 has an IRR of 21.8% and an NPV of $246-million.

Capital Expenditure 
Peak funding is estimated at $279-million. Stage 1 is estimated at $219-million. Ongoing/expansion capital – Stage 1 and 2 – is estimated at $300-million.

Planned Start/End Date 
Work is advancing on the delivery of a definitive feasibility study (DFS) in 2026.

Latest Developments 
Results from metallurgical testwork at the project have indicated that up to one-fifth of future revenues could be derived from chrome.

The results from the company’s latest metallurgical testwork not only confirm the high-grade nature of the Bengwenyama UG2 mineral resource but also suggest that chromite concentrate recoveries of more than double the initial estimates are achievable.

On a three-element basis, the metallurgical sample indicates an average combined platinum, palladium and gold grade of 7.35 g/t and a prill split of 49.9% platinum, 48.6% palladium and 1.5% gold, with a chromium oxide grade of 29.71%.

These mineral resource grades confirm that the metallurgical sample is representative of the first ten years of the planned development and could add about 350 000 t of chrome concentrate to production.

Recoveries of 65% were achieved in the testwork, compared with 30% assumed in the OPFS released in July 2025.

Improvements in the high-grade chrome concentrate recoveries have a materially positive impact on project revenues, with chrome comprising 12% of revenue in the original OPFS.

As part of the testwork, composite samples that included the footwall were put through dense-media separation (DMS) and gravity testwork. DMS was not part of the processing circuit outlined in the OPFS circuit, but the positive results of the testwork have encouraged Southern Palladium to include it in its definitive feasibility study (DFS).

The higher mass yield of chromite concentrate and DMS waste removal will materially reduce the quantity of feed to the PGM mill/flotation circuit and also lessen the risk of PGM concentrate penalties. This enables Southern Palladium to introduce a smaller PGM mill/flotation circuit, reducing upfront capital and accelerating project development.

The company is continuing to make progress in terms of advancing DFS workstreams and early mine development planning, with the latest results being refined into the final DFS-level work on plant design and metrics.

Key Contracts, Suppliers and Consultants
Minxcon (consultants for OPFS). 

Contact Details for Project Information 
Southern Palladium, email info@southernpalladium.com.