ASX- and JSE-listed Southern Palladium has reported an increase in the total contained resource at its 70%-owned Bengwenyama platinum group metal project, including the Merensky reef on the Eerstegeluk and Nooitverwacht exploration areas, to 40.25-million platinum group element (PGE) ounces.

This follows the successful completion of a prefeasibility study (PFS) drilling campaign and the earlier Upper Group 2 (UG2) resource upgrade.

“The combined Merensky reef resource estimate now totals 15.44-million ounces, which resulted in a 14% increase in the total PGE resource to 40.25-million ounces.

“These results further underline the status of SPD's 70%-owned Bengwenyama project as a significant resource on the eastern limb of the Bushveld Complex [in South Africa],” says MD Johan Odendaal.

He further points out that drilling and geotechnical studies have confirmed a stable hanging wall for the UG2 reef, while the mineralised footwall will enable future mining operations to extract both the main chromitite seam and a portion of the footwall, optimising the PGE content in the ore.

Southern Palladium says the Bengwenyama PFS is drawing to a close with a final report to be published at the end of October.