Australia’s Southern Palladium is speeding up its application for a mining licence for its platinum group metals (PGM) project in Limpopo’s Bushveld Complex after a scoping study found a stand-alone project to be the best option.
The study, undertaken by mining consulting firm Minxcon on behalf of the miner, reviewed four scenarios for the Bengwenyama PGM project and concluded that a pre-feasibility study to mine UG2 reef be undertaken.
“It places the emphasis on the UG2 reef, but it does not exclude mining the Merensky Reef in future,” Southern Palladium MD Johan Odendaal said on Tuesday.
Southern Palladium listed on the JSE in June 2022 after acquiring a 70% stake in privately held SA-based firm, Miracle Upon Miracle Investments (MUM), but kept its primary listing on the Australian Stock Exchange (ASX).
MUM holds a prospecting right in the Bushveld Complex that permits it to explore for a range of minerals, including PGM, gold, nickel, copper and chrome.
The mining right application will now be submitted “earlier than first planned”, the company, valued at R999m on the JSE, said. Environmental studies, a social and labour plan and metallurgical test work will be started in the next quarter, it added.
“The current exploration drilling and upgrade of a proportion of the existing 18.8-million ounce 4E resource [platinum, palladium, rhodium and gold] to measured and indicated status will allow the pre-feasibility study to be completed,” Southern Palladium said in a statement.
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