Southern Palladium says new metallurgical results from its Bengwenyama platinum group metals (PGM) project in Limpopo indicate higher potential chrome and PGM recoveries, with the company expecting chrome to play a larger role in the planned operation.
The company, which is dual-listed on the ASX and JSE, said in its June quarterly report on Thursday that definitive feasibility study test work had increased expected chrome recovery to 85.6%, compared with the 30% recovery assumption used in its pre-feasibility study.
The improvement could increase expected chrome concentrate production to about 1.05-million tonnes a year at the planned Stage 2 expansion of the project, from about 350,000 tonnes previously estimated.
The first phase targets PGM production of more than 200,000oz annually, while a planned expansion into the northern mining area would lift PGM output to more than 400,000oz a year and increase chrome concentrate production.
Bengwenyama remains a development-stage project and is still subject to regulatory approvals before construction can begin.
Southern Palladium said its mining right application remains pending with the mineral & petroleum resources department while environmental approvals under the National Environmental Management Act are also required.
The company said completion of the definitive feasibility study has been delayed by several months to incorporate the latest metallurgical findings. It is expected to be completed in early 2027.
Bengwenyama is located in South Africa’s Bushveld Complex and contains a combined mineral resource of 40.25-million ounces of PGMs.
Southern Palladium said the staged development approach is designed to reduce upfront capital requirements while allowing future expansion to be funded partly through cash flows generated by the initial operation.
In its June quarterly activities report, Southern Palladium reported a cash balance of A$23.88m (R277m) at the end of the quarter. The company said the funds would support completion of the definitive feasibility study and other project activities while it awaits regulatory approvals.