Southern Palladium (SPD.AX) has released a third resource update on its UG2 Reef which is part of its 70% owned Bengwenyama PGM project in South Africa, located on the Eastern Limb of the Bushveld Complex.
The total measured and indicated resources currently stand at 25.7 million tonnes at an average grade of 8.23 g/t 4E and 9.89 g/t 7E for a total of 6.8 million ounces of 4E and 8.17 million ounces of 7E. Additionally, the resource contains 0.16% nickel for a total nickel content of almost 100 million pounds. The inferred resources contain a total of 69 million tonnes of which 33 million tonnes contain 9.7 g/t 7E and 8.04 g/t 4E while the 4E resource calculation for the Nooitverwacht Extension contain 5.47 g/t 4E materials. This brings the total 4E resource to almost 22 million ounces.
The total resource (combining the UG2 and MR resource) comes in at 35.3 million ounces in a combination of almost 29 million ounces in the 7E resource calculations in the Merensky and UG2 resource with an additional 6.35 million ounces in the Nooitverwacht Inferred 4E calculation.
All the data will now be use in a pre-feasibility study which remains on track to be completed and published in early Q4. Once the mining right has been granted, the company also plans to kick off yet another drill program in 2025 which should help to increase the confidence in the resources of the UG2 Reef as the width of the mineralization is just over 70 centimeters on average in the measured and indicated resource categories.
Disclosure: The author has no position in Southern Palladium. Please read the disclaimer.
