Southern Palladium (ASX:SPD) is studying new assay results for the entirety of the drill programme completed to-date across the MR and UG2 reefs at the Bengwenyama Platinum Group Metal (PGM) project, located on the Eastern Limb of the world class Bushveld Complex, South Africa.
“The latest drilling results continue to confirm the consistency of the grade and continuity of the UG2 reef, and both the grade and reef width correlates well with the compliant Inferred Mineral Resource,” Managing Director, Johan Odendaal, said.
“Latest assays from the four intersections in the Far East Block also show consistent results and this area has significant potential for future resource upgrades. The geological and estimation model update process has started, and an interim Mineral Resource update should be finalized shortly.
“Drilling has once again commenced on the Bengwenyama project with the full support of the Community Leadership. Our plan is still to deliver our milestones within the projected timeframe.”
Progressive UG2 and Merensky Reef Results
A total of 23 assay results for the UG2 Reef have now been received from the laboratory. These now average a 3PGE+Au grade of 7.67g/t and 6PGE+Au of 9.28g/t over 72cm intersection width.
The drilling results continue to confirm the consistency of the grade and continuity of the UG2 reef and continue to correlate well with the compliant Inferred Mineral Resource 3PGE+Au grade in the MRE of 7.7g/t over 71cm.
Additional Merensky Reef (MR) assay results have also continued to confirm the continuity of the MR. The observed MR grades of 2.45g/t (3PGE+Au) are slightly lower than the Inferred Mineral Resource grade of 2.96g/t, however the sampled area of the MR to date is however only a small portion of the entire MR area. Therefore, the MR grade could still align closer to the expected Inferred Mineral Resource grade of 2.96g/t, as is emerging for the UG2 reef.
Additional resource potential
There are now four intersections (E064, E065, E067 and E071) in the newly discovered Far East Block (FEB) with an average width of 73cm and a 6PGE+Au grade of 7.38g/t. The depth of the UG2 in the Far East Block ranges from 156m to 300m below surface with an average of 217m.
The Far East Block, which is seen as upside potential to the JORC (2012) Inferred Mineral Resource, has an estimated surface area of approximately 2.75sq. km with an average reef width of 73cm (average of the four intersections). The geological modelling and resource estimation has started, and an interim Mineral Resource for the project including the FEB should be finalised in April/May.
Ongoing assay results from the Phase 1, 63-hole diamond drill programme at Bengwenyama will contribute to a planned upgrade of a portion of the Inferred 18.8Moz (4E) resource to Indicated status and the advancement of a Pre-Feasibility Study, which was initiated during the March quarter.
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