Southern Palladium (ASX:SPD) reports recent phase one drilling at the Bengwenyama Platinum Group Metal (PGM) project in South Africa has successfully intersected the hosted UG2 reef.
The UG2 reef has now been intersected by 3 drillholes which have successfully confirmed additional sections of the geological model in the inferred Mineral Resource around drillhole E019A.
Initial drilling has also developed the preliminary project stratigraphic column and has also shed light on the structures in the exploration target area southeast of the farm Eerstegeluk.
Expansion of the drilling operation remains on schedule following the delivery of a fifth drill rig (Longyear 44) on site last week and is expected to commence drilling of drillhole E004 in the northern corner of the farm Eerstegeluk.
The 3 UG2 reef drillholes (E019A, E062 and E058) have been submitted for analysis, with assay results expected within 4-6 weeks.
Addressing the results, Southern Palladium Managing Director, Johan Odendaal said: “The drilling program at the Bengwenyama project is gaining momentum, and with five drill rigs now drilling we expect to make good progress in the weeks ahead. The stratigraphic column compiled from borehole E019 information confirms that we are drilling into typical Eastern Bushveld Complex geology.
“The drilling program at the Bengwenyama project is gaining momentum, and with five drill rigs now drilling we expect to make good progress in the weeks ahead”
The UG2 intersections reflect typical widths expected for this area. The absence of stringers in the hanging wall which normally cause roof cave-in is absent in the three boreholes which intersected UG2 and that bodes well for future mining operations. With the first samples now dispatched for assessment, the company looks forward to updating the market with its initial round of assay results in the coming weeks.”
The company also notes that two additional UG2 intercepts (E060 and E033) were drilled by the smaller YWE D90 drill rig, which is small enough to enter more confined areas, however, does not have the depth capacity required.
Data taken from drillholes E060 and E33 also suggests that the UG2 reef is slightly deeper than expected and could represent ‘significant’ resource upside to the east.
This area was previously excluded from the Mineral Resource and exploration target due to the previously extrapolated position of the UG2 subcrop.
These two drillholes are currently being deepened by the Delta 520 drill rig, one of the new CS 1500 drill rigs.
In addition to the three UG2 intersections, initial results also indicate that the Merensky Reef has possibly been intersected in drillhole E019A at around 20m, however, this has not yet been confirmed due to weathered nature of the rock at this depth.
Southern Palladium’s share price had seen an 11.58% increase as of 3:55pm (AEST) yesterday (17 October) and is today trading at $1.060.
Southern Palladium is a dual-listed PGM company focused on the development of the palladium and rhodium rich Bengwenyama PGM project in South Africa. The project is located on the Eastern Limb of the Bushveld Complex, which is host to 70% of the world’s known PGM resources. The company currently holds 70% interest in the project, with previous exploration undertaken at Bengwenyama defining a JORC 2012-compliant inferred Mineral Resource Estimate (MRE) of 18.8Moz within the UG2 chromitite and Merensky Reef.
With results from the three UG2 reef drillholes expected in the next 4-6 weeks, Southern Palladium announces that additional drillholes are now planned in the eastern area of the UG2 reef with hopes of increasing the project’s Mineral Resource.
Images: Southern Palladium Ltd