Southern Palladium announced results of a high-definition, helicopter-borne TMF gradient and gamma-ray spectrometry survey at the Bengwenyama platinum group metals (PGMs) project. The TMF survey was carried out with the following dual aim: Confirmation of the existing structural model, that was developed based on historical geophysical information available in the public domain, and; To investigate evidence of anomalous magnetic features that could indicate any loss-of-ground geological features or other geological discontinuities. The Company confirms that TMF data supports and enhances previous structural modelling, which formed the framework of the existing JORC 2012-compliant Inferred Mineral Resource of 18.8Moz (3PGE + Gold), situated within the UG2 and Merensky Reefs.

In addition, imaging shows that there are almost no anomalous magnetic features which would indicate large areas of potential loss-of-ground geological features in the eastern part of Eerstegeluk, where the phase 1 drilling is planned. Anomalies observed over the phase 2 portion have been interpreted to be shallow and above the reef in the far southwest corner and is not expected to impact target ounces. These structural features were further interpreted to throw the PGM reef horizons up to more shallow depths in the project area, which would be of material benefit to the economics of the project.

This confirmation has increased confidence ahead of the Phase 1 drilling programme scheduled to commence in early July 2022. Based on the results of the new survey, there will be limited changes to the planned collar positions with respect to the geological model. Some small shifts may be required to distance the collar position from interpreted faults and dykes, but the existing plan for a 350m x 350m drilling grid will remain intact.

The geophysical survey comprised a total of 1,425 line kilometres flown over two farms; Eerstegeluk 322 KT and Nooitverwacht 324 KT. The survey was flown at a height between 25m and 80m due to the topography and residential areas, with an average height of approximately 35m to 40m and a line spacing of 50m. The survey flight was carried out by South African based New Resolution Geophysics (Pty) Ltd, using a turbine AS350B series helicopter.

EXIGE (Pty) Ltd. (based in South Africa and Australia) managed the survey, as well as the QA/QC and interpretation of the processed survey data. A contract with drilling services group Geomech Africa Proprietary Limited, has been signed, and Southern Palladium is now in the advanced stages of logistical planning. It is envisaged that the phase 1 drilling (63 diamond drillholes) will start at the beginning of July 2022.