Southern Palladium (ASX:SPD) confirms PGM mineralisation at Merensky Reef, South Africa

• Southern Palladium (SPD) reports initial assay results from its Bengwenyama platinum group metal (PGM) project in South Africa
• The results come from four holes that intersected the Merensky Reef and confirmed the presence of PGM mineralisation
• Based on these early results, the average 6PGE plus gold grade in the area is 2.56 grams per tonne over an average sampled width of 197 centimetres
• Southern Palladium is currently operating five drill rigs at the project and is looking to further develop the Merensky and UG2 reefs
• SPD shares have ended the day trading steady at 78.5 cents

Southern Palladium (SPD) has reported initial assay results from its Bengwenyama platinum group metal (PGM) project in South Africa.

The results come from the first four holes drilled at the Merensky Reef and have confirmed the presence of PGM mineralisation.

Results include 3.15 grams per tonne (g/t) 6PGE (palladium, platinum, rhodium, iridium, ruthenium and osmium) plus gold over a sampled width of 193 centimetres, and 2.88 g/t 6PGE + gold over 179 centimetres.

The average 6PGE plus gold grade at Merensky Reef was 2.56 g/t over an average sampled width of 197 centimetres.

SPD Managing Director Johan Odendaal said he was pleased to have received positive initial results from Merensky Reef.

“The PGM mineralisation observed further supports the conclusions in our recently-completed scoping study where the shallower Merensky Reef was recommended for potential future development in addition to the UG2 Reef,” he said.

Southern Palladium has completed 21 holes since drilling began late last year. Six of the holes intersected the Merensky Reef and 18 holes encountered the UG2 Reef, which is also located within the Bengwenyama project.

The company recommenced drilling activities on January 12, and five rigs are currently spinning.

SPD shares ended the day trading steady at 78.5 cents at market close.