Southern Palladium (ASX:SPD) has begun metallurgical and geotechnical drilling to support a definitive feasibility study for the Bengwenyama platinum group metals project, scheduled for completion in the first half of 2026, according to a Tuesday Australian bourse filing.

The metallurgical drill program is designed to collect a 140 kg bulk sample from the UG2 Reef of the project for definitive test work, to assess metallurgical variability, and for use in concentrate off-take discussions, the filing added.

The company said it will add a further two to three rigs for surface geotechnical drilling, commencing with drilling needed to optimize the first decline development planning, which is scheduled to start in October.

The company's shares rose past 9% on market close.