Pan Asia Metals Ltd (ASX:PAM)’s Khao Soon Tungsten Project (KSTP) and its Reung Kiet Lithium Project (RKLP), both in southern Thailand, are shaping up very well, with exploration results in line with Pan Asia’s expectations.
It plans to continue drilling at RKLP, with the aim of reporting a mineral resource in accordance with the JORC Code 2012 later this year, with a scoping study anticipated soon after.
Once a mineral resource has been defined at RKLP, Pan Asia will consider moving the drilling rig and crew back to KSTP to undertake further drilling to report a mineral resource.
Activities so far
Reconnaissance diamond drilling at KSTP has intersected robust widths and grades associated with strong surface anomalies, from which exploration targets have been estimated.
Reconnaissance diamond drilling at RKLP has intersected extensive pegmatite swarms at both prospects, all containing lepidolite and/or muscovite with accessory tin and tantalum mineralisation.
Market price
There have been substantial positive moves in both markets during the half-year.
Battery-grade lithium carbonate prices on an ex-works basis China, rose from a 12-month low of US$5,850 per tonne in July 2020 to a 12-month high of US$13,970 per tonne in June 2021.
Similarly, lithium hydroxide on an ex-works basis China, was very strong, rising from a 12-month low of US$7,650 per tonne in August 2020 to a 12-month high of US$14,950 per tonne in July 2021.
Ammonium paratungstate (APT), the benchmark price used for tungsten trioxide concentrates, on a free-on-board basis, rose by around 41% from a 12-month low of US$20,000 per tonne in July 2020 to US$28,900 per tonne in July this year.
No disruptions from COVID-19
The company did not experience any disruptions to its field activities during the period.
Further, its field employees have received COVID-19 vaccinations.
Pan Asia’s Bangkok-based administration staff have been working from home as necessary and at their election for most of the period.
Half-year results
In the half-year to end June 2021, the company saw its loss widen slightly to US$667,168 from US$631,600.
Expenditure during the period was predominantly in respect of costs incurred at both KSTP and RKLP.
Total cash and cash equivalents as at June 30, 2021, amounted to US$1.247 million.