Pan Asia Metals Ltd (ASX:PAM) continues to soar on strong news from its projects in Thailand with recent drilling intersecting thick pegmatites and vein swarms at its Reung Kiet (RK) lithium prospect in the country's southwest.
New holes and results from previously reported holes continue to support the geological model of extensive lithium mineralisation hosted in lepidolite rich pegmatite dykes and veins defined over a strike length of 1 kilometre, which remains open.
New results from the prospect within the Reung Kiet Project include:
- 14.85 metres wide pegmatite from 90.1 metres and another of 18.4 metres wide from 130.7 metres in hole RKDD031;
- 31.4 metres of composite pegmatite thickness from 42.3 to 80.2 metres;
- 23.25-metre thick pegmatite dyke from 49.95 metres;
- 5.3-metre thick pegmatite dyke from 15.7 metres;
- 10.6-metre thick pegmatite dyke from 28.3 metres; and
- 13.8 metres of composite pegmatite thickness from 11.95 to 50.4 metres.
After several days of strong gains and new records, shares have risen as much as 42% today to 80.5 cents, another record, with more than 28 million changing hands by 2pm AEST.
Rapidly progressing to resource
PAM managing director Paul Lock said in hole RKDD031 drilling had exceeded expectations as a second unexpected pegmatite of considerable width was intersected at depth.
“We are rapidly progressing to a mineral resource, and we are targeting the delivery of a scoping study in the first quarter of 2022.
Goal – lithium hydroxide or lithium carbonate plant
“Our aim at the Reung Kiet Lithium Project is to deliver a mineral resource which is sufficient to operate a 10,000 tonnes per annum lithium hydroxide or lithium carbonate plant for 10 plus years, initially.
“Peer feasibility studies suggest that lepidolite is the lowest-cost source of lithium and potentially has one of the lowest carbon footprints, until recently - this is why we have been solely focusing on lepidolite-style projects, but our Kata Thong Geothermal Lithium and Hard Rock Lithium/Tin Project has the potential to deliver equally compelling cost and emissions outcomes.
“Being located in South East Asia provides the added advantage of our proximity to all required process inputs and a myriad of established and emerging lithium chemical consumers.”
Reung Kiet drilling
Pan Asia Metals has now completed 31 diamond core drill holes at RK for a total of 4,344 metres.
Drill holes are being logged and sampled. Assay results should be available in October.
PAM routinely conducts spot hhXRF analysis of pegmatites intersected and has identified lithium indicator elements rubidium, caesium and manganese occurring in close association with concentrations of lepidolite.
Looking ahead
The company has further drill holes planned at both the Reung Kiet and Bang I Tum prospects, with a maiden mineral resource estimate and scoping study expected in Q1 2022.
The Reung Kiet Lithium Project (RKLP) is one of two key lithium assets held by PAM, the other being the Kata Thong Project.
RKLP is a hard rock lithium project with lithium hosted in lepidolite/mica rich pegmatites chiefly composed of quartz, albite, lepidolite and muscovite, with minor cassiterite and tantalite as well as other accessory minerals including some rare earths.
Previous open pit mining extracting tin from the weathered pegmatites was conducted into the early 1970s.