Pan Asia Metals Ltd (ASX:PAM) has intersected yet more thick lithium pegmatites at the Reung Kiet lithium project in southwest Thailand.
Excitement around the Reung Kiet project is growing reflected by Pan Asia raising $2 million in a heavily oversubscribed share purchase plan, knocking back more than $1.3 million in subscriptions.
Results from drilling included:
- 71.55 metres of composite pegmatite thickness, the bulk of which comprises 24.8 metres of composite pegmatite thickness in 28.7 metres from up to 202.3 metres and 39.55 metres of composite pegmatite thickness in 46.8 metres from up to 285.3m
- 31.4 metres of composite pegmatite thickness in 68 metres from 25.15 metres; and
- 6.65 metres of composite pegmatite thickness in 9.1 metres from 98.6 metres.
Southeast Asia lithium strategy
Pan Asia Metals managing director Paul Lock said the company would bring strong value to the Asian electric vehicle (EV) markets.
“We thank shareholders for their support, contributing to an incredibly successful capital raising with both the placement and SPP well oversubscribed and filled soon after opening.
“We are well placed to deliver projects with the potential to deliver low cost and low to zero carbon lithium products into a rapidly growing lithium-ion battery (LIB) and EV market,” he said.
“We are the only lithium explorer in Southeast Asia and we are situated in close proximity to the advanced industrial centres of Thailand and Malaysia as well as other rapidly growing LIB and EV markets in the region.”
To support larger scoping study
Speaking about the latest drilling results, Lock said the intersections meant Pan Asia would target an increased mineral resource to supply a 10,000 tonnes per annum lithium hydroxide or lithium carbonate plant for more than 10 years.
“We are quite satisfied with these drilling results and we are looking forward to receiving the assays, particularly so with the large intersections of visible cassiterite in hole RKDD034.
“The prospective zone at the Reung Kiet Prospect, which is at least 1-kilometre-long, is now supported by drilling results along the whole trend and the lithium mineralisation remains open to the north and south and at depth on many sections.
“We are drilling more metres to deliver a larger inaugural mineral resource to support a larger scoping study, and we plan to deliver both in the first quarter of CY22.
“Peer feasibility studies suggest that lepidolite is potentially the lowest cost source of lithium, and our location in Southeast Asia provides added advantages, including our lower cost environment, proximity to all required process inputs and a large selection of established and emerging lithium chemical consumers.”
Reung Kiet plans
Reung Kiet is a hard rock lithium project, with the lithium hosted in lepidolite and mica-rich pegmatites - lepidolite is the most abundant lithium-bearing mineral on earth.
Pan Asia is hoping to report a mineral resource estimate and a scoping study for the project in the first quarter of 2022 for a mine with plans to consider initial annual production of up to 10,000 tonnes of lithium carbonate and associated by-products.
It has further drill holes planned at both the Reung Kiet and Bang I Tum lithium prospects.
- Daniel Paproth