Pan Asia Metals continues intersecting pegmatites at Reung Kiet lithium project

Drilling at Pan Asia Metals’ (ASX: PAM) Reung Kiet lithium project in Thailand has continued to unearth wide pegmatite mineralisation.

At Reung Kiet, Pan Asia is exploring for lithium in lepidolite mineralisation.

Ongoing drilling at the project has intersected pegmatite dykes and vein swarms containing lepidolite.

To-date, Pan Asia Metals has firmed up a 1km pegmatite trend at the project, which remains open to the north, south and at depth.

Several of the latest holes of the program have hit multiple pegmatite zones exceeding 14m in width.

The widest zone was 31.4m of composite pegmatite from 42.3m.

Hole 31 hit two pegmatites including 14.85m from 90.1m, and a new unexpected 18.4m wide pegmatite from 130.7m, which remains open in all directions.

While actual assays are pending, Pan Asia Metals used a spot hand-held XRF of the lepidolite and identified lithium indicator elements rubidium, caesium and manganese.

Pan Asia Metals managing director Paul Lock said drilling continued to meet the company’s expectations with hole 31 “exceeding expectations” because it uncovered a second unexpected pegmatite of considerable width at depth.

These latest drill core observations follow initial assays received last month.

Highlight results were 8.5m at 0.51% lithium from 137.7m; 11.8m at 0.84% lithium from 133.2m, including 5.1m at 1.11% lithium from 135.9m; and 18m at 0.62% lithium from 127m.

Advancing lepidolite strategy

Mr Lock said the company planned to deliver a maiden mineral resource and a scoping study on Reung Kiet during the March quarter next year.

In the current drilling program at Reung Kiet, Pan Asia Metals has completed 31 diamond core holes for 4,344m.

“Our aim at the Reung Kiet lithium project is to deliver a mineral resource, which is sufficient to operate a 10,000 tonne 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.”

Mr Lock noted the location of its Thailand-based projects provides the company with the advantage of South East Asia’s established and emerging lithium chemical consumers.

Capital raising

To shore up its next phase of exploration and development, Pan Asia Metals has also completed an $8 million capital raising.

The raising comprised a “well-supported” $6 million private placement and a $2 million share purchase plan for shareholders.

Shares were issued at $0.40 each, with Mr Lock saying the placement’s success sends a “strong message” the company is on the “right track”.

“Our aim is to build a suite of low-cost battery and critical metal projects which provide Pan Asia Metals an option to extend beyond the mine gate and value add.”

“We believe the Reung Kiet, and Kata Thong lithium projects will help us achieve this,” he added.