Pan Asia Metals discovers new lithium zones at Bang I Tum

Pan Asia Metals (ASX: PAM) has added to its growing battery metals resources upside with the discovery of new lithium zones with recently completed drilling at the Bang I Tum prospect in Thailand.

Bang I Tum is contained within Pan Asia’s promising Reung Kiet Lithium Project (RKLP) – one of the company’s key assets as it builds a reputation as supplier of battery metals in South East Asia.

Vietnam supply deal in place

Pan Asia recently grabbed headlines when it signed a non-binding Memorandum of Understanding (MoU) with a subsidiary of Vietnam’s largest private conglomerate, Vingroup.

Under the initial MoU the companies will join forces to assess the potential development of a 20,000 to 25,000 tonnes per annum standalone Lithium Conversion Facility in Vietnam.

Pan Asia’s role includes assessing potential lithium oxide concentrate supplies to use at the Lithium Conversion Facility.

New drilling success highlights upside

Importantly, the recently received drilling results match up with geological model that Pan Asia is utilising in generating an exploration target estimate of between eight to 14 million tonnes at a grade ranging between 0.5% to 0.8% lithium oxide.

Studies have already identified a prospective zone of more than one km which is open along strike and at depth.

Chairman and managing director, Paul Lock said the initial assays and visual observations support the exploration target.

“Robust lithium assays have been reported in hole BTDD007. Visual observations in most other holes support and improve our initial expectations for the program.

“The next batch of assay results is due in June, and we are already drilling holes BTDD022 and 023, meaning we can expect an inaugural mineral resource estimate for Bang I Tum to be reported later this year.”

“Successfully incorporating Bang I Tum into the inventory will boost the scale of our project, making it more attractive as a strategic mineral resource in South East Asia.”

Bang I Tum’s potential has also been boosted by results from mapping and soil and rock-chip sampling.

That work has identified a new zone estimated to be approximately 800m long and 200m wide.

Bang I Tum is separate but located just eight km to the Reung Kiet Prospect where Pan Asia has reported an inaugural inferred mineral resource. Pan Asia holds a 100% interest in both prospects.

Significantly, Bang I Tum also hosts a sizeable historic tin mine that extends for almost 2km along strike.

Pan Asia is currently evaluating the existing exploration target and adjacent zones with ongoing drilling the target of releasing mineral resource estimate by year end.

The company is currently drilling holes BTDD022 and 023, while samples for holes BTDD008 to 018 are with the laboratory.

The Reung Kiet lithium project is Pan Asia’s flagship project in southern Thailand is, where drilling has identified extensive lepidolite pegmatite dyke/vein swarms.

Bang I Tum is just one of two main prospects, the other named Reung Kiet, the company is drill testing which have been estimated to have a combined prospective strike length of approximately 2.5km.

Thai market

Thailand is located in the heart of a rapidly developing South East Asian battery metals market.

Lithium exports from Thailand are tipped to rise 4.6% a year, on average, to nearly 387,000 kilograms by 2026. This is an increase of 20.7% since 2010.

It has been forecast that the total South East Asian lithium-ion battery market may register a compound annual growth rate of 15% between 2023 and 2028.