Pan Asia Metals intersects more thick pegmatites at Reung Kiet lithium project
Pan Asia Metals managing director Paul Lock says the latest assays provide “very strong indication” there will be “a good uplift to the mineral resource estimate” later this year.
Specialty metals explorer and developer Pan Asia Metals (ASX: PAM) has intersected more thick pegmatites at its Reung Kiet lithium project in southwest Thailand.
Three new drillholes continue to support the company’s geological model of extensive lithium mineralisation hosted in lepidolite-rich pegmatite dykes and veins currently defined over a strike length of 1km.
Best results include: 71.55 metres of composite pegmatite thickness, the bulk of which comprises 24.8m of composite pegmatite thickness in 28.7m from up to 202.3m; 31.4m of composite pegmatite thickness in 68m from up to 93.15m; and 6.65m of composite pegmatite thickness in 9.1m from up to 107.7m.
New thick pegmatite dykes in one of the holes indicate a coalescing and thickening of pegmatites at depth.
Spot handheld x-ray fluorescence (XRF) analysis of the same hole identified lithium indicator elements rubidium, caesium and manganese as well as elevated levels of tin and tantalum in much of the pegmatite.
Increased mineral resource
Pan Asia managing director Paul Lock said the drilling success combined with a recent $2 million capital raise led to a decision to target an increased mineral resource to supply a 10,000-tonne-per-year lithium hydroxide or lithium carbonate plant over a mine life of more than a decade.
“This is double our original target… we are drilling more metres to deliver a larger inaugural mineral resource to support a larger scoping study, and we plan to announce both early in the new year,” he said.
“Peer group studies suggest that lepidolite is potentially the lowest cost source of lithium, and our location in South East Asia provides added advantages including a lower cost environment, proximity to all required process inputs and a large selection of established and emerging lithium chemical consumers.”
Historic project
Reung Kiet is a historic hard rock lithium project where the lithium is hosted in lepidolite or 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.
Pan Asia is focusing on lepidolite as a source of lithium, as lithium carbonate and lithium hydroxide projects using lepidolite as plant feedstock are believed to have potential to be placed at the bottom of the cost curve.
Lepidolite has also been demonstrated to have a lower carbon emission intensity than other lithium sources.
The company has identified a prospective zone at least 1km long in association with extensive surface indications of lithium in trenching, rock chips and soil anomalies, which have since been supported by drilling results along the whole of the trend.
Lithium mineralisation remains open to the north and south and at depth on many sections.