Pan Asia Metals (ASX:PAM) has upgraded the Mineral Resource Estimate (MRE) for its Reung Kiet (RK) Lithium prospect in southern Thailand by 42%.
The $23 million market capitalisation company reports the measured, indicated, and inferred MRE — at a 0.25% lithium oxide (Li2O) cutoff — now sits at 14.8 million tonnes (Mt) @ 0.45% Li2O, 391 parts per million (ppm) tin (Sn), 77ppm tantalum pentoxide (Ta2O5), 0.20% rubidium, and 237ppm caesium (Cs).
This MRE update is based on 102 diamond drillholes complete in the project area. Pan Asia says alongside the mineral resource tonnage increase to 14.8Mt, the contained lithium carbonate equivalent (LCE) grew by 46% to 164,500 tonnes.
CSA Global estimated the MRE in accordance with the Australian JORC Code (2012).
Shares in Pan Asia were up 10.34% to $0.16 at midday AEST on 2 November.
Pan Asia Metals Managing Director Paul Lock says increasing the mineral resource by nearly 50% is a ‘great’ outcome for the company, and shifting 50% of the mineral resource into the measured category and 75% into measured and indicated, alongside the 164,000-tonne LCE increase, is ‘fantastic’.
“Further, the bulk of the mineral resource is in the 0-150m zone, so it’s doable, and PAM’s metallurgical testwork confirms that the oxide zone beneficiates essentially as well as the fresh zone, putting PAM in a great position.
With the updated mineral resource, we will generate a pit shell, and this will feed into our feasibility work, which is progressing well.”
“With the updated mineral resource, we will generate a pit shell, and this will feed into our feasibility work, which is progressing well”
Now that the MRE update is completed, Pan Asia can conduct mining studies and complete a Preliminary Feasibility Study (PFS), alongside submitting a mining licence application.
Subject to the results of the PFS, the company notes the upgraded MRE will allow for an ore reserve to be declared.
The RK lithium project is a lepidolite-style project about 70km northeast of Phuket in the Phang Nga Province in southern Thailand.
Pan Asia Metals is a battery minerals-focused explorer with lithium projects in Southeast Asia and South America.
As of 30 September 2023, the company had $161,000 cash at hand, according to its latest quarterly report. Post quarter-end, the company announced it was conducting a placement to raise $1.45 million.
Write to Aaliyah Rogan at Mining.com.au
Images: Pan Asia Metals