Pan Asia Metals (ASX:PAM) is finalising desktop studies for its Pink Lithium Project in Chile even as it expands its landholding with extra exploration concession applications.
The $45.26 million market capitalisation company has secured an additional 200km-square of concession application area prospective for lithium brines and clays at the Pink prospect.
The new exploration application areas increase Pan Asia’s landholding to 1,600km-square, which equates to 13% of the ‘highly prized’ Pampa del Tamarugal Basin.
Pan Asia says it believes that the Pink prospect has ‘strong’ potential to host lithium brines, alongside the potential for lithium clays.
Pan Asia aims to begin drilling in the area as soon as possible to evaluate both brine and clay target zones.
Meanwhile, the planned desktop study work for the Pink Project includes evaluating previous seismic work and drilling undertaken for oil exploration in the area.
Desktop work to date has resulted in some literature regarding the Salars, mostly regarding groundwater evaluations. Pan Asia says there appears to be a few shallow monitoring wells and ‘larger’ freshwater production wells in the east and north.
Pan Asia says this and other discovered data should provide further information relevant to evaluation. The company has proposed the use of electrical geophysics such as resistivity or electromagnetics to evaluate the potential for subsurface brine to depths down to 500m
Commenting on securing additional land, Pan Asia Metals Managing Director Paul Lock says: “We’re not sitting still: on the tail of positive news coming out of Chile regarding lithium exploration and development, we are pleased to secure an additional circa 200km-square of exploration concession applications at our Pink Lithium Project which are highly prospective for lithium brines and lithium clays following our field trip earlier in August.
“on the tail of positive news coming out of Chile regarding lithium exploration and development, we are pleased to secure an additional circa 200km-square of exploration concession applications at our Pink Lithium Project…”
This is on the back of positive news out of Chile, with the government vowing to take a pragmatic approach to opening up new areas for lithium mining on a call last week with more than 400 lithium industry representatives.”
The Pink prospect is located in the Tarapaca region in northern Chile.
Pan Asia Metals is a battery minerals company focused on its lithium assets in Southeast Asia and South America. The company’s projects are located in Thailand and the Atacama region of Chile.
As of 30 June 2023, the company had US$363,000 cash at hand, according to its latest quarterly report. However, as previously announced, the company raised $1.265 million by way of a placement in early August.
Write to Aaliyah Rogan at Mining.com.au
Images: Pan Asia Metals