Pan Asia Metals Commences Drilling at Reung Kiet Lithium Project in Thailand

ID: 1564038
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(businesspress24) - Investment Highlights

- Exploration Team and drill rig mobilised to the Reung Kiet Lithium Project.
- The first ever hole at the Bang I Tum Lithium Prospect has commenced.
- Drilling beneath old pit where lepidolite pegmatites were previously mined for tin.
- Targeting lithium rich pegmatites up to 25m wide and associated dyke swarms.
- Bang I Tum pit is approximately 650m in length.
- Pegmatite trend about 1.5km long.
- PAM channel and rock chip assays up to 1.9% Li2O extending southwest of pit.

Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (PAM or the Company) is pleased to report that rig mobilisation to the Reung Kiet Lithium Project in southern Thailand is complete and BTDD001, the first hole at the highly prospective Bang I Tum prospect, has been collared and drilling is underway.

The Reung Kiet Lithium Project (RKLP) is one of PAMs key projects (see Figure 1). RKLP is a hard rock project with demonstrated potential for lithium hosted in lepidolite rich pegmatites chiefly composed of quartz, albite, lepidolite with minor cassiterite and tantalite as well as other accessory minerals including some rare earths.

https://www.irw-press.at/prcom/images/messages/2021/55262/ReungKietLithiumProject-DrillingUnderway_PRCOM.001.jpeg

Picture 1: Drilling BTDD001 at the Bang I Tum Lithium Prospect

https://www.irw-press.at/prcom/images/messages/2021/55262/ReungKietLithiumProject-DrillingUnderway_PRCOM.002.jpeg

Figure 1: The Reung Kiet Lithium Project, Phang Nga Province, southern Thailand

Lepidolite is an emerging source of lithium supply
The advantages of lepidolite (unlike spodumene) is that lithium can be extracted without the need for energy intensive roasting, and lepidolite has a suite of potential by-products which are recoverable at the concentrator and processing stages of the flow sheet. Peer feasibility work has demonstrated lepidolite has the potential to be one of the highest purity sources of battery grade lithium carbonate Lepidico Limiteds ASX release dated 17 October 2019: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02160129-6A950059?access_token=83ff96335c2d45a094df02a206a39ff4


and lithium hydroxide Lepidico Limiteds ASX release dated 28 May, 2020: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02239127-6A980475?access_token=83ff96335c2d45a094df02a206a39ff4
, that lepidolite is one of the lowest cost sources of lithium hydroxide on an All In Sustaining Costs basis Lepidico Limiteds ASX release dated 28 May, 2020: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02239127-6A980475?access_token=83ff96335c2d45a094df02a206a39ff4
, and that lepidolite has one of the lowest capex requirements on a per tonne LCE basis after by-products Lepidico Limiteds ASX release dated 28 May, 2020: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02239127-6A980475?access_token=83ff96335c2d45a094df02a206a39ff4
, See Figure 35, Section 10.3 in PAMs Prospectus dated 8 July, 2020
.

RKLP was part of a major tin mining region up until the mid-1980s
There is little detailed information available regarding previous exploration and mining in the project area but up to the late 1980s southern Thailand was a globally significant tin producer. In Phang Nga Province tin concentrate production of approximately 300,000 tonnes was recorded from 1965 to 1990 Nakapadungrat. S. and Maneenai. D,.1993. The Phuket, Phangnga and Takua Pa Tin-field, Thailand. Journal of Southeast Asian Earth Sciences, Vol. 8, Nos 1-4, pp. 359-368
. In the late 1960s a joint Thai/British Geological Survey study was undertaken in the region Garson, M.S., Bradshaw, N. and Rattawong, S., 1969. Lepidolite Pegmatites in the Phangnga Area of
Peninsula Thailand.
. It was during this study that the lithium bearing mineral lepidolite was identified in weathered pegmatites that were being mined for tin at the Reung Kiet and Bang I Tum open pit mines as well as at several other mines in close proximity.

The 1960s study conducted geological mapping, geochemical analysis and mineralogical descriptions of various tailings, concentrate and rock samples as well as lepidolite beneficiation studies. The lepidolite and lithium bearing muscovite was found to contain 3-4% Li2O. With significant focus on two key tin mines, Reung Kiet and Bang I Tum, the survey statedvii, https://polaris.brighterir.com/public/ecr_minerals_plc/news/rns/story/xe2zzzx
:

- the pegmatites at Reung Kiet and Bang I Tum may well be the largest un-zoned lepidolite pegmatites yet recorded
- lepidolite is fairly evenly distributed both along the length of the pegmatite and from wall to wall. In places there is local enrichment of massive lepidolite ; and
- much paler-coloured, and also white lepidolite with over 4.0% lithia (Li2O) occurs in the Bang I Tum pegmatite

Exploration history
There is no recorded exploration activity in the project area since the 1960s study. In 2011, Thai company Mae Fah Mining Co. Limited (Mae Fah) lodged prospecting licence applications over the area. In 2014 UK based ECR Minerals Plc (ECR) entered into an option agreement to acquire the project. That option did not proceed and the tenement applications lapsed. Mae Fah and ECR conducted some minor sampling in the area. This work reported 11 rock chip samples from unknown locations with analytical results showing 8 of the 11 samples yielding elevated Li2O, ranging up to 1.9%. Accessory Sn and Ta was also identifiedviii.

In early 2019 PAM was granted the three contiguous Special Prospecting Licences (SPLs) which make up the Reung Kiet Project (see Figure 1), which cover an area of approximately 38km². PAM has undertaken soil, rock chip and stream sediment sampling in conjunction with geological mapping, pit surveying and preliminary mineralogical studies. Trenching and diamond drilling at the old Reung Kiet mine has also been completed along with sighter beneficiation test-work. See PAMs ASX announcement dated 8th October, 2020, and titled PAM Projects - Technical Reports. These programs have consistently delivered highly encouraging results. To date the work program has focused on the Reung Kiet Prospect in the south of the project area and the Bang I Tum prospect about 10km to the north. Additional reconnaissance exploration has been undertaken more broadly across the project area.

In October 2020 PAM was invited by the Chief Executive Officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to present PAM and the Reung Kiet Lithium Project. The meeting was called to assist the Phang Nga Provincial Government with their considerations for the potential establishment of mining and industrial development areas. Also present was the Chairman of the Phang Nga New Town Planning Committee, who conveyed the Committees support for the Reung Kiet Lithium Project. The PAO stated that it wants to ensure that the requirements of the Reung Kiet Lithium Project are incorporated into the Phang Nga New Town Planning Committees zoning plans to ensure that the project can progress should exploration and feasibility results prove positive. See PAMs ASX announcement dated 21st October, 2020, and titled Positive Discussions regarding Reung Kiet Lithium Project with Phang Nga Provincial Government.

Bang I Tum Lithium Prospect (BIT)
The Bang I Tum prospect was a relatively large open cut tin mine. The old pit is about 650m long and up to 125m wide (see Figure 2). Mining of the weathered pegmatites extended up to 30m below surface, to the top of hard rock.

The mined pegmatite is recorded to be at least 20m widevii. The pit is now water filled, with water depths to a maximum 15m. Additional smaller scale mining extended further along strike to the southwest. Soil and rock-chip sampling has defined the Main trend and an Eastern trend. The prospective Main trend is about 1.5km long (see Figure 3). Rock chip sampling has yielded 14 of 24 samples >0.5% Li2O, with an average grade of 1.23% Li2O plus accessory tin and tantalum. A lepidolite pegmatite dyke swarm can be observed on a hill about 400m south of the pit. This swarm is up to 100m wide with individual dykes up to 7m wide.

The Eastern trend is about 1.5km long, located approximately 350m east of, and parallel to the Main trend (see Figure 2).

Drilling at BIT is planned on 100-150m spaced sections along the pit length and extending southwest to Lepidolite Hill (see Figure 2). Drillhole depths will be up to about 180m and test the interpreted pegmatite positions beneath the open pit (see Figure 3).

PAM has four priority one drill holes planned, with additional drilling contingent on positive results from these holes.

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Figure 2: The Bang I Tum Lithium Prospect with proposed drill hole locations


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Figure 3: Schematic cross section of interpreted pegmatites at the Bang I Tum Lithium Prospect

Forward planning
Following the completion of the priority one holes at BIT, PAM intends to relocate the rig to the nearby Reung Kiet prospect to conduct additional drilling that will target lepidolite rich pegmatites identified in previous trenching and mapping programs conducted by PAM. Results of the priority one holes at BIT will be assessed and further drilling may be conducted.

The Company looks forward to keeping Shareholders and the market updated on the drilling progress and results obtained from the drilling program at Bang I Tum.

Pan Asia Metals Managing Director Paul Lock said: We are excited to not only be drilling the first ever holes at Bang I Tum but the overall potential of the Reung Kiet Lithium project. This particularly after Lepidico Limited (ASX:LPD) released its definitive feasibility study (DFS) results for the Karibib Lithium Project in May 2020, which positioned Karibib at the bottom of the capex and opex cost curves on a per tonne LiOH and Equivalents basis.

Like Karibib, PAMs Reung Kiet Lithium Project has lepidolite style mineralization, but PAMs drilling and trenching results to date have generally produced considerably higher Li2O grades than the Karibib ore reserve, and the Reung Kiet Lithium Project is in close proximity to all required processing inputs and our end markets.


Ends

Authorised by:
Board of Directors

About the Reung Kiet Lithium Project
The Reung Kiet Lithium Project is a lepidolite style lithium project located about 70km north-east of Phuket in the Phang Nga Province in southern Thailand. Pan Asia holds a 100% interest in 3 contiguous Special Prospecting Licences (SPL) covering about 38km².

https://www.irw-press.at/prcom/images/messages/2021/55262/ReungKietLithiumProject-DrillingUnderway_PRCOM.005.jpeg

Figure 4: Regional map identifying the location of Phang Nga and the Reung Kiet Lithium Project

About Pan Asia Metals Limited (ASX:PAM)

Pan Asia Metals Limited (ASX:PAM) is a specialty metals explorer and developer focused on the identification and development of projects in South East Asia that have the potential to position Pan Asia Metals to produce metal compounds and other value-added products that are in high demand in the region.

Pan Asia Metals currently owns two tungsten projects and two lithium projects. Three of the four projects are located in Thailand, fitting Pan Asia Metals strategy of developing downstream value-add opportunities situated in low-cost environments proximal to end market users.

Complementing Pan Asia Metals existing project portfolio is a target generation program which identifies desirable assets in the region. Through the program, Pan Asia Metals has a pipeline of target opportunities in South East Asia which are at various stages of consideration. In the years ahead, Pan Asia Metals plans to develop its existing projects while also expanding its portfolio via targeted and value-accretive acquisitions.

To learn more, please visit: www.panasiametals.com

Stay up to date with the latest news by connecting with PAM on LinkedIn, Twitter and YouTube.

Investor Enquiries
Paul Lock
Managing Director
paul.lock(at)panasiametals.com

Media Enquiries
The Capital Network
Julia Maguire
+61 2 8999 3699
julia(at)thecapitalnetwork.com.au

Competent Persons Statement
The information in this Public Report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Hobby, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hobby is an employee, Director and Shareholder of Pan Asia Metals Limited. Mr Hobby has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hobby consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements
Various statements in this document constitute statements relating to intentions, future acts and events which are generally classified as forward looking statements. These forward looking statements are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other important factors (many of which are beyond the Companys control) that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed in this document. For example, future reserves or resources or exploration targets described in this document may be based, in part, on market prices that may vary significantly from current levels. These variations may materially affect the timing or feasibility of particular developments. Words such as anticipates, expects, intends, plans, believes, seeks, estimates, potential and similar expressions are intended to identify forward-looking statements. Pan Asia Metals cautions security holders and prospective security holders to not place undue reliance on these forward-looking statements, which reflect the view of Pan Asia Metals only as of the date of this document. The forward-looking statements made in this document relate only to events as of the date on which the statements are made. Except as required by applicable regulations or by law, Pan Asia Metals does not undertake any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance.

Important
To the extent permitted by law, PAM and its officers, employees, related bodies corporate and agents (Agents) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of PAM and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this document or information.

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Date: 01/22/2021 - 12:10
Language: English
News-ID 1564038
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