Bang I Tum exploration target another step in Pan Asia’s lithium production goal

Picture: Getty Images
Picture: Getty Images

Pan Asia now has a better idea of what’s present at the Bang I Tum lithium prospect in southern Thailand, with the definition of a drill supported exploration target.

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While still no replacement for a formal resource estimate, that results from three previous diamond holes was involved in the estimate of between 8 million tonnes and 14 million tonnes grading 0.5% to 0.8% lithium oxide adds a greater measure of certainty.

Adding further interest, it comes just a month after Pan Asia Metals (ASX:PAM)defined a maiden Inferred Resource of 10.4Mt grading 0.44% Li2O, containing about 113,000t of lithium carbonate equivalent, for its flagship Reung Kiet prospect about 8km to the southwest.

Should the company’s future exploration be able to define a resource at Bang I Tum – even at the lower end of its exploration target estimate – it will have sufficient resources on hand to generate an Ore Reserve large enough to sustain production of 10,000 tonnes per annum of LCR for at least 10 years.

That is an Ore Reserve big enough for the company to go to the banks with, a result that is further supported by the development cost for lepidolite style pegmatites such as those present at Reung Kiet and Bang I Tum been well below costs for spodumene processing.

But wait, there’s more …

Pan Asia is the only lithium explorer in South East Asia with granted exploration licences and a mineral resource, a significant positive given that its projects are exquisitely located close to Thailand’s Eastern Economic Corridor.

This is a crucial benefit as Thailand is the largest car producer in South East Asia – almost every dual cab 4WD on Australia’s roads are manufactured there, and has comprehensive electric vehicle and lithium-ion battery policies in place to encourage their manufacturing locally.

These ambitions are best outlined by its ambitious plans to have 30% of all vehicle production be EVs by 2030.

Building up lithium exploration

Pan Asia is planning to commence a drill program at Bang I Tum in about two months, after it completes the drill program currently underway at Reung Kiet. Both drill programs aim to define further Mineral Resources which will add to PAM’s current Mineral Resource of 10.4Mt.

It will also carry out a metallurgical test work program to evaluate potential metallurgical performance of the mineralisation.

Additionally, exploration will test other areas of potential which are not included in the Exploration Target estimate.

“We recently reported a Mineral Resource of 10.4Mt containing about 113,000t LCE at the Reung Kiet Lithium Prospect, which is located about 8km south-west of the Bang I Tum Lithium Prospect,” managing director Paul Lock said.

“The drilling results and subsequent Mineral Resource at Reung Kiet, and the fact that the Bang I Tum Exploration Target is drill supported, gives us a higher degree of confidence in the quantum of the Exploration Target.”

Bang I Tum includes an old tin pit about 650m long, 125m wide and 20m deep.

To date, six diamond core holes totalling 963m have been drilled on the prospect with all three holes on one section south of then pit intersecting lepidolite pegmatite dyke swarm.

Notable intersections were 11.3m at 0.74% Li2O from 19.2m (BTDD005) and 10.7m at 0.98% Li2O from 81.8m (BTDD006).

This article was developed in collaboration with Pan Asia Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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