Step-out drilling at Pan Asia Metals’ (ASX: PAM) Reung Kiet lithium prospect in southern Thailand has demonstrated extensions at depth and along strike of the existing mineral resource.
Results from the latest 18 holes have continued to support the geological model of extensive lithium mineralisation hosted in lepidolite-rich pegmatite veins and adjacent metasediments.
The mineralised zone is currently defined over a strike length of more than 1km and remains open along strike to the north and south, and at depth in the south.
Non-selective rock chip and channel assays were among some of the highest received at Reung Kiet, with 44 of 64 samples averaging 1.56% lithium oxide at a 0.30% cut-off.
The maximum grade was 2.62% lithium oxide, with 35 samples being greater than 1% and 12 samples greater than 2%.
Final assays required for an updated mineral resource will be received shortly, after which CSA Global will start the required modelling and estimation work.
Current inferred resource
The current inferred mineral resource was announced in June and sits at 10.4 million tonnes grading 0.44% lithium oxide, 0.04% tin, 0.009% tantalum pentoxide, 0.16% rubidium and 0.02% caesium for approximately 113,000t of lithium carbonate equivalent.
It is based on the first 46 holes drilled at Reung Kiet, although another 54 holes have since been completed.
Most of these will be included in the update which aims to increase the tonnage and upgrade the classification from inferred to indicated and possibly measured.
Pan Asia is now planning to move its focus to the newly-defined Bang 1 Tum target, 8km to the north of Reung Kiet, to commence drill testing of a recent exploration target and adjacent target zones.
Hard rock lithium project
Reung Kiet is a hard rock lithium project where the lithium is hosted in mica-rich pegmatites chiefly composed of quartz, albite, lepidolite and muscovite, with minor cassiterite, tantalite and other accessory minerals.
Previous open pit mining to extract tin from the weathered pegmatites was conducted through to the early 1970s.
Pan Asia plans to continue drilling with the aim of increasing and upgrading the existing mineral resource, which will then be used as part of a pre-feasibility study to determine the project’s technical and economic viability.
The company is focusing on lepidolite as a source of lithium as industry studies have indicated that lithium carbonate and lithium hydroxide projects which lepidolite as their plant feedstock have the potential to be placed near the bottom of the cost curve.
Lepidolite has also been demonstrated to have a lower carbon emission intensity than other lithium sources.
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