Quarterly Activities/Appendix 5B Cash Flow Report

Battery and critical metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to provide this Quarterly Activities Report, summarising activities for the quarter ending 31 March 2023 (Quarter).

HIGHLIGHTS

• Metallurgical flotation testwork results finalised with lithium mica concentrate grades up to 3.0% Li2O and lithium recoveries of ~80%. Both fresh and weathered mineralisation have almost identical flowsheets.
  
• Reung Kiet Lithium Prospect assay results received for infill and extensional sampling from drill holes RKDD073-091 and RKDD032. Results continue to support the geological model with many high grade intersections, including:
  • RKDD077: 15.35m @ 0.55% Li2O
  • RKDD080: 6.25m @ 0.82% Li2O
  • RKDD085: 13.50m @ 0.69% Li2O
  • RKDD086: 15.00m @ 0.64% Li2O
  • RKDD089: 8.50m @ 0.73% Li2O
  • RKDD091: 11.50m @ 0.75% Li2O
• PAM commenced drilling at Bang I Tum Lithium Prospect, shifting both drilling rigs from Reung Kiet to focus on testing the Exploration Target and the Extended Target Zone. The first hole of the program, hole BTDD007, intersected a new pegmatite zone with an aggregate width of 15.8m from 30.9m to 68m.
• Thai Cabinet approves Mineral Management Master Plan No.2 resulting in Mining Zones being declared across much of the Reung Kiet Project Area including the entire mineralised trends, giving PAM the legal right to submit Mining Lease applications.
• Lepidolite concentrates subjected to sulphate roasting and water leaching testwork with excellent recoveries achieved, ranging up to 88% lithium (Li) extraction. Further optimisation testwork is underway.
• PAM raises $4,500,000 through a placement, supported by two Thai based institutional investors and one Australian institutional investor. The raising was at an ~8% premium to the then share price of $0.37/share, indicating strong support for PAM’s strategy to become a leading supplier of Battery Chemicals in Southeast Asia.
• PAM appoints Elissa Hansen as Company Secretary, Australia.

Reung Kiet Lithium Project – Metallurgical Testwork

During the quarter PAM announced initial metallurgical testwork results for flotation recovery of lithium mica concentrates using representative sample from the Reung Kiet lithium prospect, see PAM’s ASX announcement dated 19 January 2023, and titled ‘Reung Kiet Lithium Project Metallurgical Testwork Results’.

The testwork was conducted on two separate composites, comprising of fresh and weathered mineralisation, which were selected to represent mineralisation throughout the deposit and containing both internal and external dilution predominantly composed of low-grade siltstone. The testwork was conducted by Beijing General Research Institute of Mining & Metallurgy (BGRIMM) in China, which has particular experience and expertise regarding metallurgical aspects of lithium mica ‘lepidolite’ deposits in China. The testwork was overseen by Dr Evan Kirby of Metallurgical Management Services, a metallurgist with over 45 years’ experience in minerals testing and feasibility work, including several assignments with BGRIMM.

Fresh Material: The detailed beneficiation test study recommended that the beneficiation process for fresh material be a closed-circuit flowsheet consisting of rod milling to P80 of 0.11mm, desliming to remove -0.016mm material, one roughing, three cleaning and one scavenging, with the middlings returning in sequence. The closed-circuit test returned a concentrate grade of 2.99% Li2O at total Li recovery of 77.8% with total flotation time of 8-9 minutes. The concentrate is composed of approximately 90% lepidolite-muscovite.

Weathered Material: The detailed beneficiation test study recommended that the beneficiation process for weathered material be an open circuit flowsheet consisting of rod milling to P80 of 0.14mm, desliming to remove -0.016mm material, one roughing, four cleaning, two scavenging, rougher concentrate classification and separation. The open- circuit test shows the Li2O grade of concentrate is 2.80% and recovery is 63.22% with total flotation time of 8-9 minutes. The concentrate contains approximately 81% lepidolite- muscovite, the balance being mostly kaolinite.

The testwork demonstrated that relatively high recoveries of lithium to concentrate are achievable utilising industry standard methods with both the fresh and weathered mineralisation undergoing similar comminution and beneficiation. This has resulted in concentrate grades of around 3.0% Li2O with Li recoveries up to 78%.

Click here for the full ASX Release

This article includes content from Pan Asia Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.