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Battery and critical metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to provide metallurgical test-work results for flotation recovery of lithium mica concentrates using representative sample from the Reung Kiet lithium prospect.
HIGHLIGHTS
- Metallurgical flotation test-work confirms and improves on previous work.
- Material improvement in Li2O grade and recovery for concentrate derived from weathered mineralisation, showing 71% Li2O recovery at 3.11% Li2O grade in surpassing previous results of 63% recovery at 2.80% Li2O from previous work.
- Lithium mica concentrate derived from fresh mineralisation showing 76% Li2O recovery at 3.10% Li2O grade, reaffirming previous test-work results.
- Both fresh and weathered mineralisation are amenable to conventional crushing, grinding and flotation using very similar flowsheets.
- Flotation test-work of products from ‘ore-sorting’ test-work now underway.
- PAM is rapidly advancing the RK Pre-Feasibility Study for Mining Lease Applications.
Pan Asia Metals Managing Director, Paul Lock, said: “The purpose of Nagrom’s test- work was to verify BGRIMM’s results. We are pleased that this program reaffirms and, in some areas, improves upon previous results, which bodes well for the economics of the RK Project. With this confirmatory test-work completed, we can now progress on to post ore sorting test-work and process refinement after which we are confident in achieving further improvements to recoveries and concentrate grades.”
The Reung Kiet Lithium Project (RKLP) is one of PAM’s key assets. RKLP is a hard rock lithium project with lithium hosted in lepidolite/mica rich pegmatites chiefly composed of quartz, albite, lepidolite and muscovite, with minor cassiterite and tantalite as well as other accessory minerals. Previous open pit mining extracting tin from the weathered pegmatites was conducted into the early 1970’s.
PAM’s objective has been 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 that will consider various options to determine the technical and economic viability of the project including the LCE production profile as well as associated by-products.
PAM is focusing on lepidolite as a source of lithium as peer group studies indicate that lithium carbonate and lithium hydroxide projects using 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.
Reung Kiet Prospect (RK)
The RK Prospect was a relatively large open cut tin mine. The old pit is about 500m long and up to 125m wide (see Figure 1).
Mining of the weathered pegmatites extended up to 30m below surface, to the top of hard rock. Pan Asia has identified a prospective zone at least 1km long, reporting an Inferred Mineral Resource estimate as shown in Table 1. Please refer to PAM ASX announcement, “Inaugural Mineral Resource Estimate Reung Kiet Lithium” dated June 28, 2022.
Table 1. RKLP – Reung Kiet Prospect – Inferred Mineral Resource, 28 June, 2022
MineralResourcereported above 0.25% Li2O% cut-off. Appropriate rounding applied.
The Mineral Resource is based upon the first 46 holes drilled at Reung Kiet. Ongoing drilling has seen the completion of an additional 56 holes, which will be included in the Mineral Resource update which aims to increase the Mineral Resource tonnage and upgrade portions of the Mineral Resource from Inferred to Indicated and possibly Measured classification. The Mineral Resource update is currently being prepared by CSA Global and is expected to be reported in August. The pegmatite swarms remain open to the north and south and at depth on many sections especially in the south (see Figure 1).
Figure 1. Reung Kiet Prospect, Phang Nga Province, southern Thailand
Metallurgical Test-work Details
The test-work was conducted by Nagrom on two separate composites comprised of fresh and weathered mineralisation derived from laboratory ‘coarse crush rejects’ (100% <3.35mm) from ½ HQ sized drill core selected from drillholes identified in Figure 1 (orange drill collars).
The fresh composite sample is derived from 278 individual samples from 16 holes. This sample returned a head assay of 0.64% Li2O. The weathered composite sample is derived from 133 individual samples from 11 holes. It returned a head assay of 0.80% Li2O.
The samples were selected to represent mineralisation throughout the deposit and reflect what are considered to be mineable widths in a potential open cut mine. Therefore, the samples contain both internal and external dilution predominantly composed of waste to low-grade siltstone.
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.
PAM:AU
Full HMW Phase 2 (21Ktpa LCE) Mining Permit Granted
Highlights
- Phase 2 Hombre Muerto West (HMW) mining permit has been granted, securing the pathway for Galan’s continued development at HMW at an efficient commercial scale up to 21,000 tpa LCE
- The granted permit includes all construction activities including ponds, plant, onsite laboratory, power and other required infrastructure
- HMW Phase 2 production would be cash flow positive at today’s lithium carbonate prices. Independent benchmarking highlights HMW as being within the first quartile of the lithium industry AISC cost curve
- The granting of Phase 2 permits supports Galan’s application for the RIGI, Argentina’s new incentive regime for large scale investments
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“We are delighted with the grant of the Phase 2 mining permit which continues to solidify our strong relationship with the local Catamarcan authorities. It will allow Galan to increase production over threefold from Phase 1 and produce a premium quality lithium chloride product, which is in high demand.
Importantly, HMW is positioned in the first quartile of the cost curve and Phase 2 production would be cash flow positive even at today’s prevailing lithium carbonate prices. HMW is now poised to be a long term and resilient globally significant source of lithium supply.”
Figure 1. Wood Mackenzie 2028 Lithium Cost Curve: AISC (US$/t LCE)Wood Mackenzie Disclaimer “The foregoing information was obtained from the Lithium Cost Service™ a product of Wood Mackenzie.” "The data and information provided by Wood Mackenzie should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by Wood Mackenzie in writing. To the fullest extent permitted by law, Wood Mackenzie accepts no responsibility for your use of this data and information except as specified in a written agreement you have entered into with Wood Mackenzie for the provision of such of such data and information." Information sourced in December 2024.
Wood Mackenzie’s emissions benchmarking service has also placed HMW within the first quartile of the industry greenhouse gas emissions curve. Strong environmental, social and governance principles have been a governing tenet of the development strategy for HMW, which focuses on the production of a lithium chloride concentrate from conventional evaporation allowing for significantly reduced energy and water consumption. In line with Galan’s commitment to social principles, at least 70% local content in employment and contracting opportunities has been targeted at HMW and remains a keen focus for the Government of Catamarca and Galan. Skills and training opportunities have been provided to increase local participation, with a view to creating a skilled local workforce and supply chain for sustainable long-term operations.
Galan has demonstrated considerable progress on the HMW project, including:
- 2019: Discovery well drilled, marking the inception of the HMW project.
- 2020-2024: Mineral Resource established and expanded, now ranked as a global Top 20 lithium resource.
- 2023: Completion of Phase 1 and Phase 2 Definitive Feasibility Studies (DFS), validating the project's technical and economic viability (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).
- 2023: Secured all required approvals for Phase 1 construction and commenced construction.
- 2024: Continued construction and built a lithium inventory in the ponds of over 6,000 tonnes LCE.
- 2025: Full mining permit for Phase 2 granted, securing the pathway for continued development.
Chairman of Galan, Richard Homsany, commented:
“The grant of the Phase 2 mining permit is testament to the hard work and commitment of our dedicated team, and also highlights the strong long-term relationships we have fostered with the Government of Catamarca and local communities, who we sincerely thank for their continued ongoing support. Through action we have demonstrated the benefits of our HMW operations: economically though the generation of employment, procurement and trade opportunities and socially through education, community programs and training opportunities. We look forward to continuing to work in co-operation with the Government of Catamarca and all stakeholders to maximise the benefits of Galan’s operations in the community, and ensure they are sustainable.”
The HMW project is separated into four production phases. The Phase 1 DFS is based on the production of 5.4ktpa LCE of lithium chloride concentrate, with production anticipated in the second half of 2025.
The Phase 2 DFS, announced on 3 October 2023, targets medium-term production of 21ktpa LCE of lithium chloride concentrate. Arcadium Lithium Plc, which is subject to a change of control transaction from Rio Tinto Limited, produced around 20ktpa LCE from the adjacent mining permit at Salar de Hombre Muerto in 2023.
Phase 3 at HMW aims to achieve 40ktpa LCE within a 2-5 year horizon whilst Phase 4 represents a longer-term target of 60ktpa LCE, leveraging lithium brine sourced from both HMW and Galan’s other 100%-owned project in Argentina, Candelas.
The phased development of the HMW and Candelas Mineral Resources mitigates funding and execution risk and allows for continuous process improvement. The production of lithium chloride as a product is in demand from lithium converters as battery chemistry is trending towards lithium iron phosphate technology. Galan received permission to sell lithium chloride from the Catamarca Government earlier in 2024.
The Phase 2 mining permit also supports Galan’s application for the Argentinian Régimen de Incentivo para Grandes Inversiones (RIGI). Subject to meeting the eligibility criteria for RIGI, the RIGI can provide the following key incentives:
- The corporate income tax rate is set at 25% (ordinarily 35%)
- Accelerated depreciation
- Absence of time limits in the computation of tax loss carry forwards
- Concessions on import duty, VAT and withholding tax
- Greater flexibility on foreign exchange movements
- Fiscal stability for a period of 30 years
Galan’s JP Vargas de la Vega further stated:
“Our plan for HMW is unchanged, beginning with Phase 1. Our immediate focus is finalising the financing and offtake arrangements for Phase 1. Once secured, our operations team will complete construction and commence first production of lithium chloride concentrate. While the operations team advances Phase 1 construction our corporate team, supported by advisors, will commence a project financing process for Phase 2.”
Click here for the full ASX Release
This article includes content from Galan Lithium, 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.
