Reung Kiet Lithium Project Metallurgical Test-Work Results

Battery and critical metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to provide initial metallurgical testwork results for flotation recovery of lithium mica concentrates using representative sample from the Reung Kiet lithium prospect.

HIGHLIGHTS

• Metallurgical flotation testwork results based on diamond drill core samples finalised.
  
• Lithium mica concentrate grades up to 3.0% Li2O with lithium recoveries up to 78%.
• Both fresh and weathered mineralisation are amenable to conventional crushing, grinding and flotation using almost identical flowsheets.
• Flotation reagent costs estimated at $1.00/t and $2.50/t for fresh and weathered mineralisation respectively.
• ALS to test lithium mica concentrate produced from testwork for conversion to lithium carbonate via sulphate roasting, a method commonly used for lepidolite conversion in China.
• Glencore Technology to test lithium mica concentrate produced from testwork for lithium extraction via oxidative acid leaching and subsequent conversion to lithium carbonate.
• Nagrom conducting confirmatory and optimization testwork.
• Nagrom conducting flotation testwork of product from ‘ore-sorting’ testwork.
• PAM aiming to move straight into Pre-Feasibility Study in support of Mining Lease Applications.

representative sample containing modelled internal and external dilution and reflecting what are considered to be mineable widths in an open cut mine, is a very good outcome. With further optimization testwork underway, which will incorporate the ore sorting results previously reported, we are confident that grade and recovery improvements will be seen. We are also very pleased to report that a lithium concentrate was produced from the weathered zone using industry standard methods and undergoing similar comminution and beneficiation to the fresh zone. This is important as the weathered zone can now be included as a source of lithium oxide concentrate for mine planning purposes, and although recoveries were slightly lower the weathered zone is essentially free dig and therefore it is reasonable to expect lower mining costs. The concentrates will now undergo roasting and conversion testwork with ALS Global in Perth to produce lithium carbonate. Testing will use a sulphate roast, a process predominantly used in China which is low cost and de-risked. We will also conduct preliminary oxidative acid leach test work with Glencore Technology in Brisbane. With a satisfactory outcome to the upcoming Mineral Resource upgrade PAM intendstoprogressstraightto a Pre-feasibility study for the Reung Kiet Lithium Project and would be aiming for completion later this year. PAM’s aim is to submit a Mining License Application (MLA) for the Reung Kiet Lithium Prospect in mid 2023 and an MLA for the Bang I Tum Prospect in late 2023/early 2024. While the MLA process is underway PAM will be completing other studies relevant to the PFS.”

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.

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