Hilix Lithium Project – Fieldwork Begins

Battery and critical metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to report that field work has begun atthe Hilix Lithium Prospect, one of 7 target prospect areas which form the Tama Atacama Lithium Project.

HIGHLIGHTS

• Fieldwork has begun with the collection of 30 surface and trenching samples
• Prospective white clay layer identified throughout concession area
• Large 9kg sample collected for preliminary metallurgical test-work
• Discussions underway with drilling contractors, aiming for a September start
• Homogeneous nature of mineralisation amenable to wide-spaced shallow drilling
• Project well located adjacent to major transport and power infrastructure
• Targeting inaugural Mineral Resource later this year

Pan Asia Metals Managing Director, Paul Lock, said: “We are very pleased to get started on field work in preparation for drilling. The Hilix Lithium Prospect is an easy project, located 5 minutes drive from the Quillagua village, with Chile’s main north south transport and power infrastructure adjacent to the project. The lithium mineralisation is found in a ~30m thick layer of soft friable, porous, typically white, clay rich sediments which start at or near surface. Although yet to be tested, general observations suggest the mineralisation is homogeneous in nature and laterally extensive, and is considered amenable to a wide spaced drill pattern which will facilitate a relatively cheap and quick pathway to an inaugural Mineral Resource later this year. The core target area is about 6km2, with previous sampling in and near the block returning values of 920ppm Li and 1,210ppm Li, and previous drilling over 1km2 returning an average thickness in the mineralised zone of 16.6m at 1003ppm Li. The grades, nature of mineralisation, and geography, set Hilix up to be a relatively easy project to evaluate and potentially develop.

Project Overview

The Hilix Lithium Prospect is located near the Quillagua village in the Antofagasta/Tarapaca Regions of northern Chile. The project comprises five exploration concessions covering about 13km2 (see Figure 1). Quillagua is considered one of the driest places on earth, even though it is only 60km from the coast.

The project is adjacent to the main N-S Highway in Chile (Ruta 5). The major ports/cities of Antofagasta and Iquique are 280km and 230km by road from Hilix respectively. Other smaller port cities such as Tocopilla are also nearby. The whole region is geared towards the support of exploration, mining and related industries.

Figure 1. Hilix Lithium Prospect

Previous Mining and Exploration

Some areas west, south and north of Hilix were mined extensively for nitrates from the mid-19th to mid-20th centuries. There is little record of any of these past mining activities as there is no requirement to lodge reports for exploration or mining activity.

Deposit Model

Lithium and related mineralisation in the project area is hosted in soft friable, porous, typically white, clay rich sediments. In 2010, Lefroy Exploration Ltd (ASX:LEX) identified hectorite as a Li bearing clay mineral occurring at Hilix. The upper Rio Loa Formation is often overlain by a thin veneer of recent alluvium and/or dust that may mask the white clays. The style of Li mineralisation at Hilix is interpreted as similar to the clay hosted Li deposits occurring in western US and northern Mexico. This style of mineralisation is not well documented in Chile.

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.