Bohrupdate für Wolframprojekt Khao Soon

HIGHLIGHTS

-          Drilling of Priority One holes at the Than Pho West completed

-          Ten holes (KSDD 032-041) drilled for a total of 828.2m

-          All holes intersected breccia zones in line with geology model

-          Shallow dipping geometry confirmed, effectively commencing at surface

-          Mineralisation has shape and dimensions amenable to potential open cut mining

-          Mineralised zone is still open at depth and remains to be closed off along strike

-          Drilling results will be assessed as they become available from the laboratory

-          Drill rig is being mobilised to the Reung Kiet Lithium Project

Specialty metals explorer and developer Pan Asia Metals Limited (ASX: PAM) (‘PAM’ or ‘the Company’) is pleased to provide an update of the drilling program at the Khao Soon Tungsten Project (KSTP) and to report that the drill rig has been mobilised to the Reung Kiet Lithium Project (RKLP) located in southern Thailand.

KSTP is one of PAM’s key assets and a significant historical high-grade producer. Modern exploration has discovered potentially world-class, district scale tungsten mineralisation across numerous prospects. Previous reconnaissance diamond drilling by PAM intersected robust widths and grades associated with strong surface anomalies, from which Exploration Targets have been estimated. The current drilling program seeks to test the Exploration Target with the aim to estimate Inferred Resources.

Drilling of Priority One holes at the Than Pho West (TPW) Prospect has been completed. Ten holes were drilled for a total of 828.2m. Information on the drillholes and spot hand-held X-ray fluorescence analysis (spot hhXRF) are included in Table’s 1 and 2, respectively.

Details of the current and previous drilling programs can be found on Appendix 1, being JORC Table 1. Readers are also advised to refer to the following ASX announcements:

-          October 8, 2020: ‘PAM Projects – ‘Technical Reports’

-          November 30, 2020: ‘Khao Soon Tungsten Project Drilling Update’

-          December 23, 2020: ‘Khao Soon Tungsten Project Drilling Update’

PAM uses a Delta Olympus Premium hhXRF device which utilises an X-ray fluorescence tube to take relatively rapid (30 second) measurements over an area about 20mm2. PAM conducts routine spot hhXRF analysis at regular spacings along the drill core, especially in areas of enriched tungsten, where sample points are typically at 0.3m.

The hhXRF experienced some technical problems in late 2020 and is now being inspected and serviced by the manufacturer. The Company expects the hhXRF will be returned prior to the end of this month, allowing hhXRF spot analysis of unreported holes KSDD037 to 041 to be undertaken.

Than Pho West (TPW)

The TPW prospect is defined by a large plus 1km long WO3 soil anomaly supported by rock-chips and subsequent drilling (see Figure 1). Prior to the current program PAM previously completed seven (7) widely spaced diamond core holes at TPW and defined near surface tungsten mineralisation over substantial widths.

An Exploration Target of 4-8Mt @ 0.2-0.4% WO3 was estimated, with details reported on October 8, 2020 in ASX announcement ‘PAM Projects – ‘Technical Reports’. Readers are advised that in reference to the Exploration Target, the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

The current drilling program at TPW is designed to test the Exploration Target. If the program is successful it may allow a Mineral Resource to be estimated. In the current program PAM has now completed ten (10) holes at TPW (KSDD032-041) (see Figure 1). Holes 032 and 033 were previously reported in ASX announcement on November 30, 2020: ‘Khao Soon Tungsten Project Drilling Update’. Holes KSDD034, 035 and 036 were reported in ASX announcement on December 23, 2020: ‘Khao Soon Tungsten Project Drilling Update’

The five new holes being reported (KSDD037-041), were drilled as infill or extensional holes to previous drilling. All five holes intersected weathered breccia in line with interpretations. The weathered breccia contains abundant clay, quartz and metasediment clasts commonly associated with abundant iron.

Holes KSDD037 and 038 were drilled on the same section and intersected zones of weathered breccia about 50m thick (see Figure 2). Hole KSDD038 was drilled deeper in order to test an Induced Polarisation chargeability anomaly thought to be potentially associated with deeper mineralisation. The geological results from this hole appear to indicate the chargeability feature is associated with pyritic siltstone deep in the footwall of the breccia mineralisation (see Figure 3).

Drillhole KSDD039 was drilled down-dip of KSDD004 and intersected a 40m thick zone of weathered breccia (see Figure 4). Holes KSDD040 and 041 were drilled as infill holes on previously undrilled sections. Again, both of these holes intersected weathered breccia consistent with geological interpretation.

Figure 1: Khao Soon Tungsten Project – TPW collar plan, proposed holes and geochemistry 

Figure 2: Khao Soon Tungsten Project – Cross Section 938300mN  (KSDD37-38)

Figure 3: Khao Soon Tungsten Project – Cross Section 938350mN  (KSDD38)

Figure 4: Khao Soon Tungsten Project – Cross Section 938630mN  (KSDD39)

The drilling is being undertaken at sufficient spacing that should enable a Mineral Resource estimate to be reported, subject to the success of the program and other factors that contribute to a Mineral Resource.

The current results support previous work, confirming a relatively thick, shallow dipping breccia zone. The zone remains open at depth on all sections and is yet to be closed off along strike.

Importantly most of the intersections through the breccia zone are PQ diameter. This larger diameter (85mm) core maximizes core recovery, compared to previous HQ diameter core (61mm), where recovery was variable in some of the mineralized zones. The PQ core also provides additional material for metallurgical test work.

Drilling at TPW has now been paused and the Company awaits assay results from the laboratory and core from the more recent drilling is being processed and will be dispatched to the laboratory. As results become available, they will used to enhance the geological model and advance towards a Mineral Resource estimate

Table 1. Drillhole collar details

Forward Planning

As laboratory results from the current drilling program at Khao Soon are received they will be used to enhance geological interpretations and grade modelling with a view to updating the Exploration Target. Ultimately PAM’s aim is to report an inaugural Inferred Mineral Resource estimate, subject to ongoing success.

PAM is now relocating the drill rig to the Reung Kiet Lithium Project with drilling planned at the Bang I Tum and Reung Kiet Lithium prospects, where previous work by PAM has identified high priority lithium drill targets.

The planned drilling program at the Minter Tungsten Project in NSW still awaits the ratification of a land transfer relevant to the Land Access and Compensation Agreement.

The Company looks forward to keeping Shareholders and the market updated on the drilling progress and results obtained from the ongoing drilling program at Khao Soon.

Pan Asia Metals Managing Director Paul Lock said: “The Company continues to make good progress with the current drilling program starting before PAM listed on the ASX on the 8th of October, 2020, and continuing uninterrupted until completion of the program earlier this week, setting aside maintenance days and a short Christmas Break.  Assays are on their way to the laboratory and we expect to be reporting the first batch of results in the coming weeks.  We are also pleased to be moving the PAM exploration team and the drilling rig across to the Reung Kiet Lithium Project.  The robustness of demand growth in the electric vehicle market, which is nothing short of extraordinary, is now being reflected in the valuation of the lithium explorers, which have experienced a rapid increase in their valuations over the last couple of months.  The Company expects to be drilling at Reung Kiet Lithium Project next week and looks forward to reporting initial drilling results.”

Ends

Authorised by:

Board of Directors

About the Khao Soon Tungsten Project

The Khao Soon Tungsten Project is a wolframite style tungsten project located approximately 600km south of Bangkok in Nakhon Si Thammarat Province, Southern Thailand. PAM holds a 100% interest in 2 contiguous Special Prospecting Licences (SPL) a 1 Special Prospecting Licence Application (SPLA) covering about 33km².

Figure 5: Regional map identifying the location of the Khao Soon Tungsten Project

About the Reung Kiet Lithium Project

The Reung Kiet Lithium Project is a lepidolite style lithium project located about 70km north-east of Phuket in the Phang Nga Province in southern Thailand. Pan Asia holds a 100% interest in 3 contiguous Special Prospecting Licences (SPL) covering about 38km².

Figure 5: Regional map identifying the location of Phang Nga and the Reung Kiet Lithium Project

About Pan Asia Metals Limited (ASX:PAM)

Pan Asia Metals Limited (ASX:PAM) is a specialty metals explorer and developer focused on the identification and development of projects in South East Asia that have the potential to position Pan Asia Metals to produce metal compounds and other value-added products that are in high demand in the region.

Pan Asia Metals currently owns two tungsten projects and two lithium projects. Three of the four projects are located in Thailand, fitting Pan Asia Metal’s strategy of developing downstream value-add opportunities situated in low-cost environments proximal to end market users.

Complementing Pan Asia Metal’s existing project portfolio is a target generation program which identifies desirable assets in the region. Through the program, Pan Asia Metals has a pipeline of target opportunities in South East Asia which are at various stages of consideration. In the years ahead, Pan Asia Metals plans to develop its existing projects while also expanding its portfolio via targeted and value-accretive acquisitions.

To learn more, please visit: www.panasiametals.com

Stay up to date with the latest news by connecting with PAM on LinkedIn, Twitter and YouTube.

Investor Enquiries

Paul Lock

Managing Director

[email protected]

Media Enquiries

The Capital Network

Julia Maguire

+61 2 8999 3699

[email protected]

Competent Persons Statement

The information in this Public Report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Hobby, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hobby is an employee, Director and Shareholder of Pan Asia Metals Limited. Mr Hobby has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hobby consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

Various statements in this document constitute statements relating to intentions, future acts and events which are generally classified as “forward looking statements”. These forward looking statements are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other important factors (many of which are beyond the Company’s control) that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed in this document. For example, future reserves or resources or exploration targets described in this document may be based, in part, on market prices that may vary significantly from current levels. These variations may materially affect the timing or feasibility of particular developments. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Pan Asia Metals cautions security holders and prospective security holders to not place undue reliance on these forward-looking statements, which reflect the view of Pan Asia Metals only as of the date of this document. The forward-looking statements made in this document relate only to events as of the date on which the statements are made. Except as required by applicable regulations or by law, Pan Asia Metals does not undertake any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance.

Important

To the extent permitted by law, PAM and its officers, employees, related bodies corporate and agents (Agents) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of PAM and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this document or information.