FREE

Pan Asia Metals Limited (ASX: PAM) - Tungsten and Lithium Projects located in Thailand - By-products including, sulphate of potash (“SoP”), a high quality Potassium Fertiliser

CRITICAL METALS IN A LOW COST JURISDICTION
Pan Asia Metals (“Pan Asia” or “the Company”) is a recent listing on the ASX, with a focus
on developing “critical” metals projects in the emerging economic powerhouse of SE Asia.
The overall strategy is to concentrate on those commodities and jurisdictions that provide the
opportunity for low cost operations with the potential to value add, and thus maximise returns.
As such, SE Asia, a low operating cost region with strong economic growth when compared
to other jurisdictions has been targeted.
The initial projects include tungsten and lithium properties located in the Southeast Asian Tin-
Tungsten Belt in Thailand, the 21st largest economy globally. Both commodities are considered
“critical” in terms of supply and economic importance by the USA and European Union, and
also present the opportunity to undertake downstream processing should economically viable
deposits be found. This strategy is also in concert with Thailand’s “Thailand 4.0” development
strategy, which is looking towards high return, value add industry.
The 100% owned Khao Soon Tungsten Project saw significant high grade production until
~1980, and work to date by Pan Asia has highlighted the potential to define high grade
mineralisation - this work has already resulted in an Exploration Target of 15 to 29 Mt @ 0.2% to
0.4% WO3 for 30 to 116 kt contained WO3 being defined. Drilling by the Company has returned
up to 51.2 m @ 0.50% WO3 from surface, including 12.8 m @ 1.07% WO3 from 14.8 m.
Lithium projects include Reung Kiet and Bang Now, which host lepidolite-bearing pegmatites
that have seen historical tin production. Although currently global hard rock lithium production
is from spodumene pegmatites, development studies and pilot scale test work by various
companies have demonstrated the potential of lepidolite to be a cost effective source of
downstream lithium products when the value of by-products is included. Such by-products may
include, amongst others, sulphate of potash (“SoP”), a high quality potassium fertiliser, that
should see a growing market with increased intensity of agricultural production in the region.
The Company has an active work programme, largely comprised of drilling (which has
commenced at Khao Soon), going forward, and thus we would expect to see steady news flow
over coming months. There are no COVID-19 impediments to exploration activities in Thailand,
with the country having one of the lowest infection rates globally.
KEY POINTS
Quality projects: Pan Asia has a portfolio of largely brownfields tungsten and lithium projects
in an under-explored but globally significant mineralised province with the quality being affirmed
by results of work to date. Khao Soon historically was a very high grade producer.
In demand metals: Demand for both lithium and tungsten is forecast to grow over coming
years - lithium largely due to growth in electric vehicles, and tungsten due to overall economic
growth as we come out of the COVID-19 pandemic and governments printing money to drive
growth. Also, production of downstream products (and in the case of tungsten, upstream
production) is largely controlled by China, with end users looking for diversity in supply.
Attractive jurisdiction for investment: Recent government initiatives have enhanced Thailand
as an investment destination, with these aimed at attracting foreign investment, developing
infrastructure, high tech and value add industries and modernising the agricultural industry. The
country has also updated the Mining Law, with Pan Asia being one of the first companies to be
granted tenements under the new law.
Infrastructure rich: The projects are in a region well endowed with infrastructure, including
transport and utilities.
Experienced and committed personnel: Company personnel have extensive experience in
the junior resources space (including in SE Asia), In addition directors directly and indirectly
hold ~56% of the shares in Pan Asia, a key strength that aligns the interests of company
personnel with that of the other shareholders.
Leveraged to exploration success: With an enterprise value (“EV”) of ~A$16 million, Pan
Asia is well leveraged to exploration success.