New Chilean ground bolsters Pan Asia lithium play

Pan Asia Metals has secured an extra 303 square kilometres of exploration concessions under option agreements for its ambitious Tama Atacama lithium project in northern Chile, stretching the company’s total landholding at the site out to a searching 1235km sq.

The move anchors Pan Asia’s presence in one of South America’s biggest and most strategically-important lithium brine regions.

The company had previously entered into an option agreement for a 1036sq km plot in the northern project area, in addition to a memorandum of understanding (MOU) for 400sq km in the southern region. Today’s granting of concessions marks the successful conclusion of a fifth round of exploration grants this year.

Given that it is subject to a judicial process in Chile, the granting of the concessions provides management with a high degree of confidence in its security of tenure.

‘We are keeping the big picture in mind, building out our brine holdings in Chile, the lowest-cost lithium producing country in the world.’

Pan Asia Metals chairman and managing director Paul Lock

About 13sq km of the newly-granted concessions are within the 400sq km under the MOU. Known as the southern project area, it is close to the company’s Ramatidas and Powerline prospects.

Once the total southern area is granted, the new ground will be integrated into the overall project. To date, 263sq km of the total 400sq km under the MOU have been granted.

Pan Asia Metals chairman and managing director Paul Lock said: “At PAM, we are keeping the big picture in mind, building out our brine holdings in Chile, the lowest-cost lithium producing country in the world. Strategic positioning is paramount to achieving low-cost, long-term lithium production, and low cost is important because if you are in the bottom third of the cost curve, you will typically make good margins regardless of the underlying price cycle.”

Last December, the Chilean Congress made a significant move by passing “Law No.21420″, which ushered in important changes to the Chilean Mining Code. Among the standout modifications was the extension of the term for exploration concessions to four years, with the potential for an additional four-year renewal – replacing the old two-plus-two-year licensing system. Consequently, the two newly-granted exploration concessions will now remain valid until 2027 and 2028, respectively, providing a longer horizon for development and exploration.