Pan American Energy Corp. [CSE-PNRG; OTCQB-PAANF; FSE-SS60], further to its news release dated November 20, 2023 announcing the maiden mineral resource estimate (the MRE) for the Horizon Lithium Project, Nevada, it has filed a NI 43-101 technical report with an effective date of December 21, 2023.
Highlights: One of the largest identified lithium deposits in the U.S. with an estimated Indicated Mineral Resource of 1,325 Lithium Carbonate Equivalent (LCE) Kilo tonnes (KTonnes) and Inferred Mineral Resource of 8,879 LCE KTonnes, with an average grade of 678 ppm lithium.
High-Grade Mineral Resources. Estimates were calculated based on a conservative 300 ppm Li cut-off within an optimized pit.
Rapid advancement in a short timeframe: The MRE is based on 20 diamond drill holes completed in 2023, within one year of the company acquiring rights to the project pursuant to the property option agreement entered into with the owner of the project, Horizon Lithium LLC. One hole was abandoned due to hole conditions and was not used in the MRE.
Significant expansion potential through step-out drilling to extend the deposit to the Northwest, South, East and West and at greater depths. The company is actively evaluating geophysical exploration techniques and Phase 3 drill planning, as recommended by the authors of the Technical Report.
Project engineering: The authors of the Technical Report recommend that a Preliminary Economic Assessment (PEA) be completed for the project, pending results from geochemical testing of samples gathered during the recommended drilling and planned metallurgical testwork. The company has begun the work necessary to complete the necessary metallurgical testwork, and the Company is targeting the completion of a PEA in Q4-2024.
Access and infrastructure: The project benefits from an ideal location near essential infrastructure and the town of Tonopah with limited impediments (i.e. no highway intersects impacting pit design).
Jason Latkowcer, CEO, stated, “We are proud to publish the inaugural technical report for the Project. The initial mineral resource estimation highlights the identification of a promising high-grade, large-tonnage lithium deposit in North America. The deposit is open in numerous directions and at depth. We expect upcoming geophysical exploration techniques to further refine Phase 3 drill targeting and are in active conversations with partners to support metallurgical testing as we advance towards a PEA at the project.”
The MRE was estimated and reported with an effective date of November 15, 2023. The estimated mineral resources at the project were classified by geological and quantitative confidence in accordance with the NI 43-101 CIM Definition Standards for Mineral Resources and Reserves.
The mineral resources were tabulated to reflect potential open pit mining extraction as the primary scenario. A pit optimization was produced to meet the requirement of reasonable prospects for eventual economic extraction and reports production as LCE. The in-pit mineral resources are reported at a cutoff grade of 300 parts per million Li.
Indicated resources are 372,845 KTonnes of 669 ppm Li with Inferred resources of 2,453,963 KTonnes of 680 ppm Li.
The authors of the Technical Report have recommended that the company conduct two phases of additional work on the Project, including exploration and metallurgical testing, while concurrently developing a PEA. The authors recommend a phased approach to the further exploration of the project, including a Phase 1 Geophysical Survey – Conducting a seismic survey of the Project to define the thickness of overburden sediments and gain a better understanding of underlying structural features; Exploration and Infill Drilling – Completing drillholes in the western and southern portions of the Project to laterally expand the stratigraphic understanding and potentially grow the mineral resource; completing infill drilling with the aim of upgrading the mineral resource classification and extending the mineral resource to greater depth; Metallurgical Testing – Developing a processing strategy, which is paramount to Project advancement and overall de-risking of the Project. The authors recommend that the Company continue pursuing partnerships with select academic and institutional and research groups to develop the process for the recovery of claystone-hosted Li.
Phase 2 – PEA – To define the economic viability of the Project, the authors recommend the company complete a thorough scoping study of the potential profitability and risks associated with the Project.
The company is evaluating geophysical exploration techniques and engaged in Phase 3 drill planning. The Company has also begun the work necessary to complete the necessary metallurgical testwork, and the company is targeting the completion of the PEA in Q4-2024.
Pan American Energy executed an option agreement in Canada with Magabra Resources, providing for the right to acquire up to a 90% interest in the drill-ready Big Mack Lithium Project 80 km north of Kenora, Ontario. The company has also entered into a property option agreement with Horizon Lithium LLC, providing for the right to acquire a 100% interest in the Horizon Lithium Project, located within Esmeralda County – Tonopah Lithium Belt, Nevada, USA.
