Pan Asia Metals Acquires High-Grade Rosario Copper Project in Chile
PAM (PAM) Share Update July 2024 Monday 29th
Pan Asia Metals Secures High-Grade Rosario Copper Project
Pan Asia Metals Limited (ASX: PAM) has announced that it has secured the high-grade Rosario Copper Project in Chile, marking a significant step in its strategic expansion into battery metals.
Instant Summary:
- PAM enters exclusivity agreement for Rosario Copper Project after 12 months of review and negotiation.
- Rosario Copper Project located in Chile's premier copper mining region, near El Salvador copper mine.
- Three prospective trends identified with a combined strike length over 10km and mineralized zones up to 200m wide.
- 73 out of 89 samples showed copper grades averaging 2.13% Cu, with some samples exceeding 5% Cu.
- Silver grades average 6g/t, with some samples reaching up to 42g/t.
- Rosario Project offers PAM battery metal diversification and potential for low-cost production.
- PAM plans additional geochemical sampling, mapping, trenching, and geophysics to delineate drill targets.
Project Overview
Pan Asia Metals Limited (ASX: PAM) has secured the Rosario Copper Project, a high-grade Manto style copper-silver project located in Chile's premier copper producing region. The project is strategically positioned 10km north of the El Salvador copper mine, offering PAM a strong entry point into the copper market.
The Rosario Copper Project is located in an infrastructure-rich setting, adjacent to Enami's Oxide and Sulphide processing plant and Codelco's Porterillos Copper Smelter. This strategic location provides significant logistical advantages for future development.
Exploration Potential
The project features three distinct prospective trends with a combined strike length of over 10km and mineralized zones up to 200m in width. Initial sampling has been promising, with 73 out of 89 samples showing copper grades averaging 2.13% Cu, and some samples exceeding 5% Cu. Silver grades average 6g/t, with some samples reaching up to 42g/t.
Strategic Importance
The Rosario Copper Project aligns with PAM's strategy to secure battery metals projects that can position the company as a low-cost producer. The project offers PAM's shareholders battery metal diversification and presents an opportunity to bring a new high-grade copper project to the market. The project meets PAM's prerequisites for strategically located battery metals projects with the potential to be situated in the lower third of the cost curve.
Next Steps
PAM will begin additional geochemical sampling, mapping, trenching, and Induced Polarisation geophysics to rapidly delineate drill targets. This work is expected to pave the way for drilling at the earliest opportunity.
The acquisition of the Rosario Copper Project is a significant milestone for PAM, potentially enhancing its portfolio with a high-grade, low-cost copper project. This move is expected to positively impact PAM's stock as it diversifies into copper, a critical metal for electrification. The strategic location and high-grade nature of the project could attract investor interest and boost market confidence in PAM's long-term growth prospects.
Investor Reaction:
Managing Director Paul Lock stated, 'The Rosario Copper Project ticks all PAM’s boxes: the Project is located in an infrastructure-rich setting, with all processing needs nearby; it demonstrates peer group leading copper grades from a large suite of rock chips; and it is located in a premier copper producing region known for its cost advantages.'
Analysts have responded positively, noting the project's potential to position PAM as a significant player in the copper market. Investors are optimistic about the diversification into copper and the strategic advantages offered by the Rosario Project.
Conclusion:
Investors should keep an eye on PAM's progress with the Rosario Copper Project as it undergoes further exploration and development. The project's high-grade nature and strategic location offer promising potential for PAM's growth in the battery metals sector. Stay informed on PAM's updates and strategic moves to capitalize on this significant acquisition.