Battery metals explorer Pan Asia Metals Limited (ASX: PAM) entered into binding option agreements to buy the Tama Atacama Lithium Brine Project in Chile.
The company said on Tuesday that it also bought the northern half of the Ramatidas project area, and the entire area is approximately 1,200 square kilometers.
Tama Atacama encompasses three salars and contains extensive lithium surface anomalies with assays reporting up to 2,200 parts per million lithium (ppm Li) and an average of 700ppm Li. These lithium anomalies form a trend that extends approximately 160 kilometers from north to south.
The project is situated within the 12,500 square kilometer Pampa del Tamarugal Basin, located in the Atacama Desert in northern Chile.
Reconnaissance work has indicated the presence of similar geochemical signatures to Salar de Atacama. Historical geophysics analysis reveals the existence of a very large basin with depths of up to 600 meters.
The geological context resembles that of other brine deposits, including Salar de Atacama and Clayton Valley. Its altitude, ranging from 800 to 1,100 meters, positions it as one of the lowest-lying lithium brine projects on a global scale. The project’s location in a hyper-arid environment, characterized by extremely high evaporation rates, will contribute to enhancing operational efficiency.
Pan Asia is in talks with potential strategic partners, and it anticipates communicating with Chilean Government organizations in early 2024. According to the company the attractiveness of Tama Atacama is its scale, high lithium surface grades, strategic positioning and proximity to several evaporation operations.
Pan Asia expects these discussions to accelerate as the Option agreements are executed.
The Tama Atacama lithium project in Chile. Image via Pan Asia Metals.
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Lithium Triangle represents strong lithium market competition
Pan Asia will have some high level competition in the Salar de Atacama.
The news comes shortly after state-owned Chilean copper miner Codelco’s announcement that it would lead a new government-sponsored exploration joint venture with lithium giant Sociedad Química y Minera de Chile (SQM) (NYSE: SQM).
The combined company will work on battery metal production also in the Salar de Atacama.
The company will initiate its first phase of operations in 2025, with expectations of ongoing activities until 2060. The primary focus of the company will be the “Salar Futuro” exploration project, which is scheduled to commence in 2031, along with the implementation of new contracts signed with CORFO as part of the joint venture agreement.
Codelco will incorporate new efficient technologies into the future operation on the salt flat.
Competition for lithium production extends far beyond the Salar de Atacama, extending into the rest of the lithium triangle.
The Lithium Triangle is a geographic region encompassing parts of Argentina, Bolivia and Chile. Another two lithium dominant regions throughout the triangle include Bolivia’s Salar de Uyuni in Bolivia, and Salar del Hombre Muerto in Argentina.
Argentine President Javier Milei recently implemented changes to government regulations to help mining companies in the state.
A well-established French company, Eramet S.A. (EPA: ERA), recently invested USD$800 million in Argentina’s lithium sector.
However, exploration in the country is not limited to state-selected companies.
Junior explorers such as Recharge Resources Ltd. (CSE: RR) (OTC: RECHF), Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ), and Argentina Lithium & Energy Corp. (TSXV: LIT) (OTC: PNXLF) are actively working to capitalize on the country’s lithium resources.
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