Why the Pan Asia Metals (ASX:PAM) share price is rocketing 39% today

The ASX resource minnow has drawn increasing investor interest over the past 2 weeks.

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The Pan Asia Metals Ltd (ASX: PAM) share price is surging again in early trade. Shares are up 39% at the time of writing to 79 cents.

Today's meteoric rise for the ASX battery metals explorer follows a series of recent huge daily gains.

Those daily leaps have seen Pan Asia Metals share price soar an astonishing 380% since 30 August. Yep, that's just 6 days ago.

Yesterday, investor enthusiasm was roused by the company's announcement of its capital raising.

Today, investors appear to be snapping up stock following the release of promising drilling results.

What drilling results did the resource explorer report?

The Pan Asia Metals share price is off to the races again today after the company reported it had intersected thick pegmatites at its Reung Kiet Lithium Prospect in Thailand.

The promising results come from 6 additional drill holes. According to the explorer, they indicate the potential of "extensive lithium mineralisation hosted in lepidolite rich pegmatite dykes and veins".

Pan Asia Metals managing director Paul Lock noted, "Peer feasibility studies suggest that lepidolite is the lowest cost source of lithium and potentially has one of the lowest carbon footprints."

The company has defined a 1-kilometre strike length which remains open.

Some of the top results include:

  • RKDD031: 14.9 metre wide pegmatite from 90.1 metre; and 18.4m thick pegmatite from 130.7m
  • RKDD030: 31.4m of composite pegmatite thickness from 42.3m-80.2m
  • RKDD029: 23.25m thick pegmatite dyke from 49.95m

Commenting on the results, Lock added:

We are rapidly progressing to a Mineral Resource and we are targeting the delivery of a Scoping Study in the first quarter of calendar year 2022. Our aim at the Reung Kiet Lithium Project is to deliver a Mineral Resource which is sufficient to operate a 10,000 tonne per annum lithium hydroxide or lithium carbonate plant for 10 plus years, initially.

The company said it intends to continue drilling, aiming to report a Mineral Resource in accordance with the JORC Code 2012.

It expects assay results for 7 previously drilled holes in about 2 weeks.

Pan Asia Metals share price snapshot

Year-to-date, the Pan Asia Metals' share price has soared 461%. To put that in some perspective, the All Ordinaries Index (ASX: XAO), which is having a very strong year so far, is up 12% in 2021.

The Pan Asia Metals share price is up 342% since this time last month.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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