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.

| More on:
Vanadium Resources share price person riding rocket indicating share price increase

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Energy Shares

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today
Energy Shares

Looking for opportunity? This sector has fallen the furthest in 2025

Whilst the ASX 200 has largely rebounded from a turbulent start to the year, this sector is yet to recover. 

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Share Gainers

The Coronado Global share price just surged to a 114% weekly gain. Here's why

Investors have sent the ASX coal stock flying higher in June. But why?

Read more »

Worker inspecting oil and gas pipeline.
Dividend Investing

Should I buy Woodside shares today for their 8% dividend yield?

With an 8% dividend yield and a resurgent share price, should I buy Woodside shares right now?

Read more »

Happy coal miner.
Share Gainers

Up 75% this week, why is this ASX All Ords stock rocketing again today?

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 43% on big news!

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant
Energy Shares

4 reasons to buy Santos shares right now

A leading expert forecasts Santos shares and dividends are set to grow. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX 200 stock has rocketed 86% since April?

This sky rocketing ASX 200 stock continues to defy short sellers. But how?

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

4 ASX 200 energy shares making big moves today as OPEC's oil production set to surge

ASX energy shares, including Woodside and Santos, are making big moves today. But not all in the same direction.

Read more »