Pan American Energy Initiates Metallurgical Testing at Horizon Lithium Project

Pan American Energy Corp.  (Pan American or the Company) announced the start of extensive metallurgical testing at the University of Nevada, Reno (UNR). At the Horizon Lithium Project (Horizon), which is situated in the Big Smoky Valley of Esmeralda County, Nevada, the Company supplied 46 distinct lithium-bearing core samples from 12 different drill holes.

The 12 drill holes represented were a part of Pan American's Phase 1 and Phase 2 drilling campaigns that were finished at Horizon in 2023. Pan American announced an indicated mineral resource of 1.325 million tons of Lithium Carbonate Equivalent (LCE) and an inferred mineral resource of 8.879 million tons of LCE based on the Phase 1 and Phase 2 drilling findings.

Over 372,845,000 tons, the average grade of the indicated mineral resources was 669 ppm lithium. Over a total tonnage of 2,453,963,000 tons, the average grade of the inferred mineral resources was 680 ppm lithium.

The 46 samples that were submitted have all been found to have lithological traits characteristic of the host lithology and carry an assayed lithium grade within 50 +/- of 669 ppm to provide a sample set that is representative of the deposit.

The commencement of the metallurgical research and evaluation on the Horizon core samples is a big step forward for the Company. Through thorough analysis and collaboration with the UNR, we believe we can unlock valuable insights into the composition of the material at Horizon and potential extraction methods, with the ultimate goal of optimizing our process designs and thereby enhancing our competitive position. This strategic initiative aims not only to fuel innovation but also to position the Company for success.

Jason Latkowcer, Chief Executive Officer, Pan American Energy Corp. 

There are different stages to the mineral processing and metallurgical testing process. Phase 1 is in progress right now.

• Phase 1: Sample Receipt and Preparation: Physical Properties Assessment: This phase involves calculating sample density, performing particle size analysis, and following exacting preparation guidelines.  

• Phase 2: Head Analyses: Using the ICP method, samples are analyzed for lithium, boron, magnesium, calcium, sodium, and a number of other individual elements.  

• Phase 3: Leach Extraction Testing: This stage includes sulfuric acid leach shake tests to ascertain the sample's initial leaching properties at room temperature.  

• Phase 4: Lithium Recovery From Solution: To produce lithium carbonate, impurities are removed, and concentrations of lithium are raised through experimental techniques.  

• Phase 5: Investigating Possible By-Products: This phase looks into the prospect of extracting additional elements that might be present in noteworthy quantities. 

• Phase 6: Proposed Flowsheet Development: This phase involves putting forth a preliminary flowsheet that delineates the material flow rates in various sections of the process. It is anticipated that this flowsheet will be modified in response to continuous testing and optimization.