Canada-based mining explorer Pan American Energy has filed a maiden technical report for the Horizon lithium project located in Nevada, US.

The report discloses an estimated indicated mineral resource of 1,325 kilo tonnes (KTonnes) of lithium carbonate equivalent (LCE) and an inferred mineral resource of 8,879KTonnes, featuring an average grade of 678 ppm lithium (Li).

According to the company, Horizon is among the largest identified lithium deposits in the US. Consisting of 839 claims, the Horizon lithium project is located around 7.5km west of Tonopah.

The mineral resource estimate (MRE) relies on data from 20 diamond drill holes conducted in 2023, occurring within the first year of Pan American Energy obtaining rights to the project through a property option agreement with Horizon Lithium, the project owner.

One drill hole was excluded from the MRE due to unfavourable hole conditions.

The Canada-based mining exploration company has indicated substantial expansion opportunities at the Horizon lithium project by conducting step-out drilling to extend the deposit in the Northwest, South, East, and West directions, as well as at greater depths.

The company is actively assessing geophysical exploration methods and progressing with Phase 3 drill planning, in accordance with the recommendations outlined in the technical report.

Pan American Energy said that the technical report authors suggested undertaking a preliminary economic assessment (PEA) for the project, contingent on the outcomes of geochemical testing of samples obtained during the suggested drilling and planned metallurgical testwork.

The company has initiated the required tasks to finalise the essential metallurgical testwork, with an aim to conclude the PEA in Q4 2024.

As per Pan American Energy, the Horizon lithium project has an advantageous location in close proximity to crucial infrastructure and the town of Tonopah, with minimal hindrances such as the absence of intersecting highways affecting pit design.

Pan American Energy CEO Jason Latkowcer said: “We are proud to publish the inaugural technical report for the Project. The initial mineral resource estimation highlights the identification of a promising high-grade, large-tonnage lithium deposit in North America.

“The deposit is open in numerous directions and at depth.

“We expect upcoming geophysical exploration techniques to further refine Phase 3 drill targeting and are in active conversations with partners to support metallurgical testing as we advance towards a PEA at the Project.”