Pantera Faces Drilling Challenges but Eyes Major Lithium Resource in Arkansas
Pantera Lithium has completed a detailed 3D geological model confirming the potential of its Arkansas lithium brine project and raised over $2 million to fund exploration despite initial drilling setbacks.
- Completion of 3D Static Geological Model by SLB covering 26,000+ net acres
- Model confirms potential for a world-class lithium brine resource in the Smackover Formation
- Raised $2.08 million via pro-rata entitlement offer to support exploration
- Initial lithium brine sampling well abandoned due to stuck drill string
- Planning accelerated for first standalone wells in early 2025
Strategic Geological Modelling Milestone
Pantera Lithium Limited (ASX: PFE) has marked a pivotal phase in its exploration journey with the completion of a comprehensive 3D Static Geological Model of the Upper Smackover Formation in Arkansas. Delivered by industry heavyweight SLB, the model integrates data from 38 wells, 13.34 miles of 2D seismic, and 481 gravity stations, covering Pantera's entire leased acreage exceeding 26,000 net acres.
This subsurface model not only validates the project's potential to host a large-scale lithium brine resource but also aligns Pantera’s asset with those of major players such as Exxon Mobil and Equinor/Standard Lithium. The model reveals significant porosity variations, with averages around 6.36% and peaks up to 25% in the northeast, providing critical insights for optimising drilling locations and resource definition.
Capital Raise and Exploration Progress
Backing its technical progress, Pantera successfully completed a pro-rata non-renounceable entitlement offer, raising approximately $2.08 million. The offer, priced at 2.2 cents per share with attached options exercisable at 5 cents, underscores strong shareholder support as the company advances its exploration program.
Despite encountering operational challenges with its initial lithium brine sampling well, abandoned due to unreported stuck drill string at depth, the company remains undeterred. The decision to cease re-entry operations was prudent, prioritising capital preservation amid high risk of cost overruns.
Looking Ahead: Standalone Wells and Acreage Expansion
Pantera has accelerated planning for its first standalone wells, targeting early 2025 for drilling. These wells aim to secure lithium brine samples for assay and direct lithium extraction (DLE) testing, with potential conversion into production or disposal wells. Concurrently, Pantera continues aggressive leasing efforts, solidifying its position as the largest listed acreage holder in the region outside of industry majors.
Meanwhile, Pantera has streamlined its focus by relinquishing its Yampi Copper Project tenements, concentrating resources and expertise on the promising Arkansas lithium brine play.
Financial and Operational Discipline
During the quarter, Pantera reported exploration expenditure of approximately A$550,000 and maintained a healthy cash position of A$2.34 million at quarter-end. Director fees accounted for A$143,000 of payments to related parties, reflecting ongoing governance costs. The company’s cautious approach to operational setbacks and capital management signals a disciplined pathway forward amid a competitive and evolving lithium sector.
With a robust geological foundation and financial backing, Pantera is well-positioned to unlock the substantial potential of its lithium brine project, though the coming months will be critical in translating geological promise into tangible resource metrics.
Bottom Line?
Pantera’s next steps in drilling and resource definition will be crucial to validating its world-class lithium potential and attracting further investment.
Questions in the middle?
- What lithium grade results will the upcoming standalone wells yield, and how will they impact resource estimates?
- How will Pantera navigate competitive leasing pressures from major players expanding nearby?
- What are the timelines and cost implications for converting exploration wells into production-ready assets?
