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Pan Global Resources Inc
Symbol PGZ
Shares Issued 212,144,500
Close 2023-09-07 C$ 0.25
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Pan Global drills seven m of 0.64% Cu at Escacena

2023-09-08 10:05 ET - News Release

Mr. Tim Moody reports


Pan Global Resources Inc. has released positive results for its follow-up drilling at the Canada Honda and Zarcita targets at the 100-per-cent-owned Escacena project in the Iberian pyrite belt, southern Spain. Both targets are located four kilometres north of the La Romana copper-tin-silver discovery, where continuing drilling is extending mineralization at Romana West. Three follow-up drill holes have been completed at the Canada Honda copper-gold target and an additional 13 drill holes have been completed at the Zarcita copper target.

The company will host a conference call and webcast on Monday, Sept. 11, 2023, at 10 a.m. ET (7 a.m. PT) to discuss the Canada Honda and Zarcita drill results, and also provide an overview of current exploration and drilling at Romana West. An open question-and-answer (Q&A) session will follow a short presentation. For webcast details, please see information at the conclusion of this release.

"The follow-up drilling at Canada Honda confirms copper-gold mineralization coincident with a gravity anomaly, and extends the copper-gold mineralization from surface to 600 metres down-dip, where it remains wide open. The new results highlight additional gold potential in the hanging wall. The drilling is at the eastern end of a two km long east-west gravity target, indicating potential for the mineralization to significantly expand, making this a compelling, high-priority target for additional drilling," said Tim Moody, Pan Global's president and chief executive officer.

Currently, drilling at Escacena is focused along the highly prospective western extension (Romana West) of the La Romana copper-tin-silver discovery. In addition to the 12 geophysical targets that are being sequentially prioritized for drill testing, exploration on the 5,760-hectare Escacena project continues to identify new drill targets. Initial assay results from the first set of drill holes at Romana West are expected soon.

Drill hole assay results for Canada Honda are summarized in the table entitled "Canada Honda drill results summary (all intervals close to true thickness)." Drill assay results for Zarcita are summarized in the table entitled "Zarcita drill results summary (all intervals close to true thickness to greater than 90 per cent)."

Canada Honda highlights:

  • New drill hole results include:
    • CHD05 -- 20 m at 0.5 per cent copper (Cu), 0.8 gram per tonne (g/t) gold (Au) and 1.9 g/t silver (Ag), including 5.1 m at 1.3 per cent Cu, 0.5 g/t Au and 3.9 g/t Ag (reported July 4, 2023); and new results including two m at 1.6 g/t Au.
    • CHD06 -- seven m at 0.6 per cent Cu, 0.8 g/t Au and 6.5 g/t Ag, including three m at 1.1 g/t Au and 5.5 g/t Ag.
    • CHD07 -- five m at 1.1 g/t Au, 0.2 per cent Cu and 2.3 g/t Ag.
  • Surface rock samples up to nine g/t Au;
  • New untested DHEM (down-hole electromagnetic) conductor anomalies.

The follow-up drill program included holes CHD05, CHD06 and CHD07. Drill hole CHD05, testing 150 m down-dip from previous drill hole CHD04 and approximately 330 m down-dip from a historical mine tunnel, confirmed copper-gold mineralization coincident with the targeted gravity anomaly. CHD06, located 100 m east of CHD05, intersected copper-gold mineralization coincident with a DHEM target. Hole CHD07 tested a resistivity low anomaly 190 m down-dip from CHD05. Each of the drill holes also intersected additional gold mineralization in the hanging wall.

DHEM in holes CHD06 and CHD07 confirmed new off-hole conductor anomalies for future drilling to test the potential for stronger sulphide mineralization.

Anomalous gold assays from 28 rock grab samples at Canada Honda indicate a gold anomaly extending 200 m west of the historical mine tunnel and up-dip from the recent drilling, with several samples reporting greater than 0.1 g/t Au, up to nine g/t Au.

Zarcita results commentary

"The recent exploration drilling and mapping at Zarcita has highlighted a 2.1 km long trend with anomalous copper, lead, zinc, gold and silver. The highest potential remains centred on the historical Zarcita mine workings where drilling has intersected narrow intervals of higher-grade copper within a wider zone of stockwork and alteration. While untested down-hole electromagnetic conductors, gravity and IP [induced polarization] anomalies define prospective targets for future campaigns at Zarcita, the Romana West and Canada Honda targets are key near-term priorities," said Mr. Moody, Pan Global's president and CEO.

Zarcita highlights:

  • New drill hole results include:
    • ZAD05: intersected copper mineralization from surface, including 14.45 m at 0.2 per cent Cu before entering a 10.5 m assumed historical mine cavity.
    • ZAD06: 5.5 m at 0.7 per cent Cu from 106.2 m, including 1.85 m at 1.6 per cent Cu, 0.15 g/t Au and 2.4 g/t Ag.

The completed drill program at Zarcita includes 17 holes for a total of 4,363 m, along a 2.1 km east-west trend. The holes were designed to test a combination of geophysical, geological and geochemical targets, and to acquire mineral alteration information to assist in identifying vectors to potential higher-grade mineralization. Results from the first four holes, ZAD01 to ZAD04, drilled on a single north-south section, were reported on Jan. 17, 2023, showing copper grades increasing to 400 m down-dip and narrow intervals of higher grades (for example, drill hole ZAD04: 17 m at 0.3 per cent Cu, including 1.9 per cent Cu over 1.1 m). The new drill holes, ZAD05 to ZAD17, were drilled on a 100 m to 600 m spacing along the trend. Much of the strike potential to date has only been tested by single wide-spaced drill holes.

The most promising results are from a 600 m section of the 2.1 km trend, coincident with the Zarcita mine workings. This includes thin bands of semi-massive and massive sulphide intervals within a wider zone of stockwork veining and chlorite-sericite alteration. DHEM in holes ZAD01 and ZAD05 identified untested off-hole and below-hole anomalies, representing potential nearby stronger sulphide mineralization.

Drill hole ZAD05 intersected 0.2 per cent Cu (oxide zone) over 14.85 m from surface, followed by 10.5 m with no core recovery in an assumed historical mine cavity, and trace chalcopyrite continuing in the drill core below the cavity. Drill holes ZAD06 and ZAD15 intersected narrow intervals of high-grade copper. The mineralization remains open down-dip and along-strike within the historical mining area.

Investor call to discuss drill results and Escacena exploration update

The company will host a conference call and webcast on Monday, Sept. 11, 2023, at 10 a.m. ET to discuss the Canada Honda and Zarcita drill results, and provide an overview of current exploration and drill testing at Romana West. An open Q&A session will follow a short presentation.

Date:  Monday, Sept. 11, 2023

Time:  10 a.m. ET (7 a.m. PT)

Please register on-line in advance.

After registering, you will receive a confirmation e-mail containing information about joining the meeting. Investors are encouraged to send questions or topics of interest in advance to investors@panglobalresources.com, to be addressed following the presentation. A link to the webcast will be available on the company's website following the live broadcast.

About the Escacena project

The Escacena project comprises a large, contiguous, 5,760-hectare land package controlled 100 per cent by Pan Global in the east of the Iberian pyrite belt. Escacena is located near operating mines at Las Cruces and Riotinto, and is immediately adjacent to the former Aznalcollar and Los Frailes mines, where Minera Los Frailes/Grupo Mexico is in the final permitting stage with construction anticipated to start in 2023. The Escacena project hosts the La Romana copper-tin-silver discovery and a number of other prospective targets, including Romana West, Canada Honda, Bravo, Barbacena, El Pozo, Zarcita, Hornitos, La Jarosa, Romana Deep, Romana North and San Pablo.

About Pan Global Resources Inc.

Pan Global Resources is actively targeting copper-rich mineral deposits, given copper's compelling supply-demand fundamentals and outlook for strong long-term prices as a critical metal for global electrification and energy transition. The company's flagship Escacena project is located in the prolific Iberian pyrite belt in southern Spain, where infrastructure, mining, and professional expertise and support for copper as a strategic raw material by the European Commission collectively define a Tier 1 jurisdiction for mining investment. The Pan Global team comprises proven talent in exploration, development and mine operations -- all of which are committed to operating safely and with utmost respect for the environment and partnered communities.

Quality assurance/quality control procedures

Core size was HQ (63 millimetres), and all samples were one-half core. Nominal sample size was one m core length and ranged from 0.5 m to two m. Sample intervals were defined using geological contacts, with the start and end of each sample physically marked on the core. Diamond blade core cutting and sampling were supervised at all times by company staff. Duplicate samples of one-fourth core were taken approximately every 30 samples, and certified reference materials were inserted every 25 samples in each batch.

Drill core and rock samples were delivered to ALS laboratory in Seville, Spain, and assayed at the ALS laboratory in Ireland. All samples were crushed and split (method CRU-31, SPL22Y), and pulverized (method PUL-31). Gold analysis was by 50-gram fire assay with ICP (inductively coupled plasma) finish (method Au-ICP22) and multielement analysis was undertaken using a four-acid digest with ICP-AES(inductively coupled plasma atomic emission spectroscopy) finish (method ME-ICP61). Overgrade base metal results were assayed using a four-acid digest ICP-AES (method OG-62). Overgrade tin was determined using peroxide fusion with ICP finish (method Sn-ICP81x).

Qualified person

James Royall, vice-president of exploration for Pan Global Resources and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information for this news release. Mr. Royall is not independent of the company.

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