Pan Global Resources - Escacena Investigation Permit Granted and Drilling in Progress, Spain
TSX VENTURE: PGZ
Vancouver, British Columbia--(Newsfile Corp. - December 10, 2018) - Pan Global Resources Inc. (TSXV: PGZ) ("Pan Global" or the "Company") is pleased to announce the grant of a mineral exploration permit on the Escacena gold / copper / zinc prospect in the Iberian Pyrite Belt in southern Spain. The Company also provides an update on drilling progress in the Aguilas project, in Córdoba and Ciudad Real provinces, Spain.
- The Escacena Investigation Permit has been granted and formal notice received by EVALAM 2003 SL (EVALAM) on 28 December, 2018. Pan Global has a binding Letter of Intent with EVALAM, providing the company an exclusive option to acquire 100% of the Escacena mineral rights.
- Exploration on the Escacena property can commence immediately. The target is volcanic-hosted massive sulphide copper and zinc in the Iberian Pyrite Belt on-strike from Aznalcollar, Los Frailes and Las Cruces mines.
- Drilling is advancing in the Aguilas Project with approximately 25% of the planned drilling completed and results awaited for several drill holes. Assays will be released early in the new year.
- The drilling on the Torrubia trend has confirmed the presence of a large multi-stage breccia system with IOCG-style hematite alteration and associated copper mineralisation. A small portion of the >12 kilometre long Torrubia Trend has been tested so-far.
- Drilling is now shifting to the Zumajo lead-zinc-silver trend. Drilling will resume on the Torrubia copper target as soon as access is granted.
Tim Moody, President and CEO states: "The granting of the Escacena Investigation Permit is an important milestone and allows exploration to commence on this highly prospective property in the World's premier volcanic-hosted massive sulphide district. Drilling on the copper targets in the Aguilas project is encouraging at this early stage and shows many components of a large iron oxide copper gold (IOCG) style system."
On June 8, 2017, the TSX Venture Exchange accepted for filing the Letter of Intent dated May 15, 2017 between Pan Global and EVALAM whereby the Company may acquire a 100% interest in the Escacena Investigation Permit (2,060 hectares) in the Iberian Pyrite Belt, southern Spain (Figure 1).
Consideration is $350,000 cash over a 3-year period and $1,000,000 in exploration work commitments. The Vendor will retain a NSR of 0.5% on the first 12,500 tonnes of copper equivalent and 0.75% on any amount in excess of 12,500 tonnes of copper equivalent. The NSR has a lifetime cap of $5,000,000. On November 26, 2018, the Junta de Andalucia issued written notice to EVALAM granting "Escacena" Investigation Permit No. 14,903.
The Escacena property includes two large gravity anomalies. Wide-spaced historical drilling on the La Romana gravity anomaly in the south of the property confirmed massive sulphide and stock work mineralisation over approximately 1.3 kilometres of strike, including a best drill interval of 4.68 metres @ 2.94% Cu (open). In the North of the property, the Cañada Honda target is a 1.5 x 0.5 kilometre untested gravity anomaly in a favourable geological setting along-strike from the nearby Aznalcollar and Los Frailes massive sulphide deposits.
The Aguilas project covers more than 16,000 hectares in northern Andalucia, Spain and includes the Las Aguilas group of mineral rights (Figure 2). The area contains several major Northeast trending fault / breccia structures with indications of hematite-dominant iron oxide copper gold (IOCG) style mineralisation. Exploration to-date has focused on the >12 km long Torrubia copper trend and >20 kilometre long Northwest trending Zumajo lead-silver mine trend. None of the targets have been drill tested previously.
The company commenced systematic exploration in the Aguilas Project in 2017 resulting in delineation of two large copper anomalies on the Torrubia copper trend with up to 0.69% Cu in soils and up to 28% Cu, 33% Fe, 1.7g/t Au, 15.5g/t Ag and 0.13% Co in rock samples. The Torrubia copper target is approximately 3.1 x 0.32 kilometres and Cerro Aguila copper target is approximately 0.6 x 0.3 kilometres.
Soil geochemistry on a 6 kilometre section of the Zumajo trend outlined two large lead-zinc-silver soil anomalies with historical mine reports and sampling of mine dumps indicating potential for high metal grades. This includes a 1.8 kilometre long target associated with the former San-Juan and San Rafael mines and a separate target extending for 1 kilometre along strike from the former San Cayetano mine. Results include up to 8.9% Pb, 0.97% Zn, 17.5g/t Ag and 672ppm Cu in soils and up to >20% Pb, 20.7% Zn, 235g/t Ag and 12.75% Cu in rock grab samples from mine dumps.
In September 2018, the company commenced its first drill campaign at the Aguilas project. The planned program includes approximately 20 to 25 drill holes and total of 3000 to 4000 metres. The drill holes are designed to provide the first test of the copper and polymetallic targets, and provide information on the geology and nature of the mineralisation to help future targeting. Approximately 25% of the planned drill holes have been completed to-date. Samples are delivered to ALS Laboratories in Seville, Spain for preparation and analysis. The company expects to release assay results early in 2019. Photos of drill core shown in Figure 3.
Robert Baxter (FAusIMM), a Director of Pan Global Resources and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Mr. Baxter is not independent of the Company.
About Pan Global Resources
Pan Global Resources Inc. is actively engaged in base and precious metal exploration in Spain and pursuing opportunities from exploration through to mine development. The company has committed to operating safely and with respect to the communities and environment where we operate.
On behalf of the Board of Directors
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(a) TOR-001 oxide and sulphide copper mineralisation,
(b) TOR-001 marcasite + chalcopyrite with bornite rims,
(c) TOR-001 breccia and (d) CDA-002 breccia
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