Pan Global Resources Announces First Drill Results from the Aguilas Project in Spain
TSX VENTURE: PGZ
High Grade Intersects Include 22.15% PbEq or 815 g/t AgEq
Vancouver, British Columbia--(Newsfile Corp. - May 14, 2019) - Pan Global Resources Inc. (TSXV: PGZ) (OTC: PGNRF) (the "Company") is pleased to announce results from its first exploration drill program at the Águilas Project in Spain. The company completed 20 wide-spaced drill holes for a total of 2,944 metres in April 2019. This includes 13 drill holes along 4.1 kilometres of the Zumajo Pb-Zn-Ag trend and 7 drill holes along a 5.2 kilometre segment of the Torrubia Cu trend. This is the first drilling on these targets with high metal grades intersected in several drill holes.
Tim Moody, President and CEO, states: "These are encouraging results for the first drill holes in the Aguilas Project. We believe the exploration potential remains significant given the wide spacing and shallow depth of the drill holes completed to date. The drill holes on the Zumajo trend show that the high grade Pb, Zn and Ag mineralization extends beyond the historical mine workings and remains open in all directions."
On the Zumajo trend, significant drill results are reported along approximately 1.5 km of strike extending from the San Juan, San Rafael and Dos Centimos mine workings, open down dip and along strike. This includes high grade polymetallic mineralization (Pb, Zn, Ag ± Cu, Au) within an 8 to 20m wide, steeply dipping zone of multi-stage breccia and veins. High grade intervals include up to 16.85% Pb, 1.9% Zn, 85 g/t Ag (22.15% PbEq or 815 g/t AgEq) over 0.6 metres (drill hole VAC-006). The drilling also indicates that Pb and Ag mineralization near the San Luis and San Cayetano mine workings is open along strike and at depth.
The drill holes on the Torrubia trend include 40-90 metre wide intervals of intense multi-stage breccia and hematite-quartz-carbonate alteration. The breccia is anomalous in Cu in each drill hole. The best grades include 2.65% Cu, 125ppm Co and 3 g/t Ag (2.76% CuEq) over 0.8m and 1.65% Cu, 240ppm Co and 2.1 g.t Ag (2.05% CuEq) over 0.7m in the northernmost drill hole, TOR-001. Copper appears to increase to the North where the target remains open and untested. Recent exploration has also extended the Torrubia trend a further 4 km to the south, giving a total strike length of 16 km.
VAC-002: 17.5m @ 1.66% Pb and 8.5 g/t Ag, including 8.5m @ 3.38% Pb, 0.11% Zn, 0.02% Cu, 17.3 g/t Ag (includes 0.9m @ 5.14% Pb, 0.12% Zn, 0.02% Cu, 34.8 g/t Ag and 1.3m @ 14.85% Pb, 0.11% Zn, 0.04% Cu, 67.1g/t Ag)
VAC-005: 15.3m @ 0.88% Pb, 0.27% Zn, 6.2 g/t Ag, including 7.85m @ 1.68% Pb, 0.48% Zn, 10.2 g/t Ag (includes 0.85m @ 0.93% Pb, 3.22% Zn, 16.5 g/t Ag and 1.9m @ 6.05% Pb, 29.8 g/t Ag)
VAC-006: 17.7m @ 0.84% Pb, 0.48% Zn, 5.1 g/t Ag, including 8.6m @ 1.72% Pb, 0.94% Zn, 0.15% Cu, 10.2 g/t Ag, (includes 0.6m @ 16.85% Pb, 1.9% Zn, 0.08% Cu, 85.1 g/t Ag, 0.02 g/t Au and 1.6m @ 1.18% Pb, 1.9% Zn, 0.07% Cu, 7.3 g/t Ag, 0.03 g/t Au)
ZUM-003: 9.2m @ 2.4% Pb and 9.4 g/t Ag, including 3.4m @ 5.55% Pb, 16.4 g/t Ag
TOR-001: 16m @ 0.30% Cu, 30.5ppm Co, 0.6 g/t Ag, 0.05 g/t Au , including 0.8m @ 2.65% Cu, 125ppm Co, 3 g/t Ag, 0.004 g/t Au and 0.7m @ 1.85% Cu, 240ppm Co, 2.1 g/t Ag, 0.02 g/t Au; 0.7m @ 0.55 g/t Au
Mr Moody added: "The next round of drilling on the Zumajo trend will focus on further testing the continuity, grade and extent of the polymetallic mineralization. The drilling on the Torrubia trend shows the breccia is anomalous in copper over several kilometres of strike and provides an indication of a potentially strong mineralized system, with drill hole TOR-001 demonstrating potential for high copper grades. We have applied for access to drill test the northern extension of the Torrubia trend where the strongest and widest soil copper anomaly is located."
About the Aguilas Project
The Aguilas project covers more than 16,000 hectares in northern Andalucia, Spain. Exploration to-date has focussed on major fault structures cutting the Pedroches Batholith. This includes Pb Zn Ag mineralization along the >20 km long Northwest oriented Zumajo historical Pb Ag mine trend and hematite-dominant iron oxide copper gold (IOCG) style mineralization along the >10 km long Northeast oriented Torrubia trend. None of the targets have been drill tested previously.
In 2018, soil sampling along a 5 km section of the Zumajo trend delineated two large lead-zinc-silver targets. Surface sampling returned very high values 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 and occasional outcrop. The historical mine workings along the trend are mainly shallow, with the deepest shaft being approximately 120m depth. The mines operated from the late 1800's to 1958.
Exploration by the company in 2017 and 2018 resulted in the definition of two large copper anomalies on the Torrubia copper trend at Torrubia and Cerro Aguila, 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 grab samples.
Drilling commenced in September 2018 designed to provide the first test of the polymetallic and IOCG targets, and provide information on the geology and style of mineralization. New exploration on the Torrubia trend in 2019 suggests the structure extends a further 4 km to the South giving a potential total strike length of approximately 16 km with further exploration required. The majority of the Aguilas Project has not yet been explored, including several areas still under mineral rights application.
Drill results are summarized in Table 1 and Table 2. Drill hole collar information provided in Table 3. Drill hole locations are shown in Figure 1.
A total of 13 drill holes were completed along a 4.2 km section of the >20 km long Zumajo trend testing a combination of Pb-Zn-Ag soil geochemistry, IP anomalies and down-dip or along strike from the historical mine workings at San Juan, San Rafael, San Luis and San Cayetano (Figure 2). High grade Pb, Zn, Ag ± Cu mineralization was encountered in several drill holes along approximately 1.5 km of strike extending from the historical mine workings at San Juan, San Rafael and Dos Centimos. High Pb ± Ag grades were also encountered along strike from the San Luis and San Cayetano mine workings. The mineralization extends from surface and is open along strike and down-dip at both areas associated with multi-stage breccia, vein and stock work. This includes coarse grained galena, pale sphalerite, chalcopyrite and chalcocite. Fracturing, veining and quartz, carbonate, clay and weak hematite alteration increases approaching the Pb-Zn-Ag mineralization and chlorite-sericite-epidote alteration more peripheral.
Scope exists to considerably extend the high grade polymetallic mineralization on the Zumajo trend at depth and along strike. Average distance between drill holes is currently approximately 415m. Distances of 450 to 680m separates the highest grade intercepts in drill holes VAC-002, 005 and 006. A gap of >1.1km with very little exploration separates hole VAC-006 to the nearest drill hole to the East at San Luis.
The first phase of drilling included 4 drill holes over approximately 800m of strike in the south of the Torrubia target and 3 drill holes over approximately 360m of strike at the Cerro Aguilas target. The drill holes show intense IOCG-style hematite-quartz-carbonate hydrothermal alteration and multistage breccia over widths of 40 to 90 metres and surrounded by a broader zone of chlorite-sericite-hematite alteration. The breccia contains anomalous levels of Cu ± Co, Ag and Au in each drill hole. High copper grades are confirmed over narrow intervals in drill hole TOR-001.
Drill holes TOR-001, TOR-002 and TOR-003 show increasing copper down-hole before being truncated by a post-mineral fault, suggesting the full width of the copper mineralization has not been intersected (Figure 3). The results show copper increasing at depth and towards the North where the structure continues un-tested for a further 5 km. Access is awaited to test the strongest and widest soil copper anomaly extending approximately 1.7 km north of hole TOR-001.
The drill holes on the Cerro Aguilas target returned anomalous levels of copper (100's ppm to 0.33% Cu) in the breccia. The widest breccia intervals were encountered at Cerro Aguilas and appears to widen towards the intersection with the Zumajo trend. The results do not explain the source of the high copper grades found in boulders at surface.
Table 1 - Zumajo drill results summary
|ZUM004||Weakly anomalous Pb (maximum 2m @ 0.3% Pb from 56.0m)|
|ZUM005||Weakly anomalous Pb (maximum 1.4m @ 0.11% Pb from 64.0m)|
|ZUM007||No significant results|
|VAC001||100.15||105.85||5.7||0.19||0.15||5.4||0.04||<0.01||0.69||26||Mine tunnel - Low recovery|
|VAC004||Abandoned in mine workings. Hole ends in 2.62% Pb, 0.22% Zn, 11 g/t Ag|
Note: AgEq and PbEq Metal prices used: Lead US$0.9 per pound, Zinc US$1.3 per pound, Copper US$2.90 per pound, Silver US$15 per ounce, Gold US$1275 per ounce. Assumed 100% recovery.
Table 2 - Torrubia drill results summary
|TOR003||No significant results|
|CDA001||Weakly anomalous Cu (maximum 0.35m @ 0.12% Cu from 58.70m)|
|CDA001||Weakly anomalous Pb (maximum 1m @ 0.19% Pb from 81.0m )|
|CDA002||Weakly anomalous Cu (maximum 0.4m @ 0.33% Cu, 138ppm Co from 73.2m)|
|CDA003||No Significant results|
Note: CuEq Metal prices used: Copper US$2.90 per pound, Silver US$15 per ounce, Gold US$1275 per ounce, Cobalt US$20.0 per pound. Assumed 100% recovery.
Table 3 - Drill hole collar information
|Hole_ID||Easting 1||Northing 1||Z (m)||Azimuth
1 coordinates are in ERTS89 datum UTM30N
Figure 1 - Drill hole locations
Figure 3 - Cross section TOR001, 002 and 003
Drilling was subcontracted to an independent drilling company. Typically, all holes were collared in PQ to approximately 10m and continued in HQ. All drill hole collar positions were surveyed using a Differential GPS Leica 900 with centimetric precision. The trajectory of each borehole was surveyed using a Mag Cruiser Sensor Module SM1 series 1801. Core was logged and processed at PGZs secure core storage facility at Villanueva de Cordoba. Average core recovery for the program was 88%, ranging from 95% to 53% (low recoveries were experienced in several holes after intersecting historic underground mine workings). Nominal sample size was 1m (0.5m-1.5m) in prospective lithologies and 2m intervals in unaltered non mineralized material. Samples were half core and competent drill core was cut using a bench water cooled diamond saw, and fractured unconsolidated material was manually split. Core was photographed before and after cutting. Samples were hand delivered to the ALS Sample preparation facility in Seville, Spain and crushed and pulverised using method CRU-31, SPL-22Y, PUL-31 protocol. Samples were analysed in the ALS analytical facility in Loughrea Ireland using ICP-AES 4 acid digest, ME-ICP61, Au-ICP22 (50g Fire assay) and over grade samples re-analysed using atomic absorption spectrometry (OG). Quarter core duplicates were inserted at a frequency of 1 per 50 samples and Certified reference materials inserted at a frequency of 1 per 30 samples. No notable issues were observed with the duplicates or standards, however local issues were observed between drill hole recovery and grade where ground was highly fractured or historic mine workings were intersected. All sample reject and pulp material and remaining half and unsampled core is stored at the PGZ warehouse.
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 is pursuing opportunities from exploration through to mine development. The company is committed to operating safely and with respect to the communities and environment where we operate.
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