K2 Gold

Pan Global Resources Reports New Drill Results and Extends near Surface High Grade Copper at Escacena Project, Southern Spain

Near surface high grade copper-tin-silver mineralization extended to more than 700m strike length, including supergene chalcocite, and remains open along strike, down-dip and up-dip

  • New shallow, wide intercepts extending the copper zone eastwards, with LRD36 returning 23m at 1.06% CuEq , including 11m at 1.74% CuEq and LRD32 returning 68m at 0.52% CuEq , including 10.8m at 1.43% CuEq
  • Assays pending for 8 additional completed drill holes, with 2 drill rigs continuing to operate

Vancouver, British Columbia--(Newsfile Corp. - April 13, 2021) - Pan Global Resources Inc. (TSXV: PGZ) (OTC: PGNRF) (the "Company") is pleased to report results for an additional eleven drill holes (LRD26 and LRD28 to LRD37) at the La Romana target, in the Escacena Project. Drilling is ongoing with results pending for eight additional completed holes. La Romana is located approximately 6km southwest of the former Aznalcollar open pit mine and approximately 15km west of the Las Cruces copper mine, in the Iberian Pyrite Belt, southern Spain.

Tim Moody, Pan Global President and CEO states: "The new drill results are exciting and confirm wide intercepts of near surface copper mineralization with multiple higher-grade intervals over a strike of more than 700m. The easternmost drill holes confirm the copper mineralization continues over more than 250m of dip extent. The mineralization remains wide open in all directions."

Mr. Moody added: "Assay results are pending for drill holes LRD38 to LRD45, and the Phase 4 drill program has been expanded following the recent results with an additional ten drill holes planned."

Drill highlights:

  • LRD36 intersected 23m at 1.06% Cu equivalent (Eq) (0.56% Cu, 0.13% Sn, 3.9g/t Ag, 0.01g/t Au) from 27m (mixed chalcocite and chalcopyrite), including;
    • 11m at 1.74% CuEq (0.92% Cu, 0.23% Sn, 6.3g/t Ag, 0.016g/t Au) from 33m, including
      • 3.5m at 3.15% CuEq (1.43% Cu, 0.52% Sn, 9.8g/t Ag, 0.013g/t Au) from 39m
  • LRD37 intersected 20.5m at 0.80% CuEq (0.55% Cu, 0.046% Sn, 5.0g/t Ag, 0.012g/t Au) from 69m, including;
    • 2.4m at 1.27% CuEq (0.94% Cu, 0.015% Sn, 14g/t Ag, 0.04g/t Au, 0.015% Co) and 0.37% Pb, 0.73% Zn from 73m, and
    • 8.55m at 1.22% CuEq (0.81% Cu, 0.09% Sn, 6.2g/t Ag, 0.02g/t Au) from 78.45
  • LRD32 intersected 68m at 0.52% CuEq (0.37% Cu, 0.03% Sn, 2.2g/t Ag, 0.01g/t Au) from 79m, including;
    • 4.0m at 1.42% CuEq (1.26% Cu, 5.3g/t Ag, 0.01g/t Au, 0.011% Co) from 79m, and
    • 40m at 0.64% CuEq (0.44% Cu, 0.044% Sn, 2.7g/t Ag, 0.01g/t Au) from 103m, including
      • 10.8m at 1.43% CuEq (1.05% Cu, 0.08% Sn, 6.1g/t Ag, 0.02g/t Au) (>0.5% Cu combined thickness)
  • LRD33 intersected 31m at 0.50% CuEq (0.40% Cu, 2.3g/t Ag, 0.021g/t Au) from 79m, including;
    • 13.0m at 0.91% CuEq (0.78% Cu, 3.2g/t Ag, 0.034g/t Au) from 79m, including
      • 6.0m at 1.71% CuEq (1.5% Cu, 5.6g/t Ag, 0.06g/t Au) from 86m
  • LRD28 intersected 23.2m at 0.57% CuEq (0.49% Cu, 2.4 g/t Ag, 0.02g/t Au) from 45.8m consisting of supergene chalcocite and 0.3m massive chalcopyrite-pyrite interval, including;
    • 7.65m at 1.21% CuEq (1.08% Cu, 4.6 g/t Ag, 0.03g/t Au) from 47.8m, including
      • 0.3m at 11.99% CuEq (11.0% Cu, 41.7g/t Ag, 0.19g/t Au, 0.05% Co) and 0.45% Zn, 0.17% Pb from 55.15m (massive sulphide)

Drill results

The new drill results include holes LRD26 and LRD28 to LRD37. The drill holes all target extensions of the volcanic-hosted massive sulphide associated mineralization at the La Romana discovery. Holes LRD26, LRD28, LRD29 and LRD30 traverse a down hole EM conductor plate in the east. Holes LRD31 to LRD37 are aimed at extending the near surface copper mineralization eastwards.

Drill hole collar information is provided in Table 1 below. Assay results are summarized in Table 2. Drill hole locations are shown in Figure 1. Summary cross sections with holes LRD 32 to LRD36 are provided in Figure 2. The drill holes were all inclined towards the south and all reported drill intervals are approximately true widths.

Table 1 Escacena Project, La Romana drill hole collar information (Total 2356.05m)

Hole ID Easting1 Northing1 Azimuth (º) Dip (º) Depth (m)
LRD26 736986 4152698 180 -50 311.4
LRD28 736977 4152615 180 -50 254.1
LRD29 736945 4152754 180 -53 294.6
LRD30 736947 4152836 180 -50 326.1
LRD31 736836 4152623 180 -50 176.1
LRD32 736734 4152699 180 -55 220.2
LRD33 736901 4152633 180 -80 202.2
LRD34 736583 4152581 180 -55 134.2
LRD35 736584 4152609 180 -65 110.2
LRD36 736634 4152631 180 -60 168.75
LRD37 736682 4152670 180 -55 158.2

1 Coordinates are in ERTS89 datum UTM29N

Table 2 - Escacena Project, La Romana drill results summary

Hole Fr To Int CuEq1 Cu Sn Ag Co Au   Pb Zn
      m % % ppm g/t ppm g/t   ppm ppm
LRD26 87.8 88.15 0.35 2.04 1.56 77 19.4 231 0.10   321 698
  116.6 118.9 2.3 1.22 1.01 47 7.7 105 0.06   328 639
  118 118.3 0.3 4.97 4.17 171 31.3 346 0.20   1340 2390
  143.8 144.05 0.25 1.08 0.78 61 10.0 137 0.09   2040 5330
  159.85 160.5 0.65 1.13 0.94 67 3.7 116 0.08   93 194
  162.5 162.7 0.2 1.87 1.60 64 9.5 148 0.07   519 472
                         
LRD28 31 41 10 0.26 0.20 47 1.6 31 0.01   313 2914
  45.8 69 23.2 0.57 0.49 38 2.4 50 0.02   266 500
  45.8 59.5 13.7 0.79 0.69 30 3.0 60 0.02   98 312
  47.8 55.45 7.65 1.21 1.08 27 4.6 77 0.03   97 344
  55.15 55.45 0.3 11.99 11.00 133 41.7 492 0.19   1700 4450
                         
LRD29 122 122.2 0.2 3.81 3.49 87 11.6 205 0.05   734 1260
  155.8 161 5.2 1.07 0.90 44 3.6 133 0.04   40 401
  155.8 158.5 2.7 1.89 1.62 49 6.5 214 0.06   41 647
  173.15 173.5 0.35 1.33 1.12 134 4.7 144 0.04   286 421
  211.35 211.6 0.25 1.21 1.03 78 2.7 174 0.04   234 1520
  214.8 215.5 0.7 1.52 1.07 102 8.9 291 0.18   1240 6130
                         
LRD30 92.85 93.15 0.3 0.68 0.16 39 23.8 10 0.24   2.24% 5.71%
  139.6 140.1 0.5 1.13 0.94 58 6.1 94 0.06   110 779
  177.9 180 2.1 1.51 1.38 37 4.9 83 0.02   91 305
  177.9 178.1 0.2 12.53 11.65 119 37.3 401 0.18   541 2240
  212 223 11 0.60 0.51 41 1.2 87 0.02   13 87
  214.15 219 4.85 1.12 0.98 40 2.3 144 0.03   16 102
  214.15 216 1.85 2.09 1.87 56 4.2 207 0.05   27 27
  231.8 232 0.2 2.29 1.97 103 8.9 173 0.10   361 289
  260.8 261.1 0.3 1.38 1.22 66 5.1 105 0.03   318 1200
  263.5 263.7 0.2 4.64 4.10 106 14.2 409 0.13   714 1190
  311.8 312 0.2 1.18 0.98 88 4.5 78 0.10   473 3790
                         
LRD31 36 61.2 25.2 0.33 0.24 75 1.6 61 0.01   167 294
  47.8 61.2 13.4 0.45 0.35 78 1.9 77 0.01   62 301
  49.65 49.85 0.2 1.19 1.01 76 5.6 121 0.03   330 372
  59 61.2 2.2 1.40 1.22 89 4.4 136 0.02   126 730
  60.8 61.2 0.4 6.71 6.10 191 18.3 475 0.09   270 1200
  167 167.4 0.4 1.47 1.27 87 2.9 100 0.11   245 538
                         
LRD32 26 34 8 0.34 0.22 76 4.4 39 0.02   432 433
  79 147 68 0.52 0.37 286 2.2 64 0.01   105 508
  79 83 4 1.42 1.26 75 5.3 110 0.01   144 427
  103 143 40 0.64 0.44 410 2.7 75 0.01   115 633
  103 106 3 1.23 0.79 1180 4.3 74 0.01   152 754
  117 118 1 1.5 0.95 1125 5.0 258 0.03   65 337
  123.5 127 3.5 1.19 0.87 606 5.1 105 0.02   35 471
  134 138 4 1.08 0.79 607 5.3 60 0.01   90 651
  140 142 2 1.22 1.03 183 6.6 74 0.01   548 2515
  170 170.5 0.5 1.73 1.41 199 10.0 107 0.09   1010 5800
Combined thickness
>0.5%
Cu
80 142 12.8 1.60 1.24 677 6.6 117 0.02   207 1049
>0.5%
Cu
103 142 10.8 1.43 1.05 781 6.1 109 0.02   194 1131
                         
LRD33 79 110 31 0.50 0.40 53 2.3 71 0.02   121 536
  79 92 13 0.91 0.78 40 3.2 90 0.03   47 405
  84 92 8 1.34 1.17 41 4.4 118 0.04   62 549
  86 92 6 1.71 1.50 51 5.6 142 0.06   80 688
  131 132 1 1.48 1.15 87 7.0 228 0.11   340 896
  133.5 133.8 0.3 1.70 1.38 92 6.1 238 0.11   334 1520
                         
LRD34 32 53 21 0.40 0.30 178 1.8 39 <0.01   84 222
  40.5 43 2.5 1.15 0.97 239 5.5 58 0.01   104 147
                         
LRD35 6 30.5 24.5 0.53 0.35 362 2.4 57 0.01   230 275
  18 30.5 12.5 0.79 0.56 437 3.4 86 0.01   345 397
  18 22 4 1.09 0.82 556 4.0 82 0.02   968 673
  55.75 80 24.25 0.41 0.30 206 1.9 46 0.01   88 325
  55.75 69 13.25 0.51 0.38 257 2.2 53 0.01   47 375
  55.75 57 1.25 1.33 1.13 448 3.4 40 0.01   47 310
                         
LRD36 27 50 23 1.06 0.59 1256 3.9 80 0.01   154 475
  33 46 13 1.59 0.86 2035 5.9 102 0.01   198 669
  33 44 11 1.74 0.92 2310 6.3 101 0.02   208 659
  39 42.5 3.5 3.15 1.43 5210 9.8 139 0.01   274 914
  84 102.5 18.5 0.34 0.21 243 1.1 70 0.01   142 266
  148.9 149.5 0.6 1.76 0.82 2630 3.8 109 0.09   328 959
                         
LRD37 69 89.5 20.5 0.80 0.55 460 5.0 86 0.01   739 1737
  73 75.4 2.4 1.27 0.94 149 14.0 150 0.04   3739 7292
  78.45 87 8.55 1.22 0.81 897 6.2 107 0.02   615 1494
  135.2 135.5 0.3 1.36 1.10 286 4.2 151 0.05   949 3410

1 Metal prices used: Copper US$6,200 per tonne, Silver USD22.50 per ounce, Gold US$1,500 per ounce, Cobalt US$32,800 per tonne and Tin US$18,000 per tonne. The copper equivalent (CuEq ) values are for exploration purposes only and include no assumptions for metal recovery.

The new results show the high-grade near surface copper mineralization continues to the east for a strike length of approx. 700m and remains open along strike, down-dip and up-dip. The primary mineralization includes mainly stockwork, semi-massive sulphides and bands of massive sulphide, with chalcopyrite as the primary copper mineral. The copper mineralization is associated with elevated levels of tin, silver, cobalt and gold. The tin occurs as cassiterite and mainly in the west and center of the drill area.

Of additional significance is the confirmation of both oxide copper and supergene chalcocite in several of the new drill holes over thicknesses not previously intersected, including down to approx. 68m depth in hole LRD35. The new results expand the open pit target along strike and to the south, including potential oxide copper and supergene enrichment style mineralization above zones of strong sulphide mineralization.

Results received for holes LRD36, LRD37, LRD32, LRD33 and LRD 28, together with visual indications in recently completed holes LRD39 and LRD40, show near surface copper mineralization extends a further 350m east from previous hole LRD27 which reported 32m at 0.85% CuEq from 65.8m, including 10.6m at 1.55% CuEq and LRD25 with 37.25m at 0.73% CuEq from 26.7m, including 10m at 1.23% CuEq. Supergene chalcocite is also evident in holes LRD28 and LRD33 to LRD36, with holes LRD34 and LRD35 indicating potential for supergene enrichment to also extend over the generally lower grade footwall mineralization.

LRD26, LRD28, LRD29 and LRD30 are the easternmost holes in the drill area. These provide a north-south traverse, testing a large down-hole EM conductor anomaly up -dip from previous hole LRD22 which intersected 18m at 1.0% CuEq from 259m, including 6m at 2.44% CuEq and 0.43m thick massive sulphide layer with 18.7% CuEq. The new holes confirm continuity of the high-grade massive sulphide associated mineralization over more than 250m dip extent coincident with the down-hole EM conductor. The massive sulphide appears to be attenuated or thin in the centre of this section in holes LRD26, LRD29 and LRD30, and gets thicker up-dip near to surface in hole LRD28 and at depth in hole LRD22. Most of the conductor anomaly remains untested and the mineralization is open in all directions.

Hole LRD36 was drilled approx. 50m along strike to the east of drill hole LRD25 and showed a stronger interval of copper, tin and silver mineralization. The hole intersected 23m at 1.06% CuEq (0.59% Cu, 0.13% Sn, 3.9g/t Ag) from 27m down hole depth, including 11m at 1.74% CuEq (0.92% Cu, 0.23% Sn, 6.3g/t Ag, 0.02g/t Au) and 18.5m at 0.34% CuEq (0.21% Cu, 0.02% Sn, 1.1g/t Ag) from 84m associated with a pyritic zone in the footwall. The hole includes a leached/oxidised zone down to approx. 30m depth, a zone of chalcocite from 30 to 35m and a transition zone with minor chalcocite and bornite over printing chalcopyrite from approx. 35 to 40m followed by primary chalcopyrite mineralization. Red hematite, black copper oxides and local copper carbonate are evident in the oxide zone and native copper is present at the base of the oxidation. The chalcocite occurs in fractures and replaces earlier chalcopyrite and pyrite. The hole also intersected significant tin mineralization with values up to 1.99% Sn.

Drill hole LRD37 is approx. 50m east and along strike from hole LRD36. The hole intersected 20.5m at 0.8% CuEq (0.55% Cu, 0.05% Sn, 5g/t Ag) from 69m down hole, including 2.4m at 1.27% CuEq (0.94% Cu, 0.015% Sn, 14g/t Ag, 0.04g/t Au, 0.015% Co) from 73m and 8.55m at 1.22% CuEq (0.81% Cu, 0.09% Sn, 6.2g/t Ag, 0.02g/t Au, 0.011% Co) from 78.45m.

Drill hole LRD32 is approx. 50m east of LRD37. The hole intersected 68m at 0.52% CuEq (0.37% Cu, 0.03% Sn, 2.2g/t Ag, 0.01g/t Au) from 79m in primary sulphide mineralization, which includes 4m at 1.42% CuEq (1.26% Cu, 5.3g/t Ag) from 79m and 40m at 0.64% CuEq (0.44% Cu, 0.04% Sn, 2.7g/t Ag) from 103m, including 10.8m at 1.43% CuEq (1.05% Cu, 0.08% Sn, 6.1g/t Ag, 0.02g/t Au, 0.011% Co) (>0.5% Cu combined thickness). The hole also intersected an overlying zone of low grade oxide copper mineralization, including 8m at 0.34% CuEq (0.22% Cu, 4.4g/t Ag, 0.02g/t Au) from 26m.

Drill hole LRD33 tested the upper edge of the down-hole EM conductor and Mise-a-la-masse conductor anomaly approximately 70m west of hole LRD28. The hole intersected 13m at 0.91% CuEq (0.78% Cu, 3.2g/t Ag, 0.03g/t Au) from 79m, including 6m at 1.71% CuEq (1.5% Cu, 5.6g/t Ag, 0.06g/t Au, 0.014% Co) coincident with the conductor anomalies.

Drill hole LRD28 intersected 10m at 0.26% CuEq (0.2% Cu, 1.6g/t Au, 0.01g/t Au) from 31m and 13.7m at 0.79% CuEq (0.69% Cu, 3g/t Ag, 0.02g/t Au) from 45.8m, including 7.65m at 1.21% CuEq (1.08% Cu, 4.6g/t Ag, 0.03g/t Au) which also included a thin layer of massive sulphide with 0.3m at 11.99% CuEq (11% Cu, 41.7g/t Ag, 0.19g/t Au, 0.05% Co). The drill hole includes chalcocite mineralization down to approx. 55m depth and shows that near surface copper mineralization remains open and is untested along strike to the east.

Drill hole LRD35 tested extensions of the near surface copper mineralization approx. 35m up-dip from hole LRD25. The hole intersected 24m at 0.53% CuEq (0.35% Cu, 0.04% Sn, 2.4g/t Ag) as oxides and chalcocite from approx. 6m depth, including 12.5m at 0.79% CuEq (0.56% Cu, 0.044% Sn, 3.4g/t Ag,) from 18m in chalcocite, which also includes 4m at 1.09% CuEq (0.82 Cu, 0.06% Sn, 4g/t Ag), and a deeper chalcocite zone with 13.25m at 0.51% CuEq (0.38% Cu, 0.03% Sn, 2.2g/t Ag) from 55.75m. The hole drilled mostly in the footwall to the higher-grade copper mineralization in hole LRD25.

Drill hole LRD34 was collared approx. 30m south of hole LRD35 in the footwall volcanics beneath the main zone of copper mineralization. The hole intersected 21m at 0.4% CuEq (0.3% Cu, 0.02% Sn, 1.8g/t Ag) from 32m as supergene chalcocite mineralization, including 2.5m at 1.15% CuEq (0.97% Cu, 0.024% Sn, 5.5g/t Ag, 0.01g/t Au) from 40.5m down hole.

Drill holes LRD26, LRD29, LRD30 and LRD31 all intersected multiple narrow copper intervals summarised in table 2.

Assay results are pending for completed drill holes LRD38 to LRD45 and drill holes LRD46 and LRD47 are in progress. The Phase 4 drill program has been expanded to thirty drill holes with ten new drill holes planned.

Junior Mining NetworkFigure 1 - La Romana drill hole locations and geophysics targets

Junior Mining Network

Sections 736585 E & 736635 E

Junior Mining NetworkSections 736735 E & 736885 E

Figure 2 - Selected summary drill hole cross sections (736585 E, 736635 E, 736735 E, and 736885 E)

QA/QC

Core size was HQ (63mm) and all samples were ½ core. Nominal sample size was 1m core length and ranged from 0.4 to 2m. 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 was supervised at all times by Company staff. Duplicate samples of ¼ core were taken approximately every 30 samples and Certified Reference materials inserted every 25 samples in each batch.

All samples were crushed and split (method CRU-31, SPL22Y), and pulverized using (method PUL-31). Gold analysis was by 50gm Fire assay with ICP finish (method Au-ICP22) and multi element analysis was undertaken using a 4-acid digest with ICP AES finish (method ME-ICP61). Tin was analyzed in selected intervals using Lithium borate fusion and ICP MS finish (method ME-MS81). Over grade base metal results were assayed using a 4-acid digest ICP AES (method OG-62). Over grade tin was determined using peroxide fusion with ICP finish (method Sn-ICP81x).

Qualified Person

Patrick Downey, 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. Downey is not independent of the Company.

About Pan Global Resources

Pan Global Resources Inc. is actively engaged in base and precious metal exploration in southern 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.

On behalf of the Board of Directors
www.panglobalresources.com.

FOR FURTHER INFORMATION PLEASE CONTACT:
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Statements which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.

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