Pan Global Resources drills high-grade gold and copper at Escacena, Spain

Pan Global Resources Inc. [PGZ-TSXV; PGZFF-OTCQB] reported positive assay results for two new diamond drill holes at the Cañada Honda target at the 100%-owned Escacena Project in the Iberian Pyrite Belt, southern Spain. Cañada Honda is one of more than 14 gravity anomalies in the Escacena Project, which includes the copper-tin-silver discovery at the La Romana target.

“The new drill hole assay results have significantly enhanced the potential for a new copper-gold discovery at the Cañada Honda target. The results indicate an upper gold zone and deeper zone of copper-gold mineralization at the edge of a large untested DHEM conductor anomaly. The DHEM conductor and adjacent gravity anomaly expands the size potential at Cañada Honda. These are exciting results, including the highest gold grades that we have encountered at the Escacena Project, and further highlights the prospectivity of this land package and the many other targets not yet tested,” said Tim Moody, President & CEO.

“Excellent progress is also being made at the Romana West target with two teams collecting gravity data, IP surveying, geochemical sampling and mapping underway concurrently, and drilling anticipated to commence in approximately two weeks,” Moody added.

Cañada Honda is now a high-priority target due to subsequent down hole electromagnetic (DHEM) surveys in both drill holes that show a large approximately 190m x 100m untested conductor anomaly with potential for stronger sulphide mineralization to the east and down-dip. Drilling has commenced on the first of three follow-up drill holes based on this new information.

Holes CHD03 and CHD04, drilled on the same section, show a vector down-dip with increasing gold and copper within a continuous zone of massive sulphides and sulphide-stockwork mineralization, wide open at depth and along strike; grades up to 5.3% Cu over 0.6 metres, and up to 5.2 g/t Au over 1-metre intervals. Potential for scale is indicated by the proximity to a large untested gravity anomaly and adjacent DHEM conductor anomaly.

CHD04 intersected 1 metre at 3.2 g/t Au and 2.3 g/t Ag from 85 metres; 5 metres at 1.1 g/t Au and 1.7 g/t Ag from 94 metes, including 1 metre at 5.1 g/t Au and 1.6 g/t Ag; 1 metre at 0.3% Cu, 1.1 g/t Au and 1.0  g/t Ag from 107 metres; 13 metres at 0.5% Cu, 0.8 g/t Au and 2.7 g/t Ag from 167 metres, including 6.2 metres at 0.9% Cu, 1.5 g/t Au and 3.8 g/t Ag; 5 metres at 0.5% Cu, 2.7 g/t Au and 4.5 g/t Ag and 0.6 metres at 5.3% Cu, 0.5 g/t Au and 10.8 g/t Ag.

CHD03 intersected 2 metres at 1.4 g/t Au from 58 metres; 8 metres at 1.0 g/t Au from 66 metres; 14 metres at 0.4% Cu, 0.3 g/t Au and 2.1 g/t Ag from 141 metres, including 6 metres at 0.9% Cu, 0.6 g/t Au and 4.2 g/t Ag and 3 metres at 1.4% Cu, 0.8 g/t Au and 6.6 g/t Ag.

These are the highest gold grades detected in the Escacena Project area to date, and a potentially significant addition to the copper equivalent grade.

Downhole EM results indicate the strongest copper-gold mineralization in drill hole CHD04 coincides with the edge of a large untested 190m x 100m DHEM conductor plate anomaly, and potential indicator of more significant sulphide mineralization to the East and down-dip.

At Cañada Honda, drill holes CHD03 and CHD04 tested approximately 150m and 210m, respectively, down-dip of a historic mine tunnel where previous channel sampling by Pan Global returned 26 metres at 0.42 g/t Au and individual assay values up to 2.9 g/t Au, 27.5 g/t Ag, 0.2% Cu and 0.4% Co. Hole CHD02, located 475 metres to the west of holes CHD03 and CHD04, intersected 11 metres at 0.6% Cu, 0.12 g/t Au and 3.2 g/t Ag (abandoned before reaching target due to hole collapse).

New processing and interpretation of the gravity data over the Cañada Honda target shows drill holes CHD03 and CHD04 are on the edge of a large gravity inversion model anomaly. Based on the encouraging initial drill results, three additional follow-up holes are planned to test gravity and IP anomalies down-dip from CHD-04 and a DHEM conductor anomaly east of CHD04.

Drilling is ongoing in the Escacena Project at the La Romana and Zarcita targets. Results are pending for approximately 20 drill holes at La Romana and Zarcita with results to be reported on completion of the final few drill holes at each target. The maiden drill campaign at La Romana West is scheduled to commence in June.

The Escacena Project comprises a large, contiguous, 5,760-hectare land package controlled 100% by Pan Global in the east of the Iberian Pyrite Belt. The Escacena Project hosts the La Romana copper-tin-silver discovery and a number of other prospective targets, including Zarcita, Hornitos, La Jarosa, Romana Deep, Romana North, Romana West, Cañada Honda, Bravo, Barbacena, El Pozo, and San Pablo.