Pan Global begins phase 2 drilling at Carmenes project, Spain

Pan Global Resources Inc. [TSXV: PGZ; OTCQB: PGZFF; FRA: 2EU] reported that drilling has resumed at its 100%-owned Carmenes project in northern Spain. Under phase 2, four drill holes are planned to follow up the highly encouraging gold discovery from the phase 1 drill campaign at the Providencia target.

Testing for extensions of the near-surface gold mineralization after intercepting 3.01 g/t Au (gold) over 34 metres at the Providencia target. Depth extension potential indicated by a strong IP anomaly. Geochemical sampling and mapping is under way at numerous Providencia targets.

“Phase 2 drilling is now under way at the Providencia target after intercepting significant near-surface gold mineralization in the initial drill program earlier this year. This program aims to better understand the geometry by testing for extensions of the gold-rich breccia and high-grade copper-nickel-cobalt mineralization,” said Tim Moody, president and CEO.

The phase 1 program in the Carmenes project included six drill holes at the Providencia target resulting in the new gold discovery with intercepts of 1.08 g/t Au over 46 metres (hole PVD02) and 3.01 g/t Au over 34 metres (hole PVD06). The phase 2 drill program is expected to completed before year-end.

Moody added: “A strong IP chargeability anomaly is coincident with the Providencia mineralization and remains open well below the former underground mine workings, indicating the mineralization extends and potentially expands at depth. This anomaly is included for testing in the phase 2 drill program.”

Extensive surface geological mapping and sampling at the Providencia target have identified a large zoned, multiphase hydrothermal breccia system in mostly carbonate rocks that is hosting the copper, cobalt, nickel and gold mineralization. The breccia and associated alteration extend over a surface area of more than 300 metres by 150 metres, with the mineralization open in several areas. These types of deposits can have significant vertical dimensions exceeding one kilometre.

Detailed surface geochemical sampling and mapping has also commenced on targets surrounding Providencia, with 30 targets identified from a recent helicopter electromagnetic, magnetic and radiometric survey.

The Carmenes project is located approximately 55 km north of Leon in northern Spain and comprises five investigation permits over 5,653 hectares. The project area is highly prospective for multiple bodies or clusters of carbonate-hosted pipe-like breccia style copper, nickel, cobalt and gold mineralization.

The area includes the former profunda and Providencia mines that last operated in the 1930s, producing concentrates of copper and cobalt with nickel. Numerous other smaller historical mine workings in the area highlight the potential for additional breccia pipes. These types of deposits can have significant vertical dimensions exceeding one km. The company’s recent maiden drill program at the Providencia target yielded a new gold discovery.

The company’s flagship Escacena project is located in the prolific Iberian pyrite belt, a Tier 1 mining jurisdiction in southern Spain, with a favourable permitting regime, excellent infrastructure, and abundant mining and professional expertise. The European Commission has identified copper as a strategic raw material. The company’s second project, Carmenes in northern Spain, is also an area with a long mining history and excellent infrastructure.

The company is a member, and operates under the principles, of the United Nations Global Compact.