Mr. Julian Bavin reports
PAN GLOBAL ENCOUNTERS STRONG BORATE MINERALIZATION AT VALJEVO-UPDATE ON BALKANS PROJECT
Pan Global Resources Inc. is providing an update on exploration activities in the Republic of Serbia undertaken by Pan Global's exploration partner, Lithium Li Holdings Inc.
The company is extremely pleased to announce that hole VBN-001 (607 metres) drilled in Valjevo has intersected mineralization associated with two zones of alkaline/saline depositional environments. The first is borate mineralization in the form of searlesite (often a weathering product of other borate and/or jadarite mineralization) observed at surface and at shallow depths in VBN-001, that is not of economic interest. The second is an 11.3-metre zone of preserved sodium/calcium borate mineralization (tentatively identified as ulexite and/or probertite) encountered from 426 to 438 m, which is of economic interest. A general stratigraphic summary with emphasis on mineralized zones is found in the attached table.
GENERAL STRATIGRAPHIC SUMMARY0-24 m Marl, claystone 24-80 m Claystone, marl with searlesite and calcite pseudomorphs 80-408 m Siltstone, marl and claystone with 0.5-metre-thick tuff horizons at 196.5 m and 212.5 m 408-426.8 m Claystone, marl with calcite pseudomorphs after borates near upper contact with borate zone 426.8-438.1 m Borate zone (claystone host rock) ranging from 2 to 15 per cent borates 438.1-448 m Claystone with calcite pseudomorphs after borates near lower contact with borate zone 448-504 m Marl, claystone, fossiliferous toward base 504-607 m Sandstone, conglomerate with four-metre-thick tuff horizon at 504-metre and four-metre travertine horizon at 533 m
Confirmation of the type of mineralization is now awaited from geochemical analyses but, if so, will indicate a very favourable vertical search thickness for the occurrence of jadarite and other borate minerals (that is, the same horizons elsewhere in the basin represent very-high-priority targets and will be the focus of future drilling). This result is akin to the first hole drilled at the Jadar deposit by Rio Tinto, which chased similar surface geochemistry and encountered the uppermost colemanite/ulexite zone but no jadarite, which was then identified in follow-up drilling and eventually identified in three principal layers. This very positive result from the first hole at Valjevo has significantly raised the prospectivity of the licence and the adjoining licence at Lijg.
As previously reported, four holes of an initial reconnaissance diamond drilling program were completed in the Badanja and adjoining Jadar West exploration licence. These titles are immediately adjacent to Rio Tinto's Jadar deposit, where production is planned to commence in 2016.
The company has decided to suspend further drilling until first quarter 2012 to enable the completion of geochemical analyses and mineralogical studies, which will be followed by a complete review of magneto-tellurics, gravity, drilling, and lithological and geochemical core data to provide additional targets in all three licences (Jadar West, Badanja and Valjevo) that will be generated as a result of this initial reconnaissance drilling.
Apart from the drilling, other work consisting of geological, geochemical and geophysical exploration to define drill targets is continuing to progress. Processing of gravity over the Gorobilje licence was completed, which indicates a lack of basin development, and, as a consequence, prospectivity of the licence has been downgraded.
The technical information provided in this news release was reviewed and approved by Robert. W. Baxter (FAusIMM), a director of the company and a qualified person for the purposes of National Instrument 43-101.
We seek Safe Harbor.