Pan Global Resources Inc. (TSX-V: PGZ, OTCQB: PGNRF, Forum) has unearthed rich results from its ongoing base andprecious metal exploration work in Spain.
On October 11th 2019, PGZ released an update on its Escacena and Aguilas Projects, highlighting the first detailed systematic exploration of Escacena with multi-element geochemical analyses. Covering approximately 1,250 hectares, the survey targeted extensions of the prospective volcanic sequence for massive sulphide associated mineralization.
The Company followed up on this news with positive drill results from Escacena on October 23rd. The property is located approximately five kilometres west of the former Aznalcollar open pit mine in the Iberian Pyrite Belt. Both drill holes (LRD-01 & LRD-02) at the La Romana gravity target intersected shallow volcanogenic massive sulphide (VMS) associated Cu, Zn, Pb, Au, Ag mineralization. The drill holes returned up to 3.43% Cu equivalent (Eq) over seven metres at 48 metres down hole depth. The drilling results and geophysics all coincide and indicate excellent potential to expand the La Romana zone of the project.
La Romana Bouger Gravity Anomaly and Drill Hole Locations
(Property map via Pan Global Resources. Click to enlarge.)
Drill hole LRD-01 intersected two main copper intervals - the upper interval consists of stock work and semi-massive sulphide, including chalcopyrite, pyrite and lesser secondary chalcocite. The lower interval consisted of a thick zone of pyrite - chalcopyrite stock work and semi-massive sulphide, with copper grades generally improving with depth.
Drill hole LRD-02 confirmed significant copper mineralization at the top of a strong IP chargeability and resistivity low anomaly. Down-hole geophysics in hole LRD-01, which ended in copper and tin mineralisation, shows a new conductor target below the hole.
Stockhouse Editorial caught up with Pan Global President and CEO Tim Moody to dig deeper into these results and their current operations in Spain, along with what is to come in the near future.
Thank you for taking the time to speak with us. For our readers who may be new to your Company, please introduce yourself and Pan Global’s operations.
Pan Global Resources is actively engaged in two large size, multi-target, multi-metal exploration projects located in Anadalucia in southern Spain, approximately 300 kilometers south of Madrid. Andalucia is Spain’s most important mining region and has a significant mining history.
The Águilas Project in northern Andalucia is comprised of 16,333 hectares and has two known zones of mineralization: an Iron Oxide Copper Gold (IOCG) style target and a Lead-Zinc-Silver (Pb-Zn-Ag) mineralization target. Pan Global is currently drilling 5 widely spaced diamond drill holes at the Torrubia North Target. The drilling will test a high priority soil copper anomaly extending over 1.9 km of strike length and up to 0.35 km width, with up to 8.4% Cu in rock grab samples of boulders, up to 1.2% Cu in outcrop and Iron Oxide Copper Gold ("IOCG") style multi-stage breccia mineralization. These are the first drill holes on the Torrubia N target.
The Escacena Project, comprised of approximately 5,700 hectares, is located along strike from three large current and past-producing copper mines in the Iberian Pyrite Belt. The property has two high priority gravity targets at Canada Honda and the La Romana where the target is volcanic hosted massive sulphide style copper, zinc, silver and gold mineralisation.
At the La Romana target PGZ drilling intersected near surface massive and semi massive sulphide mineralisation returning 20.55m@ 1.5% Cu eq with grades of up to 9.8% Cu, 36 g/t Ag and 1.1% Sn within a 1.3km gravity anomaly and coincident IP anomalies. At Cañada Honda geophysics is underway to further enhance this deeper target. Systematic surface gravity and soil geochemistry is underway elsewhere in the property to generate new targets.
Looking at Escacena’s results, can you give us a quick run-through in what these robust numbers indicate, in layman’s terms?
Hole 2 at La Romana reported 20.55m at 1.5% copper equivalent containing a much higher grade section of 7m at 3.4% copper equivalent. The key outcome is finding high copper grades over a good width, and just below the surface. Whilst many companies in the Pyrite Belt are either mining or exploring at much greater depths, finding copper at shallow depth is a big positive for the potential economics if we find a big deposit.
Drill hole LRD-01 showed potential of improving copper with depth, what do you predict you will find the further you dig?
The bottom 50 metres of hole 1 included stock work sulphide and bands of massive sulphide and ended in 0.24% copper and 1000ppm tin, this suggest we may not have reached the best of the copper in this area and it is also significant as the down hole geophysics shows the drill hole stopped short of a large conductor and represents a new high grade copper target.
The off-hole conductor in hole LRD-01 also remains untested, what kind of potential lies within?
The conductor and represents potential massive sulphide. Finding conductors using down-hole EM like we did in hole 1, is a proven tool for finding VMS ore bodies. We simply need to drill this target.
The DHEM conductor anomaly in LRD-02 and IP anomaly indicate good potential to expand the copper mineralization in several directions, where could the Company dig first and what would you look to extrapolate?
While it is very early to be talking about how big this might get, the coincidence of high copper grades in hole 2 with a large gravity anomaly, IP chargeability and down hole EM conductor anomalies, together is a strong indication the copper could extends in several directions and could come even closer to surface. The next step will be to step out from the drill hole in all directions to start to delineate the extent of the copper. Additional geophysics could also help with drill targeting.
Can you elaborate on the presence of appreciable tin in hole LRD-02 and how its materially adds to the copper equivalent?
Another positive is finding from the drilling was high tin associated with the high copper. Tin is about 3 times the value of copper, so adds to the total metal value, and is quite easily extracted during processing. In addition, tin is more typical of large VMS deposits. A good example is the giant Neves Corvo mine is the best known copper deposit with appreciable tin in the Iberian Pyrite Belt. A study by the BRGM in the 1990’s looking at advanced technologies for finding VMS deposits in the Pyrite Belt found that high tin was typical of large deposits (more than 20 million tonnes) relative to small deposits (less than 5 million tonnes) which tend to have low tin.
In the Company’s news release on these results, you stated that the plan is to extend the geophysics program in preparation for the next round of drilling, how far will the program be extended and when is drilling expected to begin?
Geophysics is already underway, including gravity surveying over the west half of the Escacena Property to identify new targets, and several IP and EM profiles over the Cañada Honda gravity target in the North. I expect we will do additional geophysics at La Romana as we progress this target also.
Drilling is also progressing at the Torrubia North copper target in the Aguilas Project, with the planned five-hole program nearing completion, can you provide investors with an update?
The drilling has just been completed and we should expect drill results sometime in December.
When can investors expect further results and can you give us any highlights?
In the near term, we have the new geophysics to report from Escacena, the drill results from Torrubia North target in the Aguilas Project and follow-up drilling at La Romana target in the new year.
Looking to the near future, what else is on the horizon for Pan Global Resources?
I expect we will have a very busy year ahead with a potential new discovery at La Romana. We will have to see what the new results from the drilling at Torrubia North and geophysics results from Escacena before we determine what’s next on those areas.
Anything further you wish to add?
We should also mention the purchase of the Al Andalus property that was reported 2 weeks ago. This property adds another 3000 hectares extending the Escacena area to around 6000 hectares in total and taking us to within 600m of the Aznalcollar open pit. This is a very prospective area that has remained largely unexplored since the mid-1980’s. The area contains a number of additional targets, including untested gravity anomalies, potential extensions of La Romana, two areas with old mine works and a a prospect where Exxon drilled 9.5 m at 1.42% copper that has never been followed up. The company has managed to accumulate an excellent position in one of the most prospective mineral belts in the world.
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