Pan Global begins drilling at Canada Honda target

Apr 26, 2023

2023-04-26 09:28 ET – News Release

Mr. Tim Moody reports

PAN GLOBAL COMMENCES DRILLING AT CANADA HONDA COPPER-GOLD TARGET IN THE ESCACENA PROJECT, SPAIN

Pan Global Resources Inc. has commenced diamond drilling at the Canada Honda target at the company’s 100-per-cent-owned Escacena project in the Iberian pyrite belt in southern Spain. This follows completion of a new IP survey that identified an untested IP anomaly beneath the historic mine tunnel. Results are also announced for drillhole CHD02 that attempted to test a deep gravity target at Canada Honda and was abandoned before reaching the target depth due to the hole collapsing.

Highlights:

The Canada Honda target is a large gravity anomaly extending approx. 2km east-west
Drill hole CHD02 targeted a large gravity anomaly and intersected 11m of 0.6% Cu, 0.12g/t Au and 3.2g/t Ag, with the hole unable to continue after it collapsed before reaching the target
New Induced Polarization (IP) survey highlights previously untested chargeability and resistivity-low anomalies extending beneath the mine tunnel
Drilling initiated at Canada Honda target to test beneath historic mine tunnel for copper-gold mineralization

“New geophysics data highlights the Canada Honda target’s potential to host volcanogenic massive sulphide (VMS) mineralization. The intersection of anomalous copper and gold above the target in hole CHD02 is another positive indication of potential for significant copper mineralization associated with the Canada Honda gravity anomaly. The new IP survey appears to show an anomaly that becomes stronger at depth beneath the historic mine workings on the margin of the gravity anomaly,” said Tim Moody, Pan Global’s President & CEO.

The Canada Honda target is characterized by a large gravity anomaly (up to 1 mGal) that extends approximately two kilometers east-west. The target is potential sulphide mineralization within the prospective Volcanic Sequence (VS) concealed beneath overthrust rocks of the Phyillite Quartzite (PQ) unit. Previous Pan Global channel sampling of the historic mine tunnel on the southern margin of the gravity anomaly included 26m at 0.42g/t Au and assay values up to 2.9g/t Au, 27.5g/t Ag, 0.2% Cu and 0.4% Co. A single drill hole (CHD01) by Pan Global in 2019, approximately 150m northwest of the tunnel, also intersected minor anomalous gold values of up to 0.34g/t Au.

Drill results for hole CHD02 are summarized in Table 1 and drill hole collar details are presented in Table 2 below. Drill hole locations are shown in Figure 1.

Canada Honda

Additional gravity survey data has been collected over the Canada Honda target area and a new line of IP has been completed adjacent to a historic mine tunnel along a thrust contact on the southeastern margin of the gravity anomaly. The new IP highlights a chargeability high and previously untested resistivity low anomaly beneath the tunnel.

Drilling has commenced on the first of two new holes (CHD03 and CHD04) testing chargeability and resistivity-low anomalies beneath the historic mine tunnel.

Drill hole CHD02 was drilled to test the eastern extension of the large Canada Honda gravity anomaly, targeting potential massive sulphide concealed beneath the overthrust Phyllite Quartzite geology unit. The hole collapsed before reaching the target and had to be abandoned. The hole intersected a zone of sulphide mineralization with anomalous copper and gold within the thrust-fault sequence above the target. Highlights include; CHD02 – 11m at 0.6% Cu, 0.12g/t Au, 3.2g/t Ag from 426m, including – 2.0m at 1.0% Cu, 0.24g/t Au, 7.7g/t Ag

– 1.0m at 1.8% Cu, 0.13g/t Au, 6.1 g/t Ag

– Additional isolated assay up to 0.7g/t Au over 1m

The results provide additional positive indicators of the potential for more significant copper-gold mineralization in the Canada Honda target area. The main gravity anomaly remains untested and further drilling is pending additional modelling.

Drilling is ongoing in the Escacena Project at the La Romana and Zarcita targets. Results are pending for approximately 15 drill holes at La Romana and Zarcita. Negotiations are progressing with land owners for access to the untested potential near-surface extensions to the La Romana mineralization. QA/QC Procedures

Core size was HQ (63mm) and all samples were one-half core. Nominal sample size was 1m core length and ranged from 0.4m 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 one-fourth core were taken approximately every 30 samples and Certified Reference materials inserted every 25 samples in each batch.

Samples were delivered to ALS laboratory in Sevilla, Spain and assayed at the ALS laboratory in Ireland. 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).

About the Escacena Project

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 project is located near operating mines at Las Cruces and Riotinto and is immediately adjacent to the former Aznalcollar and Los Frailes mines where Minera Los Frailes/Grupo Mexico is in the final permitting stage with construction anticipated to restart in 2023. The Escacena Project hosts the La Romana copper-tin discovery and a number of other prospective targets, including Zarcita, Hornitos, La Jarosa, Romana Deep, Canada Honda, Bravo, Barbacena, El Pozo, and San Pablo.

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.

Qualified Persons

James Royall, Vice President Exploration for Pan Global Resources and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information for this news release. Mr. Royall is not independent of the Company.

We seek Safe Harbor.

https://www.panglobalresources.com/