PGZ:CC - Early Results Confirm Pan Global Project's District Potential
2024-03-27 17:08:02 ET
By all accounts, the Escacena copper project in Spain is highly prospective and considered to be one of the most exciting new copper discoveries in the world. So how did it end up in the hands of Canadian based junior mining company Pan Global Resources. (TSX-V:PGZ; OTC:PGNRF)
“I think we caught the big companies napping,” company President and CEO Tim Moody admitted. “I had a lot of background in Spain, and I knew the area very well from my previous history managing exploration for Rio Tinto. I also know the ownership history of the property and was aware that it had remained off the grid since the early 1980s.”
What Moody and Pan Global uncovered was a property with the potential for a near-surface discovery with initial indications of a copper/tin/silver deposit at its La Romana target, along with favourable metallurgy and simple geometry. In other words, a property with district-making potential .
Escacena is situated in an extremely desirable location , Spain’s Iberian Pyrite Belt, famous for large copper deposits and other metals. The region has everything Pan Global could want in terms of infrastructure, and is home to several large developing or operating mines belonging to the likes of Grupo Mexico (GMEXICOB:MX)and First Quantum Minerals Ltd., (FM-TSX) which is within12km of Escacena.
So far, the Escacena Project is delivering on expectations. Pan Global has completed approximately 140 drillholes at its La Romana target and has found mineralization in almost every one of them. In the process, Pan Global has more than doubled the size of the Escacena property to approximately 5,700 hectares.
Currently, Pan Global has three drill rigs in operation at three targets: La Romana, Romana Deep, and Zarcita, and exploration is advancing on a number of other targets, setting up the company for an exciting year ahead.
Early results have been extremely encouraging, but with multiple existing and potential targets in play, deciding on which one to drill next can be difficult. “The choice comes down to a number of factors,” Moody said. “First, we look at the geophysics and other indicators like geology and geochemistry. The more indicators that coincide, the more confidence we have that the mineralization at any given location would be of interest to us. But we also have to work very closely with local farmers to minimize our impact on them. So sometimes we don't necessarily drill in the order of priority from a technical point of view, and we adjust our program according to access.”
Currently, Pan Global has more than 90 surface access and use agreements with local farmers within the Escacena Project area. In two instances where access remains outstanding, the company has initiated a process with the Spanish government to arrive at a negotiated settlement. This affects extensions to the west and east of La Romana. Based on a history of positive community relations, Pan Global expects favourable solutions with both landowners.
The Andalusia region, and more specifically the Iberian Pyrite Belt , are well established jurisdictions where mining has taken place for over 2,000 years. There is an excellent track record of converting exploration success into mines in the district. As far as Pan Global is concerned, that can’t come soon enough - or happen at a better time. “I'm of the firm belief that we're heading for a sustained period of high copper prices, at least for the next decade, as the world transitions away from fossil fuels and focuses on electrification,” Moody revealed. “The world is trying to catch up to this energy transition, so for us to have a new discovery at a period of high copper prices, that really puts us in a very strong position.”
And there’s more. In addition to copper, Pan Global has discovered silver at Escacena, and tin, a metal that isn’t common in this type of ore body. But Moody and his exploration team see this as a good sign. “Not only is tin three to five times the price of copper, it also tends to occur in very large copper rich or bodies of this type. So, when we first saw the tin, it led us to believe that we could be on to something big.”
As the Escacena Project advances, Moody points to a few key catalysts to look for in the coming months. The first, is securing access agreements to land that would allow for extensions to the east and west of La Romana, something that will be a very important development for the company. The second, would be follow-up drilling once access agreements are in place, to see how much farther the La Romana deposit can be extended. And the third, is results from metallurgical test work that is ongoing. It’s expected that Pan Global will start providing results by the end of Q1.
A heavy, fully funded drill program is also in the plans for 2023 , consisting of approximately 50 new drill holes, including a 10-hole step out and infill drill program at La Romana that is already underway. That should lead to a lot of new results coming in throughout the year. Once more of the scale of the deposit is fully understood, an initial resource estimate could be determined.
Clearly, the prospect for the next few months has Moody excited. “I look forward to the possibility of making another discovery in the Escacena Project area. It has some outstanding exploration potential.”
With so many promising targets, there are several ways that investors can win with Pan Global.
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For more information on Pan Global Resources , please visit their website at https://www.panglobalresources.com/
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