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 leadership team has excelled at management and hands-on operations in exploration and discovery, development, and operations of mining projects globally, and has deep connections in the Iberian Pyrite Belt and Spain. 

The company’s cornerstone project is the Escacena Copper-Tin-Silver-Gold Project, which comprises a large, contiguous, 5,760-hectare land package controlled 100% by Pan Global in the east of the Iberian Pyrite Belt. The Escacena Project is immediately adjacent to the former Aznalcóllar and Los Frailes mines where Minera Los Frailes/Grupo Mexico is in the final permitting stage with construction anticipated to start in 2024. Also nearby are operating mines Riotinto (Atalaya Mining) and the Sandfire MATSA mining complex, plus 12km to the east is Las Cruces (First Quantum) that is considering underground mining following exhaustion of the open pit mine in Q3 2023. 

Escacena hosts the La Romana copper-tin-silver discovery made in late 2019, and several other prospective targets, including Zarcita, Hornitos, La Jarosa, Romana Deep, Bravo, Barbacena, El Pozo, and San Pablo. La Romana has had more than 180 holes drilled since the discovery in 2019, with a 99% hit rate for mineralization, and the deposit scale has continued to increase with continual drilling for almost three years. It is now 1.4km of surface strike extent. In April 2023, the company published the first metallurgical test results for the La Romana discovery. 

In September 2023, Pan Global reported a new Escacena Project copper-gold discovery at the Cañada Honda target 3km north of La Romana. An 11-drillhole campaign started in November 2023, with the first results reported in January 2024.

The European Commission reported that the EU imports 48% of its current copper requirements, most of which derives from Chilean exploration and extraction, which is then used to produce finished materials in Chinese processing facilities. The global demand for copper is expected to increase significantly in the coming years, with estimates suggesting that the EU alone will need an additional 2.5 million tonnes of copper per annum by 2030.

Moreover, the EU's emphasis on responsible and sustainable sourcing of critical minerals is expected to drive improvements in environmental, social, and governance practices within the copper industry. This will benefit not only the EU but also the global community by reducing the environmental impact of mining and promoting fair labour practices. This important development could provide for speedier project permitting and access to capital which includes grants, tax incentives, research, and regulatory assistance along with other forms of financing and technical assistance. 

The Company remains focused on uncovering the true scale and size of the deposit before it establishes a maiden resource for La Romana. 

Pan Global Resources and the Escacena Copper Project possess a rare combination of attributes that support the Company’s current and future valuation:  

• Jurisdiction (area with a 2,000+ year history of mining, established infrastructure, favourable and tested mine permitting regime, supportive communities, educated and experienced workforce, significant global base metals operators nearby) 
• Proximity to other mines and development projects in the Iberian Pyrite Belt plus infrastructure (potential development options/optionality)
• Based on the initial 180+ holes drilled at La Romana, mineralization along trend for 1.4km, is from near-surface, simple-predictable geometry of 35 to 42 degrees, and gentle topography 
• Favourable grade distribution (some of the highest grades and thickest intervals drilled at La Romana are nearest surface)
• Desirable potential ore type compared to other mines in the IPB – based on initial metallurgical testing the mineralogy is simple and with almost no deleterious metals/minerals, which provides the advantage of potentially less processing required – and less energy use  
• Size potential – With the electro-magnetic target trending to the west and east of the drilled area, the company makes it a high priority to drill to extend the deposit/potential resource once access is granted to the west and east of the La Romana deposit 
• Cañada Honda copper-gold discovery made in late 2023 with mineralization from surface to 600m and a geological profile similar to operating mines nearby. 11-hole drill program in 2024 could be a trigger for an expanded mineral resource estimate at the Escacena Project
• Potential for additional discoveries on other targets as well as the development of new targets using various predictive targeting tools and the opportunities presented by other projects found through the company’s extensive network of Spanish mining industry connections 
• Industry analysts predict strong global demand for copper with an additional 700 million tonnes required by 2050 – equivalent to all copper mined throughout history up until 2021.  

European Commission Designates Copper a Strategic Raw Material 

The European Commission designated copper a Strategic Raw Material in March 2023. The EU list identifies the most critical minerals and metals that are essential to the EU's economic growth and its transition to a low-carbon and digital economy.

The EU has made a commitment to support the sustainable supply of these critical metals and minerals, including copper, and has identified potential funding opportunities and tax incentives to support companies in this sector.

The Company believes the inclusion of copper as a critical metal is expected to provide direct benefit to the Escacena Project. The report highlights one of the reasons copper was added to the list was that it is challenging to substitute for copper due to its superior performance in electrical applications. 

Six Major Catalysts

There are six major catalysts for Pan Global in 2024, any one of which could have a positive impact on the company valuation and have a positive impact the direction the company takes this year: 

1. Access to La Romana West/East targets (separate or together); 
2. Releasing the results from subsequent drilling of La Romana West/East targets, with the potential to almost double the potential mineralization based on target size;
3. Metallurgical testwork results summary for copper and subsequently for tin. Favourable recovery rates, concentrate grades, or low deleterious metals content would impact the potential economic desirability of the deposit; 
4. Releasing the results from the 11-hole drill program at the Cañada Honda copper-gold discovery;
5. A new discovery at one of the more than a dozen targets at the Project; 
6. The generation of new targets at the Project as well as creation of enhanced value for shareholders through new opportunities (outside Escacena, including the Aguilas project 200 km northeast of Escacena as well as M&A growth opportunities uncovered using the company’s extensive regional network).