Drill Results Spotlight Potential of Pan Global's Escacena Copper Project in Spain

Introduction

Pan Global Resources Inc. (TSX-V: PGZ; OTCQB: PGZFF) is a Canadian exploration company targeting copper-rich deposits, given copper's strong supply-demand fundamentals and positive long-term outlook. The company's flagship project is the Escacena Project, located in the prolific Iberian Pyrite Belt in southern Spain.

Recent Drill Results

Recent drill results from Escacena have investors taking notice. In early July, Pan Global announced visible copper and tin mineralization in the first two drill holes at the Romana West target, indicating a continuation of the near-surface mineralization discovered at La Romana just 1.2km to the east. The company has commenced a 25-30 hole, 6000m drill program to delineate the western extent of the La Romana mineralization.

Additional positive drill results were released in early July from the Cañada Honda target, located 3.5km north of La Romana. Hole CHD05 intercepted a 20m interval grading 0.5% copper and 0.3 g/t gold, including a higher grade zone of 5.1m at 1.3% copper and 0.5 g/t gold. This copper-gold mineralization continues 150m down-dip with increasing thickness, remaining open in all directions.

Exploration Potential

The latest results have management enthusiastic about the potential to expand the La Romana discovery and make additional discoveries elsewhere on the large, 5760-hectare Escacena land package. Over 14 untested gravity anomalies have been identified on the property in addition to La Romana and Cañada Honda. Multiple exploration techniques are being utilized to prioritize drill targets and increase the chances for discovery.

Infrastructure and Location

The Escacena Project is strategically located in the east of the prolific Iberian Pyrite Belt in Andalusia, southern Spain. The area has significant existing mining infrastructure, as it is surrounded by active and historical mines including Las Cruces, Rio Tinto, Aznalcóllar and Los Frailes. Las Cruces, located 6km north of Escacena, is one of the world's highest-grade copper mines. The mothballed Aznalcóllar and Los Frailes mines are located immediately adjacent to Escacena, with Grupo Mexico anticipating restarting construction in 2023 after securing final permits.

This existing mining infrastructure provides access to roads, power, water, mining equipment, professional expertise and an experienced local workforce to support exploration and any future mining at Escacena. Further, the Andalusia region has been streamlining permitting procedures to encourage investment in mining projects to produce critical raw materials needed for the energy transition in Europe.

The Iberian Pyrite Belt has hosted major copper, zinc and silver mines for over 4,000 years. The presence of significant mineralization across the belt highlights its prospectivity for additional discoveries. Escacena is strategically positioned in this proven geological environment.

Financial Position

Pan Global is fully funded with over C$9 million in the treasury following a financing that closed in May 2022. This provides the capital to complete a 20,000m drill program in 2022 focused on expanding La Romana and testing high priority exploration targets across the large Escacena land package.

Copper Market Outlook

Demand for copper is expected to surge over the next decade driven by electrification, renewable energy, electric vehicles and infrastructure needs. The transition to clean energy is extremely copper intensive. EV's can use up to 4 times as much copper as internal combustion engines. Charging stations and power grids also require substantial amounts of copper wiring and cabling.

As a result, copper demand is projected to double or even triple by 2035. However, the pipeline of new copper projects is insufficient to meet this demand growth. Supply shortfalls are expected to emerge in the coming years if no major new deposits are discovered and developed.

This impending supply gap has made new copper discoveries extremely valuable - both for future production potential and for acquisition value in the near-term as mining companies look to bolster their project pipelines.

The Escacena Project provides exposure to a proven copper belt with demonstrated endowment and potential for new discoveries. The local mining infrastructure can facilitate fast-tracking any future development. Recent drill results indicating a major discovery at La Romana, high grade intercepts at Cañada Honda, and 14 untested exploration targets underscore the significant upside for new discoveries across the large Escacena land package.

Conclusion

For investors looking to gain exposure to the copper market through an exploration company actively making new discoveries, Pan Global Resources warrants consideration. The large prospective land package at the Escacena project, surrounding infrastructure, supportive jurisdiction with permit streamlining, increasing drill success and strong financial position combine to present a compelling opportunity.

The copper market outlook over the next decade is extremely bullish. Large supply shortfalls are anticipated due to surging demand from electrification. New economically viable copper discoveries will be in high demand but very scarce. Escacena provides exposure to a copper district primed for new discoveries in an established mining jurisdiction with infrastructure already in place.

With copper poised for a structural boom over the next decade, new copper discoveries will be rewarded, and Pan Global's recent results indicate they could be on the cusp of substantial new discoveries at Escacena.