Pan Global Confirms Significant Near-Surface Gold Mineralization at Cármenes Project in Spain

• Pan Global Resources' underground channel sampling at Providencia target returned 3.11 g/t gold over 37m, including 7.70 g/t over 6m.
• Surface trench samples are graded 1.74 g/t gold and 11.2 g/t silver over 20m which confirms near-surface mineralization east of historical mine.
• Maiden drill program underway at Providencia will be done to test extensions of copper-cobalt-nickel mineralization beneath old workings.
• Three additional drillholes are also planned to follow up on new high-grade gold zone identified by recent sampling.
• Providencia is located within 5,653 hectare Cármenes Project, which is prospective for multiple breccia-hosted copper-nickel-cobalt-gold deposits.

Pan Global Resources (TSXV:PGZ) provided an exploration update from its wholly-owned Cármenes copper-gold-nickel-cobalt project in northern Spain. The company announced high-grade gold assay results from channel and trench sampling at the Providencia target, where a maiden drill program recently commenced.

Pan Global Resources is a junior exploration and development company focused on copper and polymetallic projects in the Iberian Peninsula. It's flagship asset is the Escacena project in the world-class Iberian Pyrite Belt in southern Spain. Pan Global's team has a track record of discovery and development of mines globally, and operates to the highest environmental and social standards.

High-Grade Gold Discovered at Providencia

The highlight from the recent sampling was an interval of 3.11 g/t gold over a significant width of 37m from underground channel sampling in a historical adit called Gallery 1. This included a higher-grade section of 7.70 g/t gold over 6m.

Importantly, the long interval started and ended in mineralization, remaining open, indicating potential to expand the zone. A second adit, Gallery 2, returned 1.48 g/t gold, 10.4 g/t silver, 0.16% cobalt and 0.19% nickel over 3m, with assays pending for another 29m of sampling.

The underground channel samples were taken from adits located 60-90m east of the main historical mine workings. In the 1930s, this mine produced copper and cobalt concentrates from a breccia pipe deposit, however no gold extraction was recorded.

Near-Surface Mineralization Extended

Pan Global also reported results from a surface trenching program east of the historical mine. Trench 3 cut 1.74 g/t gold and 11.2 g/t silver over 20m, including 2.59 g/t gold and 9.5 g/t silver over 6m. These results confirm that the Providencia mineralization extends to surface over a wide area.

The surface trench and underground sampling results fall within a larger 250m x 150m multi-element soil geochemistry anomaly that includes up to 24.30 g/t gold in soils. This points to further expansion potential beyond the historical workings and recent sampling.

President & CEO Tim Moody stated in the news release,

“The first drillhole is underway at the high-priority Providencia target testing for extensions to the high-grade mineralization beneath the main historical mine workings. Three additional drillholes are now planned in the expanded target area to the east of the historical mine workings within a strong multi-metal soil anomaly."

Expanded Drill Program Planned

Pan Global now plans to expand its maiden diamond drill program at Providencia to follow up on the new gold zone. The company has added three drillholes to test the shallow gold mineralization identified in the surface trenches and soil anomalies.

The ongoing drill program was initially designed to test for extensions of the copper-cobalt-nickel mineralization historically mined at Providencia. It will be the first ever drilling at this target.

A Prospective Copper-Gold-Nickel-Cobalt is one of several targets within Pan Global's 100%-owned Cármenes Project, covering 5,653 hectares in an area highly prospective for breccia-hosted polymetallic mineralization. Breccia pipes such as these can have significant vertical extents in excess of 1 km.

The project contains two other historical copper-cobalt-nickel mines active until the 1930s, Profunda and Mina Carmenes, neither of which have been explored using modern methods. Numerous other small workings dot the property, highlighting the potential for multiple mineralized breccia pipes.

Pan Global is currently conducting exploration on other targets within Cármenes. Channel sampling results are pending from Profunda, 1 km south of Providencia, and a large geophysical survey was recently conducted over the entire property. Assays are also pending for additional prospecting and soil sampling over regional targets.

Next Steps

The key near-term catalyst for the company will be drill results from Providencia, expected over the coming months. The combination of near-surface high-grade gold, polymetallic mineralization, and extensive soil anomalies paints an encouraging picture for a potential discovery.

Positive drill results would likely lead to a larger drill campaign to define the extent of the mineralized system. Pan Global is permitted and fully funded for this expanded program.

While Providencia is still early-stage, the geological context is attractive. Breccia-hosted deposits of this style can deliver high-grade mineralization over substantial widths and vertical extents. Nearby examples in the region include Río Narcea Gold Mines' El Valle-Boinás/Carlés copper-gold mine.

In addition to Providencia, investors can look forward to news flow from Pan Global's other projects. The company is currently drilling its advanced-stage Escacena copper project in southern Spain, with new targets being permitted for drilling. Escacena represents potential for a large-scale volcanogenic massive sulfide deposit similar to others found in the prolific Iberian Pyrite Belt.

For Investors

With a prospective land package, a experienced management team, and a tight share structure, Pan Global Resources offers investors multiple paths to value creation. The company's Spanish copper-polymetallic projects boast excellent infrastructure, a mining-friendly jurisdiction, and a clear permitting process. The recent gold results from Providencia provide reason for optimism, with potential for a high-grade discovery that could be advanced quickly. Positive drill results could be a major catalyst in the near-term. However, the company's value proposition goes beyond Providencia, with a pipeline of compelling precious and base metal projects in a world-class mining district. Pan Global is well-positioned to benefit from the strong long-term fundamentals of the copper market, as well as growing demand for other "green metals" such as nickel and cobalt.