Pan Global Resources Reports Game-Changing Gold Find as Spanish Portfolio Delivers Major Upside

• Pan Global Resources CEO Tim Moody reports 50% share price increase year-to-date, driven by promising drill results from the Cármenes copper-gold project in northern Spain
• Initial drilling at the Providencia target discovered previously unknown gold mineralization over wide intervals, including 46m at 1.1g/t gold and high-grade copper-cobalt-nickel zones
• The company identified 20-30 new targets through helicopter geophysical surveys across a 3-4km area, suggesting significant expansion potential for the hydrothermal system
• Escacena copper project advancing toward maiden resource estimate in second half of next year, with superior metallurgical characteristics compared to regional peers
• Recent mining permit approval for neighboring Grupo Mexico project validates permitting environment and enhances strategic optionality for Pan Global's assets

Pan Global Resources (TSXV:PGZ) is experiencing a notable transformation in market sentiment and operational momentum, with CEO Tim Moody reporting a 50% share price increase from the beginning of 2025, driven by encouraging drill results from the company's expanding Spanish project portfolio. The Vancouver-based mining company has strategically positioned itself in Spain's prolific Iberian Pyrite Belt, focusing primarily on copper assets while recently adding a significant copper-gold discovery in northern Spain that is reshaping the company's exploration priorities.

Discovery Success at Cármenes Project

The company's most significant recent development centers on the Cármenes project in northern Spain, where initial drilling at the Providencia target has yielded unexpected gold mineralization alongside the previously known copper-cobalt-nickel system. Moody emphasized the significance of this discovery, stating: 

"All three of them [targets] have hit gold, which wasn't known before, or extracted before, but over quite wide intervals. The first hole hit 46m of 1.1g gold."

The Providencia target represents a breccia pipe or breccia-style hosted mineralization system, where historical mining operations extracted high-grade copper, cobalt, and nickel concentrates without recognizing the gold potential. The company's inaugural drilling program has successfully demonstrated that gold mineralization extends well beyond the historical workings, with intersections including 4m at 2g/t gold and a particularly attractive 4m interval of copper-cobalt-nickel mineralization with combined metal grades approaching 3% copper equivalent.

Perhaps most encouraging for investors is the scale of the system being revealed through drilling. Moody noted: 

"We had 110m with gold all the way through it pretty consistently, it was only 0.23g/t or thereabout, but it showed the system is fertile. It's a very wide system and when you start talking about breccias of those sort of widths, that really gives you potential for some large volume."

Geological Framework & Exploration Potential

The geological characteristics of the Cármenes project suggest significant upside potential for resource expansion. The company has identified what appears to be a complex hydrothermal breccia system with multiple stages of mineralization, controlled by intersecting structural corridors. The system is situated within a favorable geological setting characterized by high heat flow and intrusive activity, similar to producing mines in the region.

Moody explained the geological context: 

"It's related to what we call the Permian extension period, which is a period in that area of high heat flow where you get intrusive activity and so on. About 70km to the west is a copper-gold skarn deposit mine that's been operating for 30 or 40 years, to the east is another gold deposit as well."

The company's helicopter-borne geophysical survey has dramatically expanded the exploration opportunity, identifying 20-30 additional targets across a 3-4 kilometer area. This electromagnetic, magnetic, and radiometric survey provides what Moody describes as "chargeability information" that enables rapid target generation and prioritization across the broader Cármenes area.

Metallurgical Advantages at Escacena

While the Cármenes discovery captures immediate attention, Pan Global's flagship Escacena project continues advancing toward a maiden resource estimate planned for the second half of next year. The project's competitive advantage lies not just in its copper grades but in superior metallurgical characteristics that translate to higher net value per unit of contained metal.

Moody highlighted these advantages during recent site visits: 

"What's becoming apparent to those that are coming and visiting our project, and when you compare it with some of the other mines in the area, is that not all ore bodies are built the same. A cubic meter of 1% copper at Escacena is worth a lot more than the same grade at any of the other mines because of the higher recovery, higher concentrate grades. We also have lower sulfides and we have lower deleterious metal content."

The Escacena project benefits from exceptional infrastructure positioning and a proven permitting environment, further enhanced by the recent approval of a mining permit for Grupo Mexico's adjacent project. This development validates both the regulatory framework and the strategic value of Pan Global's land position in the region.

Interview with President & CEO, Tim Moody

Strategic Market Position & Timing

Pan Global's portfolio positioning appears well-timed to benefit from favorable copper market fundamentals and European Union strategic mineral initiatives. The company operates in a jurisdiction that has demonstrated consistent support for mining development, with excellent infrastructure access and proximity to established mining operations and processing facilities.

The recent permit approval for the neighboring Grupo Mexico project, one of the world's largest copper producers, provides validation of the permitting environment while creating potential strategic opportunities. Moody noted: 

"This is further reinforcement of that, but it also means that in terms of optionality of what we have in our Escacena project, not only in terms of development outcomes but also potentially M&A - it's perhaps a lot better now than it was."

Operational Execution & Near-term Catalysts

Despite weather-related delays that impacted drilling schedules, Pan Global maintains strong operational momentum with multiple catalysts approaching. The company expects to complete its initial six-hole program at Providencia within 6-8 weeks, with three remaining holes targeting the most prospective gold anomaly zones identified through surface sampling.

The upcoming drilling represents a critical test of the system's potential, as Moody explained: 

"The next three holes are going to be targeting that gold zone, so when you think we've been seeing very wide zones of breccia, we're seeing wide intervals of elevated gold with some higher grade zones within that, what are we going to intersect when we drill the actual gold anomaly where we have a channel sample of 37m of 3g/t that's never been drilled?"

Financial Position & Market Valuation

With the share price recovering 50% year-to-date, Pan Global appears to be gaining recognition for its asset quality and discovery potential, though management believes the company remains undervalued relative to its prospects. The company has demonstrated disciplined capital allocation, taking advantage of helicopter availability to conduct cost-effective geophysical surveys that have multiplied target generation at minimal incremental cost.

The combination of established resources at Escacena, expanding discovery potential at Cármenes, and additional prospects across the portfolio provides multiple pathways for value creation. The company's strategic position in a supportive jurisdiction with excellent infrastructure creates optionality for various development scenarios, including potential partnership or acquisition opportunities.

The Investment Thesis for Pan Global Resources

• Discovery Momentum: Initial drilling at Cármenes has uncovered previously unknown gold mineralization over significant intervals, with 46m at 1.1g/t gold representing just the beginning of what appears to be a large hydrothermal system
• Resource Expansion Potential: Helicopter geophysics identified 20-30 additional targets across 3-4km, suggesting substantial scale-up opportunity from the initial Providentia discovery
• Metallurgical Premium: Escacena project offers superior ore characteristics with higher recoveries and concentrate grades compared to regional peers, translating to higher per-unit value
• Strategic Location: Projects positioned in proven mining jurisdiction with excellent infrastructure, validated by recent major mining permit approvals in the immediate area
• Multiple Catalysts: Near-term drilling results expected within 6-8 weeks, maiden resource estimate at Escacena in second half of next year, plus expanding exploration pipeline
• Undervalued Recovery: 50% share price gain year-to-date still leaves company undervalued according to management, with increasing institutional interest and site visit activity

Macro Thematic Analysis

The European Union's Critical Raw Materials Act has elevated copper to strategic mineral status, creating policy tailwinds for domestic production capabilities. Spain's position as a historically significant mining jurisdiction within the EU provides particular advantages as supply chain security becomes increasingly important. Pan Global's portfolio aligns with these macro trends, offering investors exposure to both the structural copper deficit driven by electrification and energy transition, as well as the strategic imperative for European mineral security.

The company's dual focus on copper and gold provides portfolio diversification benefits, with gold serving as both a byproduct credit and standalone target. The discovery at Cármenes demonstrates how systematic exploration in established mining districts can unlock significant additional value, particularly when utilizing modern techniques in areas with historical mining activity.