Pan Global Resources (TSX-V: PGZ) - 20,000m Copper Drill Campaign Begins

Pan Global Resources Inc. is a junior exploration and development company focused on its assets located in Southern Spain. The Águilas project has a land position of approximately 16,333 hectares and is located 300 km south of the city of Madrid. The project is accessible year-round and it hosts copper, silver, lead, gold, and silver. The company’s Escacena project is located approximately 40 km northeast of Seville, Spain. The area is known for hosting one of the world’s largest VMS (Volcanogenic massive sulphide) mineralization zones. The project is a  5,458 hectares land package that has been actively explored by the company since 2019. The project hosts the La Romana copper-tin discovery along with various other targets. The company’s Board of Directors and Leadership Team bring decades of knowledge and global exploration experience. The team has led their respective organizations to successful exit strategies or into production, generating hundreds of millions in shareholder value.

Matt Gordon caught up with Tim Moody, President, CEO, and Director, Pan Global Resources. Mr. Moody has over 30 years of experience in the mining industry including mineral exploration, resource assessment, business development, strategy, and government relations. He spent 24 of those years with Rio Tinto, where he held the posts of Exploration Director (2005-2010) and Vice President and Director of Business Development (2010-2015). He currently holds directorships on the boards of Prism resources, Indico Resources, and Xiana Mining. Mr. Moody has a Bachelor of Science in Geology and Geophysics (Honors) from the University of New England. He is a graduate of the Senior Leadership Program from the London Business School, a graduate of the Business Leadership Development Program from the Australian Graduate School of Management, and a Fellow of the Society of Economic Geologists.

Company Overview

Pan Global Resources Inc. is a junior resource company operating in Spain. The company was founded in 2006 and is headquartered in Vancouver, Canada. Minera Escacena S.L., Minera Águila S.L.U, Minera Sabina S.L.U, and Lithium Li Holdings Inc. are the company’s subsidiaries. It is listed on the Toronto Stock Exchange (TSX-V: PGZ), and the OTC Markets (OTC: PGNRF).

Pan Global Resources has an advanced copper discovery in Southern Spain located in the Iberian Pyrite Belt. It also has about a dozen additional targets that have similar features and characteristics. In 2023, the company is planning a 20,000m drill program.

Currently, the company has 3 drill rigs deployed across 3 different targets. The drilling is focused on the expansion of the initial discovery whilst simultaneously testing out the new targets. Based on the logistics and accessibility, the company intends on making adjustments to the drill program. It is looking to make a new discovery on the drill targets. This year, the company is hoping to gain access to the east and west zone of the La Romana discovery.

Ongoing Operations

Pan Global Resources has always been a cost conscious company. It has been highly prudent with fund allocation. A major portion of funds is expended into the ground. The company has been in a fortunate position from a cash flow perspective. It raised $10M in capital through a bought deal in 2021. The final warrants came through in 2022. This has enabled the company to continue its drilling and exploration programs. It anticipates that the copper price movements would lead to increased recognization in the market.

It is really important for the company to gain access to the west and east extensions of the La Romana asset this year. The company has been working on this for quite some time. It expects to gain access to the region by the first half of 2023. Following this, it has plans to deploy 2-3 rigs to drill off the western extension at La Romana. The drilling that follows will enable the company to increase the size of the near-surface copper mineralization. At the same time, the company is also carrying out metallurgical test work at the deposit.

Pan Global Resources is also working on grassroots exploration drilling on several targets. It has plans to continue exploration work in the area as well. These aspects will serve as major catalysts for the company. The company continues to generate new targets while advancing other targets that aren’t drill-ready at the moment.

Based on the current work, the company can be categorized as both an explorer and a potential developer. The company has an advantage as even though it’s going through grassroots exploration, it has a new greenfield discovery in a brownfield environment. The asset is surrounded by mines and benefits from existing infrastructure. As a result, the company has a simple deposit with a lot of different options. It can truck the ore to another mine or develop it on its own. Either way, the company is focused on advancing the asset. Compared to other copper projects, the company benefits from optionality when it comes to moving the asset forward.

Spain’s Mining Landscape

Spain is considered a mining country, which is in large part due to the Iberian Pyrite belt. In the past few years, Spain is gaining recognition as a mining country. Sandfire’s acquisition to buy 3 mines for $1.8M-$1.9M has changed the country’s profile quite significantly. There’s a lot of exploration work going on throughout the area, bringing awareness to the Iberian Pyrite Belt as an important mining district, particularly for copper. This has made it easier to have discussions with interested parties. Spain offers a well-built infrastructure along with quick permitting. The government has been highly supportive of new developments, making discussions easier.

Drill Operations

On a smaller scale, the company is potentially looking at an earth-moving operation where the trucked ore is placed on a conveyor belt to one of the other mines. This makes for an operation with very low capital intensity. It also offers the least complicated path to permitting as well. On one end, the company is considering a 20Mt, 40Mt, or possibly a 50Mt operation, that can be run on a standalone basis. This can be achieved with a single pit, and in case new discoveries are made, several pits can feed into a single processing plant.

In terms of prioritizing the targets, the company is looking to focus on the targets that have a good chance of being a mine. There are a limited number of copper projects around the world that have this level of simplicity. The asset features near-surface copper mineralization, where some places have just 2m of soil on top. The dip is favorable, and ideal for a potential open pit operation. The metallurgy is simple as its neither folded nor deformed. Furthermore, the company hasn’t found any deleterious minerals so far. These aspects make the project more attractive than many other early-stage potential development projects that can be brought into production within the next decade, which is gearing up to be an important timeline for copper.

In a case where the company gains access to the west extension of the La Romana deposit, it plans on growing a big geophysical target by an additional 800m. This would provide a strike length of over 2km. As soon as access is granted, the company is looking to deploy 2-3 rigs for a 30-50 hole drill program that it would try and complete in 2023.

Following this, the company will be in a good position to consider putting out a resource. The timing at which the access is granted will determine whether the company will publish a resource this year or in 2024. In the meantime, it continues to drill other targets in parallel seeking a new discovery.

The company is carrying out internal work for the planned drill operations. In its current position, the company is looking to drill a 50m by 50m pattern along with a 50m by 25m pattern for some of the shallow holes. This drill pattern is expected to be adequate for inferred and indicated ounces as the deposit is simple and highly predictable. So far, the company has successfully hit mineralization at the expected places every time. Due to the lack of folding and faulting, the operation is simple and straightforward.

The style of mineralization found here is unlike a porphyry. Instead, the mineralization is higher density and compact. The company did consider a 200m by 200m drill pattern, however, this could potentially miss some of the high-grade spots which are key to the deposit. Based on internal work, the company found that a 50m by 50m drill pattern makes it likely to hit high-grade spots most of the time.

At the moment, the company is carrying out some infill drilling on a couple of sections alongside the drilling program. This helps in further testing of the deposit’s continuity and it also helps in identifying some areas with either gap in drilling or areas with geophysics peaks which could potentially carry some higher grades. It will also aid the company in locating any missed higher-grade spots. Currently, the 50m by 50m drill pattern seems to be ideal. The 50m by 25m drill pattern in upper levels could possibly get the company a much higher level of resource classification as well. By the end of next quarter, the company will have a much better understanding of the statistical side of operations, which would provide a better outlook on the drilling strategy and timelines.

To find out more, go to the Pan Global Resources website