• Cañada Honda copper-gold mineralization extended to 600m down-dip at east end of a 2km long east-west gravity anomaly
• Zarcita drilling intersects narrow intervals of higher-grade copper within a wider zone of stockwork and alteration
• Drilling at Escacena now focused on highly prospective western extension of the La Romana copper-tin-silver mineralization at Romana West

Pan Global Resources Inc. (TSX-V: PGZ) (OTCQX: PGZFF) is pleased to announce positive results for its follow-up drilling at the Cañada Honda and Zarcita targets at the 100%-owned Escacena Project in the Iberian Pyrite Belt, southern Spain. Both targets are located 4km north of the La Romana copper-tin-silver discovery where ongoing drilling is extending mineralization at Romana West. Three follow-up drill holes have been completed at the Cañada Honda copper-gold target and an additional 13 drill holes have been completed at the Zarcita copper target.

“The follow-up drilling at Cañada Honda confirms copper-gold mineralization coincident with a gravity anomaly, and extends the copper-gold mineralization from surface to 600m down-dip where it remains wide open. The new results highlight additional gold potential in the hanging wall. The drilling is at the eastern end of a 2km long east-west gravity target, indicating potential for the mineralization to significantly expand, making this a compelling, high priority target for additional drilling,” said Tim Moody, Pan Global’s President & CEO.

Currently, drilling at Escacena is focused along the highly prospective western extension (Romana West) of the La Romana copper-tin-silver discovery. In addition to the 12 geophysical targets that are being sequentially prioritized for drill testing, exploration on the 5,760-hectare Escacena Project continues to identify new drill targets. Initial assay results from the first set of drill holes at Romana West are expected soon.

Cañada Honda and Zarcita drill hole locations are shown in Figure 1 below. Drill hole assay results for Cañada Honda are summarized in Table 1 and collar details are presented in Table 2 below. Drill assay results for Zarcita are summarized in Table 3 and collar details provided in Table 4.

Cañada Honda Highlights

• New drill hole results include:
  • CHD05 – 20m at 0.5% Cu, 0.8g/t Au, 1.9g/t Ag, including 5.1m at 1.3% Cu, 0.5g/t Au, 3.9g/t Ag (reported July 4, 2023); and new results including 2m at 1.6g/t Au
  • CHD06 – 7m at 0.6% Cu, 0.8g/t Au, 6.5g/t Ag, including 3m at 1.1g/t Au, 5.5g/t Ag
  • CHD07 – 5m at 1.1g/t Au, 0.2% Cu, 2.3g/t Ag
• Surface rock samples up to 9g/t Au
• New untested DHEM conductor anomalies

The follow-up drill program included holes CHD05, CHD06 and CHD07. Drill hole CHD05, testing 150m down-dip from previous drill hole CHD04 and approximately 330m down-dip from a historical mine tunnel, confirmed copper-gold mineralization coincident with the targeted gravity anomaly. CHD06, located 100m east of CHD05, intersected copper-gold mineralization coincident with a DHEM target. Hole CHD07 tested a resistivity low anomaly 190m down-dip from CHD05. Each of the drill holes also intersected additional gold mineralization in the hanging wall.

DHEM in holes CHD06 and CHD07 confirmed new off-hole conductor anomalies for future drilling to test the potential for stronger sulphide mineralization. See Figure 3 below.

Anomalous gold assays from 28 rock grab samples at Cañada Honda indicate a gold anomaly extending 200m west of the historical mine tunnel and up-dip from the recent drilling, with several samples reporting >0.1g/t Au up to 9.0g/t Au.

Table 1 – Cañada Honda drill results summary (all intervals close to true thickness); Results in italics for CHD05 were first reported on July 4, 2023.

Table 2 – Cañada Honda drill hole collar information (3 holes 1,238.95m)

Zarcita results commentary

“The recent exploration drilling and mapping at Zarcita has highlighted a 2.1km long trend with anomalous copper, lead, zinc, gold and silver. The highest potential remains centered on the historical Zarcita mine workings where drilling has intersected narrow intervals of higher-grade copper within a wider zone of stockwork and alteration. While untested down-hole electromagnetic (DHEM) conductors, gravity and IP anomalies define prospective targets for future campaigns at Zarcita, the Romana West and Cañada Honda targets are key near-term priorities,” said Tim Moody, Pan Global’s President & CEO.

Zarcita highlights

• New drill hole results include:
  • ZAD05: intersected copper mineralization from surface, including 14.45m at 0.2% Cu before entering a 10.5m assumed historical mine cavity
  • ZAD06: 5.5m at 0.7% Cu from 106.2m, including 1.85m at 1.6% Cu, 0.15g/t Au, 2.4g/t Ag

The completed drill program at Zarcita includes 17 holes for a total of 4,363m, along a 2.1km east-west trend. The holes were designed to test a combination of geophysical, geological and geochemical targets, and to acquire mineral alteration information to assist in identifying vectors to potential higher-grade mineralization. Results from the first four holes, ZAD01 to ZAD04, drilled on a single north-south section, were reported on January 17, 2023 showing copper grades increasing to 400m down-dip and narrow intervals of higher grade (e.g., drill hole ZAD04: 17m at 0.3% Cu, including 1.9% Cu over 1.1m). The new drill-holes, ZAD05 to ZAD17, were drilled on a 100m to 600m spacing along the trend. Much of the strike potential to-date has only been tested by single wide-spaced drill holes.

The most promising results are from a 600m section of the 2.1km trend, coincident with the Zarcita mine workings. This includes thin bands of semi-massive and massive sulphide intervals within a wider zone of stockwork veining and chlorite-sericite alteration. DHEM in holes ZAD01 and ZAD05 identified untested off-hole and below-hole anomalies, representing potential nearby stronger sulphide mineralization.

Drill hole ZAD05, intersected 0.2% Cu (oxide zone) over 14.85m from surface followed by 10.5m with no core recovery in an assumed historical mine cavity, and trace chalcopyrite continuing in the drill core below the cavity. Drill holes ZAD06 and ZAD15, intersected narrow intervals of high-grade copper. The mineralization remains open down-dip and along-strike within the historical mining area.

Table 3 – Zarcita drill results summary (all intervals close to true thickness to >90%)

Table 4 – Zarcita drill hole collar information (13 holes 3221.15m)

About the Escacena Project

The Escacena Project comprises a large, contiguous, 5,760-hectare land package controlled 100% by Pan Global in the east of the Iberian Pyrite Belt. Escacena is located near operating mines at Las Cruces and Riotinto and 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 2023. The Escacena Project hosts the La Romana copper-tin-silver discovery and a number of other prospective targets, including, Romana West, Cañada Honda, Bravo, Barbacena, El Pozo, Zarcita, Hornitos, La Jarosa, Romana Deep, Romana North, and San Pablo.

About Pan Global Resources

Pan Global Resources Inc. is actively targeting copper-rich mineral deposits, given copper’s compelling supply-demand fundamentals and outlook for strong long-term prices as a critical metal for global electrification and energy transition. The Company’s flagship Escacena Project is located in the prolific Iberian Pyrite Belt in southern Spain, where infrastructure, mining and professional expertise, and support for copper as a Strategic Raw Material by the European Commission collectively define a tier-one jurisdiction for mining investment. The Pan Global team comprises proven talent in exploration, development, and mine operations – all of which are committed to operating safely and with utmost respect for the environment and our partnered communities.

QA/QC Procedures

Core size was HQ (63mm) and all samples were ½ core. Nominal sample size was 1m core length and ranged from 0.5 to 2m. Sample intervals were defined using geological contacts with the start and end of each sample physically marked on the core. Diamond blade core cutting and sampling was supervised at all times by Company staff. Duplicate samples of ¼ core were taken approximately every 30 samples and Certified Reference materials inserted every 25 samples in each batch.

Drill core and rock samples were delivered to ALS laboratory in Seville, Spain and assayed at the ALS laboratory in Ireland. All samples were crushed and split (method CRU-31, SPL22Y), and pulverized using (method PUL-31). Gold analysis was by 50gm Fire assay with ICP finish (method Au-ICP22) and multi element analysis was undertaken using a 4-acid digest with ICP AES finish (method ME-ICP61). Over grade base metal results were assayed using a 4-acid digest ICP AES (method OG-62). Over grade tin was determined using peroxide fusion with ICP finish (method Sn-ICP81x).

Qualified Persons

James Royall, Vice President Exploration for Pan Global Resources and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information for this news release. Mr. Royall is not independent of the Company.

Figure 1 – Simplified geology map with Cañada Honda and Zarcita drill hole locations. Cross section location (A-A’) shown in Figure 2. (CNW Group/Pan Global Resources Inc.)

Figure 2 – Geology cross section 737250mE, A-A’, showing new results for follow-up drill holes CHD05 and CHD-7, and previous holes CHD03 and CHD04. The results show the main Cu-Au zone extending 600m down-dip from a historical mine tunnel, and multiple Au veins in the hanging wall. Approximately 150m separates CHD04 and CHD05, and 190m separates CHD05 and CHD07. (CNW Group/Pan Global Resources Inc.)

Figure 3 – Cañada Honda target map showing a large gravity anomaly extending west of the drill holes, DHEM conductors, soil and rock sample copper-gold anomalies. (CNW Group/Pan Global Resources Inc.)