Pancontinental Resources Corporation (TSX-V: PUC) (OTCQB: PUCCF) reports gold and multielement geochemistry results for the first three diamond drill holes in Phase 2 of the Company’s fully funded 10,000-meter (m) maiden drill program at its flagship Brewer Gold & Copper Project (see Table 1). Holes 8, 9 and 10 are vertical holes located to the south and southeast of discovery Holes 4 and 5 and drilled below the former mine.

Highlights:

• Hole 8 intersected 106.5 m of 1.07 g/t Au, 0.26% Cu and 1.49 g/t AuEq, including:
  • 45.23 m of 2.03 g/t Au, 0.52% Cu and 2.87 g/t AuEq; and
  • 8.23 m of 5.04 g/t Au, 1.43% Cu and 7.34 g/t AuEq
• Hole 9 intersected 15.95 m of 1.09 g/t, 0.22% Cu and 1.44 g/t AuEq
• Hole 10 intersected 11.90 m of 2.22 g/t Au, 0.07% Cu and 2.33 g/t AuEq

Pancon President and CEO Layton Croft stated: “These new results prove that gold-copper mineralization extends to the south and southeast of discovery Holes 4 and 5. Hole 8 is located 50 meters south of Hole 4 and 160 meters south of Hole 5. Hole 9 is located 50 meters south of Hole 8. Hole 10 is located 50 meters east of Hole 9 (see Figure 1). This 210-meter north-south mineralized strike length, open in all directions, sets the stage for definition grid drilling of a potential gold-copper resource below the former mine (see Figure 2). Meantime we are testing zones outside the former mine by drilling step-out holes to the north, east, south and west (see Figure 1). To date Pancon has reported results for 10 Brewer diamond holes (and 3,291.5 m of core). Four of those 10 holes contain significant gold and copper values (Holes 4, 5, 8 and 10) and another two contain encouraging gold and copper values (Holes 2 and 9). We will build on this success by soon adding a second diamond drill rig.”

Table 1: Gold Assays and Multielement Geochemistry Results for Diamond Holes 8, 9 and 10

(see here for Certificates of Analysis and complete results)

*AuEq calculated using spot price of Au: $1,811.60/oz and Cu: $4.21/lb

See Quality Assurance and Quality Control Statement below regarding assaying techniques.
Intervals are core lengths and are not presumed to be true thicknesses.

Figure 1: Select Phase 1 Hole Locations and Results, All Phase 2 Hole Locations and Select Gold-Copper Results for Holes 2, 4, 5, 8, 9 and 10

Figure 2 shows an updated North-South cross section, looking west, of the former Brewer Gold Mine main pit, with gold-copper results for vertical diamond holes 4, 5, 8 and 9 which span 210 meters on a north-south axis. Hole 10 is located 50 meters east of this north-south section and thus not shown in Figure 2.

Figure 2: North-South Cross Section with Gold-Copper Results from Holes 4, 5, 8 and 9

Phase 2 Drilling Update

Pancon’s Phase 2 diamond drill program follows the success of Phase 1 drilling, as reported in the Company’s April 27, 2021 news release, with Hole 5 intersecting 181.6 meters of 1.24 g/t Au and 0.27% Cu (1.67 g/t AuEq) and Hole 4 intersecting 115.6 meters of 0.91 g/t Au and 0.17% Cu (1.18 AuEq). To date, Pancon has completed 14 diamond drill holes at the Brewer Gold & Copper Project with another four diamond drill holes to be completed before the end of Phase 2.

The Company expects results from Holes 11 and 12 in August, and results from Holes 13 and 14 in September. Holes 15-18 will be drilled in August, with results expected thereafter.

Pancon also plans to report in August results and analysis for all 6 sonic drill holes, which were drilled vertically through the reclaimed sulphide ore and waste rock in the former main pit as well as the results for the 104 rotary air blast (RAB) drill holes drilled in the latter half of June (see news release of June 8, 2021).

Philip Corriher Joins Pancon Board of Directors

At the Company’s Annual General Meeting (AGM) on June 21, 2021, Mr. Philip Corriher was appointed as an independent director of the Board of Directors. Mr. Corriher was previously appointed as a strategic advisor, as reported in the Company’s April 1, 2021 news release. Mr. Corriher brings more than 15 years of global professional experience in the textiles and natural resources sectors. He is a successful entrepreneur and investor with deep knowledge of both the global minerals exploration and mining industry as well as the geologic potential of the southeastern United States. Mr. Corriher was born and raised in North Carolina and graduated from North Carolina State University as a Park Scholar and Centennial Scholar. In 2015, he founded Carolina Mining Company in order to consolidate the most prospective historic gold, silver and base metals mines of North Carolina. Carolina Mining Company now controls more than 5,000 acres of surface and mineral rights in the Piedmont, located about 100 kilometers north of the Brewer Gold Project on the same prolific and underexplored Carolina Slate Belt.

At the same recent AGM, Mr. Don Whalen stepped down from the Pancon Board of Directors after having served for 16 years as independent chairman. The Company is very grateful to Mr. Whalen for his dedicated leadership and contributions over the years. Mr. David Mosher, who has also served as an independent director for 16 years, has assumed the role of Pancon interim chairman.

Quality Assurance and Quality Control Statement, Notes and Assumptions

Phase 2 exploration diamond core drilling was HQ and NQ size. The core was logged and marked for sampling and assaying by geologists contracted by Pancon. Samples, typically 1.5 meters in length, were sawn in half using a diamond core saw and one-half of the core was placed in sample bags and tagged with unique sample numbers, while the remaining half was kept in the core box for storage. Each bagged core sample was shipped to SGS Labs in Ontario, Canada, where it was dried, crushed and pulverized to >80% passing -200 mesh.

Gold was analyzed by fire assay (30 g) with an AAS (atomic absorption) finish, with a lower detection limit of 0.005 g/t gold. Samples containing greater than 10.0 g/t gold were analyzed by fire assay with a gravimetric finish. Multielement analyses, including base metals and rare earth elements, were analyzed with ICP-MS/ICP-AES (inductively coupled argon plasma mass spectrometry/atomic emission spectroscopy). Strict sampling and QA/QC protocols are followed, and assay integrity is monitored internally with a quality control program including the insertion of standards, blanks, and duplicates in the sample stream on a regular basis.

Gold equivalent values reported in this release were calculated using the following prices: a gold spot price of US$1,811.6/oz and a copper spot price of US$4.21/lb. Gold equivalent values can be calculated using the following formula: AuEq (g/t) = Au (g/t) + k*Cu (g/t); where k = price_Cu(US$/kg)/price_Au(US$/kg). Recoveries of individual elements can not generally be determined based on equivalent values and fluctuating metal prices will change the value of ‘k’ and therefore the gold equivalent values.

Qualified Person

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in NI 43-101 and reviewed and approved by Tom Quigley, MSc, CPG-11962, a Qualified Person as defined by NI 43-101.

About Pancon

Pancon is a Canadian junior mining company focused on exploring the prolific and underexplored Carolina Slate Belt in Chesterfield County, South Carolina, USA. In January 2020, Pancon won the exclusive right to explore the former Brewer Gold Mine property. The Brewer Gold & Copper Project, on the gold-rich Carolina Slate Belt in South Carolina, is where the former shallow Brewer Gold Mine produced 178,000 ounces of oxide gold between 1987-1995 from open pits that extended to 65-meter depths, where copper and gold-rich sulphides were exposed but could not be processed by the oxide heap leach processing facility (Zwaschka, M. and Scheetz J.W., 1995, Detailed Mine Geology of the Brewer Gold Mine, Jefferson, South Carolina, Society of Economic Geologists). Until Pancon, Brewer hadn’t been explored since 1997, and most of the tools used previously to explore the property have since been updated with more advanced technologies. Brewer is a high sulphidation system driven by a sub-volcanic intrusive and possibly connected to a large copper-gold porphyry system at depth, as indicated by: widely known prospective geology, including diatreme breccias; associated high sulphidation alteration; gold and copper mineralization; and geophysics (Schmidt, R.G., 1978, The Potential for Porphyry Copper-Molybdenum Deposits in the Eastern United States, U.S. Geological Survey). Pancon’s 100%-owned, 1,500-acre Jefferson Gold Project nearly completely surrounds the 1,000-acre former Brewer Gold Mine property, and both Jefferson and Brewer are located 12 kilometers northeast along trend from the producing Haile Gold Mine, which produced 137,413 ounces of gold in 2020 (https://oceanagold.com/operation/haile/).