Pan Global Resources (PGZ.V) continues to further improve its understanding of the mineralized structures on its fully-owned Escacena project in Spain’s Iberian Pyrite Belt. In an update which was published approximately a month ago, the company disclosed the best gold grade and best thickness intercept it has encountered so far on the Canada Honda zone of Escacena. In that exploration update, which discussed the results of three stepout drill holes (part of a 11 hole drill program), the company confirmed it expanded the copper-gold mineralization by approximately 80 meters to the northwest (where the width of the mineralization appears to be increasing) while there is additional near-surface mineralization on the eastern side of the target area.

As shown in the bullet points above, hole CHD13 obviously was the ‘disappointing’ one while holes 11 and 12 were quite interesting. Hole 12 clearly was the best hole with 17 meters containing 1.58 g/t gold and 0.5 g/t silver starting at a depth of 285 meters, including 11 meters at 2.36 g/t gold and 0.7 g/t gold. This means the remaining 6 meters in the 17 meter interval carried an average gold grade of just 0.15 g/t gold, so the 11 meter interval really ‘carriers’ the wider interval. Also interesting is the discovery of a second mineralized zone just a little bit deeper with an average grade of 0.41% copper, 0.2 g/t gold and 1.6 g/t silver over 22 meters. In that second mineralized zone we see the precious metals grades decrease while the base metal component (in casu, copper) is picking up, and this lower interval is quite typical for the VMS style mineralization in the Iberian Pyrite Belt. An additional three holes have been completed at Cañada Honda and the assay results will be released when the company gets them back from the lab.

Pan Global continues to further advance the Canada Honda Zone in tandem with the La Romana copper-tin-silver zone.

Last week, the company announced it is adding a second drill rig to the Escacena project to double the pace of drilling on the project. Pan Global is planning to complete 8-12,000 meters of drilling in 30-40 holes as part of the currently ongoing drill program on the asset. About 70% of the planned drilling has now been completed.

Disclosure: The author has a small long position in Pan Global Resources. Please read the disclaimer.

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