Pan Global Resources Inc. (TSXV: PGZ | OTCQB: PGZFF) has commenced diamond drilling at what’s known as the Cañada Honda target at the company’s wholly-owned Escacena Project in the Iberian Pyrite Belt, southern Spain.
This follows completion of a new IP survey conducted by Pan Global that identified an untested IP anomaly beneath the historic mine tunnel. Results are also announced for drillhole CHD02 that attempted to test a deep gravity target at Cañada Honda and was abandoned before reaching the target depth due to the hole collapsing.
“New geophysics data highlights the Cañada Honda target’s potential to host volcanogenic massive sulphide (VMS) mineralization. The intersection of anomalous copper and gold above the target in hole CHD02 is another positive indication of potential for significant copper mineralization associated with the Cañada Honda gravity anomaly. The new IP survey appears to show an anomaly that becomes stronger at depth beneath the historic mine workings on the margin of the gravity anomaly,” said Tim Moody, Pan Global’s president & CEO.
The Cañada Honda target is characterized by a large gravity anomaly (up to 1 mGal) that extends approximately 2km east-west. The target is potential sulphide mineralization within the prospective Volcanic Sequence (VS) concealed beneath overthrust rocks of the Phyillite Quartzite (PQ) unit. Previous Pan Global channel sampling of the historic mine tunnel on the southern margin of the gravity anomaly included 26m at 0.42g/t Au and assay values up to 2.9g/t Au, 27.5g/t Ag, 0.2% Cu and 0.4% Co. A single drill hole (CHD01) by Pan Global in 2019, approximately 150m northwest of the tunnel, also intersected minor anomalous gold values of up to 0.34g/t Au.
Additional gravity survey data has been collected over the Cañada Honda target area and a new line of IP has been completed adjacent to a historic mine tunnel along a thrust contact on the southeastern margin of the gravity anomaly. The new IP highlights a chargeability high and previously untested resistivity low anomaly beneath the tunnel.
Pan Global has commenced drilling on the first of two new holes (CHD03 and CHD04) testing chargeability and resistivity-low anomalies beneath the historic mine tunnel.
Drill hole CHD02 was drilled to test the eastern extension of the large Cañada Honda gravity anomaly, targeting potential massive sulphide concealed beneath the overthrust Phyllite Quartzite geology unit. The hole collapsed before reaching the target and had to be abandoned. The hole intersected a zone of sulphide mineralization with anomalous copper and gold within the thrust-fault sequence above the target. Highlights include;
CHD02 – 11m at 0.6% Cu, 0.12g/t Au, 3.2g/t Ag from 426m, including:
-2.0m at 1.0% Cu, 0.24g/t Au, 7.7g/t Ag
-1.0m at 1.8% Cu, 0.13g/t Au, 6.1g/t Ag
-Additional isolated assay up to 0.7g/t Au over 1m
The results provide additional positive indicators of the potential for more significant copper-gold mineralization in the Cañada Honda target area. The main gravity anomaly remains untested and further drilling is pending additional modelling.
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