Pan Global Resources (TSXV:PGZ) - Copper Exploration in Spain's Mineral-Rich Iberian Pyrite Belt

Oct 14, 2024

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Interview with Tim Moody, President & CEO of Pan Global Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/pan-global-resources-tsxvpgz-copper-explorer-poised-for-growth-in-spains-mining-heartland-5943

Recording date: 9th September 2024

Pan Global Resources (TSXV:PGZ) is actively exploring for copper in Spain's Iberian Pyrite Belt, a region renowned for its large volcanic massive sulfide (VMS) deposits. The company's flagship Escacena project has already yielded a significant discovery at the La Romana target, with ongoing exploration aimed at expanding this find and identifying additional deposits within the project area.

Led by President and CEO Tim Moody, who brings over 40 years of mining industry experience, Pan Global is leveraging modern exploration techniques to uncover potential deposits in an area that has seen limited exploration due to post-mineral sedimentary cover. The company's strategy focuses on the "cluster concept," recognizing that VMS deposits in the Iberian Pyrite Belt often occur in groups.

Key highlights of Pan Global's exploration efforts include significant progress at the La Romana discovery, where the company has completed 180 drill holes. The mineralization remains open for expansion, with recent drilling suggesting potential for a 400-meter strike extension to the northwest. Beyond La Romana, Pan Global has identified several promising targets within the Escacena project, including Cañada Honda and Bravo, broadening the exploration potential. The company has also made substantial advancements in technical work, with metallurgical testing at pre-feasibility level for about two-thirds of the drilled deposit at La Romana and environmental baseline studies ongoing for two years. Looking ahead, Pan Global has planned a 60-hole drill program to expand La Romana and test other targets, with a budget of $5-10 million. The company's near-term objectives include defining a resource and potentially releasing a Preliminary Economic Assessment (PEA), which could serve as significant catalysts for the project's advancement.

The Iberian Pyrite Belt is known for hosting "super giant" VMS deposits exceeding 100 million tons. Pan Global is targeting a cluster of deposits totaling 40-50 million tons, which would be significant for a VMS project and could attract attention from major mining companies.

Investors should note that Pan Global's current market capitalization of around C$30 million is significantly below its previous peak of C$180 million. The company believes that continued exploration success, particularly new discoveries, could drive a re-rating of the stock.

However, investment in Pan Global comes with risks typical of junior mining companies. These include exploration risk, the need for additional financing (the company currently has about C$1.5 million in cash), commodity price volatility, and potential future permitting and development challenges.

The macro environment for copper exploration remains favorable, with growing demand driven by electrification and renewable energy trends. The International Energy Agency projects that copper demand for clean energy technologies could increase by up to 350% by 2050 in a scenario aligned with the Paris Agreement goals.

For investors interested in the copper sector and willing to accept the risks associated with junior mining exploration, Pan Global Resources offers exposure to a potentially significant copper discovery in a world-class mining district. The company's progress over the next 12-18 months, particularly in expanding La Romana and testing new targets, will be crucial in determining its long-term value proposition.

View Pan Global Resources' company profile: https://www.cruxinvestor.com/companies/pan-global-resources