Pan Global up 20% after borate discovery in Serbia
Vancouver's Pan Global Resources Inc (TSX-V:PGZ) added 20% on Wednesday on higher than usual trading volumes, after announcing it has intersected significant borate mineralisation at its Valjevo licence in Serbia.
By early afternoon the explorer was trading up 5c at $0.30 on the Toronto venture board, giving the little traded company a market value of $8.5 million. The counter is still showing big losses for 2012 – it is down 53% year to date.
Pan Global Intersects Significant Borate Mineralisation in Serbia
VANCOUVER, BRITISH COLUMBIA–(Marketwire – July 18, 2012) – Pan Global Resources Inc. ("Pan Global" or the "Company") (TSX VENTURE:PGZ) is pleased to announce that its Balkan exploration partner Lithium Li Holdings Inc. ("Lithium Li") has intersected significant mineralisation of 16% B203, 0.23% Li2O in drill hole VBN-003 at the Valjevo licence which compares well to drill results from Rio Tinto's Jadar deposit which has an average grade of 12.9% B203 and 1.8% Li2O.
This intercept demonstrates the potential of this basin to host a significant body of borate mineralization; a value indication is that a metric tonne of mined Borate (probertite) of 16% B2O3 would convert to 280Kg of boric acid which has an average FOB sale cost of more than US$1000/t.
Julian Bavin, President and CEO of Pan Global stated, "This borate intersection confirms that we have made a new borate discovery that has early indications of having large tonnage potential. We are extremely pleased to have such an intersection so early in our stratigraphic drilling campaign and are confident that further drilling will outline the size of this new discovery and provide intersections of higher grade."
Use this link (http://www.panglobalresources.com/_resources/Assay_Release_Figures_for_Link-July-18-12.pdf) for Figures 1, 2, 3 and 4 mentioned below…
As reported on July 11th, the Company has completed 2822m of a 6000m reconnaissance drilling program which has been suspended until the end of August, due to the need to incorporate assays prior to selecting the next sites.
Results have been returned from hole VBN-003 (EoH 529m) at the Valjevo license which encountered a zone of mineralization between 423.9m – 432.6m (8.7m) dominated by calcite pseudomorphs after borates with a central 1.3m interval from 430.2m to 431.5m of preserved borate mineralization in the form of probertite and subordinate colemanite, which returned 16% B203 and 0.23% Li2O (Figure 1).
The dominance of the mineral probertite suggests the intersection is still on the edge of an extensive zone of mineralisation which now extends 1800m in distance fromVBN-002 through VBN-001 to VBN-003 (Figures 2 and 3). In addition, it is worth noting that this 8.7m averaged 0.28% Li2O, the highest lithium results recorded to date in the drilling program, which confirm a high lithium metal budget and the potential for lithium borate mineralisation similar to that at Rio Tinto's Jadar deposit, within the wider zone of borate mineralisation.
Other drill holes completed this year are detailed below, and the location of the licenses to which they relate are shown on Figure 4: Issued Licenses.
On the Ljig license, drill hole LJG-001(EoH 584m) intercepted a pseudomorph zone in a dolomitic marl with siltstone and tuffaceous sandstone with lenses of calcite, probably replacing borates, from 470m-497m. The highest corresponding lithium interval from 485.5m-501.0m (15.5m) contained 0.23% Li2O. Drill hole LJG-002 (EoH 414m), drilled in the southern portion of the same basin intersected very prospective, flat-lying, laminated lacustrine sediments from 150m to 271m and basin margin sediments including coarse sandstones with limestone and tuff boulders to the end of the hole. The hole contained no preserved borate mineralization, but had scattered small pseudomorphs associated with the laminated sediments. The results of this stratigraphic drilling suggest that the western portion of the Ljig basin was part of the greater Valjevo – Mionica basin in the early part of its history and extends the area of potential mineralization to between the basin outlines defined by gravity.
Hole RAR-005 (EoH 514m), located in the far south-eastern portion of the Jadar West license tested a Magneto-Tellurics (MT) conductor thought to be related to that which immediately overlies Rio Tinto's Jadar deposit to the south. No deposit stratigraphy directly related to the Jadar deposit was encountered, but calcite patches interpreted to be pseudomorphous after borate were encountered from 461.9m to 463.8m which is interpreted to represent new potential to the north.
The first drill test of the Radusa license, hole RAD-001 (EoH 406m) encountered sediments interpreted to be marine in origin, throughout the hole. If specimens collected for paleontological analyses confirm the marine nature of the sediments, the prospectivity of the license will be significantly downgraded.
At the Kosjeric exploration license, drill hole KOS-001 (EoH 42m) was terminated at 42m depth due to excessive water flow. No attempt was made to drill in another area due to limited target size and population density, and the license will be returned to the government.
Core samples from drilling have been treated in the following way. After photographing, lithological, structural and mineral core logging, mineralized units are bagged and dispatched to a laboratory in Romania where samples pulps are prepared, then have a standard ICP-AES 32 element analysis, which does not provide accurate Lithium and Boron assays. Pulps from mineralized intervals are then sent from Romania to Canada to have total Boron and Lithium analyses. Due to a slow turnaround time in Canada, a change in the laboratories that analyze the Boron and Lithium assays has been made in an attempt to reduce the current total turnaround time from up to 16 weeks to less than 9.
Other work completed this year to date has included a complete review and re-analysis of the MT data collected over the Jadar West, Badanja and Valjevo licenses and gravity surveys to define underlying basins have now been completed on 12 of the Serbian license applications.
The technical information provided in this news release was reviewed and approved by Robert. W. Baxter (FAusIMM), a director of the Company and a qualified person for the purposes of National Instrument 43-101.
Shares Issued and Outstanding: 28,378,981
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.