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Pan Global Resources drills first hole at Badanja

Mr. Julian Bavin reports

PAN GLOBAL RESOURCES INC.: GENERAL UPDATE ON BALKANS PROJECT INCLUDING START OF DRILLING

Pan Global Resources Inc. has provided an update on exploration activities in the Republic of Serbia undertaken by its exploration partner, Lithium Li Holdings Inc.

Due to rapid progress with the initial exploration program of surface mapping, geochemical sampling, gravity and magnetotellurics (MT) geophysical surveys, and subsequent target selection, drilling has commenced earlier than originally expected.

The first hole of a four-hole initial diamond drilling program has now been completed in the Badanja exploration licence, with the second hole due to commence in the adjoining Jadar West tenement block in the coming week. These titles are immediately adjacent to Rio Tinto's Jadar deposit, where production is planned to commence in 2016.

Drill hole RAR-1 was completed to a bottom depth of 600.8 metres on Aug. 22, 2011. While no visible jadarite or borate mineralization was noted, the hole encountered over 315 metres of prospective, intercalated, lacustrine sediments chiefly comprising marlstone, claystone, siltstone and sandstone that are in the process of being sampled for geochemical analyses. Drill hole RAR-1 can be directly correlated with the Jadar deposit through the base of the gypsum transition unit, the basin's principal marker horizon. Below this marker, individual diamictite layers and a 20-centimetre ash-fall tuff (402.8 metres) may possibly be useful markers upon further analysis. Drill hole RAR-1 has also confirmed the utility of gravity and MT geophysics, as attested by the thick cumulative section of drilled pelitic sediments, and greatly enhances the probability that these rocks extend elsewhere on the Badanja and Jadar West licences.


A brief lithologic summary of RAR-1 is shown in the accompanying table.


0 m to 155 m                                                               Marine sediments
155 m to 165 m                       Gypsum lacustrine transition marker horizons
165 m to 315 m                                      Intercalated lacustrine sediments
315 m to 370 m                                                                      Diamictite
370 m to 390 m                                      Intercalated lacustrine sediments
390 m to 402 m                                                                      Diamictite
402 m to 470 m                                                      Lacustrine sediments
470 m to 482 m                                                                      Diamictits
482 m to 530 m                                                       Lacustrine sediments
530 m to 546 m                                                                      Diamictite
546 m to 565 m                                                       Lacustrine sediments
565 m to 600.8 m                                                            Diamictite EOH


After cutting, a one-quarter split of drill core will be sent to SGS Laboratories for multielement ICP-OES analyses. Any intervals containing greater than 2,000 parts per million lithium and/or 10,000 ppm boron will be further analyzed by KOH fusion/ICP-OES for total B and Li contents. It is anticipated that at least some of these analyses will contain anomalously high geochemical values that will provide additional correlation and targeting vectors. The drilling is being undertaken by the contractor S&V using a trackmounted Longyear DB 540.

Apart from the drilling, geological, geochemical and geophysical exploration to define drill targets is continuing to progress.

Fieldwork was centred on the Ljig and eastern Valjevo licences. The area of documented surface mineralization at the latter was extended, while several new exposures of prospective host sediments mapped as Middle Miocene age were sampled in stream courses in the Ljig licence.

Gravity geophysical surveys were extended and completed for the Ljig and Badanja licence areas, and were processed and tied into pre-existing surveys in the Jadar and Valjevo areas, respectively. Limited fieldwork was conducted on the Radusa licence in an unsuccessful attempt to locate outcropping Lower Miocene sediments but a gravity survey completed on part of the licence area has provided excellent information on the basin structure. Surveying over the the remainder of the licence is expected to be completed by the end of the month. A final report and digital graphic files for the MT surveys made at Jadar and Valjevo were received from Quantec and integrated into the GIS program which has also aided in target selection and basin architecture.

Julian Bavin, president and chief executive officer, stated: "The initial results from this first hole has demonstrated the validity of the exploration process being followed, and has greatly aided the understanding of basin stratigraphy in the Badanja licence. Although jadarite has not been visibly intersected in the core, assay results which are pending are expected to further aid in vectoring to mineralization and stratigraphic correlation. We are encouraged by the initial results from this first hole and have high expectations from the remainder of the holes which remain to be drilled in this first program."


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