Shares Issued and Outstanding: 21,701,482
TSXV : PGZ
Vancouver, British Columbia: February 9th, 2012 – Pan Global Resources Inc. (the “Company”) (TSXV : PGZ) would like to provide an update on recently received drill assay results and exploration activities in the Republic of Serbia undertaken by our exploration partner, Lithium Li Holdings Inc.
The Company is pleased to announce very positive assay results consisting of:
As previously reported Holes RAR-01 and RAR-03 drilled in the Badanja licence failed to intersect mineralization. Assay results have confirmed no mineralization had been intersected in RAR-01 (eoh 601m) although various intervals (totaling 330m) of potential host lacustrine sediments, disrupted by sedimentary flows of diamictite, returned elevated Lithium levels of 213ppm consistent with the alkaline/salt lake depositional environment. Hole RAR-3 (eoh 419m) did not intersect any prospective host units or horizons that can be correlated with known mineralization, and no significant geochemistry was returned from the assays.
At the Jadar West licence, Hole RAR-02 (eoh 811m) contained evidence of relict mineralization in the form of calcite pseudomorphs after a borate mineral at 393-398m and 511-514m down the hole. These intervals returned elevated Lithium contents averaging 750ppm and 1225ppm respectively. Hole RAR-04 (eoh 576m) contained similar calcite pseudomorphs after a borate mineral at 558-559m down the hole which returned elevated Lithium contents averaging 750ppm. As expected there was no significant borate anomalism in either hole.
As previously reported, Hole VBN-001 (eoh 607m) drilled in Valjevo intersected mineralization associated with two zones of alkaline/saline depositional environments. The first was borate mineralization in the form of searlesite observed at surface and at shallow depths in VBN-001, that is not of economic interest. The second was a 11.3m zone of preserved sodium/calcium borate mineralization (tentatively identified as probertite and subordinate colemanite) encountered from 426 to 438m which is of economic interest. This interval has returned a best intercept of 4m @8.4% B2O3 and 0.26% Li2O from 428 to 432m, and forms part of a 40m thick halo of Borate mineralization that averages 1.99% B2O3 between 408 and 448m. The 4m intersection is very close to what can be considered an ‘ore grade and width‘ intersect of 12% B2O3 and 1.5% Li2O (based on an average ore grade of Rio Tinto’s Jadar deposit and a 3m width single borer-miner cut). Although the 0.26% Li2O is likely to be hosted in clays and would not be recoverable alongside the borates, it does indicate a high metal budget of lithium within the target stratigraphy. These assays confirm that this first hole at Valjevo is akin to the first hole drilled at the Jadar deposit by Rio Tinto which chased similar surface geochemistry and encountered borate, but no jadarite, which was then identified in follow up drilling. This very positive result from the first hole at Valjevo has significantly raised the prospectivity of the licence and the adjoining licence at Lijg.
Due to the winter constraints on access, drilling remains suspended and is unlikely to start again until late March 2012. Over the last two months the exploration team has integrated and reviewed all geological, geophysical and geochemical data, including the recently received assay results, and is now finalizing a plan of 10 to 15 drill holes totaling up to 10,000m to test new, and follow up existing, targets in Jadar West, Badanja and Valjevo and other licences.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Julian Bavin, President and CEO
Email: jbavin@panglobal resources.com
Disclaimer. Certain of the statements made and information contained herein may contain forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, information concerning the Company's intentions with respect to the development of its mineral properties. Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies). Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information.
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