Pan Global Resources (TSXV: PGZ) was granted a mineral exploration permit on the Escacena gold / copper / zinc prospect in the Iberian Pyrite Belt in southern Spain.
In a press release, the Vancouver-based miner said the Escacena Investigation Permit was granted and a formal notice was received by current owner EVALAM 2003 SL. Yet, Pan Global has a binding Letter of Intent with EVALAM, providing the company an exclusive option to acquire 100% of the Escacena mineral rights.
Following the granting of the permit, the company can begin exploring the property when it deems it appropriate. According to its media statement, the target is volcanic-hosted massive sulphide copper and zinc in the Iberian Pyrite Belt on-strike from Aznalcollar, Los Frailes and Las Cruces mine.
"The granting of the Escacena Investigation Permit is an important milestone and allows exploration to commence on this highly prospective property in the world's premier volcanic-hosted massive sulphide district," Tim Moody, President and CEO of Pan Global, said.
The Escacena property includes two large gravity anomalies. The Canadian miner reports that wide-spaced historical drilling on the La Romana gravity anomaly in the southern part of the property confirmed massive sulphide and stockwork mineralisation over approximately 1.3 kilometres of strike, including a best drill interval of 4.68 metres @ 2.94% Cu. In the North of the property, the Ca??ada Honda target is a 1.5 x 0.5 kilometre untested gravity anomaly in a favourable geological setting along-strike from the nearby Aznalcollar and Los Frailes sulphide deposits.
To become the full owner of the mine, Pan Global has to pay $350,000 cash over a 3-year period and spend $1 million in exploration work. The vendor, on the other hand, will retain a NSR of 0.5% on the first 12,500 tonnes of copper equivalent and 0.75% on any amount in excess of 12,500 tonnes of copper equivalent.