Pan Global’s Cármenes Project yields promising gold discovery in maiden drillhole

Pan Global Resources Inc. has announced a major breakthrough at its 100%-owned Cármenes Project in northern Spain, revealing significant near-surface gold mineralization in its first completed drillhole. The results from hole PVD02, which intersected 46 meters averaging 1.08 grams per tonne (g/t) of gold from just 24 meters downhole, mark a strong beginning to the company’s maiden six-hole drilling program at the site.

The news, released on May 19, 2025, suggests that the Cármenes Project could host a previously unrecognized gold zone surrounding historical copper, cobalt, and nickel workings at the Providencia target. This discovery adds meaningful new dimensions to Pan Global’s exploration efforts in Spain, particularly given the absence of prior gold reporting in this area.

What Did Pan Global Discover at the Providencia Target?

Pan Global’s first drillhole at the Providencia target—part of its Cármenes Project—returned a headline intersection of 46 meters at 1.08 g/t gold beginning at a depth of 24 meters. This interval includes a high-grade segment of 4 meters grading 6.27 g/t gold, along with 0.25 g/t combined platinum and palladium, encountered at 66 meters depth. These results establish a new zone of breccia-hosted gold mineralization, expanding the known footprint of mineralized systems beyond the historical base-metal mines at the site.

CEO Tim Moody commented that these initial findings confirm the potential for a major new discovery, adding that the gold zone appears to form a halo around the previously mined copper-rich breccia at depth. Importantly, this mineralization was neither drilled nor documented in historical reports, underscoring the novelty and scale of the discovery.

What Are the Geological Indicators at Cármenes?

The drillhole results point to strong multi-stage hydrothermal breccia hosted within altered dolomitized limestones—favourable rock units often associated with carbonate-hosted mineral systems. Notably, the gold mineralization occurs with trace quantities of sulphides and presents low concentrations of deleterious elements such as arsenic and antimony, which are beneficial from a metallurgical and environmental standpoint.

The project area is characterized by extensive surface geochemical anomalies for copper, gold, nickel, cobalt, and lead, coinciding with zones of intense brecciation and dolomite alteration. A large anomalous surface footprint measuring over 250 meters by 150 meters has been defined from soil, trench, and channel sampling. Drillhole PVD02 was positioned to test beneath high-grade trench results of 3.11 g/t gold over 37 meters and 1.74 g/t gold over 20 meters, reported earlier in 2025.

How Does the Discovery Fit Into the Historical Context of Providencia?

The Providencia target includes historical mine workings that date back to the early 20th century, primarily focused on extracting copper, cobalt, and nickel from pipe-like hydrothermal breccia bodies. Mining ceased in the 1930s at a depth of 110 meters, with mineralization left open at depth. Crucially, no gold production or exploration was historically documented at this site.

The emergence of gold mineralization, unrecognized in past operations, opens new exploration pathways. The combination of historical copper-cobalt-nickel enrichment and newly defined gold halos positions Providencia as a polymetallic system with multi-commodity development potential.

What Are the Next Steps in Pan Global’s Drill Campaign?

Pan Global’s current six-hole campaign marks its first drilling effort at the Cármenes Project and includes step-out holes designed to test mineralized breccia systems beyond the Providencia workings. Hole PVD01 was abandoned after collapse, but holes PVD03 and PVD04 have already been completed. Notably, PVD04 intersected more than 120 meters of breccia from near-surface levels, with assays pending within three weeks.

Drilling continues with step-out holes placed up to 120 meters east of the historic mine, aiming to evaluate the extent of mineralization beneath anomalous surface results. Channel sampling within the mine workings is also underway to better understand the geometry and continuity of the mineralized system.

At a broader scale, interpretation is ongoing for the results of a recently completed helicopter-based geophysical survey (electromagnetic, magnetic, and radiometric), which will support the prioritization of additional drill targets throughout the Cármenes license area.

What Makes the Cármenes Project Regionally Significant?

The Cármenes Project spans 5,653 hectares across five permits, located approximately 55 kilometers north of León, in northern Spain. The area is considered highly prospective for clusters of carbonate-hosted breccia-style mineralization, similar to deposits that can extend vertically over one kilometer.

In addition to the Providencia and Profunda historical mines, numerous smaller workings in the area point to the presence of additional breccia pipe systems. These geologic settings are favourable for long-lived hydrothermal activity and the deposition of polymetallic ores including copper, nickel, cobalt, and now, confirmed gold.

Spain’s mining framework, supportive permitting processes, and developed infrastructure provide an attractive jurisdiction for mineral exploration. Furthermore, the European Commission’s recognition of copper as a strategic raw material supports the long-term development potential of such projects.

What Is the Status of Pan Global’s Broader Exploration in Spain?

Alongside the activity at Cármenes, Pan Global has resumed drilling at its flagship Escacena Project in southern Spain, following a period of record rainfall in March and April. The company is targeting the high-priority Bravo anomaly, seeking to expand the La Romana copper-tin discovery, and testing new geophysical and geochemical targets.

Escacena is situated in the Iberian Pyrite Belt—one of Europe’s most prolific mineral districts—which is home to several past-producing and active mines. Pan Global’s strategy focuses on discovering near-surface, high-margin deposits that align with the decarbonization and electrification trends shaping global metal markets.

How Is the Market Reacting to Pan Global’s Discovery?

While the stock market had not yet priced in the full impact of the gold discovery at the time of publication, investor sentiment around Pan Global Resources (TSXV: PGZ / OTCQB: PGZFF / FRA: 2EU) has been generally optimistic. The confirmed intersection of gold mineralization in an untested area could significantly enhance the company’s valuation, particularly if follow-up drill results affirm continuity and grade over a wider zone.

The combination of a gold halo with copper-nickel-cobalt potential adds economic flexibility and multi-commodity optionality. This could be particularly appealing to institutional investors targeting critical minerals exposure as part of an energy transition-focused portfolio.

Technical analysts may look to short-term price consolidation followed by upside potential depending on forthcoming assay results. Investors will also watch for updates from Escacena, where additional news flow is expected as drilling accelerates in 2025.

Is Pan Global Positioned for Further Exploration Success?

With active programs at both the Cármenes and Escacena projects, Pan Global is leveraging strong geological targeting, early-stage discovery momentum, and institutional backing to advance a pipeline of high-impact exploration assets. The company’s alignment with the United Nations Global Compact and adherence to responsible environmental and community standards provide ESG-aligned credentials that may support broader investor interest.

From a strategic perspective, the emergence of a gold discovery in a historical copper-cobalt-nickel district significantly widens the company’s exploration thesis in Spain. The upcoming drill results and geophysical interpretations will be key in shaping Pan Global’s trajectory as a multi-commodity explorer focused on future-facing metals.