Apr 26 2013
Pan Global Resources Inc. ("Pan Global" or the "Company") is pleased to announce that approval has now been received for the renewal of 7 exploration licenses, held by Lithium Li Holdings Inc. (Lithium Li) in Serbia with a further 3 licenses expected to be approved imminently.
This has resulted in the duration of these exploration licenses being extended from 1 year to a new primary term of 3 years extendable up to a total of 7 years. As reported on January 15th 2013 the Company has entered into a Letter of Intent (LOI) with Mr. Petr Palkovsky to purchase 100% of Lithium Li, which held 15 exploration licenses in Serbia and Bosnia that had previously been subject to an Option Agreement with the Company. This purchase agreement remains subject to final approval of the TSXV, which conditionally accepted the transaction on January 24, 2013.
The Company has restarted drilling following the winter break (as reported on March 19th) and has now completed the drilling of 3 cored drill holes in the Lopare concession, totaling 1,316.5 metres for which assays are awaited.
Julian Bavin, President and CEO of Pan Global stated: "We are extremely pleased to be resetting the clock on these exploration licences in Serbia through this process of licence renewal, which has come about as a result of a very welcome change in Serbia's mining law. While this has resulted in a slight delay to TSXV approval of our acquisition of LithiumLi, we expect to submit all the relevant documentation including NI43-101 reports, immediately after the last licence renewals are approved, and get TSXV approval soon after. In the meantime we have been concentrating our efforts on the Lopare license in Bosnia, where we have completed 3 stratigraphic drill holes, for which assays are awaited. As soon as the Valjevo licence renewal is approved we will continue drill testing of this high priority licence where our 9 holes to date have indicated an unusually extensive occurrence of borate mineralisation of significant grade and width."
Due to the rapid prioritization of these licenses over the past 2 years, the Company has decided to retain the Lopare license in Bosnia, and seek renewal of 10 of the 14 licenses in Serbia. The licenses that have been renewed to date, include Ljig, Radusa, Petlovaca, Mrovska, Badanja, Lukavac and Jadar West, while Valjevo, Jalovik and Satornja are expected to be approved imminently (Figure 1). The delay in the approval of the latter three licenses relates to the incorporation of small, agreed, exclusion zones related to water exploitation that do not and will not impact the focus or area where the Company will continue exploration. The renewed exploration licenses will be valid for 3 years, with the possibility of 2 further extensions of 2 years each, and compares to the previous tenure regime in Serbia under which exploration licenses had to be reapplied for each year.
Drilling of 3 stratigraphic holes on the Lopare license in Bosnia has now been completed. Hole LOP-001 was terminated at 600.4m depth after coring two distinct zones of evaporitic mineralization with the upper zone containing extensive areas of searlesite mineralization (a borosilicatemineral). Drill hole LOP-002 was terminated at 264.4m after intersecting mostly broken, faulted, moderately to steeply dipping clastic sediments with no indication of evaporates, and LOP-003 was completed at a depth of 451.7m and intersected a lower sequence of of disseminated and stockwork sulfate mineralization mostly in the form of gypsum from 276m to 354m. A similar zone was encountered in LOP_001 from 465m to 559m depth. Assays are awaited.
Use this link for Figure 1 mentioned above: http://panglobalresources.com/_resources/email/20130425/figure1.jpg
Figure 1: License Applications in the Balkans
Source: http://www.panglobalresources.com/