Pancon Commences Shallow Drill Program on Former Brewer Gold Mine Property in South Carolina
Toronto, Ontario--(Newsfile Corp. - August 11, 2020) - Pancontinental Resources Corporation (TSXV: PUC) ("Pancon" or the "Company") is pleased to report that it commenced, on August 6, an initial shallow rotary air blast (RAB) drilling program at its flagship Brewer Gold Project. Brewer is a high-sulphidation epithermal Au-Cu system that produced 178,000 ounces of near-surface oxide gold from 1987-1995. The Brewer Gold Project and contiguous Jefferson Gold Project, whose Area of Interest (AOI) surrounds the Brewer property, are located 12 kilometers along trend from the producing Haile Gold Mine on the prolific and underexplored Carolina Slate Belt.
The shallow RAB drill program follows up on the Company's positive results from recent reconnaissance ground geophysics program, as detailed in Pancon's July 28, 2020 news release. Pancon plans to drill approximately 100 RAB holes, each hole being approximately 20 meters deep. The purpose of the initial RAB drill program is to validate historic drill results, test targets identified from recent and historic geophysical, geological and geochemical data, and to identify new prospective zones. Results from the RAB drilling combined with the recent geophysics will provide targets for the Company's upcoming diamond core drilling program.
Pancon President and CEO Layton Croft stated: "This is the first time in over 20 years that anyone has conducted exploration drilling at Brewer, whose former mine was closed and reclaimed with gold-copper sulphide mineralization encapsulated in the pits as part of the mine site reclamation. Historic drill results and mining operations at Brewer focused on near-surface, high-grade oxide gold mineralization and not on the disseminated and massive sulphide mineralization at depth which was encountered in the deeper holes. Less than 10 percent of Brewer's 1,000-acre property has been explored and mined and the mineralized system is open in all directions. Given the positive results of our recent resistivity/induced polarization (IP), gravity and ground magnetics geophysical surveys, and based on our geological mapping and analysis of historic data, we believe the remaining 900 acres of the Brewer property are highly prospective for both near-surface oxide gold mineralization and deeper sulphide gold-copper mineralization."
In addition to the above, Pancon reports that it has received the second non-refundable cash payment of C$100,000 from Tempus Resources Inc. ("Tempus"), as per the Purchase Agreement ("Agreement") signed between Pancon and Tempus and described in Pancon's June 23, 2020 new release. The Agreement gives Tempus, a private Canadian company incorporated in Ontario, the ability to own up to a 100% interest in Pancon's Montcalm, Nova, Gambler and St. Laurent nickel-copper-cobalt exploration projects ("Projects") in Northern Ontario.
Pancon also reports that it has granted an aggregate of 4,050,000 options to purchase common shares in the capital of the Company (the "Common Shares") exercisable at a price of $0.14 per Common Share, expiring on August 10, 2025, to certain directors, officers and consultants of the Company. The Common Shares issuable upon exercise of the options are subject to a four-month hold period from the original date of grant. The reason for the options grant is to recognize and incentivize the people who have and continue to play key roles in leading and managing the Company and its flagship Brewer Gold Project.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in NI 43-101 and reviewed and approved by Richard "Criss" Capps, PhD, RPG, SME REG. GEO, a Qualified Person as defined by NI 43-101.
Pancon is a Canadian junior mining company focused on exploring the prolific and underexplored Carolina Slate Belt in South Carolina, USA. In January 2020, Pancon won the exclusive right to explore the former Brewer Gold Mine. Between 1987-1995, Brewer produced 178,000 ounces of oxide gold from open pits that extended to 50-meter depths, where copper and gold-rich sulphides were exposed but could not be processed by the oxide heap leach processing facility. Brewer is a high sulphidation system driven by a sub-volcanic intrusive as indicated by: widely known prospective geology, including diatreme breccias; associated high sulphidation alteration; gold and copper mineralization; and geophysics (Schmidt, R.G., 1978, The Potential for Porphyry Copper-Molybdenum Deposits in the Eastern United States, U.S. Geological Survey). Pancon's 100%-owned Jefferson Gold Project nearly completely surrounds the former Brewer Gold Mine, and both Jefferson and Brewer are located 12 km along trend northeast from the producing Haile Gold Mine, which produced 146,100 ounces of gold in 2019. In addition, Pancon has four nickel-copper-cobalt exploration projects in Northern Ontario, surrounding or near producing or former mines in proven and safe mining districts.
The Company cautions that the mineralization at the former Brewer Gold Mine is not necessarily indicative of the mineralization that may be identified on the Company's ongoing and upcoming exploration work.
For further information, please contact:
Layton Croft, President & CEO or Jeanny So, Manager, External Relations
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company's management's discussion and analysis as filed under the Company's profile at www.sedar.com. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.
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