Overview

Highlights include:

  • 100%-owned Jefferson Gold Project in underexplored historic Carolina Gold Belt in the southeastern U.S., 12km from OceanaGold’s Haile mine.
  • Ridgeway-Haile-Brewer-Jefferson-Morven gold trend characterized by intrusive-related gold from deep seated magmatic event ~550 million years ago.
  • Lithological and structural settings for high sulfidation, epithermal and porphyry gold deposits.
  • Completed preliminary drill program in mid-2017 (at only 1 of 6 targets) with positive results in grade and thickness.
  • Pathway conduits of mineralization discovered at Jefferson mimic the same initial exploration successes at Haile.

In August 2016, Pancontinental acquired 100% ownership of the Jefferson Gold Project, through the Company’s wholly owned, South Carolina-incorporated subsidiary Palmetto Mining Corporation. The Jefferson Project, in Chesterfield county, South Carolina, near the town of Jefferson, includes more than 600 hectares under lease from private landowners who own the surface and sub-surface mineral rights. The Jefferson Project is along a nearly continuous northeast-striking structural trend of hydrothermal alteration and gold mineralization. The mineralized footprint of the Jefferson Project is similar in magnitude to the footprints of the nearby Haile and Ridgeway gold mine sites. The Jefferson Gold Project contains multiple drill targets within a mineralized trend more than 2 kilometers wide.

The Jefferson Gold Project is located within one of the most significant gold trends in the United States, in the Carolina Mineral Trend. The Jefferson Gold Project is on the northeastern edge of two former gold mines and one current gold mine – the former Brewer and Ridgeway mines, and the current Haile mine – proving the exceptional gold-rich mineralization in this region.

The former Ridgeway gold mine, located 35 miles south-southwest of the Jefferson Gold Project, was a 15,000-tonnes per day open pit operated by Kennecott Minerals from 1988-1999. The Haile gold mine, first discovered in 1827, is today a new open pit operation with a multi-million ounce resource that commissioned in December 2016. Haile is owned and operated by OceanaGold (TSX:OCG), which reports ongoing exploration and the potential for an expansion phase to an underground mine at Haile. The former Brewer gold mine, which forms the western border of the Jefferson Gold Project, was mined most recently from 1987-1995, during which 12 million tonnes of gold ore was extracted.

In 2011, previous owners of the Jefferson Gold Project drilled four holes (complete results of that drill program are included in Pancon Gold’s news release of 25 May 2016). All four holes encountered mineralization, with the best hole containing more than 164 meters of gold averaging 1.27 grams per tonne, true width unknown. Another hole from the 2011 drill program contained 35 meters of 1.12 grams per tonne of gold. Prior to the 2011 drill program, multiple shallow holes were drilled at the Jefferson Gold Project in the 1980s and 1990s.

In 2017, Pancontinental completed a six-hole diamond drilling program at the Jefferson Project, as a follow up to the four core holes drilled by the previous owner in 2011 (see Pancon’s news release from April 4, 2017). These holes have been focused on one target, Anomaly A. All four of the 2011 holes encountered gold mineralization, with the best hole averaging 1.27 grams of gold per tonne over a core length of 164.3 meters (from depth of 25.9 meters to 190.2 meters). Our technical analysis indicates that the best 2011 hole was drilled down-plunge on a sub-vertical zone that defines a fluid pathway containing breccia, gold and sulfides (fine-grained pyrite) with structural control, and with an estimated width for the gold mineralization of between 10 and 25 meters. Anomaly A has geologic similarities to mined zones within the adjacent former Brewer gold mine.

Five of the six 2017-drilled holes intersected anomalous mineralization, with the two best being:

  • JEF-108 which intersected 22.9 meters averaging 1.3 grams per tonne, including 8.5 meters of 1.8 grams per tonne (from depth of 100.6 meters to 123.4 meters); and,
  • JEF-109 which intersected 12.2 meters of 1.55 grams per tonne (from depth of 79.2 meters to 91.4 meters).

After completing the 2017 six-hole drill program, the Pancontinental technical team researched historical data and reprocessed existing geophysical data using proprietary techniques. This resulted in an enhanced understanding of the exploration potential within our current land package, as well as identification of prospective new targets and properties for acquisition. Based on the limited exploration work conducted to date, Pancontinental is well positioned to vector these structurally controlled targets and now has a better sense of the chemistry and mineralogy of the system.