- Pinnacle Silver and Gold (TSXV:PINN) extended high-grade mineralization during ongoing underground drilling at its Potrero project in Durango, Mexico.
- The highlight intercept yielded 58.2 grams per ton (g/t) gold and 631 g/t silver over 0.41 metres, substantiating the project’s potential for near-term production leveraging an on-site processing plant.
- Pinnacle Silver and Gold stock last traded at C$0.10 and has added 5 per cent year-over-year.
Pinnacle Silver and Gold (TSXV:PINN) extended high-grade mineralization during ongoing underground drilling at its Potrero project in Durango, Mexico, uncovering up to 58.2 g/t gold and 631 g/t silver over 0.41 metres – including visible gold and silver sulphides – from the land package’s historic Pinos Cuates mine.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
The highlight intercept, found within 6.19 g/t gold and 90 g/t silver over 10.89 m in drillhole EPUG26068, was encountered up dip on the Dos de Mayo vein.
The result follows up on drillhole EPUG26035, announced last month, which yielded 13.18 m assaying 9.69 g/t gold and 143 g/t silver along the same vein.
Pinnacle has drilled additional holes to test the emerging zone’s mineral continuity, with assays pending, keen to expand the project’s multiple kilometres of mineralized strike length. Pinos Cuates’ ongoing drilling program includes 76 holes to date, with highlights among the 53 assays now in hand detailed in Wednesday’s news release.
The drill will move to the surface beginning in October to test mineral potential to the northwest of Dos de Mayo, fill in gaps between Potrero’s three historic mines, as well as drill other mineralized veins such as El Capulin and La Estrella for the first time, with eyes on supporting an internal resource estimate that will inform a preliminary mine plan.
El Potrero resides within 35 km of four operating mines, including Fresnillo’s Ciénega mine, Luca Mining’s Tahuehueto mine and Guanajuato Silver’s Topia mine, and benefits from a 100-ton-per-day processing plant on site that could be refurbished at low cost to achieve near-term production.
Pinnacle will earn a 50 per cent interest in El Potrero upon production, with a development pathway in place to increase its ownership to 100 per cent at a 2 per cent net smelter return royalty.
Leadership commentary
“We are very pleased to see the continuity of grade in this area of the Pinos Cuates mine,” Robert Archer, President and Chief Executive Officer of Pinnacle Silver and Gold, said in a statement. “Hole EPUG26068 was assayed on a ‘rush’ basis due to the visibly apparent high-grade mineralization and to allow time for follow-up drilling before the drill was moved to the Dos de Mayo mine. The intersection in hole EPUG26068 is approximately 15 metres down-dip of that in hole EPUG26035, and the continuity will help with stope definition once mine planning commences later in the year. Assays have been received up to hole EPUG26053, with others pending. Significantly, results to date indicate that, while many holes intersected only the fringes of the vein zone, with the core having been mined out, holes such as 26035 and 26068 that intersected the entirety of the vein have returned very strong results. This implies that the mineralization outside of the limited mine workings should still be intact.”
About Pinnacle Silver and Gold
Pinnacle Silver and Gold develops precious metals projects in the Americas. Besides El Potrero, the company owns the past-producing, high-grade Argosy gold mine in the Red Lake District of Ontario, plus the adjacent North Birch project, which features an eight-kilometre-long target horizon.
Pinnacle Silver and Gold stock (TSXV:PINN) last traded at C$0.10 and has added 5 per cent year-over-year.
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