Pinnacle Provides Progress Report on Field Work at El Potrero Gold-Silver Project and Grants Incentive Stock Options
(TheNewswire)
VANCOUVER, BRITISHCOLUMBIA – TheNewswire - April 17, 2025 (TSXV: PINN, OTC: NRGOF, Frankfurt:X6C) – Pinnacle Silver and Gold Corp. (" Pinnacle " or the “ Company ") is pleased to provide an update on progress at the recently acquired high-grade gold-silver El Potrero property in Durango, Mexico (see Pinnacle news releases datedFebruary 24 and 25, 2025 ).
Phase I field work commenced within a week of signingthe Definitive Agreement and is progressing well. Surface mappinghas extended the vein system along strike to the northwest forapproximately 1,100 metres from the Dos de Mayo Mine and 46 sampleshave been taken for analyses. Cleaning of the underground workingsat the historic Pinos Cuates, La Dura and Dos de Mayo Mines has beencompleted, and the Pinos Cuates Mine has been mapped and sampled, with86 samples being taken of the vein system as it is exposedunderground. All 132 samples have been submitted to the SGS lab inDurango City.
In addition, access roads to the project and up to themine portals have been cleared. The plant has been almost completelycleaned up, and an inspection is being planned to assess theapproximate cost and schedule to get it ready for productionagain.
“We are very pleased with the progress our team hasbeen making on site in the short time we have been on the property,”stated Robert Archer, Pinnacle’s President & CEO. “Ourgeological crew has established themselves in the nearby village ofManzanillas, only three kilometres away and we are already providingmuch needed jobs for the local people. As such, community relationsare starting out on a positive note. Having said that, the plant andmines sit on private property such that permitting should be easierwhen the time comes. Going forward, underground mapping and samplingat the historic La Dura and Dos de Mayo mines will continue andsurface mapping will focus on the southeastern extension of the veinsystem and identifying parallel or splay veins along the entire strikelength.”
Surface mapping to date has identified the dominantlithologies as comprising an andesitic volcanic sequence withalternating flows and breccias. The units belong to the upper partof the Lower Volcanic Series, the preferred and most common host forgold and silver mineralization in the Sierra Madre Belt. There is astrong northwest-southeast structural trend hosting the vein system atEl Potrero that parallels the regional trend of the Sierra Madre. Todate, several sub-parallel veins have been identified on the southwestside of the Pinos Cuates mine, indicating that the vein system is atleast 125 metres wide at this locality. Vein widths have beenmeasured as ranging from 0.50 metres on surface up to 7 metresunderground at Pinos Cuates.
Most of the samples taken at the historic Pinos CuatesMine consist of vein breccia with angular clasts of variablecomposition, clasts of colloform quartz, chalcedonic quartz, and bandsof opaque quartz with a black mineral, thought to be ginguro (veryfine grained silver-gold mineralization). The footwall rocks areandesite with strong chlorite-pyrite alteration, whereas a felsic dikewith porphyritic texture has been observed in the hanging wall of theveins both underground and on surface, implying a long and activeperiod of hydrothermal activity.
Figure1: Regional location map of the Potrero Project, Durango,Mexico
Figure2: Preliminary geology of the Potrero Project showing vein projectionsand historic mines
As reported in Pinnacle news release of March18, 2025 , preliminary sampling ofmineralized veins containing ginguro bands at Pinos Cuates returned anarithmetic average from four chip channel samples of 8.04 g/t gold(Au) and 146 g/t silver (Ag) ( chip samples, bytheir nature, are selected samples and may not represent a truereflection of actual grade) , consistent with thehistoric production grades reported by the vendors, and the historicresource estimate of 45,561 tonnes at 8.0 g/t Auand 186 g/t Ag . These resources are historical innature and Pinnacle is not treating these estimates as current mineralresources as a qualified person on behalf of Pinnacle has not donesufficient work to classify them as current mineral resources.
Figure3: Longitudinal section, looking southwest, of underground workings atthe Potrero Project.
Once assays are received (approximately 3 weeks),results will be interpreted in the context of the mapping in order todetermine the structural controls on gold-silver mineralization, asthe highest grades tend to occur in ‘shoots’. Once these arebetter defined, a diamond drilling program can be planned tosystematically test these areas for continuity.
Preliminary discussions are underway with geophysicalcontractors regarding the flying of a LiDAR (Light Detection andRanging) survey over the entire property. LiDAR is a remote-sensingand laser technology that ‘sees’ through overburden and maps outthe rock subsurface in a way that allows for the interpretation ofstructural features that can be important in controlling gold-silvermineralization. This interpretation will also be used in theplanning of upcoming drill programs.
In due course, discussions will be held with thefederal electrical commission to extend the power line to the plantsite, a distance of only about three kilometres.
Pinnacle has granted anaggregate of 500,000 incentive stock options to certain consultants ofthe Company, pursuant to the Company’s Stock Option Plan and subjectto TSXV approval, at a price of $0.05 andexpiring on April 17, 2030. The incentive stock options will vest25% each quarter over a 12-month period.
QA/QC
The technical results contained in this news releasehave been reported in accordance with National Instrument 43-101Standards of Disclosure for Mineral Projects ("NI 43-101"). Pinnacle has implemented industry standard practices for samplepreparation, security and analysis given the stage of the Project. This has included common industry QA/QC procedures to monitor thequality of the assay database, including inserting certified referencematerial samples and blank samples into sample batches on apredetermined frequency basis.
The non-systematic chip channel sampling was completedacross exposed mineralized structures using a hammer and maul. Theprotocol for sample lengths established that they were not longer thantwo metres or shorter than 0.3 metres. The veins tend to be steeplydipping to vertical, and so these samples are reasonably close torepresenting the true widths of the structures. Samples werecollected along the structural strike or oblique to the mainstructural trend.
All samples were bagged in pre-numbered plastic bags;each bag had a numbered tag inside and were tied off with adhesivetape and then bulk bagged in rice bags in batches not to exceed 40 kg. They were then numbered, and batch bags were tied off with plasticties and delivered directly to the SGS laboratory facility in Durango,Mexico for preparation and analysis. The lab is accredited toISO/IEC 17025:2017. All Samples were delivered in person by thecontract geologist who conducted the sampling under the supervision ofthe QP.
SGS sample preparation code G_PRP89 including weightdetermination, crushing, drying, splitting, and pulverizing was usedfollowing industry best practices where all samples were crushed to75% less than 2 mm, riffle split off 250 g, pulverized split to>85% passing 75 microns (?m). All samples were analyzed for goldusing code GA_FAA30V5 with a Fire Assay determination on 30g sampleswith an Atomic Absorption Spectography finish. An ICP-OES analysispackage (Inductively Coupled Plasma - Optical Emission Spectrometry)including 33 elements and 4-acid digestion was performed (codeGE_ICP40Q12) to determine Ag, Zn, Pb, Cu and other elements.
Qualified Person
Mr. Jorge Ortega, P. Geo, a Qualified Person, andindependent from Pinnacle, as defined by National Instrument 43-101,and the author of the NI 43-101 Technical Report for the PotreroProject, has reviewed, verified and approved for disclosure thetechnical information contained in this news release.
About the Potrero Property
El Potrero is located in the prolific Sierra MadreOccidental of western Mexico and lies within 35 kilometres of fouroperating mines, including the 4,000 tonnes per day (tpd) CiénegaMine (Fresnillo), the 1,000 tpd Tahuehueto Mine (Luca Mining) and the250 tpd Topia Mine (Guanajuato Silver).
High-grade gold-silvermineralization occurs in a low sulphidation epithermal breccia veinsystem hosted within andesites of the Lower Volcanic Series and hasthree historic mines along a 500 metre strike length. A historicresource based upon underground sampling of those three mines isreported to consist of 45,561 tonnes at 8.0 g/t gold and 186 g/tsilver. The property has been in privatehands for almost 40 years and has never been drilled or explored bymodern methods, leaving significant exploration potential.
A 100 tpd plant on site can be refurbished / rebuiltand historic underground mine workings rehabilitated at relatively lowcost in order to achieve near-term production once permits are inplace. The property is road accessible with a power line within threekilometres. Surface rights over the plant and mine area areprivately owned (no community issues).
Pinnacle will earn an initial 50% interest immediatelyupon commencing production. The goal would then be to generatesufficient cash flow with which to further develop the project andincrease the Company’s ownership to 100% subject to a 2% NSR. Ifsuccessful, this approach would be less dilutive for shareholders thanrelying on the still challenging equity markets to finance the growthof the Company.
About Pinnacle Silver and Gold Corp.
Pinnacle is focused on district-scale exploration for precious metals in the Americas. The additionof the high-grade Potrero gold-silver project in Mexico’s SierraMadre Belt complements the Company’s project portfolio and providesthe potential for near-term production . In the prolific Red Lake District of northwestern Ontario, the Company owns a 100% interest in the past-producing, high-grade Argosy Gold Mine and the adjacent NorthBirch Project with aneight-kilometre-long target horizon . With a seasoned, highly successful management team and quality projects, Pinnacle Silver and Gold iscommitted to building long -term , sustainable value for shareholders.
Signed: “Robert A. Archer”
President & CEO
Forfurther information contact :
Email: info@pinnaclesilverandgold.com
Tel.: +1 (877) 271-5886 ext. 110
Website: www.pinnaclesilverandgold.com
Neither the TSXVenture Exchange nor the Investment Industry Regulatory Organizationof Canada accepts responsibility for the adequacy or accuracy of thisrelease .
Copyright (c) 2025 TheNewswire - All rights reserved.
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