Pinnacle Silver and Gold Corp. (TSXV: PINN | OTCQB: PSGCF | Frankfurt: P9J) has announced that ongoing underground drilling at the historic Pinos Cuates mine within its Potrero property in Durango, Mexico, has confirmed and extended high-grade gold-silver mineralization. Follow-up hole EPUG26068 returned 6.19 g/t Au and 90 g/t Ag over a core length of 10.89 metres, with the best sub-interval grading 58.2 g/t Au and 631 g/t Ag over 0.41 metres. The results build on a previously announced intersection and suggest intact mineralization beyond existing mine workings, a development investors may be watching closely.

Key Points

  • Pinnacle Silver and Gold Corp. (TSXV: PINN, OTCQB: PSGCF, Frankfurt: P9J)
  • Underground hole EPUG26068 intersected 6.19 g/t Au and 90 g/t Ag over 10.89 metres, with a best section of 58.2 g/t Au and 631 g/t Ag over 0.41 metres
  • 76 holes drilled to date; assays received for the first 53; additional assays pending; surface drilling anticipated to commence in October
  • Investors may watch for pending assay results and the commencement of an internal resource estimate to support a preliminary mine plan

Continuity of Grade Confirmed Along the Dos de Mayo Vein at Pinos Cuates

Hole EPUG26068 was drilled up-dip from the Main Level, approximately 15 metres down-dip of the previously announced intersection in hole EPUG26035, which had returned 9.69 g/t Au and 143 g/t Ag over 13.18 metres along the Dos de Mayo vein. The company states that the two holes together demonstrate grade continuity, which the release notes will assist with stope definition once mine planning commences later in the year. Visible gold and silver sulphides were observed in the highest-grade sub-interval, prompting the company to process EPUG26068 on a rush assay basis.

Mineralization Outside Historic Workings Interpreted as Potentially Intact

President and CEO Robert Archer stated in the release that results to date indicate many holes intersected only the fringes of the vein zone, where the core had been historically mined out. Holes that intersected the entirety of the vein, such as EPUG26035 and EPUG26068, have returned what the company describes as very strong results. The release states this implies mineralization outside the limited historic mine workings should still be intact, a conclusion that underpins the company's continued drilling strategy across the property's vein system.

Surface Drilling and Resource Estimation Planned for Potrero Property

The company disclosed that surface drilling is anticipated to commence in October, targeting gaps between historic mines and testing up-dip, down-dip, and along-strike extensions of the Dos de Mayo vein to the northwest. Veins El Capulin and La Estrella are also expected to be drilled for the first time. Combined results are intended to feed an internal resource estimate, which will then inform a preliminary mine plan. To date, 76 underground holes have been drilled, with assays received for 53 and additional results pending.

QA/QC Standards and Qualified Person Oversight

The technical disclosure was prepared in accordance with National Instrument 43-101. Samples were delivered to the SGS laboratory facility in Durango, Mexico, which holds ISO/IEC 17025:2017 accreditation. Gold analysis used fire assay with atomic absorption finish, while silver and other elements were assessed via ICP-OES. The technical content was reviewed, verified, and approved by Mr. Jorge Ortega, P.Geo, the designated Qualified Person for the Potrero Project.