Pinnacle Silver and Gold Corp. (TSXV: PINN | OTCQB: PSGCF | Frankfurt: P9J) has received a full environmental permit from Mexico's SEMARNAT for a surface drilling program at its El Potrero gold-silver project in Durango, Mexico. The permit covers 110 drill sites and is valid for two years, enabling the company to transition from underground to surface exploration. Critically, the environmental baseline data gathered during the approval process is now being used to advance permitting for the mine, processing plant, tailings storage facility, powerline extension, and water licence — all simultaneously. Investors may be watching this development as a meaningful step toward a formal production decision the company has referenced for early 2027.

Key Points

  • Pinnacle Silver and Gold Corp. (TSXV: PINN, OTCQB: PSGCF, Frankfurt: P9J)
  • SEMARNAT full environmental permit received for surface drilling at El Potrero, covering 110 drill sites for two years
  • Phase 1 surface program planned for 48 holes totalling 5,540 metres across four target areas; underground drilling at Pinos Cuates mine completed at 1,452.2 metres in 73 holes
  • Lab results from remaining underground samples expected in 3–4 weeks; production restart permitting advancing on multiple parallel fronts

Why the SEMARNAT Permit Carries More Weight Than a Standard Drill Approval

Because El Potrero's terrain is classified as "Semi-warm, Sub-humid," the standard NORMA 120 drill permit framework did not apply, requiring Pinnacle to obtain a full Manifiesto Impacto Ambiental (MIA). This involved substantially more baseline data — covering flora, fauna, forestry, climate, topography, and infrastructure surveys — than a routine drill permit demands. The company states that this same dataset now forms the foundation for permit applications covering the mine, processing plant, tailings storage facility, powerline extension, and water licence, meaning the extended approval timeline ultimately accelerated the broader permitting workstream.

Phase 1 Surface Drilling Targets Four Distinct Vein Structures

The planned Phase 1 program comprises 48 holes for 5,540 metres, split across four target areas: fill-in holes around historic workings (14 holes, 1,255 metres); step-out holes on the Dos de Mayo vein along 1,100 metres of undrilled strike (9 holes, 425 metres); the parallel El Capulín vein system, where channel sampling has returned up to 6.27 g/t Au and 99 g/t Ag over 0.4 metres (8 holes, 1,625 metres); and the Estrella vein, where an adit identified two mineralized zones including grades up to 17.7 g/t Au over 0.5 metres (17 holes, 2,235 metres).

Underground Drilling Wraps Up as Remaining Assay Results Approach

Underground drilling at the historic Pinos Cuates mine is complete, with 1,452.2 metres drilled across 73 holes. All remaining samples have been submitted to the SGS laboratory in Durango, with results expected within 3–4 weeks once compiled and interpreted. The underground drill has since moved to the adjacent historic Dos de Mayo mine, where 555 metres in 27 holes are planned. The company states that prior results have been highly encouraging, with locally high-grade gold and silver values and a mineralized zone appearing larger than originally understood.