Pinnacle Reports High-Grade Gold-Silver on Surface and in Underground Workings at El Potrero Project
(TheNewswire)
VANCOUVER, BRITISHCOLUMBIA – TheNewswire - June 2, 2025 (TSXV: PINN, OTC: NRGOF, Frankfurt:P9J) – Pinnacle Silver and Gold Corp. (" Pinnacle " or the “ Company ") is pleased to announce that systematic sampling of the historic undergroundworkings at the Pinos Cuates Mine on the ElPotrero property in Durango, Mexico (see Figure 1) has resulted in thedefinition of a lens of high-grade gold and silver mineralization,with individual samples returning up to 37.3 g/t gold (Au) and 346 g/tsilver (Ag).
HIGHLIGHTS
Systematic channel sampling of the underground workingsat the historic Pinos Cuates Mine has returned composite channelassays of up to 19.4 g/t Au and 266 g/t Ag over4.1 metres, including 37.3 g/t Au and 346 g/t Ag over 0.6metres and 31.2 g/t Au and 395 g/t Ag over 0.5 metres.
Underground mapping in the Pinos Cuates mine isoutlining a wide, robust vein breccia system with exposed vein widthslocally exceeding 10.46 metres and 8.5 metres on the upper and lowerlevels, respectively. Ultimate widths are not yet known as the outercontacts were not always exposed and will have to be determined byfuture diamond drilling.
Surface mapping has traced the Dos de Mayo vein systemfor 1.6 kilometres along strike. Sampling of outcrop exposures washighlighted by a vein in an old pit between the Pinos Cuates and Dosde Mayo Mines, where there are no underground workings, that returned 13.2 g/t gold and2,280 g/t silver and 5.2 g/t Au and 745 g/t Ag from grab samples. Visible gold and the more typical‘ginguro’ mineralization were observed.
Of the two levels in the mine, the upper level returnedthe highest grades and most consistent mineralization. T he entire 40-metre length of the upper level adit is variablymineralized, with three composite channels overa strike length of 6 metres returning 19.4g/t Au and 266 g/t Ag over 4.1 m etres, 13.15 g/t Au and 78 g/t Ag over 1.0 metre, and 11.4g/t Au and 131 g/t Ag over 2.5 metres. This high-grademineralization is ‘shouldered’ along strike to the northwest andsoutheast by 4.7 g/t Au and 80 g/t Ag over 4.0 metres and 3.9 g/t Auand 51 g/t Ag over 1.0 metre, respectively. Additional compositechannels to the southeast yielded 7.8 g/t Au and 220 g/t Ag over 1.3metres and 5.0 g/t Au and 272 g/t Ag over 2.0 metres. It should be noted that channel sampling of the full width ofthe vein exposure was locally restricted by accessibility.
Sampling on the lower level was highlighted by 3.3 g/t Au and 36 g/t Ag over 4.0 metresdown-dip of the high-grade section on the upper level and 7.13 g/t Auand 130 g/t Ag over 0.5 metres along strike to the southeast.
Figure1: Regional location map of the Potrero Project, Durango,Mexico
Concurrent with the underground program, surfacemapping and prospecting along the main Dos de Mayo vein system,resulted in the discovery of an old pit with vein material containingvisible gold and ginguro (grey-black bands of electrum and silversulphides) that assayed 13.2 g/t Au and 2,280g/t Ag and 5.2 g/t Au and 745 g/t Ag in two grab samples. Investorsare cautioned that grab samples, by their nature, provide only apreliminary indication of grades and are not consideredrepresentative. Follow up trenching and channel sampling will beconducted here. Situated roughly halfway between the Pinos Cuatesand Dos de Mayo mines (Figure 2) , this discovery underscores the potential to connect themineralization between the historic workings (200 metres).
“We are extremely pleased that we are seeingconsistent high-grade gold-silver mineralization this early in thesampling program,” stated Robert Archer, Pinnacle’s President& CEO. “Furthermore, the discovery of high-grade gold andsilver at surface between the historic mines exemplifies the potentialto expand the mineralized zones beyond the historic mines. Mappingof the underground workings and surface exposures has beenaccompanying the sampling such that we are also getting a betterunderstanding of the geological controls on the mineralization. Theoccurrence of high-grade pockets of mineralization is consistent withlow-sulphidation epithermal vein deposits, where the highest gradestend to occur in ‘clavos’ or ‘shoots’. These results are animportant first step towards defining targets for a drill programlater in the year.”
Underground Program
Of the three historic mines on the Potrero Property,the Pinos Cuates mine lies roughly halfway between the larger Dos deMayo mine to the southeast and the Dura mine to the northwest (Figures2 and 3) and consists of two levels,approximately 25 metres apart, with a raise connecting the two (Figure4).
Figure2: Preliminary geology of the Potrero Project showing vein projectionsand historic mines
The lower level of the Pinos Cuates mine has a measuredlength of 96.78 metres with an exposed true vein width ranging from2.46 to 8.50 metres at its widest point. The vein is actuallyexposed for only about 45 metres of this length and the remainderfollows a felsic porphyry dike. The Upper Level has a measuredlength of 40.35 metres with an exposed true vein width ranging from1.42 to 10.46 metres at its widest point. On both levels the widthof the vein could be wider as the outer contacts with the wall rockare not always exposed.
The vein strikes 320-330° and dips at 60-72° NE, andthe adits have been surveyed such that true vein widths are consideredto be approximately 90% of composite channel lengths. A metal ladderhas recently been anchored to the inside of the raise, making it safeto sample the walls to give some idea of the vertical continuity ofthe mineralization.
The underground sampling at Pinos Cuates was conductedas a series of channel samples roughly perpendicular to the Dos deMayo vein, across the back (ceiling) and the walls of the adits(tunnels) where the vein is exposed. Spacing between channels variesfrom approximately 2 to 5 metres on the upper level and 2 to 10 metreson the lower level. Individual channel samples do not exceed 1.3metres in length and composites comprise up to eight individualchannels end-to-end. As such, the sampling is considered to berepresentative of the grades within a particular zone.
Figure3: Longitudinal section, looking southwest, of underground workings atthe Potrero Project.
On the upper level of the mine, a total of 94 channelsamples were taken in 16 composite channels along the length of theadit. On the lower level, 79 samples were taken, forming 16composite channels over the full length of the level. All sampleswere assayed for gold, silver and a suite of 32 other elements,including copper, lead and zinc. However, the base metal assays wereconsistently low, confirming that this is a precious metal dominantsystem.
On the upper level, gold and silver mineralizationextends from one end of the adit to the other (40.35 metres). However, the ginguro bands that carry the highest grades are notalways exposed in the underground workings and there has been nohistoric underground drilling to test the horizontal continuity of thevein or the mineralization. Consequently, the high grades such as 37.3 g/t Au and 346 g/t Ag over 0.6metres and 31.2 g/t Au and 395 g/t Ag over 0.5 metres are a direct function of the amount of ginguro bands,which is, in turn, related to exposure and accessibility in thehistoric workings. Future drilling will provide a better sense ofthe widths of the vein and the continuity of gold-silvermineralization within it.
On the lower level, gold and silver assays were highlighted by7.13 g/t Au and 130 g/t Ag over 0.5 metres and 3.3 g/t Au and 36 g/tAg over 4.0 metres , while almost all sampleswere gold and silver bearing to some degree. This latter channel isdown-dip from the high grades in the upper level, suggesting that theyare probably connected. However, diamond drilling and/or minedevelopment would be needed to confirm this.
In the better mineralized samples, the silver to goldratio averages 14 on the lower level vs 28 on the upper level and upto 172 on surface, perhaps indicating a slight metal zonation, withsilver content increasing upwards relative to gold.
Following this program at Pinos Cuates, undergroundmapping and sampling has commenced at the Dos de Mayo Mine and is wellunderway, with 113 samples taken to date.
Surface Program
Surface mapping has now extended the vein system alongstrike to the northwest and southeast for approximately 1,600 metres(see Figure 2). Samples were taken from any veins that were found,with a total of 85 being assayed to date. This was highlighted bythe discovery of an old pit with vein material containing visible goldand ginguro that returned assays of 13.2 g/t Auand 2,280 g/t Ag and 5.2 g/t Au and 745 g/t Ag in two grab samples. The pit is located roughly halfway between the Pinos Cuates and Dos de Mayo mines where there are no undergroundworkings and provides evidence of the presence of mineralizationwithin the 200 metre gap between the historic workings.
To the southwest of the Pinos Cuates mine, two otherveins, La Estrella and El Capulín, have been mapped and sampled onsurface and in small underground workings. At El Capulín, there arestructural elements that trend NW-SE parallel to the main trend, butalso NE-SW, projecting into the Dos de Mayo vein, approximately 200metres away. The intersection of the two systems could result in awidening of the veins. In the underground workings, veinlets ofcrystalline and crustiform quartz and calcite less than 5 cm wide areobserved, with very strong interstitial and fracture oxidation. Seven samples have been taken at El Capulín and assays arepending.
At La Estrella, approximately 500 metres southwest ofPinos Cuates, the vein has been mapped onsurface over a strike length of 100 metres and varies from 0.95 to 6.0metres in width. Its general strike isnorth-south with an inclination of 70° to 80° to the east, but inthe north it bends to a northeast strike, much like El Capulín. It can exhibit brecciated, lattice-bladed, andbanded textures, and contains clay minerals such as kaolin, and red,orange, and lemon-yellow oxides. Seven sampleswere taken, of which 4 were inside a 40 metre adit and 3 on thesurface. Vein material returned assays of 0.151 to 1.180 g/t Au and16 to 40 g/t Ag.
It is important to note that the elevation at LaEstrella is 1,880 masl, while at Dos de Mayo it is 1,500 masl,representing a difference of 380 metres. This, along with the presenceof clays (kaolin) at La Estrella, could indicate that the mappedexposures at La Estrella are high in the epithermal system and thatthe complete mineralized horizon lies below. This theory will bedrill-tested in due course.
Access roads to the project and up to the mine portalshave been cleared, the plant has been completely cleaned up, and aninspection has been scheduled for mid-June to assess the approximatecost and schedule to get it ready for production again.
Geology
The Potrero Project lies within the well-known andprolific Topia District of the Sierra Madre gold-silver belt. TheDos de Mayo low-sulphidation epithermal gold-silver systemdemonstrates a strong northwest-southeast strike that parallels theregional trend of the Sierra Madre and is on strike with the 4,000tonne per day Ciénega Mine, 35 kilometres to the southeast. Thehost rock consists of a series of andesitic flows and tuffs of theLower Volcanic Series and is variably chloritized (propyliticalteration).
Geological mapping on surface and underground hasidentified a quartz-feldspar-biotite porphyry dike along one or bothcontacts of the vein. It appears to occupy the same structure as thevein system and is pre-mineral, being locally mineralized with goldand silver. Felsic intrusives such as this are common and importantin epithermal systems as they are thought to provide structuralpreparation, competency contrasts, and a source of heat andmineralizing fluids.
The principal Dos de Mayo vein consists of vein brecciawith angular clasts of variable composition, colloform quartz,chalcedonic quartz, bladed quartz and calcite, drusy quartz and bandsof opaque, grey quartz. Gold-silver mineralization is associatedwith grey-black bands of ginguro (fine-grained electrum and silversulphides). Fine pyrite and iron oxides occur in small quantitieslocally.
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. (These resources are historical in nature and Pinnacle isnot treating these estimates as current mineral resources as aqualified person on behalf of Pinnacle has not done sufficient work toclassify them as current mineral resources.) The property has beenin private hands for almost 40 years and has never been systematicallyexplored by modern methods, leaving significant explorationpotential.
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 covering 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 equity markets to finance the growth of theCompany.
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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