Pinnacle Prepares for Underground Drill Program on High-Grade Gold-Silver Targets at El Potrero

Core Insights - Pinnacle Silver and Gold Corp. has initiated an underground drilling program at the El Potrero gold-silver project in Durango, Mexico, following systematic underground channel sampling that identified high-grade mineralization [1][3] - The drilling program will involve approximately 2,600 metres of drilling across 112 holes, with a focus on delineation rather than exploration, aiming to establish a preliminary mine plan [2][3] Geological and Sampling Details - The geological team has conducted systematic underground channel sampling, collecting 773 samples from three historic mine workings along 500 metres of the Dos de Mayo epithermal vein system, with grades reaching up to 85.1 g/t Au and 520 g/t Ag [1][2] - Surface channel samples above the historic mines showed grades up to 37.4 g/t Au and 2,280 g/t Ag, indicating continuity of mineralization to the surface [1] Drilling Program Overview - The drilling program will test the vein structure every 12.5 metres along strike and vertically, with drill holes expected to be relatively short, ranging from 20 to 25 metres [2] - The entire drilling program is anticipated to take about six weeks to complete, with initial development work required in the historic workings to ensure safe drilling conditions [3] Project Background - The El Potrero project is located in the Sierra Madre Occidental region, within 35 kilometres of four operating mines, indicating a favorable mining environment [14] - The project features a low-sulphidation epithermal breccia vein system with significant exploration potential, having not been systematically explored by modern methods for nearly 40 years [15] Future Development Plans - The company plans to refurbish a previously operational 100 tpd plant on-site and rehabilitate historic underground mine workings to achieve near-term production once permits are secured [16] - Pinnacle aims to earn an initial 50% interest upon commencing production, with the goal of generating cash flow to further develop the project and increase ownership to 100% [17] Company Overview - Pinnacle Silver and Gold Corp. focuses on developing precious metals projects in the Americas, with a commitment to building long-term, sustainable value for shareholders [18]