Pinnacle Provides Progress Update for El Potrero Gold-Silver Project

Core Viewpoint - Pinnacle Silver and Gold Corp. is making significant progress at the El Potrero gold-silver project in Durango, Mexico, aiming to fast-track production amid high precious metal prices [1][2]. Group 1: Project Development - The El Potrero project features a low-sulphidation epithermal gold-silver system traced over 1,600 meters along strike and 500 meters in width, with many characteristics similar to significant mines in the Sierra Madre region [3]. - Extensive surface and underground mapping and sampling have been conducted, totaling 1,196 samples in 2025, which has defined additional veins and expanded the mineralizing system [4]. - The geological model has been confirmed, aiding in understanding grade distribution and exploration potential, which is crucial for future drilling and resource development [5]. Group 2: High-Grade Mineralization - El Potrero displays high-grade characteristics, with underground channel samples showing grades up to 85.1 g/t Au and 520 g/t Ag, while surface samples returned gold values up to 13.2 g/t and silver grades reaching 2,280 g/t [6][7]. - The project has potential economic-grade mineralization occurring in pockets, known as 'clavos' in Mexico, which will be further defined through drilling [5]. Group 3: Metallurgical Testing - Preliminary metallurgical tests indicate gold recoveries between 92.81% and 96.79%, averaging 95.09%, while silver recoveries are more variable, ranging from 41.41% to 73.53%, averaging 54.68% [8]. - Further optimization and mineralogical studies are required to improve silver recoveries [8]. Group 4: Infrastructure and Management - The processing plant on-site, capable of processing about 100 tonnes per day, requires new equipment and has undergone preliminary cost assessments for rebuilding [10]. - The company has strengthened its in-country management by hiring experienced professionals, enhancing technical success and community relations [11][12]. Group 5: Community Relations and Permitting - Pinnacle has engaged with local communities to establish positive relationships and formalize long-term access agreements, with strong support from the local community of Topia [13]. - The permitting environment in Mexico has improved, with ongoing discussions with relevant government agencies to secure necessary permits for project advancement [14][21]. Group 6: Upcoming Work and Catalysts - An underground definition drilling program is set to commence, focusing on known zones of gold-silver mineralization, with approximately 1,100 meters planned in about 50 holes [17][18]. - Surface drilling will follow once permits are secured, targeting gaps in the Dos de Mayo vein and exploring new veins [19]. - Continued metallurgical testing and optimization efforts are planned to enhance recovery rates [20].