Pinnacle Provides Project Update for El Potrero as it Advances Towards a Production Decision

Core Viewpoint - Pinnacle Silver and Gold Corp. is making significant progress on the El Potrero Project in Durango, Mexico, aiming to reach a production decision as soon as possible [2]. Project Development - The company has completed extensive underground and surface channel sampling and 3D modeling, allowing for the rehabilitation of historic mine workings on the Dos de Mayo vein trend [3]. - Underground delineation drilling is set to begin after the preparation of drill stations, with surface drilling permits applied for and a second round of metallurgical testing underway [4][6]. - A feasibility study for extending the powerline has been commissioned, and a new access agreement has been signed with the local community [4][5]. Drilling and Rehabilitation - Over 800 systematic channel samples have been taken, providing a clear understanding of the principal mineralized zones [5]. - The rehabilitation work will enhance access adits and drill stations, ensuring safety and efficiency [5][6]. - The drilling program is divided into two phases, with priority given to Phase I to expedite the process [6]. Metallurgical Testing - The first round of metallurgical tests achieved an average gold recovery of 95.1%, with ongoing tests aimed at optimizing these results [4][10]. - Recent head assays returned 7.7 g/t Au and 116 g/t Ag, indicating strong potential for future operations [11]. - Advanced mineralogical examinations are being conducted to improve processing efficiency [12]. Community Engagement - A community agreement has been established with Ejido El Carmen, supporting the project and ensuring local collaboration [15]. - The community has shown strong support for the project, recognizing the economic benefits of an operational mine [15]. Permitting and Regulatory Compliance - An application for the environmental permit for surface drilling has been submitted, with expectations for approval within 60-90 days [9]. - The company is also awaiting formal notification regarding a water permit, which is crucial for project advancement [9]. Future Outlook - The company anticipates making a production decision by the end of the year, with ongoing work to de-risk the project [4][16]. - Regular updates will be provided as the project progresses [16].