Pinnacle Silver and Gold Confirms High-Grade Mineralization at El Potrero Mine

Pinnacle Silver and Gold Corp. announced significant findings from ongoing underground drilling at the historic Pinos Cuates mine in Durango, Mexico. The drilling has confirmed and extended high-grade gold-silver mineralization, with assays showing up to 58.2 grams per tonne (g/t) of gold (Au) and 631 g/t of silver (Ag).

The latest results come from hole EPUG26068, which intersected a well-mineralized section returning 6.19 g/t Au and 90 g/t Ag over 10.89 meters. The best section, approximately 15 meters down-dip from hole EPUG26035, yielded an even higher grade of 58.2 g/t Au and 631 g/t Ag over 0.41 meters. The company noted that visible gold and silver sulphides were present in this section.

Robert Archer, President and CEO of Pinnacle, expressed satisfaction with the continuity of the grade in this area of the Pinos Cuates mine. "We are very pleased to see the continuity of grade in this area of the Pinos Cuates mine," stated Archer. "These strong results imply that the mineralization outside of the limited mine workings should still be intact."

The company drilled 76 holes and received assays for the first 53. Additional drilling is ongoing, with the drill expected to move to the Dos de Mayo mine starting with hole EPUG26084. The best assay results to date are associated with zones of strong silicification and oxidation, characterized by veinlets of dark gray to black quartz. High-grade material is sometimes surrounded by a halo of lower-grade material.

Surface drilling is anticipated to commence in October, focusing on filling in gaps between the historic mines and testing up and down dip and along strike to the northwest on the Dos de Mayo vein. Other mineralized veins such as El Capulin and La Estrella will also be drilled for the first time ever. The combined results will be used to generate an internal resource estimate and develop a preliminary mine plan.

Pinnacle's Potrero property, located in the Sierra Madre Occidental of western Mexico, is within 35 kilometers of four operating mines. The property hosts a low-sulphidation epithermal breccia vein system and has three historic mines along a 500-meter strike length. The company's 100-tonne-per-day (tpd) plant on site can be refurbished/rebuilt and historic underground mine workings rehabilitated at relatively low cost, with plans to achieve near-term production once permits are in place.

The property is road accessible with a power line within three kilometers, and Pinnacle is focused on the development of precious metals projects in the Americas. The high-grade Potrero gold-silver project in Mexico’s Sierra Madre Belt hosts an underexplored low-sulphidation epithermal vein system, providing potential for near-term production.