Pinnacle Provides Progress Report on Field Work at El Potrero Gold-Silver Project and Grants Incentive Stock Options
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Pinnacle Provides Progress Report on Field Work at El Potrero Gold-Silver
Project and Grants Incentive Stock Options
VANCOUVER, BRITISH COLUMBIA, April 17, 2025 (TSXV: PINN, OTC: NRGOF, Frankfurt: X6C) –
Pinnacle Silver and Gold Corp. ("Pinnacle" or the “ Company") is pleased to provide an update on
progress at the recently acquired high- grade gold-silver El Potrero property in Durango, Mexico (see
Pinnacle news releases dated February 24 and 25, 2025).
Phase I fi eld work commenced within a week of signing the Definitive Agreement and is progressing
well. Surface mapping has extended the vein system along strike to the northwest for approximately
1,100 metres from the Dos de Mayo Mine and 46 samples have been taken for analyses. Cleaning of
the underground workings at the historic Pinos Cuates, La Dura and Dos de Mayo Mines has been
completed, and the Pinos Cuates Mine has been mapped and sampled, with 86 samples being taken of
the vein system as it is exposed underground. All 132 samples have been submitted to the SGS lab in
Durango City.
In addition, access roads to the project and up to the mine portals have been cleared. T he plant has
been almost completely cleaned up, and an inspection is being planned to assess the approximate cost
and schedule to get it ready for production again.
“We are very pleased with the progress our team has been making on site in the short time we have
been on the property,” stated Robert Archer, Pinnacle’s President & CEO. “Our geological crew has
established themselves in the nearby village of Manzanillas, only three kilometres away and we are
already providing much needed jobs for the local people. As such, community relations are starting out
on a positive note. Having said that, the plant and mines sit on private property such that permitting
should be easier when the time comes. Go ing forward, underground mapping and sampling at the
historic La Dura and Dos de Mayo mines will continue and surface mapping will focus on the
southeastern extension of the vein system and identifying parallel or splay veins along the entire strike
length.”
Surface mapping to date has identified the dominant lithologies as comprising an a ndesitic volcanic
sequence with alternating flows and breccias. The units belong to the upper part of the Lower Volcanic
Series, the preferred and most common host for gold and silver mineralization in the Sierra Madre Belt.
There is a strong northwest -southeast structural trend hosting the vein system at El Potrero that
parallels the regional trend of the Sierra Madre. To date, several sub- parallel veins have been
identified on the southwest side of the Pinos Cuates mine, indicating that the vein system is at least 125
metres wide at this locality. Vein widths have been measured as ranging from 0.50 metres on surf ace
up to 7 metres underground at Pinos Cuates.
Most of the samples taken a t the historic Pinos Cuates Mine consist of vein breccia with angular clasts
of variable composition, clasts of colloform quartz, chalcedonic quartz, and bands of opaque quartz with
a black mineral, thought to be ginguro (very fine grained silver-gold mineralization). The footwall rocks
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are andesite with strong chlorite-pyrite alteration, whereas a felsic dike with porphyritic texture has been
observed in the hanging wall of the veins both underground and on surface, implying a long and active
period of hydrothermal activity.
Figure 1: Regional location map of the Potrero Project, Durango, Mexico
Figure 2: Preliminary geology of the Potrero Project showing vein projections and historic mines
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As reported in Pinnacle news release of March 18, 2025, p reliminary sampling of mineralized veins
containing ginguro bands at Pinos Cuates returned an arithmetic average from four chip channel
samples of 8.04 g/t gold (Au) and 146 g/t silver (Ag) ( chip samples, by their nature, are selected
samples and may not represent a true reflection of actual grade), consistent with the historic production
grades reported by the vendors, and the historic resource estimate of 45,561 tonnes at 8.0 g/t Au and
186 g/t Ag. These resources are historical in nature and Pinnacle is not treating these estimates as
current mineral resources as a qualified person on behalf of Pinnacle has not done sufficient work to
classify them as current mineral resources.
Figure 3: Longitudinal section, looking southwest, of underground workings at the Potrero Project.
Once assay s are received (approximately 3 weeks), results will be interpreted in the context of the
mapping in order to determine the structural controls on gold- silver mineralization , as the highest
grades tend to occur in ‘shoots’. Once these are better defined, a diamond drilling program can be
planned to systematically test these areas for continuity.
Preliminary discussions are underway with geophysical contractors regarding the flying of a LiDAR
(Light Detection and Ranging) survey over the entire property. LiDAR is a remote -sensing and laser
technology that ‘sees’ through overburden and maps out the rock subsurface in a way that allows for
the interpretation of structural features that can be important in controlling gold- silver mineralization.
This interpretation will also be used in the planning of upcoming drill programs.
In due course, discussions will be held with the federal electrical commission to extend the power line
to the plant site, a distance of only about three kilometres.
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Stock Option Grant
Pinnacle has granted an aggregate of 500,000 incentive stock options to certain consultants of the
Company, pursuant to the Company’s Stock Option Plan and subject to TSXV approval, at a price of
$0.05 and expiring on April 17, 2030. The incentive stock options will vest 25% each quarter over a 12-
month period.
QA/QC
The technical results contained in this news release have been reported in accordance with National
Instrument 43- 101 Standards of Disclosure for Mineral Projects ("NI 43 -101"). Pinnacle has
implemented industry standard practices for sample preparation, security and analysis given the stage
of the Project. This has included common industry QA/QC procedures to monitor the quality of the
assay database, including inserting certified reference material samples and blank samples into
sample batches on a predetermined frequency basis.
The non -systematic chip channel sampling was completed across exposed mineralized structures
using a hammer and maul. The protocol for sample lengths established that they were not longer than
two metres or shorter than 0.3 metres . The veins tend to be steeply dipping to vertical, and so these
samples are reasonably close to representing the true widths of the structures. Samples were
collected along the structural strike or oblique to the main structural trend.
All samples were bagged in pre- numbered plastic bags; each bag had a numbered tag inside and
were tied off with adhesive tape 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 plastic ties and delivered directly to the
SGS laboratory facility in Durango, Mexico for preparation and analysis. The lab is accredited to
ISO/IEC 17025:2017. All Samples were delivered in person by the contract geologist who conducted
the sampling under the supervision of the QP.
SGS sample preparation code G_PRP89 including weight determination, crushing, drying, splitting,
and pulverizing was used following industry best practices where all samples were crushed to 75%
less than 2 mm, riffle split off 250 g, pulverized split to > 85% passing 75 microns (μm). All samples
were analyzed for gold using code GA_FAA30V5 with a Fire Assay determination on 30g samples
with an Atomic Absorption Spectography finish. An ICP -OES analysis package (Inductively Coupled
Plasma - Optical Emission Spectrometry) including 33 elements and 4 -acid digestion was performed
(code GE_ICP40Q12) to determine Ag, Zn, Pb, Cu and other elements.
Qualified Person
Mr. Jorge Ortega, P. Geo, a Qualified Person, and independent from Pinnacle, as defined by National
Instrument 43 -101, and the author of the NI 43 -101 Technical Report for the Potrero Project , has
reviewed, verified and approved for disclosure the technical information contained in this news
release.
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About the Potrero Property
El Potrero is located in the prolific Sierra Madre Occidental of western Mexico and lies within 35
kilometres of four operating mines, including the 4,000 tonnes per day (tpd) Ciénega Mine (Fresnillo),
the 1,000 tpd Tahuehueto Mine (Luca Mining) and the 250 tpd Topia Mine (Guanajuato Silver).
High-grade gold-silver mineralization occurs in a low sulphidation epithermal breccia vein system
hosted within andesites of the Lower Volcanic Series and has three historic mines along a 500 metre
strike length. A historic resource based upon underground sampling of those three mines is reported
to consist of 45,561 tonnes at 8.0 g/t gold and 186 g/t silver . The property has been in private hands
for almost 40 years and has never been drilled or explored by modern methods, leaving significant
exploration potential.
A 100 tpd plant on site can be refurbished / rebuilt and historic underground mine workings
rehabilitated at relatively low cost in order to achieve near -term production once permits are in place.
The property is road accessible with a power line within three kilometres. Surface rights over the plant
and mine area are privately owned (no community issues).
Pinnacle will earn an initial 50% interest immediately upon commencing production. The goal would
then be to generate sufficient cash flow with which to further develop the project and increase the
Company’s ownership to 100% subject to a 2% NSR. If successful, this approach would be less
dilutive for shareholders than relying on the still challenging equity markets to finance the growth of the
Company.
About Pinnacle Silver and Gold Corp.
Pinnacle is focused on district-scale exploration for precious metals in the Americas. The addition of
the high-grade Potrero gold-silver project in Mexico’s Sierra Madre Belt complement s the Company’s
project portfolio and provides the 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 North Birch Project with an eight -kilometre-long target horizon.
With a seasoned, highly successful management team and quality projects, Pinnacle Silver and Gold
is committed to building long-term, sustainable value for shareholders.
Signed: “Robert A. Archer”
President & CEO
FOR FURTHER INFORMATION CONTACT:
Email: [email protected]
Tel.: +1 (877) 271-5886 ext. 110
Website: www.pinnaclesilverandgold.com
250 - 750 West Pender Street, Vancouver, BC V6C 2T7 - Tel. (604) 669 - 0868
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Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this release.