Pinnacle Silver and Gold reports progress at El Potrero project in Durango, Mexico

Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF) has provided an update on its El Potrero gold-silver project in Durango, Mexico. The company signed an agreement in February 2025 to acquire up to a 100% interest in the project and has since advanced exploration and preparatory work aimed at fast-tracking development. Robert Archer, Pinnacle CEO, described 2025 as a pivotal year for the company as it advanced the Potrero project towards production. “After only 10 months on the project, we have established a substantial high-grade epithermal gold-silver system and are ready to initiate underground delineation drilling to be followed by surface drilling to fill in gaps and test new targets,” Archer said in a statement. “Metallurgical test work is continuing, and discussions are progressing for an offtake agreement to secure production financing. Project evaluations are also ongoing, with the goal of making another acquisition this year.” El Potrero hosts a low-sulphidation epithermal gold-silver system traced for more than 1,600 metres along strike and 500 metres in width. In 2025, Pinnacle’s geological team conducted 1,196 surface and underground samples, mapping historic workings and identifying additional veins, including El Capulin and La Estrella. The work has helped define zones of potentially economic mineralization, guiding plans for underground and surface drilling. Sampling returned high grades, with underground channels up to 50.3 grams per ton of gold and 269 grams per ton of silver, and surface samples up to 37.4 grams per ton of gold and 2,280 grams per ton of silver over short intervals. Pinnacle noted further drilling and mineralogical work is needed to understand the vertical distribution of metals. Preliminary metallurgical testing on samples from the Pinos Cuates mine showed gold recoveries averaging 95.09% and silver recoveries averaging 54.68%, with gravity separation indicating potential for partial gold recovery prior to leaching. Pinnacle plans additional optimization work. The site includes a processing plant built in the 1980s, capable of processing about 100 tons per day, which the company has assessed for reconstruction and installation of a dry-stack tailings facility. Pinnacle has strengthened its in-country team with Carlos Castro Villalobos as project manager and Jorge Ortega as exploration manager. Preliminary community discussions have been held for portions of the project on ejido land, and meetings with Mexican regulators, including SEMARNAT, CONAGUA, and CFE are ongoing. An airborne LiDAR survey identified numerous historic adits, shafts, and prospecting pits, highlighting additional exploration targets. Underground definition drilling of about 1,100 metres across 50 holes is planned for early 2026, followed by surface drilling once permits are secured, alongside continued metallurgical studies and community engagement. “We look forward to continued progress through 2026 and to keeping shareholders up to date on the company’s development,” Archer concluded.