Pinnacle Silver outlines first underground drill program at El Potrero

Pinnacle Silver & Gold (TSX‑V:PINN, OTCQB:PSGCF) has initiated a first underground delineation drilling program at the high‑grade El Potrero project in Durango after systematic underground channel sampling (773 samples across ~500m of the Dos de Mayo vein) returned assays up to 85.1 g/t Au and 520 g/t Ag, with surface channels as high as 37.4 g/t Au and 2,280 g/t Ag. The company has compiled 3D models and plans 112 short holes (20–25m) totaling ~2,600m, spaced every 12.5m along strike and vertically, with limited development work in the historic workings to begin early next year and drilling to follow over roughly six weeks. Management emphasizes this is delineation rather than exploration—the results are intended to define the size, geometry and grade of mineralized shoots to support a preliminary mine plan and follow‑up surface drilling, so positive outcomes would materially advance project development and resource definition.

Analysis

Pinnacle Silver & Gold has moved to delineation drilling at its high‑grade El Potrero project in Durango after systematic underground channel sampling (773 samples across roughly 500 metres of the Dos de Mayo vein) returned standout assays up to 85.1 g/t Au and 520 g/t Ag underground and surface channel highs of 37.4 g/t Au and 2,280 g/t Ag, indicating high-grade shoots and potential continuity to surface. The company has converted those data into 3D models and designed a dense underground drill program of 112 short holes (20–25 m each) totaling about 2,600 m with planned spacings every 12.5 m along strike and vertically; limited development work in the historic workings is due to start early next year and drilling is expected to take roughly six weeks. Management frames the program as delineation rather than exploration, with results intended to define size, geometry and grade to support a preliminary mine plan and guide follow-up surface drilling, so assay distribution and continuity between workings are the critical value drivers. Market signals point to mildly positive sentiment and modest market impact, making near‑term catalysts (drill assays, preliminary mine plan and follow‑up surface results) binary for advancing the project from high‑grade showings to a formal resource and mine design.

Key Decisions for Investors

• Monitor assay releases from the ~2,600 m underground program and the schedule for the preliminary mine plan; consider a small, speculative position only if multiple holes demonstrate consistent high grades and continuity across the modeled shoots
• Defer meaningful capital commitment until Pinnacle publishes hole‑by‑hole assays and demonstrates vertical/strike continuity that can support a maiden resource or preliminary mine plan
• If delineation results are supportive and follow‑up surface drilling confirms between‑workings continuity, consider increasing exposure ahead of a formal resource estimate, while validating assumptions in the company’s 3D models
• Size positions conservatively and plan downside protection given risks from historic workings, potential discontinuity of mineralized shoots, and the modest near‑term market impact indicated by sentiment metrics