Pinnacle Silver samples up to 17.7 g/t gold on La Estrella Vein at El Potrero Project, Mexico

Pinnacle Silver and Gold Corp. [TSXV: PINN, OTC: PSGCF, Frankfurt: P9J] that surface and underground sampling of the Estrella Vein at the high-grade El Potrero gold-silver project in Durango, Mexico has confirmed the presence of strong gold-silver mineralization in that vein.

The limited mine workings are 42.5 metres long and channel sampling identified two mineralized zones yielding 5.49 g/t Au and 48 g/t Ag over an average width of 0.72 metres and strike length of 12 metres, and 1.87 g/t Au and 51 g/t Ag over an average width of 1.1 metres and a strike length of 22.5 metres.

The two zones are separated by 18 metres of lower grade material in the adit but could coalesce below this. Individual samples assayed up to 17.7 g/t Au and 24 g/t Ag over 0.5 metres, 8.77 g/t Au and 32 g/t Ag over 0.5 metres, and 3.51 g/t Au and 196 g/t Ag over 0.8 metres.

On surface, the vein has been traced for almost 150 metres along strike and is still open in both directions, reaching a width of 6.0 metres at the northern end of the exposure.  Systematic channel sampling will be conducted in the coming weeks as, to date, grades from surface sampling reached 3.35 g/t Au and 204 g/t Ag.

Following up on the underground channel sampling at the historic La Dura 2 mine workings that returned 1.98 g/t Au and 98 g/t Ag along a 12-metre strike length, surface sampling of the vein has extended the gold-silver mineralization along strike such that the zone can now be followed for approximately 45 metres. Within the seven vein samples taken on surface, assays included 6.89 g/t Au and 208 g/t Ag over 1.4 metres, 5.95 g/t Au and 185 g/t Ag over 1.0 metres, 5.75 g/t Au and 230 g/t Ag over 0.7 metres, and 3.39 g/t Au and 248 g/t Ag over 1.3 metres. This additional information will aid in delineation drilling of La Dura once the surface program begins.

“The identification of high grades of gold and silver mineralization in the Estrella vein is a key development for the Potrero Project as the vein is approximately 500 metres southwest of the main Dos de Mayo structure that hosts the three principal mines on the property, and it significantly opens up the size of the mineralized system , both laterally and vertically,” stated Robert Archer, Pinnacle’s President & CEO.

“At surface, La Estrella sits at an elevation of 1,880 masl (metres above sea level) whereas Dos de Mayo is predominantly exposed between 1,490 and 1,570 masl, suggesting that there could be up to 400 metres of vertical continuity of the epithermal system preserved below La Estrella. Geologically, the vein exhibits brecciated, lattice bladed and banded textures, and contains substantial amounts of clay minerals such as kaolin, with red, orange, and lemon-yellow oxides, all features that typically occur in the upper parts of a low-sulphidation epithermal system. La Estrella is developing into an important drill target once permits are in place.

“Similarly, the identification of significantly higher-grade gold-silver mineralization in outcrop at La Dura 2 has more than tripled the known strike length of this mineralized zone. Given the limited extent and orientation of the underground workings here, this zone will be drilled from surface as soon as possible.”

The general strike of the Estrella vein is north-south with an inclination of 70° to 80° to the east, but in the north it bends to a northeast strike towards the Capulin and Dos de Mayo veins.  It is presently unclear as to the reason for, or significance of, the north-south trend compared to the northwest-southeast Dos de Mayo trend.

Projecting the Estrella vein along strike to the north would intersect the Dos de Mayo structure just northwest of La Dura and extend the Estrella structure for some 600-800 metres. The intersection of two structural trends is often the locus of significant mineralization in these types of vein systems.

Sixty-two underground channel samples were taken in 16 composites, at approximately three-metre spacing, over the 42.5 metre length of the historic Estrella mine workings. Gold assays ranged from 0.02 to 17.7 g/t with 22 samples (35%) assaying more than 1.0 g/t Au. Silver assays ranged from 2 to 196 g/t with 17 samples (27%) assaying more than 31 g/t (one troy oz/ton) Ag. On surface, nine samples were taken over the 150-metre strike length of the Estrella vein exposure.  Gold assays ranged from 0.008 to 3.35 g/t and silver assays ranged from 2 to 204 g/t.

El Potrero is located in the prolific Sierra Madre Occidental of western Mexico and lies within 35 km of four operating mines, including the 4,000 tonnes/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. The property has been in private hands for almost 40 years and has never been systematically explored by modern methods, leaving significant exploration potential.

A previously operational 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 3 km.

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 equity markets to finance the growth of the company.

The high-grade Potrero gold-silver project in Mexico’s Sierra Madre Belt hosts an underexplored low-sulphidation epithermal vein system and provides the potential for near-term production. In the Red Lake District, 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 8-km-long target horizon.