Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) earlier this week reported encouraging underground and surface sampling results from the El Potrero gold-silver project in Durango State, Mexico, highlighting expanding vein systems and growing exploration upside.
The company said recent work focused on the Estrella vein, located approximately 500 metres from the project’s historic main vein. According to CEO Robert Archer, the vein had not previously been drilled or systematically explored, making the latest results particularly notable.
Proactive: The company has released news on underground and surface sampling with some solid results. Let’s remind everyone about the project and the work being done.
Robert Archer: The El Potrero project is a low-sulphidation epithermal gold-silver project in northwestern Durango State, Mexico, on the Sierra Madre trend. It’s a great mining district, surrounded by four operating mines. The project is a past producer but hasn’t seen production since the late 1980s and has never been drilled because it was privately owned. There is significant opportunity, and we continue to find new things. The grades are holding up, and we’ve recently released new results from expanding a couple of vein events.
You completed 62 underground channel samples and nine surface samples, seeing increased length and improved grades, is that right?
The Estrella vein is about 500 metres from the historic main vein. There are just over 40 metres of underground workings at one tunnel. We didn’t know what to expect initially, but we followed the vein about 150 metres along surface. The grades are strong and consistent with what we see elsewhere on the property. Being 500 metres away gives us a good indication of the size and intensity of the system.
Because there are existing mining workings, we have immediate access for further delineation through surface drilling, allowing us to expand fairly quickly once drilling begins.
What comes next in the program?
We’ll continue sampling along strike and refining drill targets. There is still 600 to 800 metres to the north before this vein potentially intersects known veins. Where veins come together is often favourable for mineralisation.
The Estrella vein is several hundred metres higher in elevation than the known veins. In epithermal systems, elevation is critical. The mineralogy suggests we’re still high in the system, meaning most of it is preserved below us, which bodes well for future drilling.
You’ve also been working on the La Dura vein. What’s happening there?
La Dura is part of the Dos Tamayo system. Previous underground sampling covered only about 12 metres. Surface sampling has now extended the strike length to roughly 45 metres, more than tripling the extent, with much higher grades than previously sampled underground. These results are significant for expanding both the size and grade of the La Dura mine.
Quotes have been lightly edited for clarity and style