Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) earlier this week provided an operational update as the company advances its El Potrero silver-gold project toward a potential production decision later this year.
In an interview with Proactive, CEO Robert Archer said the update coincides with the one-year anniversary of the company acquiring the asset. Over that period, Pinnacle Silver and Gold has completed more than 1,300 channel samples, primarily underground, to establish a modern geological understanding of a project that last operated in the late 1980s.
Archer said the company needed to build confidence in the geological model before moving toward drilling.
The sampling program has supported the development of a 3D model of the main mineralized zones. The company has now started rehabilitating underground workings to enable delineation drilling from underground stations. Rehabilitation work is expected to take approximately six weeks and will focus on widening access areas and securing loose rock to ensure safe drill operations.
Archer noted that most underground drill holes will range from 20 to 25 metres in length, allowing for rapid completion once drilling begins. The results are expected to provide greater clarity on the scale and continuity of mineralization, supporting future mine planning decisions.
In parallel, Pinnacle Silver and Gold has submitted permit applications for surface drilling after finalizing drill pad locations. Approval is anticipated within 60 to 90 days, potentially allowing surface drilling to begin as underground drilling concludes. This sequential approach could maintain operational momentum through 2026.
Proactive: Welcome back inside our Proactive newsroom. Joining me now is Robert Archer, CEO of Pinnacle Silver and Gold. Bob, great to see you again. How are you?
Robert Archer: I’m doing well. Thanks.
The company has provided an update as it advances toward a production decision. Let’s take a step back. What has been accomplished so far?
This week marks the one-year anniversary of acquiring the project. In that time, the company has taken over 1,300 channel samples, mostly underground, with some surface sampling to better understand the geology. The project was in production in the late 1980s and has a small plant, but it had never been explored using modern exploration techniques. We’ve now built a 3D model of the main mineralized zones and are beginning rehabilitation of the underground workings to prepare for delineation drilling.
The rehabilitation work is expected to take about six weeks. What does that involve?
These are old workings. Some were produced mechanically, but much was done by hand. The company needs to ensure the tunnels are wide enough for drilling equipment and, importantly, safe. Loose rock must be secured. Once drilling stations are ready, the drill can be moved underground. The mineralization is above the main access tunnel, and most drill holes will be 20 to 25 metres long, so drilling should move quickly.
You are also planning surface work.
Yes. The company submitted permit applications for surface drilling after defining drill pad locations. Approval is expected within 60 to 90 days, allowing surface drilling to begin around the time underground drilling concludes.
You also mentioned extending a power line.
The plant will require power. The nearest line is about three kilometres away, though routing along the road will likely extend that to about 4.5 to 5 kilometres. A third-party feasibility study is required by Mexico’s Federal Electrical Commission. A consultant has been engaged to complete that work.
2026 looks busy.
It will be. There are multiple milestones ahead, including permitting and drilling. The goal is to move toward a production decision later this year.
Quotes have been lightly edited for style and clarity