Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) earlier this week provided an update on drilling at its El Potrero project, where CEO Robert Archer said underground work had effectively doubled the known strike extent of mineralization at the Pinos Cuates mine.
Speaking with Proactive, Archer said the first results discussed came specifically from the upper level of Pinos Cuates, the central of three historic mines situated along the project's main trend.
He explained that underground drilling had allowed Pinnacle Silver and Gold to drill along the vein into areas where it had not previously been developed.
To the northwest, Archer said the company had encountered “some very nice grades and some visible gold” and had extended mineralization by approximately 20 metres. Drilling also extended mineralization to the southeast, where he reported good grades.
“Overall we effectively doubled the strike extent of the mineralization from what we previously knew just from the underground channel sampling,” Archer said.
The next potential catalyst outlined during the interview is the transition to surface drilling. Archer said underground drilling could not cut through the entire width of the zone in certain directions, meaning surface holes will be needed to provide additional information.
The surface program is expected to test mineralization up and down dip, helping the company develop a clearer picture of the zone's vertical extent while also testing gaps between the historic mines.
Archer also said Pinnacle Silver and Gold was considering deploying two drill rigs on surface. Part of the program would target the El Capulin and La Estrella veins, which he said offered potential resource upside as the company develops the overall project.
The combined underground and surface data are intended to support the company's efforts to build a larger resource. Archer said the ability to begin with underground sampling and drilling had already added significantly to Pinnacle Silver and Gold's understanding of the mineralization in a relatively short period.
Looking further ahead, Archer said the company aimed to move the expanded geological information into a mine plan later in the year.
The longer-term objective is a production decision, making continued surface drilling, potential resource growth and progression towards the mine plan key milestones to watch as work at El Potrero advances.