Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) has reported additional high-grade gold and silver mineralization from ongoing underground drilling at the historic Pinos Cuates mine on its Potrero property in Durango, Mexico.
The company reported that hole EPUG26068 intersected 10.89 metres grading 6.19 grams per tonne gold and 90 grams per tonne silver. Within the interval, a 0.41-metre section containing visible gold and silver sulphides returned 58.2 grams per tonne gold and 631 grams per tonne silver.
The result follows drilling from hole EPUG26035, which was completed horizontally along the Dos de Mayo vein to test the continuity of mineralization along strike. That hole returned 13.18 metres grading 9.69 grams per tonne gold and 143 grams per tonne silver.
Pinnacle President and CEO Robert Archer said that the latest drilling has provided evidence of continuity between the two intersections. Hole EPUG26068 was drilled from the Main Level and tested the vein up dip, approximately 15 metres down-dip from EPUG26035.
“We are very pleased to see the continuity of grade in this area of the Pinos Cuates mine,” Archer said. He added that the continuity could help with stope definition when mine planning begins later this year.
Pinnacle has drilled 76 holes at Pinos Cuates to date, with assays received for the first 53 holes. Drilling remains underway, with the drill expected to move to the Dos de Mayo mine beginning with hole EPUG26084. Additional assay results are pending.
The company noted that many of the holes drilled so far have intersected the fringes of the vein zone, where portions of the core had been mined out historically. In contrast, holes EPUG26035 and EPUG26068 intersected the full vein and returned higher-grade results.
Archer noted that this “implies that the mineralization outside of the limited mine workings should still be intact.”
Pinnacle reported that its strongest assay results to date have generally been associated with zones of strong silicification and oxidation containing dark gray to black quartz veinlets, which commonly occur within the centre of the vein. The company also noted that higher-grade material can sometimes be surrounded by lower-grade mineralization.
Surface drilling is expected to begin in October. The program will target gaps between historic mine workings, as well as test the Dos de Mayo vein up and down dip and along strike to the northwest. Pinnacle also plans to drill the El Capulin and La Estrella mineralized veins for the first time.
The company plans to use the combined underground and surface drilling results to generate an internal resource estimate, which would then be used to develop a preliminary mine plan.
Pinnacle reported that its sampling and assay work is being conducted under a quality assurance and quality control program consistent with industry practices. Samples are being prepared and analyzed by SGS at its laboratory in Durango, Mexico, which is accredited to ISO/IEC 17025:2017. Gold assays are determined using 30-gram fire assay with an atomic absorption finish, while an ICP-OES analysis package is used to determine silver and other elements.
