Pinnacle Prepares for Underground Drill Program on High-Grade Gold-Silver Targets at El Potrero

The most recent news, dated 2025-12-15, announces that Pinnacle Silver and Gold Corp. is preparing for an inaugural underground drilling program at its El Potrero gold-silver project in Durango, Mexico. The program is planned for approximately 2,600 metres across 112 holes, specifically targeting the Dos de Mayo vein system. The company expects development work in historic mine workings to precede drilling, with drilling anticipated to commence early in the New Year. The release reiterates recent high-grade underground and surface channel sampling results from the Dos de Mayo system, including individual samples up to 4.51 g/t Au and 269 g/t Ag over 0.5 metres from La Dura 2, and composite channels averaging 1.98 g/t Au and 98 g/t Ag over 12 metres. President & CEO Robert Archer emphasized that this underground drilling is a "significant step" and will be "delineation drilling rather than exploration," aiming to understand principal mineralized zones for a preliminary mine plan. Follow-on surface drilling will then target areas between mine workings and less developed veins.

This news is a positive, but routine, development for Pinnacle Silver and Gold. The initiation of a detailed underground drill program is a critical step in advancing the El Potrero project from early exploration towards resource definition and potential mine planning.

The impact is considered "Routine - Positive" because: * Anticipated Action: Previous news releases, notably from September 9, 2025, already indicated that an underground drilling program was in the "planning stages" and would focus on "delineation drilling." This latest release provides concrete details (meterage, number of holes, specific target area) and a timeline ("early in the New Year"), which is a positive progression, but it is not a new, unexpected initiative. * Reinforcement of Potential: The news reinforces the high-grade nature of the Dos de Mayo vein system by summarizing recent sampling results, which have been consistently positive in prior announcements. These results underpin the justification for the upcoming drilling. * Strategic Advancement: The CEO's comments clarify the intent: this is focused delineation rather than broad exploration, aiming for a preliminary mine plan. This indicates a structured approach to development, which is favorable for investors seeking de-risking and a path to production. * Financing Context: The company recently arranged a $2.52 million private placement (announced 2025-11-25), with a stated use of proceeds including advancing the El Potrero project. This suggests the funding for this drill program is in place, aligning the financing with operational progress.

While positive, this news does not represent a "game changer." It confirms the next logical step in the project's development, providing more granularity to previously announced intentions rather than disclosing unexpected high-impact results (like new discoveries or substantial resource increases).

Pinnacle Silver and Gold Corp. is a mineral exploration company focused on the development of its El Potrero gold-silver project located in Durango, Mexico. The company aims to advance this high-grade epithermal project towards a production scenario, leveraging existing infrastructure and historical mining data.

El Potrero Gold-Silver Project: * Location: Durango, Mexico, within the prolific Sierra Madre Occidental. It is situated within 35 kilometers of several operating mines (e.g., Fresnillo's Cienega, Luca Mining's Tahuehueto, Guanajuato Silver's Topia). * History: The property, spanning 1,074 hectares across 8 concessions, has a history of small-scale production in 1989-1990. It was privately held for nearly 40 years without systematic modern exploration, suggesting significant untested potential. * Mineralization: Characterized as a low-sulphidation epithermal breccia vein system hosted in andesites of the Lower Volcanic Series. High-grade gold and silver mineralization has been consistently identified through surface and underground sampling. * Key Vein Systems: The primary focus is the Dos de Mayo vein system, which includes historic mines like Pinos Cuates, Dos de Mayo, and La Dura. The El Capulin and La Estrella veins are parallel structures also being explored. * Infrastructure: The project benefits from existing infrastructure, including a previously operational 100 tonnes per day (tpd) processing plant that can be refurbished or rebuilt at relatively low cost. Historic underground mine workings are accessible and can be rehabilitated. Good road access and a power line within three kilometers further enhance its development potential. Surface rights for the plant and mine area are privately owned, mitigating potential community issues. * Historical Resource: A historical resource estimate for the Pinos Cuates mine reported 45,561 tonnes at 8.0 g/t gold and 186 g/t silver (10.3 g/t AuEq or 845 g/t AgEq). Pinnacle does not treat this as a current mineral resource. * Acquisition Terms: Pinnacle has a staged option to acquire up to a 100% interest in El Potrero. The initial earn-in is 50% upon commencing production, with the goal of generating cash flow to fund further development and increase ownership to 100%. If 100% ownership is achieved, the property will be subject to a 2% Net Smelter Return (NSR) royalty. * Recent Exploration: The company has undertaken Phase I fieldwork, including detailed surface and underground mapping and sampling, cleaning of historic workings, and preliminary assessments for the plant and permitting. Positive metallurgical tests (average 95.09% gold recovery) and significant high-grade sampling results (e.g., 85.1 g/t Au and 520 g/t Ag over 0.5m) have been reported, extending known mineralization along strike and vertically. An airborne LiDAR survey has been completed to aid in structural interpretation and drill planning.