Pinnacle Receives Permit for Surface Drilling Program at El Potrero and Provides Update on Other Permits for Production Restart
Pinnacle received El Potrero surface drill permits, with a production decision slated for the first quarter of 2027.
Pinnacle Silver and Gold Corp. (PINN) has secured a full environmental permit, known as a MIA, from SEMARNAT for a surface drilling program at its El Potrero project in Durango, Mexico. The permit authorizes activity across 110 drill sites over a two-year period, facilitating a Phase 1 surface program consisting of 48 holes totaling 5,540 metres.
The upcoming surface work targets fill-in drilling at Pinos Cuates, step-out drilling on the Dos de Mayo vein, and the first-time drilling of the El Capulín and Estrella veins. This follows the completion of underground drilling at Pinos Cuates, which comprised 73 holes for 1,452 metres. Results from that underground work have been described as highly encouraging and locally high-grade, with the drill now moving to the historic Dos de Mayo mine.
Parallel to the drilling operations, the company is advancing permitting for a powerline extension, water licenses, and a dry-stack tailings storage facility (TSF). Pinnacle Silver and Gold aims to tabulate a mineral inventory and make a formal production decision in early 2027. The ownership structure involves an initial 50% earn-in upon production, increasing to 100% subject to a 2% NSR.
Pinnacle Silver and Gold Corp. (PINN) has confirmed the transition from underground to surface drilling, a shift previously guided for October and November 2026. The acquisition of the necessary permit removes a key regulatory hurdle for the project.
While underground results have been positive, the company has not disclosed any quantified impact on the resource or reserve estimate. The timeline for a production decision remains set for early 2027, and the overall development strategy is unchanged. This operational milestone de-risks project execution without altering near-term financials or valuation.
Pinnacle Silver and Gold Corp. (PINN) is advancing the El Potrero gold-silver project in the Sierra Madre Occidental region of Durango, Mexico. The site is a past-producing mine that operated from 1989 to 1990 and features a low-sulphidation epithermal vein system.
The property spans 11 km², with the main Dos de Mayo vein traced for 1,600 metres and three historic mines located along a 500-metre strike. Infrastructure includes an existing 100 tpd processing plant equipped with crushing, milling, vat leach, and Merrill-Crowe capabilities, as well as road access and a powerline within 3.3 km.
Management is led by CEO Robert Archer, a co-founder of Great Panther Mining. In-country operations are managed by Carlos Castro, with exploration overseen by QP Jorge Ortega.