Technical Study Routine +

Pinnacle Receives More Positive Results from Second Round of Scoping Metallurgical Tests at El Potrero with Average Gold Recovery of 97.8% for the Main Dos de Mayo Vein

El Potrero Metallurgical Refinement Cuts Processing Complexity, But Dilution and Permitting Headwinds Cap Near-Term Upside

By The Northwire Desk — AI Analysis Jun 02, 2026 · 07:01 PINN · 0.11 Pinnacle Silver and Gold Corp.

Executive Summary

Pinnacle Silver and Gold Corp. released results from the second round of scoping metallurgical tests at its El Potrero project in Durango, Mexico.
Seven samples from three historic mines (Dos de Mayo, Estrella, Capulin) yielded head grades averaging 7.7 g/t Au and 116 g/t Ag.
Gold recoveries improved to 97.4%–97.8%, while silver recoveries increased to 64.7%–80.5%.
Mineralogical analysis confirmed fine-grained electrum and silver minerals, requiring a target grind of 80% passing 270 mesh (61–63 microns).
Gravity separation tests proved unnecessary, as direct cyanide leaching delivered superior overall recoveries, simplifying the future plant flow sheet and reducing projected capital expenditures.
Reagent consumption (NaCN/CaO) fell within expected ranges across all veins.
Dissolution kinetics showed gold reaching 90–92% recovery within 24 hours, while silver continued improving up to 96 hours.
Next steps involve solid-liquid separation testing to guide filtration for dry-stack tailings impoundment and water recycling.

Material Impact

The results are a direct follow-up to the first round of metallurgical tests (October 2025) and represent incremental progress toward the company’s stated goal of a formal production decision later in 2026.
The elimination of a gravity circuit is a positive operational development, as it streamlines the metallurgical process, reduces equipment costs, and likely lowers plant CapEx.
However, the news does not contain new resource estimates, financing announcements, or permitting milestones that would materially shift the company’s valuation or risk profile.
The market has already priced in the high-grade nature of the project through previous sampling and LiDAR updates. This update confirms process viability but does not accelerate the timeline or de-risk the project beyond prior expectations.
Given the company’s history of incremental updates and the routine nature of metallurgical follow-ups, the impact is positive but incremental.

PINN · Price

Company Overview

Pinnacle Silver and Gold Corp. is focused on the El Potrero gold-silver project in Durango, Mexico.
The project is a past-producing, low-sulphidation epithermal vein system with three historic mines (Pinos Cuates, Dos de Mayo, La Dura) along a 500-meter strike.
Surface tracing extends over 1,600 meters, with additional parallel veins (El Capulin, La Estrella) under evaluation.
An existing 100 tpd processing plant from the 1980s remains on site, which the company plans to refurbish for near-term production.
The company holds an initial 50% interest upon production commencement, with an option to increase to 100% ownership subject to a 2% NSR.

More from Pinnacle Silver and Gold Corp.