Pinnacle Provides Progress Update for El Potrero Gold-Silver Project
Pinnacle Validates High-Grade Mexican Strategy as Potrero Sampling Hits 50 g/t Gold Ahead of Critical Delineation Drill Program.
The news release dated January 13, 2026, provides a comprehensive operational update on the El Potrero gold-silver project in Durango, Mexico. Key highlights include the confirmation of a high-grade epithermal system with sampling results reaching up to 13.2 g/t Au and 2,280 g/t Ag on the surface, and 50.3 g/t Au in underground workings. Preliminary metallurgical testing shows excellent gold recoveries averaging 95.09%, though silver recoveries are lower at 54.68%. The company has bolstered its Mexican management team with veterans from Great Panther Silver and is moving toward a Phase 1 underground drilling program consisting of 1,100 meters across 50 holes. Management also indicated active pursuit of offtake agreements and additional project acquisitions for 2026.
The impact of this news is material and positive as it transitions the company from a "concept" acquisition phase into a "delineation" phase with validated high-grade potential. - Grade Confirmation: The underground sampling of 50.3 g/t Au is exceptional and confirms the "clavo" (high-grade shoot) nature of the system, which is typical for the Topia district. - Metallurgical De-risking: A 95% gold recovery using simple baseline parameters is a significant de-risking milestone for potential production, although the 54% silver recovery suggests mineralogical complexity that may require further optimization. - Operational Readiness: The hiring of Carlos Castro Villalobos and Jorge Ortega adds significant "street-cred" and technical depth, as both have a track record of building and operating similar narrow-vein mines in Mexico. - Strategic Direction: The mention of offtake agreement discussions suggests a preference for non-dilutive production financing, aligning with the CEO's stated goal of avoiding excessive equity dilution.
Pinnacle Silver and Gold Corp. is focused on "fast-tracking" high-grade, narrow-vein silver and gold projects in Mexico. Its flagship project is El Potrero in Durango. The project features three historic mines along a 1,600m strike length. It includes a 100 tonne-per-day (tpd) processing plant that the company intends to refurbish. The model is to use small-scale production to fund larger-scale exploration and resource expansion.