Pinnacle Identifies Gold-Silver Mineralization at Historic La Dura Mine, Extending Mineralized Horizon to Almost 500 Metres

The most recent news, dated November 12, 2025, announces channel sampling results from the historic La Dura mine at the El Potrero project in Durango, Mexico. The results from six composite channels over a 12-metre strike length averaged 1.98 g/t gold and 98 g/t silver over an average width of 1.3 metres. The company notes that this discovery of a third mineralized zone along the Dos de Mayo vein extends the known mineralized horizon to a strike length of almost 500 metres. The CEO acknowledged the grades were slightly lower than those seen at other mines on the property but stated they are still comparable to other low-sulphidation epithermal systems in Mexico and underscore the project's high-grade nature.

The news is a positive, incremental step forward in the exploration of the El Potrero project. The key takeaway is the extension of the mineralized strike length to nearly 500 metres, which builds the potential scale of the project. This confirms management's geological model of repeatable mineralized zones ("clavos" or shoots) along the vein structure.

However, from a critical perspective, the reported grades (1.98 g/t Au, 98 g/t Ag) are significantly lower than the spectacular results previously announced from the Pinos Cuates and Dos de Mayo mines (e.g., 85.1 g/t Au over 0.5m in July; 11.2 g/t Au over 3.5m in September). While the CEO's commentary attempts to frame this positively, the market may react tepidly to the lower tenor of mineralization in this new zone.

This news follows a logical progression of systematic exploration since the project was optioned in February 2025. The company has methodically sampled the three main historic mines along the trend. This result adds another data point and provides a future target, but it does not fundamentally alter the investment thesis, which still hinges on demonstrating continuity of the high-grade zones through drilling. The positive metallurgical results from October (95.09% average gold recovery) remain a more significant de-risking event for the project's overall economics.

Therefore, the impact is assessed as Routine - Positive. It meets the expectations for an ongoing exploration program but does not constitute a game-changing discovery.

Pinnacle Silver and Gold Corp. is a Canadian junior exploration company focused on its flagship El Potrero gold-silver project in Durango, Mexico. The project is a low-sulphidation epithermal vein system located in the prolific Sierra Madre Occidental. The property hosts three main historic underground mines (Pinos Cuates, Dos de Mayo, La Dura) along a 500-metre trend that has been traced on surface for over 1.6 km. A key feature of the project is the existence of on-site infrastructure, including a 100 tpd plant that the company believes can be refurbished for relatively low cost, offering a potential path to near-term production. Pinnacle holds a staged option to earn up to a 100% interest in the project, subject to a 2% NSR.