Pinnacle Provides Project Update for El Potrero as it Advances Towards a Production Decision

The most recent news (February 26, 2026) provides a comprehensive operational update for the El Potrero Project in Durango, Mexico. Key developments include the imminent start of underground rehabilitation (next week) and delineation drilling (late March/early April). The company has also commissioned a feasibility study for a powerline extension, signed a community agreement with the local Ejido El Carmen, and is conducting a second round of metallurgical testing. This follows a strategic amendment (February 23, 2026) to delay a US$750,000 property payment into three smaller tranches, preserving cash for direct project costs.

The news is Routine - Positive. While the advancement toward a production decision is a significant milestone, the specific steps—rehabilitating workings, starting drilling, and signing community agreements—are the expected progression for a project at this stage. - Operational De-risking: The community agreement and powerline study remove significant non-technical hurdles. - Financial Management: The payment amendment suggests a tight treasury but demonstrates management's ability to negotiate with vendors to prioritize exploration over property payments. - Technical Validation: Metallurgical head assays of 7.7 g/t Au and 116 g/t Ag confirm the high-grade nature of the system, consistent with historical data.

Pinnacle Silver and Gold Corp. is focused on the El Potrero Project in Durango, Mexico. The project is a low-sulphidation epithermal system with a 1,600-meter strike length. It features three historic mines (Pinos Cuates, Dos de Mayo, and La Dura) and an existing 100 tpd processing plant that the company intends to refurbish. The strategy is to reach production quickly to fund further exploration and earn a 100% interest (currently earning into 50%).