Pinnacle Silver & Gold CEO on High-grade Results and Fast Tracking Production in Mexico

Key Concepts

• Pinnacle Silver and Gold (PINN): A TSXV-listed company focused on silver and gold production in Mexico.
• El Portro Project: Pinnacle’s primary asset, a past-producing silver-gold mine in Durango State, Mexico, currently being fast-tracked to re-production.
• Underground Delineation Drilling: A drilling program focused on closely spaced drilling within existing mine workings to define mineralized zones for mine planning.
• High-Grade Mineralization: Concentrations of precious metals (silver and gold) significantly above average, exemplified by results of up to 85 g/t gold and 520 g/t silver.
• Permitting: The process of obtaining necessary approvals from governmental authorities for mining operations, including water and environmental permits.

Pinnacle Silver and Gold: Progressing El Portro Towards Production

This discussion, held at the Vancouver Resource Investment Conference, centers on Pinnacle Silver and Gold (PINN) and its efforts to rapidly bring the El Portro silver-gold project in Durango State, Mexico, back into production. The current market conditions, with significantly elevated silver and gold prices, are a key driver for the company’s accelerated timeline.

Current Market & Conference Atmosphere

The conference itself is described as “crazy busy,” indicating a strong resurgence of interest in the resource sector. Robert Archer, CEO of Pinnacle, notes the unprecedented rise in precious metal prices – specifically mentioning $113 silver and $5,000 gold – as a major catalyst for activity. He states, “It’s a good time to be in the gold and silver business,” and emphasizes that the current price environment makes the El Portro project even more economically viable than it was six months prior.

El Portro Project: Background & High-Grade Results

Pinnacle’s primary focus is the El Portro project, a previously producing mine. A significant advantage is access to existing underground workings, allowing for efficient sampling. To date, approximately 900 samples have been collected from these workings, revealing substantial high-grade mineralization. Specifically, assay results have shown up to 85 grams per tonne (g/t) gold and 520 g/t silver. Archer clarifies a slight misstatement during the interview, correcting the initial reporting of silver to gold values. These results confirm the project’s potential and justify the company’s focus on rapid development.

Path to Production: A Step-by-Step Approach

Pinnacle’s strategy for fast-tracking production involves a focused, parallel approach:

1. Underground Delineation Drilling: Initiating a drilling program with close spacing within the existing mine workings. This is not exploration, but rather a focused effort to define the size, shape, and grade of known mineralized zones.
2. Preliminary Mine Plan: Utilizing the data from the delineation drilling to develop a preliminary mine plan.
3. Plant Rebuild: Rebuilding the existing processing plant on site.
4. Permitting: Simultaneously progressing through the permitting process, securing necessary approvals for water usage, environmental impact, and overall operation.

Archer stresses that these steps are being pursued concurrently, maximizing efficiency and accelerating the timeline. He anticipates potential production by the end of next year. He notes, “You know, it's not like, uh, we have to wait for one thing before we can do the next or, you know, there's there's a lot going on.”

Economic Impact of Rising Metal Prices

The dramatic increase in silver and gold prices significantly enhances the project’s economics. Archer states that the project was already economically viable at previous price levels, and the current prices simply accelerate the company’s desire to reach production. He emphasizes the opportunity to capitalize on the favorable market conditions.

Near-Term Catalysts & Permitting Process

Investors should focus on the commencement of the underground drilling program as a key near-term catalyst. Additional catalysts include securing permits for surface drilling (expected within a couple of months) and continued progress on various permitting requirements (water, environmental, etc.).

Regarding the permitting process, Archer acknowledges it can be “quite complex” and time-consuming, involving multiple permits and ongoing communication with Mexican authorities. However, he expresses confidence in the company’s ability to navigate the process, citing established relationships with authorities and a dedicated team working on permitting. He states, “we’ve established a pretty good relationship with the various uh authorities uh in Mexico.”

Data & Statistics

• 900 samples: Number of samples collected from underground workings at El Portro.
• 85 g/t gold: Highest gold grade reported from underground samples.
• 520 g/t silver: Highest silver grade reported from underground samples.
• TSXV: PINN: Pinnacle Silver and Gold’s trading symbol on the Toronto Stock Venture Exchange.

Conclusion

Pinnacle Silver and Gold is strategically positioned to benefit from the current bull market in precious metals. The company’s focus on re-establishing production at the El Portro project, coupled with its efficient, parallel approach to drilling, mine planning, and permitting, presents a compelling investment opportunity. The high-grade mineralization confirmed by initial sampling and the favorable economic environment underscore the project’s potential for rapid development and significant returns. The key takeaway is Pinnacle’s commitment to becoming a producer “as quickly as possible” and leveraging the current market conditions to maximize shareholder value.