Pinnacle Silver and Gold Corp (TSXV: PINN, OTC:PSGCF) has announced results from continuing surface mapping and sampling at the historic Pinos Cuates and Dos de Mayo mines.
The work is revealing the presence of a robust low sulphidation epithermal system at the Potrero project in Durango, Mexico.
Surface sampling above the Pinos Cuates and Dos de Mayo mines has extended high-grade gold-silver mineralization over a vertical distance of up to 80 metres, and silver grades of 2,280 grams per tonne and 1,444 grams per tonne at surface imply a potential vertical zonation with silver increasing upwards in the system.
In addition, a newly defined mineralized vein called El Capulin has been identified that lies parallel to, and approximately 200 metres away from, the Dos de Mayo vein.
This vein has been traced and sampled for approximately 375 metres along strike, and returned grades of up to 6.27 grams per tonne gold and 99 grams per tonne silver.
“We are extremely pleased with how the combination of underground and surface sampling is coming together to define a strong, well-defined and high-grade vein system at El Potrero,” said Robert Archer, Pinnacle’s chief executive.
“On the Dos de Mayo trend, the higher silver grades at surface continue to suggest there may be some vertical zonation, with silver increasing upwards. As one moves uphill to El Capulin, the continued presence of gold-silver mineralization up to 1720 metres above sea level infers that mineralization here could extend downwards to similar levels seen on the Dos de Mayo structure, or a vertical distance of approximately 200 metres. These observations are consistent with low sulphidation systems in the Topia District and elsewhere in Mexico and bode well for the potential to develop significant zones of mineralization.”
View from Vox
The identification of El Capulin and the vertical extension of gold-silver mineralization have significantly increased the potential of the project. The next significant step that the company would like to undertake, subject to the relevant permissions, is underground drilling. In the current upbeat market, the commencement of drilling might well add further upward momentum to the share price.
