Pinnacle Silver and Gold (TSX.V PINN, OTC:PSGCF) has returned multiple high-grade assays grading up to 85.1 grams per tonne gold and 520 grams silver over 0.5 metres from the Pinos Cuates mine at the El Potrero project in Durango, Mexico.
A raise, or inclined tunnel, between the main and upper levels of the mine provided additional access to the highest grade portion of the vein, as reported in a June news release.
The recent installation of metal ladders provided new and safe access for the geological crew to sample a different portion of this zone on a sub-level, resulting in composite channel assays of 50.3 grams gold and 269 grams silver over 1.7 metres, 34.6 grams gold and 228 grams silver over one metre, 9.84 grams gold and 141 grams silver over 4.2 metres, and 8.33 grams gold and 154 grams silver over 1.8 metres.
“We continue to be impressed by the exceptional tenor and consistency of the grades at Pinos Cuates,“ said Robert Archer, Pinnacle’s chief executive.
“While the underground workings give us access to a portion of the mineralized zone, we still don’t know its extent. In these low-sulphidation epithermal systems, pockets of high-grade mineralization typically pinch and swell both along strike and up and down dip. The underground work is allowing us to characterize the mineralization such that we will be better able to find and delineate other zones within the Dos de Mayo vein system. Some follow up sampling on these results has already been conducted and we are planning an underground drilling program to better define the extent of this mineralized zone as it can be difficult to drill through underground workings from surface.”
A total of 42 channel samples were taken in 16 composite channels in the raise. Grades ranged from 0.105 grams to 85.1 grams gold and 9 grams to 520 grams silver. All samples were assayed for gold, silver and a suite of 32 other elements, including copper, lead and zinc. However, the base metal assays were consistently low, confirming that this is a precious metal dominant system.
The Pinos Cuates mine is the middle one of three historic mines running along a 500 metre strike length on the Dos de Mayo vein system on the Potrero property.
Underground sampling is continuing at the Dos de Mayo mine to the southeast and will be followed by sampling of the La Dura mine to the northwest. The vein system has been traced on surface for 1,600 metres and there are other parallel and splay veins that are being further defined.
The mine workings are currently being accurately surveyed such that a 3D model can be created.
El Potrero is located in the prolific Sierra Madre Occidental of western Mexico and lies within 35 kilometres of four operating mines, including the 4,000 tonnes per day Ciénega mine owned by Fresnillo, the 1,000 tpd Tahuehueto mine, owned by Luca Mining, and the 250 tpd Topia mine, owned by Guanajuato Silver.
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With sampling continuing, we should know more in due course, but so far the signs are very favourable: more high grades from El Potrero go a long way towards confirming its potential for renewed precious metals production, and the operational experience of the Pinnacle team is more than capable of making that happen.