Pinnacle Silver and Gold Corp. has returned initial underground drilling assays from the El Potrero gold-silver project in Durango, Mexico, highlighted by an intercept yielding 59.2 grams per tonne gold and 424 grams per tonne silver over 1.07 metres with fine-grained visible gold.

The ongoing underground campaign comprises more than 100 short, closely spaced holes designed to test mineralized zones within historic mine workings. Pinnacle has completed 58 holes out of a planned 108, with assays returned for the first 37 holes drilled across the upper and main levels of the Pinos Cuates mine.

Hole EPUG26035, drilled horizontally from the upper level of the historic workings, extended the known strike length of the mineralization to the northwest by approximately 20 metres. That hole intersected a core length of 13.18 metres assaying 9.69 grams per tonne gold and 143 grams per tonne silver, including the higher-grade interval containing visible gold. Additional drilling in the southeast direction extended mineralization by up to 21 metres, widening the overall strike length of the Pinos Cuates upper mineralized zone to at least 70 metres.

“The first results from the Pinos Cuates mine are extremely encouraging,” stated Robert Archer, President and CEO of Pinnacle. “The drill holes are proving to be invaluable in improving our understanding of the El Potrero mineralizing system.”

Rock oxidation and fracturing caused poor core recoveries in several holes, locally averaging as low as 20%. Pinnacle noted that fine-grained gold sizing between 50 and 80 microns may be washing away during drilling, prompting the company to conduct face-sampling checks and re-sample initial intervals to verify grades.

Pinnacle can earn an initial 50% interest in El Potrero upon commencing production, with the goal of increasing ownership to 100% subject to a 2% net smelter return royalty. The property includes a previously operational 100 tonnes per day plant on site that can be refurbished to support near-term production once permitting is complete.

Surface drilling is scheduled to commence in September or October 2026 to test gaps between historic mines and drill the El Capulin and La Estrella veins. Pinnacle is also working with Auramet Capital Partners, L.P. toward a non-equity project financing package of up to US$5 million during a seven-month exclusivity period.

Read the full announcement: Pinnacle Provides First Results from Underground Drilling Program at El Potrero; Samples up to 59.2 g/t Au and 424 g/t Ag with Visible Gold