Pinnacle Silver and Gold

Investor Insight

Pinnacle Silver and Gold is advancing a high-grade, past-producing gold-silver project in Mexico, with a strategy focused on restarting production and achieving positive cash flow. The company is utilizing a staged earn-in model and an experienced management team to progress its assets toward a production decision.

Overview

Pinnacle Silver and Gold (TSXV:PINN) is advancing gold and silver projects in the Americas, with a focus on progressing high-grade, past-producing assets toward production. The company’s approach is to acquire projects with existing infrastructure and advance them through staged development.

The flagship El Potrero project, located in Mexico’s Sierra Madre Belt, is central to this strategy. The project is situated in a region with multiple operating mines and benefits from established infrastructure. Metallurgical testing indicates average head grades of approximately 7.7 g/t gold and 116 g/t silver, with preliminary gold recoveries of about 95 percent.

At El Potrero, Pinnacle can earn up to 100 percent interest (subject to a 2 percent NSR) through a staged earn-in structure. This includes US$1,000,000 upon commencing production for a 50 percent interest, with additional payments made over time to increase ownership.

The company is supported by a management and board team with experience in mining, exploration, and operations, providing technical and operational oversight as projects are advanced.

Company Highlights

• Production Restart Strategy: Focused on advancing a past-producing mine toward a production decision using a staged development approach.
• High-Grade Mineralization: Sampling at El Potrero has returned values up to 50.3 g/t gold and 269 g/t silver over 1.7 metres, including 85.1 g/t gold and 520 g/t silver .
• Existing Infrastructure: The project includes a 100 tpd processing plant, with road access, powerline within 4.5 km, and nearby water.
• District-Scale Exploration Potential: A LiDAR survey identified 6 shafts, 64 adits, and 51 prospecting pits across the 11 sq km property. Follow up on these has discovered high-grade Ag-Pb-Zn mineralization.
• Staged Earn-In Agreement: Pinnacle can earn 100 percent interest (subject to a 2 percent NSR) through staged payments, including US$1,000,000 upon commencing production for a 50 percent interest, followed by additional payments over the next 2 years for 100%.

Key Projects

El Potrero Gold-Silver Project (Mexico)

El Potrero is a past-producing gold-silver mine (1989–1990) located in the Sierra Madre Belt. The project is within 35 km of four operating mines and has access to infrastructure including roads, power within 4.5 km, and an on-site 100 tpd processing plant.

Work to date has included underground sampling and mapping. Approximately 900 underground samples have been collected, with results including 50.3 g/t gold and 269 g/t silver over 1.7 metres, and additional values up to 85.1 g/t gold and 520 g/t silver. Metallurgical testing indicates head grades of approximately 7.7 g/t gold and 116 g/t silver, with preliminary gold recoveries of about 95 percent.

The project covers 11 sq km and shows evidence of a broader mineralized system. A LiDAR survey identified 6 shafts, 64 adits, and 51 prospecting pits, along with structural features. The Dos de Mayo vein system has been traced over 1,600 metres, and additional veins such as La Estrella and El Capulin have been identified. On the MF2 block, an Ag-Pb-Zn vein extends over 650 metres strike, with assays including 266 g/t silver, 4.39 percent lead, and 2.89 percent zinc.

Planned work includes approximately 2,500 metres of underground delineation drilling in 100 holes, continued metallurgical testing, underground rehabilitation, and permitting activities.

Argosy Gold Mine Project (Ontario, Canada)

The Argosy Gold Mine is a past-producing operation (1931–1952) that produced 101,875 ounces of gold at an average grade of 12.7 g/t. Pinnacle holds a 100 percent interest subject to a 2.5 percent NSR. The project has had 72 historical drill holes totaling over 10,500 metres, with no work on the property since 2004.

Historical drilling returned multiple intercepts, including 8.22 g/t over 2.41 metres, 10.95 g/t over 2.63 metres, and higher-grade intervals such as 28.16 g/t over 0.55 metres and 31.44 g/t over 0.68 metres. Gold mineralization has been identified to depths of approximately 400 metres, while historical mining reached about 270 metres.

The property hosts quartz veins containing sulphide minerals, including arsenopyrite, pyrite, chalcopyrite, sphalerite, and galena, along with native gold. Mineralization is associated with porphyry intrusions and remains open at depth.

North Birch Gold Project (Ontario, Canada)

The North Birch Project covers 3,850 hectares in the Birch-Uchi Greenstone Belt. The project is located near the Argosy Mine and the Springpole deposit and is focused on a folded iron formation target.

Historical results include values up to 35 g/t gold over 1.6 metres, along with additional anomalous gold values. The project is subject to a 2 percent NSR.

Geophysical work includes an induced polarization survey covering 73.7 line kilometres, which identified chargeability anomalies along a 7 km strike length. Initial drilling intersected a >100 metre wide deformation zone with associated alteration and sulphide mineralization.

Management Team

Robert Archer – President, CEO & Director

Robert Archer is a professional geologist with more than 45 years of experience in the mining industry, working throughout the Americas. He co-founded Great Panther Mining Limited and helped build it into a mid-tier precious metals producer with a market capitalization of approximately $600 million.

Dave Cross – Chief Financial Officer & Corporate Secretary

Dave Cross is a Chartered Professional Accountant and partner at Cross Davis and Company LLP, specializing in accounting and management services for private and publicly listed companies within the mining industry. He has more than 21 years of experience in the junior mining sector.

Colin Jones – Non-Executive Director

Colin Jones is a geologist with 45 years of experience in mining, exploration, and consulting across multiple geological environments. He serves as Principal Consultant for Orimco Resource Investment Advisors in Perth, Australia.

Dave Salari, P.Eng. – Non-Executive Director

Dave Salari is a metallurgical engineer with more than 45 years of experience in mining and mineral processing. His experience includes the design, construction, and operation of extractive metallurgical plants worldwide. He is President and CEO of DENM Engineering.

He holds a Bachelor of Applied Science in Engineering from the University of Toronto.

Ron Schmitz – Non-Executive Director

Ron Schmitz is the Principal and President of ASI Accounting Services Inc., providing administrative, accounting, and office services to public and private companies. He has served as a Director and/or Chief Financial Officer of various public companies since 1997.

He holds an Associate of Commerce from Vancouver Island University.