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Pinnacle Silver and Gold lays out its plan to advance the El Potrero gold-silver project in Durango and explains where the recent C$1.7 million raise went and why, current cash and G&A, and the rationale for staged financing, the push to begin underground delineation drilling pending SEMARNAT’s green light, followed by surface pads across a 500-metre priority window within a 1.6-kilometre vein system that now includes the newly mapped El Capulín vein, the geological model around clavos and boiling-zone controls, early metallurgy, water sourcing, powerline extension, and permitting sequence, mine method expectations and security/product handling, a 2-3 year restart timeline tied to a 100-tpd plant refurbishment and underground rehab, and the broader corporate plan to bootstrap El Potrero while keeping Canadian assets on the back burner and scouting for a larger follow-on acquisition.

TLDR

1. Funding and runway
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   Pinnacle raised C$1.7 million with half-warrants, but over US$400,000 immediately went to a US$200k property payment and settling legacy concession taxes (a little over US$200k) in full rather than waiting for an installment plan. Management estimates “a few hundred thousand” cash remaining (≈C$300k) with baseline G&A of C$30-40k/month, and says another raise is needed before drilling. The strategy is to finance in smaller, incremental tranches to limit dilution rather than a single large raise, with timing calibrated to market appetite and permitting progress.
2. Near-term drilling hinges on SEMARNAT and underground access
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   The company is seeking to begin underground delineation drilling without a new surface permit, arguing the site is already disturbed. If allowed, work starts with heading rehab and drill-bay prep through year-end, with underground drilling realistically beginning January-February. The plan is short, dense fans on ≈12.5 m centers, 20-25 m holes, totaling under 2,000 m at roughly US$100/m. Surface drilling will follow and require permitted pads. Bob anticipates 20+ pad sites along the corridor. Water will be sourced from a purchased license (in process), with ~700,000 L of harvested rainwater already stored to kick-off the underground program.
3. Geology and target ranking
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   El Potrero is a low-sulphidation epithermal system with “clavos” in a boiling-zone window. Priority focus is a ~500 m strike segment around the three historic mines within a larger ~1.6 km mapped trace. A newly mapped parallel vein about 200 m southwest (higher elevation at surface) is altering target ranking and will need surface drilling. A ~120 m blind gap between mines also requires work. Management expects tighter drill density underground to define true widths and continuity, with selective mining likely and method choices to follow from the geometry.
4. Metallurgy favors gold, but silver needs more work
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   Preliminary tests reported average gold leach recovery near 95% at P80 ≈53 μm over 72 hours, while silver recoveries were lower and variable (roughly low-40s to mid-70s). Gravity tests captured up to ~76% of the gold in one sample. The company notes a nugget effect (channel vs. met head assays diverged for gold) and negligible “nasties” in ICP. Next steps include mineralogy/diagnostic leach, variability across domains and elevation, and running gravity-then-leach in series to define an operating window. Final flowsheet choice (gravity + CIP/CIL versus gravity + Merrill-Crowe) remains open. ¨roduct would likely be precipitate/doré shipped offsite for security reasons.
5. Execution timeline and broader plan
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   Management still guides to a 2-3 year path to restart, contingent on permitting, drilling, metallurgy, and a modest plant rebuild. Indicative budgets are ~US$2M to refurbish the 100 tpd plant, ~US$1M for underground rehab, plus extending grid power by ~4.5-5 km. Use of contractors (including explosives under contractor permits) is expected early. CEO Archer stresses Mexico will remain the capital focus, with Canadian assets on hold, and frames El Potrero as a stepping stone while they hunt for a larger follow-on acquisition.

Pinnacle Silver and Gold CEO Interview With Bob Archer

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