The company behind this plan, Pinnacle Silver and Gold (TSXV:PINN), is executing a focused pathway to restart mining at a high-grade, past-producing site in Mexico while maintaining complementary Canadian holdings. Its strategy emphasizes acquiring assets with existing infrastructure and advancing them through a disciplined, staged program designed to reach a production decision and, ultimately, positive cash flow. The team is applying targeted surface and underground work, metallurgical evaluation, and permitting activities to validate operational plans and capital needs, with staged earn-in structures used to align vendor incentives and reduce upfront capital commitments.
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El Potrero: flagship asset and regional advantages
The El Potrero gold-silver project sits in the Sierra Madre Belt and is the core of Pinnacle’s production push. As a past-producing mine, it benefits from a compact footprint of existing facilities including a 100 tpd processing plant, road access, and water on site, with a powerline located approximately 4.5 km away. Geological work has mapped multiple vein systems across the property and a LiDAR program revealed legacy workings—6 shafts, 64 adits and 51 prospecting pits—across the 11 sq km tenure, underscoring a district-scale mineralized system. Proximity to several operating mines within 35 km supports logistics and potential services coordination.
Resource signals and metallurgy
Underground sampling and metallurgical testing at El Potrero have produced compelling metrics. Assays include high-grade runs such as 50.3 g/t gold and 269 g/t silver over 1.7 metres, and other select intervals up to 85.1 g/t gold and 520 g/t silver. Representative head grades from preliminary metallurgical work average about 7.7 g/t gold and 116 g/t silver, with initial gold recoveries roughly 95 percent. These findings support the technical case for restarting operations after further delineation, and planned work includes approximately 2,500 metres of underground delineation drilling in around 100 holes, continued metallurgy, rehabilitation of workings and permitting to ready the project for a production decision.
Canadian portfolio: Argosy and North Birch
Pinnacle also retains Ontario assets that complement the Mexican focus. The Argosy Gold Mine is a historic producer that yielded 101,875 ounces at an average grade of 12.7 g/t and is held 100 percent subject to a 2.5 percent NSR. The property contains extensive historical drilling—72 holes totaling over 10,500 metres—with mineralization traced to roughly 400 metres depth, while past workings reached about 270 metres. Historical intercepts include multiple notable assays such as 8.22 g/t over 2.41 metres and higher-grade short intervals up to 31.44 g/t, indicating continued potential at depth and along strike.
North Birch exploration upside
The North Birch project spans 3,850 hectares in the Birch-Uchi Greenstone Belt and targets a folded iron formation style deposit near known corridors like the Springpole area. Historic sampling returned values to 35 g/t gold over narrow intervals, and a geophysical program consisting of an induced polarization survey covering 73.7 line kilometres identified chargeability anomalies along a 7 km strike. Initial drilling intercepted a deformation zone over 100 metres wide with alteration and associated sulphides, making the property a strategic exploration play with a 2 percent NSR encumbrance.
Development plan, commercial terms and next steps
Pinnacle’s commercial framework for El Potrero uses a staged earn-in that allows the company to acquire up to 100 percent interest subject to a 2 percent NSR. A key payment milestone is US$1,000,000 upon commencing production that secures an initial 50 percent interest, with additional scheduled payments over a defined timeline to reach 100 percent. Planned technical work emphasizes underground delineation drilling, metallurgical optimization and site rehabilitation to de-risk the restart. The combination of existing plant infrastructure, strong preliminary recoveries and high-grade intercepts supports the pathway toward a production decision while managing capital through staged commitments.
Leadership and technical depth
A seasoned management and advisory group supports Pinnacle’s programs. Robert Archer, a professional geologist with more than 45 years of industry experience and a co-founder of Great Panther Mining Limited, provides executive leadership. The financial side is overseen by Dave Cross, a CPA with two decades of junior mining experience. The board includes long-tenured geologists and metallurgists such as Colin Jones and Dave Salari, P.Eng., whose backgrounds in exploration consulting and plant design respectively supply technical oversight. Administrative and corporate governance support is provided by directors including Ron Schmitz, ensuring operational readiness as projects advance toward drilling, permitting and potential production.
