Pinnacle Silver and Gold receives permit for 110 El Potrero drill sites
Separate mine, plant, water and infrastructure approvals remain outstanding ahead of a targeted production decision in early 2027.
Mara Quinlan
Pinnacle Silver and Gold Corp. CVEPINN OTCMKTSPSGCF FRAP9J said on Monday it received a two-year environmental permit covering 110 surface drill sites at its El Potrero gold-silver project in Durango, Mexico. The approval clears the way for a planned 5,540-metre exploration program, while separate permits remain necessary for a production restart.
Shares CVEPINN were trading lower at C$0.080 on the TSX Venture Exchange at 4:00 p.m. EDT on Oct. 23, before the company's Monday announcement.
Mexico's environment ministry, SEMARNAT, granted the drilling approval following a full environmental assessment process. Pinnacle says the baseline data will also underpin permits for the mine, processing plant, tailings storage facility, powerline extension, water licence and auxiliary infrastructure.
The explorer plans 48 surface holes to test gaps around historic workings and additional veins beyond its underground drilling program. Results would help build a mineral inventory and mine plan ahead of a targeted formal production decision in early 2027.
"Not only are we now able to transition from underground to surface drilling, but we have laid the groundwork for much of the permitting that is required to bring the project back into production," chief executive Robert Archer said in the release.
The area's environmental classification required a full environmental permit rather than the standard drilling permit, according to the release.
Pinnacle's Oct. 26 permitting update says the Federal Electrical Commission, CFE, confirmed electrical capacity for a 3.3-kilometre powerline extension. Final approval still requires environmental and land-use change permits for the right of way.
Hydrological fieldwork has begun for studies to be submitted to the National Water Commission, CONAGUA. Pinnacle says the commission confirmed sufficient river water below the plant area, but the company is still pursuing a water licence.
The planned dry-stack tailings facility also requires site selection, geotechnical studies and design specifications for submission to authorities. Pinnacle is reviewing contractor proposals before starting that fieldwork.
Underground drilling at Pinos Cuates is complete, with 1,452.2 metres drilled in 73 holes. The drill has moved to Dos de Mayo, where the company plans another 555 metres in 27 holes.
The surface program would test an approximately 1,100-metre mapped extension of the Dos de Mayo vein that has never been drilled. It also includes the parallel El Capulín vein system and the Estrella vein, expanding the area being tested beyond the historic mines.
Read more: Canagold Resources drills 52.8 g/t gold over 4.64m at New Polaris
Pinnacle expects to finish the underground program around the end of November before demobilizing that crew and starting surface drilling.
