Couloir Research Team September 06, 2026
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Drilling continues to demonstrate near-surface scale and continuity at Halo
Initial underground drilling at El Potrero validates both grade and continuity within the Dos de Mayo vein system. Pinnacle has completed 58 of a planned 108 short, closely spaced underground holes, with assays received for the first 37. The early results support the view that Pinos Cuates could represent part of a larger, continuous mineralized system rather than an isolated high-grade occurrence.
The most significant result to date comes from hole EPUG26035 on the upper level of the historic Pinos Cuates mine. The hole was drilled horizontally from the end of the underground workings at a shallow angle to the vein strike specifically to test the northwestern extension of mineralization. The hole confirmed mineralization for at least a further 20 meters along strike, returning 13.18 meters grading 9.69 g/t Au and 143 g/t Ag, including 1.07 meters grading 59.2 g/t Au and 424 g/t Ag with visible gold. Step-out holes to the southeast (EPUG26025/26026) added up to a further 21 meters, including 9.54 g/t Au and 134 g/t Ag over 1.5 meters, lifting the interpreted strike length of the Pinos Cuates upper level zone to at least 70 meters. Upcoming surface drilling (planned for Sep-Oct 2026) will further delineate this mineralization at varying depths and farther along strike to the northwest and southeast.
Investment Highlights
- Pinnacle Silver and Gold (TSXV: PINN) (the “Company”) is a precious metals developer advancing its flagship, past-producing El Potrero gold-silver project in Durango, Mexico.
- Initial underground drilling validates grade and continuity at Pinos Cuates: Pinnacle has completed 58 of a planned 108 underground holes, with assays received for the first 37. Hole EPUG26035 returned 13.18 meters grading 9.69 g/t Au and 143 g/t Ag, including 1.07 meters grading 59.2 g/t Au and 424 g/t Ag with visible gold, while step-outs have extended the interpreted upper-level strike length to at least 70 meters
- Broader system remains open for expansion: Underground drilling, mapping and channel sampling indicate a 6.5- 7.0-meter-wide Dos de Mayo structure at the upper Pinos Cuates level. Surface drilling planned for September–October 2026 will test gaps and extensions along the roughly 500-meter Dos de Mayo trend and provide first drill tests of the La Estrella and El Capulin satellite veins.
- Financing mandate de-risks the path to a production decision: Pinnacle launched a non-brokered placement of up to 20.0 million units at C$0.11 (up to C$2.2 million gross), of which a first tranche of C$652,080 (5.93 million units) closed on August 7, 2026. In parallel, Auramet Capital Partners has been appointed Lead Project Financier to arrange up to US$5 million of non-equity project financing for the restart, materially reducing dilution risk. A formal production decision is targeted by late Q4 2026.
- We reiterate our BUY rating and update our fair value per share target to C$0.28 per share.
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