Vancouver — Drilling by Pinnacle Mines (PNL-V) at its Silver Coin project, about 20 km north of Stewart in northwestern British Columbia, has returned a significant gold intercept.
Hole 36 cut a 17.8-metre section grading 11.35 grams gold per tonne, 30 grams silver per tonne, 0.9% lead and 1.47% zinc.
The drill was stepped out 15 metres along strike, towards the northwest, on the Perseverance zone where previous drilling intersected multiple polymetallic intervals. Prior holes along the zone have intersected similar grades over comparable widths. Drilling indicates the zone is open both along strike and to depth and there also indication of widening with depth.
Pinnacle entered into an agreement in August-2004 to earn up to a 51% interest in the project from Mountain Boy Minerals (MTB-V) through expenditures of $1.75-million over three years. An additional 9% can be garnered by placing the project into production.
Silver Coin has both massive sulphide base metals rich mineralization and a gold-enriched low sulphide component, similar in that at the past producing Silbak-Premier mine, located 5 km to the south. Silbak-Premier operated for 35 years producing 1.8 million ounces of gold, 41 million ounces of silver, 4.2 million pounds of copper, 62 million pounds of lead and 20 million pounds of zinc.
Pinnacle Mines saw its shares jump on the news, up 15 to 80 per share on low volume. The company reports 6.1 million shares outstanding giving a market capitalization of $4.9-million.
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