Pinnacle strikes gold at Silver Coin

Vancouver — Drilling by Pinnacle Mines (PNL-V) at its Silver Coin project, 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, as well as 30 grams silver per tonne, 0.9% lead and 1.47% zinc.

The drill was stepped out 15-metres along strike, toward the northwest, on the Perseverance zone, where previous drilling intersected multiple polymetallic intervals. Previous drilling intersected similar grades over comparable widths. The zone is open both along strike and at depth, and there are indications it widens with depth.

Pinnacle is earning up to a 51% interest in the project from Mountain Boy Minerals (MTB-V) by spending $1.7 million on exploration over three years. An additional 9% can be garnered by placing the project into production.

Silver Coin has both base metals and gold mineralization, similar to that of the past-producing Silbak-Premier mine, 5 km to the south. Silbak-Premier operated for 35 years, producing 1.8 million oz. gold, 41 million oz. silver, 4.2 million lbs. copper, 62 million lbs. lead, and 20 million lbs. zinc.

Pinnacle shares gained 15, to 80, at presstime. The company has 6.1 million shares outstanding and a market capitalization of $4.9 million.