Pinnacle Mines Ltd. announce the initiation of a Scoping Review of its majority-owned Silver Coin Gold Project, located in the Stewart Mining Camp of northwestern B.C., Mountain Boy Minerals Ltd. is the Company’s JV partner on Silver Coin. As reported in 2007 by Minefill Services Inc., the Silver Coin property hosts a NI 43-101 compliant resource of 423,002 ozs. of gold and 3,423,531 ozs. of silver in the Measured and Indicated category (9.7 million tonnes grading 1.355 gpt and 10.968 gpt respectively) plus 947,988 ozs. of gold and 2,757,247 ozs. of silver in the Inferred category (15.95 million tonnes grading 1.849 gpt and 5.377 gpt respectively). Subsequent to the 2007 resource estimate, the Company reported more exciting results from the 2008 drill program (see Pinnacle news Dec. 10th & Nov. 7th, 2008). The deposit also remains open at depth and to the north.
The Scoping Review is Phase 1 of a program that will systematically de-risk the potential development of Silver Coin and culminate in a scoping study before year-end 2009. This review is addressing geological, metallurgical, resource modeling, social, mine planning, environmental, and economic considerations in order to strengthen the foundations for a feasibility study that is anticipated for 2010.
To lead the way on the Scoping Review, Pinnacle has retained a highly-experienced group of geological and metallurgical specialists to assist the in-house technical team. The effort is being led by BitterRoot Group LLC, a U.S.-based resource consultancy and think-tank. The principals of BitterRoot are Leigh Freeman, Patrick Highsmith, Robert Perry, and Jose Pinedo, who collectively possess more than 100 years of professional experience in the mining industry. The group has a technical and management track record built with numerous major, mid-tier, and junior mining companies spanning many countries.
At this stage, BitterRoot is focusing on the major geological controls on mineralization, such as the structural geology, in order to bolster the geological database to support future resource calculations. The team is also compiling and reviewing geochemistry and geophysics from earlier exploration programs. The resulting improved geological understanding will aid in the completion of a 3D geological model and in highlighting new targets for additional resources.
Results to date have led to an improved understanding of the shape and orientation of the deposits, which will assist in optimizing future resource development. These revelations also help explain and put into context the excellent results that the Company reported for the 2008 drill program.
This study marks the beginning of a new chapter for the Silver Coin Project and for the Company. We hold a quality asset and a strong land position in one of the fastest growing gold districts in the world. Pinnacle is well funded, having nearly $2 million in the bank; and it is actively looking for near-term production acquisitions to augment its already significant gold resources at Silver Coin.