Management of Pinnacle Mines Ltd. announce the latest drill results from its 88 diamond drill hole program, carried out between June and November, 2008. These assay results, which constitute the remainder of the outstanding drill hole results, continue to build on the size and significance of earlier Silver Coin drill results. Drilled widths of up to 54.87 meters grading 4.45 gpt gold and 77.72 meters grading 2.41 gpt gold are included in the results. Much higher grades were intersected over narrower widths such as: 4.57 meters grading 15.57 gpt gold; 1.52 meters grading 15.01 gpt gold; 3.05 meters grading 20.47 gpt gold; 15.24 meters grading 4.43 gpt gold and 6.09 meters grading 9.0 gpt gold. A complete list of assays from this year’s final results are shown in the table below (for previous drilling results please refer to Pinnacle’s press release dated November 7, 2008).
Mr. Paul Saxton, president of Pinnacle Mines Ltd. stated “With the volume of drill information now available to the project, we have decided to begin and augment studies destined to provide a pre-feasibility for a potential open pit mine at Silver Coin by the latter part of 2009″.
These latest drill results augment earlier results which also contained significant intersections such as: 12.19 meters grading 12.66 gpt gold; 42.37 meters grading 6.26 gpt gold (including 12.19 meters grading 18.16 gpt gold); 45.72 meters grading 3.78 gpt gold; 27.43 meters grading 5.40 gpt gold, etc. A body of andesite containing a network of mineralized quartz veins and veinlets, as well as disseminated gold-sphalerite mineralization forms an open-ended, N-S-elongate body approximately 700 meters along strike and 200 meters in depth.
These latest drill results have been returned from drill holes which were, for the most part, situated at the northern end of the known deposit. Long sections constructed from the drill hole geochemical database indicate that the deposit is open at depth and along strike to the north. Thus, further drilling along strike to the north is planned for the 2009 field season coincident with pre-feasibility studies on the known body of mineralization.
With the completion of the latest drill program the project is moving towards the pre-feasibility stage of development. Snowden Engineering has begun work on an updated 43-101 compliant resource calculation, Eagle Mapping has delivered detailed topographic coverage for mine-planning purposes, and F.W. Wright Consulting Inc. is continuing with metallurgical studies (initial flotation recoveries averaged 94% for gold in test work completed to date).
Silver Coin is a gold prospect located approximately 24 kilometers north of Stewart, B.C. Approximately 80 percent of the known mineralization occurs on the Kansas Claim which is being explored under a joint venture agreement with Mountain Boy Minerals Ltd. (70.6% Pinnacle; 29.4% Mountain Boy).
The location of Silver Coin is ideal for the construction of a potential open pit mining operation. The road to the Granduc deposit passes through the property, linking Silver Coin with the deep water port at Stewart, B.C. The deposit is 13 kilometers north of the Silbak-Premier mine, which produced approximately 1.8-2.0M ounces of gold. An NI43-101 compliant resource calculation carried out for Silver Coin in 2007 by MineFill Services (which did not include the latest 88 holes or holes drilled during 2007). This study calculated (at a 0.75 gpt gold cut-off), a combined measured-indicated-inferred resource of 25.65M tons of mineralized rock grading 2.3 gpt gold-equivalent (gold, including the base metal credits), or 1.66 gpt gold without credits. This equates to approximately 1.5M ounces of gold. At a higher cut-off (1.5 gpt gold) the resource consists of 8.2M tons grading 5.03 gpt gold equivalent, or 1.09 M ounces of gold.