As gold prices soar to record highs above US$2,600 per ounce, and gold stocks trail their target commodity by the widest margin in more than two decades, junior mining investors are presented with numerous opportunities for significant returns.
These opportunities are supported by high-quality projects, secure jurisdictions and experienced management teams.
Pinnacle Silver & Gold (TSXV:PINN) stands out as a compelling investment opportunity in the precious metals sector, driven by its strategic focus on district-scale exploration and the seasoned leadership of its president and CEO, Bob Archer.
Archer, a co-founder of Great Panther Mining, brings more than 40 years of industry experience, making Pinnacle a company worth watching.
Bob Archer’s legacy and expertise
Bob Archer’s extensive background in the mining industry is a cornerstone of Pinnacle’s potential. In the early part of his career, he participated in three feasibility studies at underground mines for Placer Dome and Noranda and worked on many others.
Under his leadership, Great Panther Mining grew significantly, focusing primarily on underground silver-gold mining operations in Mexico (and later, Peru), a country renowned for its primary silver mines. Archer’s success with underground mining techniques has been instrumental in navigating the complexities and maximizing the potential of these rich mineral deposits. At Pinnacle, he is backed up by a board with extensive geological, mining, metallurgical and financial expertise.
Underground vs. open pit mining
Understanding the differences between underground and open pit mining is crucial for investors. Underground mining involves extracting minerals from deep beneath Earth’s surface. This method is often more environmentally friendly and less disruptive to the landscape compared with open pit mining, which involves removing large quantities of surface material to access minerals.
Mexico, with its abundance of primary silver mines, predominantly utilizes underground mining techniques that align with Pinnacle’s approach. Underground mines are also typically higher grade than open pit mines often resulting in larger profit margins in times of high metal prices like the present.
While there are discussions about potential bans or restrictions on open pit mining in Mexico, Pinnacle’s focus on underground mining positions it favourably within the regulatory landscape. This strategic choice not only aligns with environmental considerations but also leverages Archer’s proven expertise in underground mining operations.
Pinnacle’s current projects
Pinnacle Silver & Gold Corp. is actively engaged in district-scale exploration for precious metals in the prolific Red Lake District of northwestern Ontario. The main focus being on the flagship, past-producing, high-grade Argosy Gold Mine, while the adjacent North Birch Project offers additional blue-sky potential with both projects located in the northern part of the Birch-Uchi Greenstone Belt. Roughly 110 kilometres northeast of the town of Red Lake, the project is currently accessible by air, with improving road access because of nearby logging roads and an all-weather road to the Springpole Gold Project.
The Argosy gold mine operated from 1931 to 1952, yielding 101,875 ounces of gold and small quantities of silver from 276,573 tons of ore, with an average grade of 0.37 ounces per ton (12.7 g/t) Au. Having only been mined to a vertical depth of 270 metres, the mine remains open to depth, offering significant exploration opportunities.
In October 2002, diamond drilling by a previous operator confirmed the extension of gold mineralization below the old workings. The Number 2 Vein, located 100 metres below the old mine development, showed intercepts of 11.75 g/t over 1.55 metres and 14.39 g/t over 0.7 metres. Additional intercepts included 14.67 g/t over 1.7 metres on the Number 3 Vein and 12.02 g/t over 1.29 metres on the Number 8 Vein, indicating potential for resource expansion on parallel, unmined veins.
The North Birch Gold Project holds significant promise with district-scale exploration upside. An inaugural diamond drilling program was conducted in early 2022, although the program was cut short because of variable weather conditions, it demonstrated the potential of the 8-kilometre-long target horizon.
Beyond Red Lake, Pinnacle is actively seeking other district-scale opportunities in the Americas, with a particular focus on silver and gold in Mexico and Peru. This strategic approach, combined with a highly successful management team, underscores Pinnacle’s commitment to building long-term, sustainable shareholder value.
Investment corner
Pinnacle Silver & Gold Corp. represents a promising investment opportunity in the precious metals sector. With the Board’s extensive experience and proven track record in underground mining, coupled with Pinnacle’s strategic focus on high-potential projects, the company is well-positioned for growth. Investors are encouraged to conduct thorough due diligence to fully understand the potential and opportunities that this distinct mining stock offers.
For more information and to stay updated on Pinnacle’s progress, visit its website and explore the wealth of resources available to investors.
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(Top image image via Pinnacle Silver & Gold Corp. corporate presentation.)