We Could Be Producing Silver and Gold Next Year: Pinnacle Silver and Gold
CEO.CA Oct 1, 2026 8:13
Summary
Management says secured financing of roughly $4 million covers refurbishing a plant that has sat idle for 35 years.
Underground delineation drilling at El Potrero returned assays up to 58-59 grams per tonne gold and hundreds of grams of silver.
Certified metallurgical testing recovered more than 97% of gold and roughly 70% of silver, framing an 85/15 gold-led revenue mix.
The guest names permitting, not drilling, as the biggest risk: power line and water license approvals set the restart clock.
Targets are a production decision by end of 2026 and first output late 2027 or early 2028, subject to permits clearing.
Mr. Robert Alexander Archer P.Geo.'s takeaways
- Top takeaway Archer's central thesis is restart first: he describes Pinnacle as a development-stage past producer in the Sierra Madre of Mexico and says his goal is to return it to production as quickly as possible, then fund company growth from the cash flow.
- He argues the restart is already funded rather than speculative, citing about US$4 million of capex secured and noting the existing plant has been idle for 35 years, so the work is an upgrade rather than a new build.
- He defends underground delineation drilling as the current de-risking step because it required no permit and allows drilling along the vein, which he says gives more reliable information on size, shape and continuity of grade than surface drilling.
- He is encouraged by the SGS metallurgical results in Durango, pointing to better than 97% gold recovery, silver around 70% with room to improve, and an expected 85/15 gold-to-silver value split.
- On risk, he names permitting as the biggest wildcard, saying power-line and water-licence applications are progressing with consultants but that timing becomes unpredictable once they are submitted to government authorities.