SILVER COIN UPDATE
Pinnacle Mines Ltd. and Mountain Boy Minerals report they have been reviewing and compiling historical data from exploration work during the 1980’s and early 1990’s on the Silver Coin and Kansas properties, located 24 kilometers northwest of Stewart, BC. This historical work was primarily focused on delineating a high-grade gold-silver deposit. More recently, Company geologists have re-interpreted the results based on the 2004 exploration work and feel the property has the potential to host a large tonnage gold-silver and base metal deposit. Since past exploration has solely focused on precious metal values, most of the previous drilling was not analyzed for base metals. While reviewing the historical data, as well as results of the 2004 drill program, it was noted that significant amounts of zinc, lead, and to a lesser degree, copper, are associated with most of the gold-bearing zones. In addition, massive sulphide zones up to 25 meters wide accompany the gold bearing zones. In many cases, base metal values average greater than 10 % in these massive sulphides.
Silver Coin features a zone of faulting and shearing, with accompanying poly-metallic mineralization, that is up to 300 metres wide, has been traced for a minimum of 1.6 kilometres and is open to both the north and the south. In this deformation zone, numerous gold-silver-base metal bearing breccias, stockworks and veins have been identified through trenching, drilling and previous underground development. To date, 16 zones have been identified, many of which exceed 10 metres in width, 200 metres in length and are open in both directions. These mineralized zones have many intervals assaying greater than 10 grams per tonne (gpt) gold.
As an indication of some of the previous exploration results now being compiled, the Company has calculated averages for a few drill holes from a 1983 and 1988 exploration program:
DDH# |
Core Interval (m) |
Au (g/t) |
Ag (g/t) |
|
U88-15 |
46.5 |
3.39 |
5.68 |
|
U88-16 |
45.5 |
1.78 |
3.05 |
|
88-26 |
77.5 |
2.80 |
5.42 |
|
SB-34 (1983) |
70.9 |
1.73 |
7.4 |
|
SB-35 (1983) |
89.5 |
3.86 |
12.8 |
|
88-45 |
103 |
6.56 |
5.96 |
These averages have used a value of zero for gold and silver where there were no assays between reported intersections and holes U88-16, SB-34, SB-35 and 88-45 all ended in mineralization. Although these drill holes were completed and assayed prior to National Instrument 43-101 and are historic in nature, management believes the results and calculations were generated using accepted and proven geologic and engineering practices and are reliable and relevant. These intersections correlate well with wide intersections of gold-silver-base metals in DDH-31, 33 and 36-38, reported in previous news releases from the 2004 drilling program.
The Companies have also received the 2004 exploration report that has summarized trenching conducted during the program. Highlights of this trenching are as follows:
| Trench# | Width (m) | Au (gpt) | Ag (gpt) | Cu (%) | Pb (%) | Zn (%) |
| Trench 1 | 39.4 | 1.66 | 46.5 | 0.32 | 1.54 | 1.13 |
| Trench 1a | 12.1 | 8.4 | 23.9 | 0.03 | 0.37 | 1.20 |
| Trench 11 | 5.6 | 0.70 | 156.7 | 1.46 | 1.13 | 12.19 |
| Trench 11a | 11.6 | 0.72 | 105.2 | 0.79 | 1.82 | 4.31 |
| Trench 12 | 10 | 1.84 | 14.36 | 0.09 | 0.09 | 1.01 |
| Trench 12a | 9.0 | 3.84 | 17.02 | 0.1 | 0.07 | 1.44 |
| Trench 13 | 6.5 | 5.27 | 40.5 | 0.06 | 0.49 | 1.01 |
Trench 12 and 12a represent the northwestern most exposure of the Perseverance Zone identified to date. Two short vertical air track drill holes drilled under trench 12 (stopped in mineralization due to technical problems) assayed 32.36 gpt and 29.0 gpt gold over 6.1 and 7.3 metres, respectively.
Trench 13 is over a partially exposed zone which is 150 meters north of any previously outlined zone and correlates with the north extension of the Facecut zone, explored in the 1980’s and 1990’s.
The Silver Coin property shares many characteristics with the nearby Silbak-Premier mine which produced 4.7 million tons that yielded approximately 1.8 million ounces gold, 41 million ounces silver, 4.2 million pounds copper, 62 million pounds lead and 20 million pounds zinc during the period 1918 to 1979.
Pinnacle Mines Ltd has budgeted $700,000.00 for the 2005 Phase I exploration program. Drilling will concentrate on extending the known mineralized zones to the south and north. Considerable effort will also be given to better define the existing mineralized zones in order to develop a large tonnage deposit. Work will also include trenching of many of the unexplored zones in order to develop drill targets and establish the gold-silver-base metal tenor of these targets.
E. Kruchkowski, P. Geo. is in charge of the exploration programs on behalf of the Companies. Assayers Canada, an accredited laboratory conducts all assaying on behalf of the company.
Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company whose activities are international in scope. Its primary assets are located in both Canada and China. In Canada, Pinnacle holds several properties in Northwestern British Columbia, in proximity to numerous past and producing mines including the Silbak-Premier Mine and Barrick Gold’s famed Eskay Creek Mine. In China, Pinnacle’s current focus is in Southeast Yunnan, an area being increasingly considered for its potential to host significant mineral resources including “Carlin” style gold deposits.
For further information contact Andrew Bowering, President, at 604-922-7377 or visit Pinnacle’s website at http://www.pinnaclemines.com.
On behalf of the Board of Directors
“Andrew W. Bowering”
President and CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or the accuracy of the content of this news release.