SURPRISE CREEK PROPERTY OPTIONED TO PALLAUM MINERALS LTD.
Vancouver, BC - Pinnacle Mines Ltd. reports that it has entered into an option agreement with Pallaum Minerals Ltd. whereby Pallaum can earn up to a 50% interest of Pinnacle’s 100% owned Surprise Creek property by spending $1.0 million on exploration and development and issuing, subject to regulatory approval, 400,000 common shares of Pallaum over the next four years.
The Surprise property is located about 32 kilometers northeast and southeast of Stewart, British Columbia in the Skeena Mining Division and contains approximately 12,000 hectares within one contiguous claim group totaling 30 Modified Grid claims. The property lies within a belt of Jurassic volcanic rocks that is host to numerous gold deposits, in a variety of geological settings, including the producing Eskay Creek and formerly producing Snip and, Premier-Big Missouri mines. The claims follow the contact zone between the Mt Dilworth rhyolite and overlying Salmon River sedimentary formations, the same stratigraphic sequence as that hosting the Eskay Creek deposits.
During 2003 and 2004, Pinnacle crews conducted exploration programs consisting of reconnaissance mapping and prospecting on the property. The regional prospecting program was widely spaced and several areas of interest were identified. Three areas of importance have been isolated for a more detailed follow-up program this year. These include:
- an area containing a field of siliceous boulders up to two metres in diameter. Several grab samples were anomalous in copper, zinc and silver, with individual samples running as high as 2.8 per cent copper, 4.8 per cent zinc and 213 grams per tonne silver;
- an area containing a field of boulders up to 0.5 metre in diameter. The boulders are a black argillite with 25 per cent quartz stockwork containing a fine-grained black sulphide with abundant green staining indicating possible arsenopyrite. Grab samples ranged from background to 3,076.8 grams per tonne silver; and
- an area containing boulders up to two metres in diameter, consisting of up to 50 per cent quartz stockwork in altered andesite, individual veins contain coarse pyrrhotite, chalcopyrite, arsenopyrite and pyrite. Values range from 0.08 gram per tonne to 13.02 grams per tonne gold and silver up to 371.2 grams per tonne.
In addition, potential molybdenite mineralization occurs in the northeast portion of the property. Work in the early 1960’s indicated anomalous molybdenum values associated with a Tertiary intrusive.
Pallaum has agreed to spend a minimum of $75,000 on exploration this year. Work is scheduled to begin in late July.
Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company whose activities are international in scope. 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 604-688-7377 or visit Pinnacle’s website at http://www.pinnaclemines.com.
On behalf of the Board of Directors
“Andrew W. Bowering”
President and CEO
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