DRILLING UNDERWAY ON KANSAS CLAIM
Pinnacle Mines Ltd., Tenajon Resources Corp. and Mountain Boy Minerals Ltd. report that the 2005 program of drilling and trenching on the Kansas property in Northwest British Columbia is underway. The Kansas property is a crown grant claim, 19.5 hectares in size, and is surrounded by the Company’s Silver Coin land holdings.
Pinnacle drilled two holes from the first setup on the Kansas property, DDH 2005-44 and 45, were collared 50 metres south of DDH 2005-43 located on the Silver Coin claim. The Company has now collared DDH 2005-46 a further 75 metres on strike to the south. Drilling will continue on 50 to 75 metre step-outs to the south across the western side of the Kansas claim. (see attached map). All drill core is shipped to Company facilities in Stewart where it is split, logged and then shipped to Vancouver for assay.
A technical report completed by Westmin in 1995 calculated the uncut gold reserves in one of the zones (KWK) on the Kansas property to total 1,774,000 tonnes grading 2.20 g/t (124,889 ounces of gold). This calculation was completed prior to National Instrument 43-101, is historic in nature and has not been reclassified to current categories, however management believes the results and calculations were generated using accepted and proven geologic and engineering practices and are reliable and relevant. The calculation must be considered a mineral resource estimate.
Since the time of the calculation, limited drilling along strike, outside of the KWK zone, has encountered favourable results and, according to Westmin's report, the KWK zone is open to the north and to the south with substantial room to expand resources.
Pinnacle Mines has reviewed a number of geologic and exploration reports covering previous work on the Kansas property and has determined that some drill intersections were never assayed at all and most core was not assayed for its base metal content. In light of the Company’s findings that gold and base metal mineralization occurs in areas where the mineralization looks weak, some areas of the Kansas deposit will be re-drilled and compared to previous work.
Pursuant to an option and joint venture agreement, Pinnacle and partner Mountain Boy Minerals can earn up to a 60% interest of Tenajon’s 100% owned Kansas property by spending $1.0 million on exploration and development over a 4 year period. In addition, the Company paid $50,000 cash and issued 77,000 common shares in consideration of the option. The shares issued had a hold period that expired on April 4, 2005. Pinnacle has the right to earn an additional 10% in Kansas by bringing it through a positive feasibility study within 4 years of earning its 60% interest. The Company
E. Kruchkowski, P. Geo. is in charge of the exploration programs on behalf of the Company. 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. 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.