ADDITIONAL CLAIMS ACQUIRED ADJOINING PINNACLE'S SURPRISE CREEK PROPERTY
Vancouver, BC Pinnacle Mines reports it has acquired by staking 27 additional claims totaling 10,400 hectares in the Surprise Creek area located about 32 kilometers northeast of Stewart, British Columbia in the Skeena Mining division. The new claims adjoin Pinnacle’s 100% owned Surprise Creek property (12,000 hectares) to the west and north. 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, Silbak-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.
The new claims were staked as a result of a prospecting and sampling program conducted in this area in 2005 by Pinnacle. During the program, the following facts were established:
1. The newly staked area is the source of large boulders (up to 2 meters across) of very strongly silicified rhyolite and/or rhyolite breccia containing sphalerite, galena and chalcopyrite. These boulders, discovered in the previous exploration seasons, are found over a distance of several kilometers in valleys joining the Surprise Creek. They contain up to 5% combined lead/zinc, up to 2.8% Cu and up to 213 g/t silver. They also feature highly anomalous mercury of up 1,000 times above the background level. Mercury minerals form only in a very low temperature, which is characteristic of a volcanogenic massive sulphide environment. These mineralized rhyolite boulders are believed to be related to a felsic eruption center located in the Surprise Creek area as indicated by the outcrops of rhyolite flow with distinct flow banding.
2. The general area believed to be the source of the mineralized rhyolite boulders is also the source of another kind of boulders (very numerous) composed of black chert and limestone. These two rocks very often display strong soft sediment deformation, frequently forming synsedimentary breccia with syngenetic pyrite, sphalerite and galena in the matrix. Five samples collected from boulders of this type in 2005, yielded from 1 to 2% of combined lead/zinc, up to 31 gpt silver and highly anomalous mercury that are 40 to 100 times above the background level.
Pinnacle geologists believe that the area of Surprise Creek may host a Kuroko type Volcanogenic Massive Sulphide deposit. Pinnacle is planning an additional prospecting, sampling and reconnaissance mapping in the Surprise Creek area for the reminder of 2005 field season.
Pinnacle further reports that the option agreement signed with Pallaum Minerals Ltd. pursuant to which Pallaum could earn up to a 50% interest in the Surprise Creek is cancelled as a result of Pallaum’s inability to finance its earn in obligations.
Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company with assets 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 604-688-7377 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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