PINNACLE TO PURCHASE INTEREST IN TULIGTIC COPPER-GOLD PROJECT IN MEXICO
Pinnacle Mines Ltd. (“Pinnacle”) is pleased to announce that it has entered into an option agreement with Almaden Minerals Ltd. (“Almaden” - Trading Symbols: AMM-TSX, AAU-AMEX) to purchase up to a 60% interest in its wholly-owned Tuligtic copper-gold project (the “Tuligtic Project”) located in the State of Puebla, Mexico.
Subject to regulatory approval, terms of the agreement allow Pinnacle to initially purchase 51% of the property by incrementally issuing 700,000 shares to Almaden and expending US$3.5 Million on property exploration over the next four years. Pinnacle has an option to earn a further 9% of the property by issuing Almaden an additional 300,000 shares and expending US$2.5 Million on the property during year five and six.
The acquisition further broadens Pinnacle’s property base worldwide which already includes interests in China and Canada. Pinnacle has been actively seeking new prospects in more southern climates since the beginning of this year and the Company’s geologists came back very enthusiastic about the Tuligtic Project after reviewing several other properties with scepticism. Andrew Bowering, Pinnacle’s CEO stated, “Having properties in Mexico is ideal not only because of the country’s openness to mining, but it also fits the Company’s business model and allows us the opportunity to drill year round”.
The Tuligtic Project covers an area of approximately 11,000 hectares of intensely altered rocks roughly 5 by 5 kilometers in size. Within this area a field program carried out by Almaden identified both a porphyry copper and an epithermal gold target. The copper porphyry target occurs within K-silicate altered intrusive rocks that intrude deformed limestone which is overlain by intensely altered volcanic rocks and geologically recent, post-mineralization ash deposits. Calc-silicate altered limestone occurs in proximity to the intrusive contacts and is associated with skarn-type copper mineralization, identified in boulders. Multiple phases make up the intrusive body which has been altered and veined. Stockwork quartz pyrite veining dominates the alteration and is associated with minor copper mineralization. This alteration is observed to overprint earlier potassic alteration. An IP geophysical survey was carried out and indicated that the exposed mineralization represents a portion of a much larger intrusive hosted system characterised by an elevated chargeability response anomaly which is open in three directions and increasing in tenor with depth. Soil sampling has returned highly anomalous copper, molybdenum, silver and gold in soil samples over areas where the altered and mineralised intrusive rocks are exposed, and elevated chargeability responses have been recorded at surface.
The epithermal gold-silver target area, which is exposed roughly one kilometre to the south of the outcropping intrusive is also characterised by extensively clay altered and silicified volcanic rocks. The alteration is indicative of the upper parts of an epithermal system and includes replacement silicification and sinter, the precipitate or sediment that was deposited from a hot spring. Quartz-calcite veins with textural evidence of boiling have been identified outcropping in limestone roughly 100 meters beneath the exposed sinter. Initial sampling of these veins and from float boulders of breccia containing quartz vein fragments have returned anomalous values in gold and silver as high as 600 g/t Ag and 6.1 g/t Au. The sinter and the overlying altered volcanic rocks are highly anomalous in Hg, As and Sb.
CEO and president of Almaden, J. Duane Poliquin, P.Eng., commented that “The Tuligtic project represents an unexplored porphyry copper-gold project, one of the most potentially rewarding mineral projects to find. Management is very pleased to be partnered with Pinnacle which is committed to aggressively exploring this new addition to Almaden’s optioned project list.”
Morgan Poliquin, M.Sc., P.Eng., a director of Almaden, is the qualified person supervising Almaden’s exploration programs in Mexico, under the meaning of National Instrument 43-101. Samples were analysed at ALS Chemex laboratories in Vancouver, B.C., using fire assay, atomic absorption, and ICP-MS methodologies.
Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company whose 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 604-688-7377 or visit Pinnacle’s website at www.pinnaclemines.com.
On behalf of the Board of Directors
“Paul Saxton”
Chairman and COO
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