PINNACLE TO ACQUIRE UP TO AN 80% INTEREST IN THE SILVER COIN GOLD DEPOSIT NEAR STEWART, B.C.
Vancouver, B.C., Pinnacle Mines Ltd. (TSX-V: PNL, “Pinnacle”) and Mountain Boy Minerals Ltd. (TSX-V: MTB, “Mountain Boy”) are pleased to announce that they have signed a Letter of Intent whereby Pinnacle will take a commanding role in the development of the Silver Coin Gold Deposit located near Stewart, BC.
Subject to regulatory approval and the companies finalizing a formal agreement, Pinnacle will acquire an immediate 70% interest in the project by providing Mountain Boy with a $440,000 cash payment. Pinnacle can earn an additional 10% of the project after spending $4,000,000 on exploration expenditures.
Concurrently, Mountain Boy will grant Pinnacle the exclusive right to oversee and advance the project as operator through feasibility. Mountain Boy will work together with Pinnacle in an advisory capacity as well as provide their technical and geological expertise to the exploration programs.
The acquisition by Pinnacle represents a significant turning point in the evolution of the Silver Coin project, which, since its initial discovery, has had diversified ownership. In 2008, Pinnacle took the first step in consolidating the property by acquiring Tenajon Resource Corp.’s interest in the project. Pinnacle management feel the further consolidation of ownership not only provides Pinnacle with more flexibility in orchestrating the project’s advancement, but it also sends a clear message to the market that one company can now determine the future and direction of the project.
Presently, Pinnacle is carrying out a scoping review which is addressing geological, metallurgical, resource modeling, social, mine planning, environmental, and economic considerations in order to strengthen the foundations for a feasibility study. This work also entails compiling and reviewing geochemistry and geophysics from earlier exploration programs. The resulting improved geological understanding will aid in the completion of a 3D geological model and in highlighting new targets for additional resources. As the deposit also remains open at depth and to the north, Pinnacle will conduct more drilling on the property this summer in areas yet undrilled.
This press release was reviewed by Lawrence A. Dick, Ph.D., P.Geo; Chief Operating Officer and a Director of Pinnacle, who is recognized as a Qualified Person under the guidelines of National Instrument 43-101.
For further information contact Paul Saxton, President & CEO at 604-688-7377 or visit Pinnacle’s website at www.pinnaclemines.com.
On Behalf of the Board:
“Paul F. Saxton”
President & CEO
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this document, the words “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Pinnacle Mines Ltd. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release