Meanwhile, in the search for better places to put your money to work, we've been looking hard at Pinnacle Mines for several weeks. You'll remember how much we liked company head Andy Bowering's black T-shirt in his publicity photo for the New Orleans show. We've been following the price from 27 May 2005, when it was C$0.63 and Friday it closed at C$0.61. So, about the same.
The market may not yet have reacted to news from Pinnacle's Silver Coin property where three meters were found returning 56.6 grams per tonne gold. In free market units, that's 1.82 ounces per tonne, which is a very good measurement indeed. What's better, the latest drill holes extend the known mineralized zone a further 50 meters to the South. Drilling is continuing on 50 and 75 meter centers along the projected strike of the Perseverance-Kansas zones, according to the press release we received from Pinnacle's Nancy Massicotte. The mineralized zone appears to have a minimum strike length of 1.1 klicks and a vertical height of 270 meters. Pinnacle Mines and Mountain Boy Minerals are working this claim together, and are able to earn up to 70% interest in the Kansas claim from Tenajon Resources.
Comparable zones nearby produced lots of gold, silver, copper, lead, and zinc. So, that's nice. We generally ignore these similarity claims. Elephants are similar to mice in that both are mammals, but similarity is not all there is to it.
Pinnacle is also exploring for gold and other metals in China. They have been working closely with Chinese contacts for some time now. Back in November, when we reviewed the New Orleans show, we mentioned, "As far as actual gold goes, the company's brochure indicates 'the most significant drill hole to date returned 1.63 grams/tonne Au over 89 meters.' Pinnacle Mines has acquired the right to purchase 100% of the Yang Wen Chong property from its owner, Yunnan Geology and Mineral Resource for a total of C$4.3 million by November 2005. Chip sampling on traverses has revealed up to 3 meters of 4.42 grams/tonne Au, and up to 40 meters of 1.86 g/t Au."
Now for the news we can't talk about. Capitalization is obviously a key factor in these junior mining companies. Luzon's Jim Currie makes that clear in his swan song message. Well, there is to be an announcement from Pinnacle about sources of company capital in about two weeks, based on a very pleasant phone conversation we had with a gentleman representing Pinnacle, Marc West. If what we've been led to believe is true, the source of capital is a major mining company with extensive interests in one of the two countries (Canada or China) where Pinnacle has been engaged in exploration. We won't say more here, but Marc is happy to do so.
So, it might be a good time to pick up some Pinnacle. It is a suggestion. We don't make suggestions based on every phone conversation we have, as the Metalline review of last week indicates. We do make suggestions when something looks right, to us. Pinnacle is starting to have that look. Part of it is the extension of the mineralized zone at the Kansas part of the Silver Coin project. The other part of it is that capital seems to be very nearly in place. Now might be the time to capitalize on this information. Otherwise, it is just another rumor.
We are officially suggesting Pinnacle as of today's date. We'll be tracking their stock from C$0.61/share.
This report first appeared in the 1 August 2005 issue of The Indomitus Report. It is copyright © 2005 Free West Trust. All rights reserved.
8 August 2005: Pinnacle did very well after releasing their news a few days ago about their major financing from Zijin Mining Group. In addition to the news on Zijin, they've released a report on surface sampling and trenching to further extend the Perseverance gold, silver, and zinc zone by 800 meters along strike.
12 September 2005: Pinnacle, our most recent entry in the exploration set, hit a double for us and settled back. It now is coming close to double the initial suggested value (C$0.61) again. Given Pinnacle's recent announcement of a high grade ore find showing a bit more than an ounce per ton gold and six ounces per ton silver in a 50-foot intersection within a 290-foot intersection showing 0.2 ounces per ton gold, we expect good results. Simply put, their Silver Coin property is turning up a winner.
The price of Pinnacle more than doubled within a few weeks of this report's first appearance in our newsletter. The price was recently (20 September 2005) C$1.33.