Robert Archer on Summer's Key Takeaways and What's Ahead This Fall

0:04 Hello everyone, today I'm joined with Robert Archer, President and CEO of Pinnacle Silver and Gold to reflect on the summer of 2025 and what to expect as we move forward into the fall. Bob, the underground channel sampling and Pinos Cuates has developed some exceptional results this summer with grades up to 85.1 grams per tonne gold, 520 grams per tonne silver. Can you walk us through these high grade intercepts? Tell us about the scale and continuity of the mineralization and how this builds investor confidence in the El Potrero project? Yeah, it tells a little bit about scale. I mean, keeping in mind that we're inside the mine workings here, so we're somewhat limited in terms of the extents of this. So what we're really trying to do is define the size and shape and grade of this particular ore chute at Pinos Quartos.

0:59 And being inside it like this and being able to take these channel samples along the walls and across the ceiling, it really gives us a sense of, I guess you could say, small-scale continuity from sample to sample because these samples are taken end to end. So when people look at a table, like it's in the news release, and they see individual sample lengths, and they might only be half a meter or 0.6 meters or something like that, that's not the width of the vein. That's just the length of the sample. And the channel samples are end to end. So what they should be looking at is the composite widths and grades as we combine those results. So what these high-grade results have shown us, the most recent ones, as you mentioned, up to 85 grams gold, those came from what we call a sub-level up raise inside the mine working, so between 2 of the prominent levels, and there were really a continuation of the high-grade results that we had released earlier in June from the upper level at Pinos Quartus. So you know these are giving us a good sense of continuity you know at a small scale sort of you know meters tens of meters kind of scale and but you know having grades like that within a zone that, you know, can sometimes grade down to, you know, just single digit

2:29 grams per ton, you know, It tells us that there's also a fair bit of grade variability within these zones, and so it'll be important to run the 3D models once we get all the data to be able to determine what the average grade is likely to be. But certainly, the high grades are going to bring up the average and really bodes well for developing a mine plan on this particular ore chute. So we're very, very pleased to see those kinds of grades. And we'll be doing some metallurgy, some drilling more soon, you know, on some of those samples just to see what kind of recoveries we can get as well. Now, It was mentioned in the July release that underground drilling is being planned to better define the extent of the mineralized zone. What can investors expect from this drilling program in terms of timing, scope, and how it might expand our understanding of the resource potential at El Poterero?

3:31 Well, in terms of timing, we've just been compiling all the information needed to apply to the environmental authorities for approval to start the underground drilling program. So We're just getting ready to submit all of that. That should hopefully just take a few weeks to get a response from them. So potentially by the end of the month or thereabouts, I hope to hear something back. So there could be some news there. And that being the case, we would then move forward with a little bit of minor underground development, just preparing the drill stations and that sort of thing, making sure they're large enough for the drilling equipment and the people, that kind of thing. So a little bit of preparatory work there and then we can get on to the drilling itself. So it's hard to put a specific time frame on it just yet until we get those firm plans made up. But let's just say this fall is what we're tentatively planning for right now. And what that will do once we get going on it is allow us to go beyond the walls of the underground workings, because up until now, all we've been able to do is sample those walls with the channel samples, but we don't know what lies beyond that. You know, it's like being in a hallway or a tunnel. You know, you can only sample the walls and the ceiling.

4:55 And so the drilling will allow us to look beyond that, to see just, you know, how wide is the vein? What is the great variability across the width of the vein and that type of thing. And then ultimately what's the size. And so we'll be able to drill sort of fans of holes at something like a 10 meter centers to gain a much better understanding, much more detailed understanding of what this particular or shoot looks like. So it'll really be quite significant because the other zones, this should be similar, but these things are never identical. In these low-sulfidation epithermal systems, there can be differences between or shoots and gold-silver ratios can change a little bit.

5:48 The type of mineralization can sometimes change. So, it's important to define each one as best you can and then go from there. So you're cashed up, the company successfully closed and oversubscribed private placement in August, raising over 1.6 million. How does this fund position Pinnacota Accelerate Development at Potrero? Now, you mentioned some milestones. If there's any other specific milestones that might be worth mentioning? Yeah, definitely. We were very pleased with the response to the financing. You know, obviously, you know, just to get that kind of demand first to upsize the financing from the initially announced 1.2 up to 1.6 and then to have it oversubscribed even at that level. So I'm very, very pleased with that and that puts us in a very good position to commence the underground drilling.

6:46 With the extra funding, we've been able to pay down all of the existing back taxes going on the mining concessions, which is part of the option agreement. So everything is completely up to date now, which is great. We can set aside funds to make the next payment on the property and still have money for the commencement of the underground drilling as well. So it's, you know, puts us in a good position for all of that. Plus another milestone will be the LIDAR survey that we plan on flying over Alpaturo. And depending on the availability of aircraft, you know, that could be later this month or potentially October. So that should give us, you know, some really good information as well on the continuity of the main structure, the main vein system, and also potentially identify some old workings that are harder to see from surface. So we should get lots of good information from that and you know looking forward to that as well.

7:51 Excellent. Now you've described the Dostumayo vein system as having been traced for 1600 meters on surface with multiple parallel and splay veins. Given that this property has never been systematically explored with modern methods, what's your vision for unlocking this exploration potential over the next 6-12 months? As you know, Kyle, we've been mapping and sampling the property on surface pretty much from the get-go from early March and making a good headway on that. We have traced it out for about 1600 meters and identified small workings, some small trenches that we've rehabilitated And that's been really important in terms of getting a better understanding of the system itself.

8:40 The LIDAR survey I mentioned, will be very helpful in that regard in terms of sort of connecting the dots as well on some of these zones and the vein exposures. So that'll be important. For some of these other areas outside of the mine workings, they'll require surface drilling at some point, and that will likely require additional permitting beyond what we're seeking for the underground drilling. So that will take a little bit more time to put that all together. But keep in mind also that this project is not really, excuse me, not really about developing a large resource, you know, that's not really the goal here. You know, the goal is to advance this quickly to the point where we can get the plant back up and running at somewhere around 100 tonnes per day and start production as quickly as we can.

9:43 Because with the higher prices, metal prices right now, we feel that we can be generating fairly significant cash flow and that will reduce the need to be constantly going back to the markets and with diluted financing. So, the faster we can get to production, the better. So, that's really the main focus for the company. So we'll be much more focused on underground drilling, developing, you could say, a small-scale resource, delineation drilling on these individual orchards as opposed to large step-out drilling from surface along that 1,600m to try and prove up a 5 or 10-year mine life. That's not really the goal right now.

10:28 Ultimately, that will come. We'll get to that stage, but it would be nice to be able to fund those kinds of programs out of cash flow as opposed to out of equity financing. Yeah, so it's speed over size right now, but the historic resource, and I have it written down there, 45,561 tonnes at 8 grams per tonne gold and 186 grams per tonne silver. Provides a good baseline, but you're clearly finding much higher grades in your current sampling. How do you see the resource picture evolving as you continue this underground work and moving toward a modern resource estimate? Well, as I say, the focus right now is to delineate the size and grade of these individual war chutes. So the old resource is just that, it's a baseline, it's a reference point, and we don't really have any good records to back that up other than a few maps and long sections and that type of thing.

11:32 So it just gave us a little bit of a guideline, but you're right in that the grades we're seeing to date from the underground sampling at Pinas Cuotas are higher than indicated by the old resource numbers, which is very positive, obviously. But it'll require additional work and the underground drilling that we've been talking about to really get a better handle on that. But for now, we're fairly confident from what we're seeing that we'll be looking at something in that sort of range. From the sampling that we've seen at Venus Quartus, we could be looking at somewhere around maybe 12 grams gold equivalent, something along those lines.

12:19 But the metallurgy will also help in that regard in terms of recoveries and so on. But as I mentioned, it's not really about building a big resource. This is about delineation drilling to put together a mine plan to get this project back up and running as quickly as we can. Yeah, so not about building a big resource, but should investors think about the potential to discover an additional high-grade zone along this 500-meter strike length? No, absolutely. The focus initially was on penis coitus and that's the results that we've released. We've now finished our, at least first pass sampling on the dostomyo vein, our dostomyo working, sorry. And we're just waiting for assays to come back from that.

13:08 Once we have those and we've compiled those and interpreted them, then we're putting out a press release on the Dostumayo. And then we're currently working on the La Dura mine, which is the one to the Northwest, Pinos Cuates being in the middle. And so, with these 3 dominant underground workings, it's safe to say the old timers were mining something, but we're just trying to determine right now what it was they were mining. And of course, we'll never know what they did mine, what we can sample is on the walls of what's there now and what's left, but it'll give us a good sense of the size of the orchard that's left. And with those 3 underground workings along that 500-meter strike length, we know now from surface sampling that there is also a zone between Pinos Quartus and Dos de Mayo where we announced, I don't recall earlier in the summer now, some grades of in excess of 2000g Silver and about 13g per tonne gold from a surface trench in between Pinos Quartus and Dos Tomaos. So there's definitely another ore chute there as well.

14:27 So in addition to the 3 that we know of, there's at least one more. And that's just on the 500 metres where the old mine workings are. In addition to that, there's the other 1100 that is exposed on surface plus there's another parallel zone that we're working on called Al Capurlin and we haven't released any results on that yet because we're still getting results back and putting that all together, interpreting that. So, that's a parallel zone that's about 200 meters away from the Tostamayo. So there are definitely other zones there and we're just trying to get a better understanding of it before we announce anything, but there's definitely more to come.

15:17 I have a final question for you here. Clearly and obviously the focus has been on Mexico but looking at the bigger picture, Pinnacle has quality projects in both Mexico and Ontario's Red Lake District. How do you see the company's strategy evolving as you advance that portrayal And what should investors expect in terms of value creation catalyst heading into 2026? Well, with the funding that we've recently completed, you know, that gives us an opportunity to potentially reopen, you know, exploration in the Red Lake area. And one of the things that we're considering right now is the possibility of a LIDAR survey on the Argosy mine. We successfully flew 1 over the North Birch property a few years ago, and that was instrumental in delineating the major structure there that we subsequently drilled.

16:09 So, you know, we were thinking we might do something similar at the Argosy mine. I don't think we'll be doing any drilling there right away, although we are also considering the possibility of maybe doing some flow-through later this fall. If we do that, depending on share price, how much money is raised and so on. There is a possibility to do some follow-up drilling at either Argosy or North Birch or both, possibly in the winter, but also going into the spring or summer of next year. So, yeah, we're still looking at those projects, still both great projects in their own right, but in the short term, the focus will remain on El Potrero and Mexico.

17:01 Robert, we always appreciate the updates. Thank you for taking the time out of your day. Until next time. Thank you.