Mar. 17, 2010 (TheNewswire.ca) --
Vancouver, B.C., March 17, 2010; Pinnacle Mines Ltd. (TSXV:PNL) (TSXV: PNL; "Pinnacle" or the "Company") announces that it has revised its December 30, 2009 NI 43-101 Preliminary Economic Assessment Report for its Silver Coin gold project located near the town of Stewart, in NW British Columbia. The revised technical report prepared by the engineering firm Tetra Tech, Inc. (NASDAQ:TTEK) ("Tetra Tech") is available on the Company's web site and on SEDAR and clarifies the Company's two prior news releases dated January 11, 2010 and January 15, 2010.
Resource Calculation
Tetra Tech reports the following revised gold resource (OTCBB:GORO) which now includes an additional Cutoff Grade case at 0.30 Au (g/t):
TABLE 1-1: Silver Coin total classified resources Pinnacle Mines Ltd. - Silver Coin Gold ProjectDecember 2009
Measured RESOURCES
ROCKTYPE Cutoff GradeAu (g/t) TONNES Avg. Grade Contained Metal(‘000)
(000) Au(g/t) Ag(g/t) Zn(%) Au(oz) Ag(oz) Zn(lb)
ALL 0.25 8,895 1.28 7.04 0.29 365 2,012 55,967
ALL 0.30 8,091 1.38 7.30 0.30 358 1,899 53,833
ALL 0.50 5,957 1.73 8.16 0.35 331 1,562 46,569
ALL 0.75 4,308 2.16 8.96 0.40 299 1,241 38,246
ALL 1.00 3,219 2.59 9.64 0.44 268 997 31,140
ALL 1.25 2,505 3.01 10.27 0.47 243 827 26,017
ALL 1.50 2,052 3.38 10.93 0.50 223 721 22,723
Indicated RESOURCES
ROCKTYPE Cutoff GradeAu (g/t) TONNES Avg. Grade Contained Metal(‘000)
(000) Au(g/t) Ag(g/t) Zn(%) Au(oz) Ag(oz) Zn(lb)
ALL 0.25 18,385 1.02 5.99 0.20 602 3,544 82,522
ALL 0.30 16,617 1.10 6.21 0.21 586 3,318 78,580
ALL 0.50 11,811 1.38 6.92 0.25 526 2,627 65,174
ALL 0.75 8,009 1.75 7.54 0.28 451 1,942 49,527
ALL 1.00 5,608 2.13 8.13 0.30 384 1,465 37,511
ALL 1.25 4,073 2.51 8.56 0.32 329 1,121 28,949
ALL 1.50 3,048 2.90 9.17 0.35 284 898 23,297
Measured + Indicated RESOURCES
ROCKTYPE Cutoff GradeAu (g/t) TONNES Avg. Grade Contained Metal(‘000)
(000) Au(g/t) Ag(g/t) Zn(%) Au(oz) Ag(oz) Zn(lb)
ALL 0.25 27,279 1.10 6.33 0.23 967 5,556 138,441
ALL 0.30 24,708 1.19 6.57 0.24 944 5,217 132,420
ALL 0.50 17,767 1.50 7.33 0.29 857 4,189 111,750
ALL 0.75 12,317 1.89 8.04 0.32 749 3,184 87,762
ALL 1.00 8,827 2.30 8.68 0.35 652 2,462 68,635
ALL 1.25 6,578 2.70 9.21 0.38 572 1,949 54,962
ALL 1.50 5,101 3.09 9.88 0.41 507 1,620 46,029
Inferred RESOURCES
ROCKTYPE Cutoff GradeAu (g/t) TONNES Avg. Grade Contained Metal(‘000)
(000) Au(g/t) Ag(g/t) Zn(%) Au(oz) Ag(oz) Zn(lb)
ALL 0.25 49,189 0.76 6.60 0.22 1,209 10,433 243,019
ALL 0.30 41,302 0.86 7.12 0.25 1,140 9,460 229,184
ALL 0.50 24,861 1.17 8.50 0.28 937 6,792 154,999
ALL 0.75 15,343 1.52 8.43 0.30 750 4,158 99,920
ALL 1.00 10,380 1.84 9.47 0.33 612 3,160 76,363
ALL 1.25 6,787 2.22 10.89 0.38 484 2,375 57,217
ALL 1.50 5,031 2.51 12.04 0.41 407 1,948 45,508
In addition to this basic calculation of the resource based on the several cutoff grades listed above, Tetra Tech estimated the costs to develop the Silver Coin project into a mine. This cost estimate includes costs of construction, mining and milling as reported in the Company's January 15, 2010 news release. Tetra Tech used these costs as inputs to running a Whittle pit to estimate the pit shape and calculate the tonnages of potentially economically processable material plus the waste material. The result of the Whittle pit run suggested that based on the input cost parameters, the internal pit cutoff grade for processable material would be approximately 0.30 Au (g/t) and based on this estimate, included the new cutoff case of 0.30 Au (g/t) as reported above.
In addition to the change described above, the revised Tetra Tech report includes changes to terminology including removal of all references to the word "ore" and the words "potentially mineable resource" and has replaced them with phrases such as "in-pit" resource. These changes have been made to clarify that this Preliminary Economic Assessment is meant only to represent information about a resource and is not meant to represent that this resource is necessarily economic.
Revised Annual Information Form
The Company also announces that it has filed a Revised Annual Information Form (the "Revised AIF"), dated December 30, 2009 with the Canadian securities regulatory authorities in Canada. The Revised AIF replaces and supersedes the previous Annual Information Form of the Company dated December 30, 2009 and has been filed to correct certain information which was non compliant with the requirements of NI 43-101. The Revised AIF is available on the Company's web site and on SEDAR.
This press release was prepared and reviewed by Robert Perry, P.Geo, who is recognized as a Qualified Person under the guidelines of National Instrument 43-101. John W. Rozelle, P.Geo, is the qualified person under Tetra Tech who was responsible for the report and the estimates therein.
On Behalf of the Board:
Lawrence A. Dick, Ph.D., P.Geo
President & CEO
For further information contact Mike Thast at 604.688.9588 or visit Pinnacle's website at www.pinnaclemines.com.
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
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