VANCOUVER, June 4 /CNW/ - 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
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.
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
For further information:
For further information: Paul Saxton, President & CEO at (604) 688-7377
or visit Pinnacle's website at www.pinnaclemines.com