Pinecrest, as operator of the project, can earn a 50 per cent interest in the Espiritu project by spending $1.0 million on exploration over a four-year period, and by issuing up to 750,000 shares over three years.
Five diamond drill holes for a total of 409 metres were completed on two of seven known silver-rich mineralized areas outlined so far at the site.
Two of the five holes tested the Road Show Zone and three tested the Molinos Zone.
At the Road Show Zone, the holes were designed to test a 500 by 500 metre target containing silver, gold, lead, zinc and copper mineralization.
ESP-12-01 intersected 54 metres of "ferro-dolomite altered breccia", of which 41 metres were anomalous in silver, lead and zinc, with the best interval returning 11.0 metres grading 26.2 grams per tonne (g/t) silver, 2,762 parts per million (ppm) of zinc, and 1,388 ppm lead.
The highest individual section within this interval assayed 1.0 metre for 187 g/t silver and 1.87% of lead plus zinc.
Meanwhile, at the Molinos Zone, hole ESP-12-03 was lost prior to target depth because it intersected an old mine working, but the holes was then re-drilled, showing 17.8 g/t silver, 195 ppm of zinc, and 1,375 ppm of lead over 4 metres, said the companies.
In drill hole ESP-12-04 at Molinos, the shale interval intersected returned anomalous silver, lead and zinc, the parties said, while the porphyry was anomalous in copper and molybdenum.
The hole returned an 8.5 metres interval grading 12.4 g/t silver, 730 ppm zinc, 582 ppm lead, and 420 ppm copper, including 1 metre of 38 g/t silver, 1,580 ppm zinc, 960 ppm lead, 670 ppm copper and 210 ppm of molybdenum.
The third hole, ESP-12-05, was lost before reaching the target depth. The companies said no significant values were intercepted.
The Molinos Zone is located roughly 2.0 kilometres southeast of the Road Show Zone.
A soil survey completed over Molinos outlined a broad zone of highly anomalous gold, silver, lead, zinc mineralization, Pinecrest and Kootenay said. The type of mineralization is suggestive of a continuum of mineralization between the Road Show into the Molinos Zone, they added.
The two companies are reviewing all technical data from the Espiritu project to recommend the next stage of work to advance the project.
The Espiritu project covers an extensive area of mineralization, including a copper-gold porphyry zone where previous drilling intersected up to 232 metres grading 0.14% copper and 0.14 g/t gold.
Silver-gold-lead-zinc veins have also been documented on the property, with grab samples returning up to 1,000 g/t silver.