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Gainey completes mill upgrades, begins ore sampling

Mr. David Coburn reports

Gainey Capital Corp. has completed the upgrade program at its 300-tonne-per-day mill, increasing efficiency and substantially reducing operational costs. The work was supervised by Mexico operations manager, George Cantua, who was part of the Barrick Gold management team that constructed and then operated the 20,000-tonne-per-day mill at Barrick Gold's Puebla Viejo mine joint venture in the Dominican Republic.

The company is sampling ore feedstocks from multiple mining companies in the area, and ore-tolling agreements are being negotiated. The mill, located in the prolific gold/silver Sierra Madre Occidental trend in western Mexico, is the only one in the region to include a gravimetric/flotation processing centre, which optimizes gold and silver recovery rates.

A video showing the milling operation at the El Colomo property can be viewed on the company's website.

David Coburn, chief executive officer of Gainey, commented: "The upgrade program was completed on time and under budget. We are very pleased with the technical upgrades and will now pursue our strategy of running a tolling operation until such time as we can put our own ore into production."

Mr. Cantua, Mexico operations manager for Gainey, explained: "The region around our mill has a large number of smaller operating mines unable to support stand-alone processing centres and the potential demand for ore processing is considerable. The milling and gravimetric/flotation processing centre upgrade gives us a distinct advantage in productivity and costs, which ultimately will enable us to maximize any excess capacity and increase our overall return on investment."

The upgrade included maintenance work and focused on the main power system/grid, as well as electrical and mechanical systems and pumps, motors and water systems. The infrastructure is now in place to support a second 300-tonne-per-day ball mill, ramping up throughput capacity to 600 tonnes per day at such point as the company is ready to expand further.

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