Thanks to our advanced gold and silver mill/processing center, Gainey became officially cash flow positive in August – the first month following our upgrade and enhancement program. This is a very exciting time for the company as we continue to sample ore from the many high-grade ore bodies near the mill while simultaneously gearing up for phase one exploration at our El Colomo property.
For those of you who are new to the Gainey story, we are an emerging producer and explorer in the prolific gold/silver Sierra Madre region of Western Mexico.
Phenomenal property and industry-leading explorers. With dozens of visible outcrops of substantial size, prior exploration delivering grades as high as 13.75 g/t Au-Eq and a land package that encompasses 18,766 hectares hectares, El Colomo is considered one of the most prospective, under-explored properties to be found in Mexico’s Sierra Madre. That’s saying something considering our neighbours include companies such as First Majestic, AuRico Gold and Primero. It’s the quality and potential of the property that convinced Peter Megaw, the most successful geologist in Mexico, to come on board with his Cascabel team to lead the exploration.
Preparations are well under way for Phase One of our 2014/2015 exploration program. If you haven’t already checked it out, take a look at our property page for a thorough overview of prior drill result and overall prospectivity.
High-end mill, ideal location, best-in-class operations. Our mill/processing center is the only one in the region to include a gravimetric/flotation processing center, which optimizes gold and silver recovery rates. It sits in very close proximity to a number of high grade ore bodies (from 7km to 33 km in distance) and as you can imagine, demand for toll processing is proving to be very strong. It’s very near low-cost skilled Labour/Power/Water, has very easy road/highway access and is run by George Cantua, who previously supervised Barrick Gold’s 24,000-tpd mill in the Dominican.
With toll processing negotiations underway with multiple mining companies nearby and plans moving forward for El Colomo exploration, it’s exciting times ahead for Gainey. If you have any questions, please don’t hesitate to get in touch. You can also connect with us on Twitter and LinkedIn for timely updates.
David Coburn, CEO of Gainey Capital