Gainey Capital Corp. (TSXV: GNC) (“Gainey” or the “Company”) is pleased to provide the following operations and corporate updates:
Following the completion of the Company’s Qualifying Transaction (QT) as announced in its news release dated October 2, 2013, the Company is preparing to begin work on its El Colomo property in the highly prolific gold- and silver-rich Sierra Madre Occidental Trend in western Mexico. Comprised of 18,766 contiguous hectares, El Colomo is surrounded by major and mid-major TSX and NYSE precious metals producers First Majestic Silver, Primero Corp, Chesapeake Gold, Goldcorp, Endeavor Silver and Great Panther Silver.
Of the nearly 19,000 hectares of El Colomo mineral concessions, less than 3% has been explored using current advanced mining techniques. The Company's NI 43-101 technical report entitled “Review of Technical Information and Proposed Exploration Program for the El Colomo Property” (the “Report”), as filed on SEDAR (www.sedar.com) August 2, 2013, outlines some of the historical technical work performed by Asarco and other qualified exploration companies over recent years, including those engaged pre-QT by Gainey. The Report indicates that there are a minimum of 18 mineral occurrences requiring exploration within the El Colomo boundary. Given the under-explored nature of the Property, the Company intends to actively pursue its development, and is currently formulating a comprehensive exploration plan that it expects to commence in early 2014.
In addition to the mineral concessions, Gainey’s QT included the purchase of a nearby 300 tons/day mill and gold/silver processing facility, which was operational until as recently as 2012. Gainey is currently completing an audit and inventory on the facility’s equipment, and will follow that by recommissioning the facility back to production capability, with a view to re-starting the processing circuit in early 2014. The Company is currently arranging toll processing contracts for neighbouring producers with available ore.
The Company will begin adding in-country management to its operations team in Mexico as early as this month, as it begins ramping up both its exploration and mill/processing operations.
In addition to adding to the Company’s operations team, the board of directors is pleased to announce the formation of its Technical Advisory Committee. Intended to consult with the Gainey board and management on the strategic development of the Company’s exploration projects and its global profile, the Committee will be comprised of leading experts in the technical and commercial fields. The Company expects to make an announcement regarding its first appointment to the Committee in the coming weeks.
About Gainey Capital Corp.
ON BEHALF OF THE BOARD OF DIRECTORS
“David Coburn” (signed)
David Coburn, Chief Executive Officer
For information, please contact the Company:
FORWARD LOOKING STATEMENTS: This press release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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