Clarification of Technical Disclosure on the El Colomo Property

Vancouver, BC – January 06, 2017 – Gainey Capital Corp. (TSXV: GNC) (OTCMKTS: GNYPF) (“Gainey” or the “Company”) reports that as a result of a review by the British Columbia Securities Commission, it is issuing this news release to retract certain points of technical disclosure. 

The informational facts in question, which disclosed mineral resource estimates for the La Higuerita and La Nueva Victoria zones of the El Colomo Project, were included in the Company’s corporate presentation, “Gainey Capital Corp. Q3 2016,” on pages 9, 12, and 15 which appeared on the Company’s website, www.gaineycapital.com. This version of the presentation has been removed from the website and an updated version has replaced it.

The Company would like to retract these mineral resource estimates from the removed corporate presentation as they were not compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The Company has no current mineral resource estimates for the El Colomo Property.

The Company is currently drilling on the El Colomo property and anticipates filing an updated and current Technical Report early in 2017.

Qualified Person

David Hladky, P. Geo. is the Qualified Person with respect to NI 43-101 at El Colomo.

Gainey Continues to Drill New Zones at La Higuerita within The ‘El Colomo Gold-Silver Project’ in Mexico

October 13, 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTC PINK: GNYPF) (“Gainey” or the “Company”) is pleased to announce the continuation of the Company’s Phase 1 drilling program of an additional three holes at the ‘La Higuerita Gold-Silver mineralized zone’ (“La Higuerita”) located in the Sierra Madre Occidental Trend in Western Mexico.

La Higuerita is a part of Gainey’s 100% owned, 187 kmEl Colomo Gold-Silver project that hosts 21 highly prospective, gold-silver mineralized zones located within the Sierra Madre Golden Belt, Mexico. The Company is currently in the process of drill testing at La Higuerita which has encountered the following surface samples, located in Table 1 below, that appear on the Gainey news release disseminated on October 06, 2015:

 

Surface Sample Highlights:

 

Table 1 – La Higuerita Length: 1,000 Meters, Width: 80 Meters

Width (meters)

Au g/t

Ag g/t

0.40

33.30

1,550.00

1.00

20.00

895.00

2.00

3.20

147.00

0.50

1.54

491.00

 

Gainey recently announced the drilling results from the ‘La Nueva Victoria mineralized zone’ which can be seen in Table’s 2 and 3 below:

 

Table 2 – Hole DHEC160001 from La Nueva Victoria Zone (released September 29, 2016):

HOLE ID

FROM

TO

Width

Au_g/t

Ag_g/t

Au_Equivalent*

DHEC160001

5.15

76.00

70.85

0.65

35.31

1.14

Including

5.15

44.8

39.65

0.79

43.86

1.39

and

60.50

76.00

15.50

0.73

38.54

1.27

*Au Equivalent calculated using a price of $1,300 US/oz for gold and $18 US/oz for silver.

  

Table 3 – Holes DHEC160002/3 from La Nueva Victoria Zone (released October 04, 2016):

HOLE ID

FROM(m)

TO(m)

Width(m)

Au_g/t

Ag_g/t

Au_Equivalent*

DHEC160002

19.40

91.60

72.20

0.41

20.21

0.69

Including

57.00

73.20

16.20

0.74

28.88

1.14

DHEC160003

10.50

44.70

34.20

1.19

86.57

2.39

Including

10.50

14.00

3.50

4.32

438

10.39

And

27.10

44.70

17.60

1.29

37.06

2.29

*Au Equivalent calculated using a price of $1,300 US/oz for gold and $18 US/oz for silver.

 

Rafael Gallardo, Senior Geologist of Minera Cascabel S.A. de C.V., who is leading the drill program, commented, “The target of ‘La Higuerita mineralized zone’ host the same characteristics of mineralization and alteration as was encountered at the La Nueva Victoria target and all three zones are part of the Golden Corridor. These two targets have strong potential to find veins of high grade values hosted in felsic dykes and permeable lithic tuff. We are very excited to drill these two additional targets.”

David Coburn, CEO of Gainey, commented, “we are very encouraged by the success and drill results that have been encountered at the near-surface, La Nueva Victoria mineralized zone.  As we continue to move forward with our Phase 1 drilling program on La Higuerita, we are most encouraged by the fact that the Company’s El Colomo Project hosts a further 19, drill-ready, prospective gold-silver mineralized zones that Gainey plans on drill-testing in the near future.”

El Colomo Property

El Colomo is a highly prospective, 187 km2 property with district-scale gold-silver potential located within the ‘Golden Corridor’ in Sierra Madre, Mexico. High-grade and bulk tonnage targets have already been identified through prior exploration and there are strong indications of continuity between La Higuerita, La Nueva Victoria and El Arrayan (at least 2 km in strike length).

97% of this 18,766-hectare project has not been explored using modern concepts & technology. All 21 mineralized zones identified to date are located in the central portion of the property and within a 1.5 km radius of each other.

Qualified Person

David Hladky, P. Geo. is the Qualified Person with respect to NI 43-101 at El Colomo.

 

Gainey Intersects Further Near-Surface Mineralization of 34.2 Meters of 2.39 g/t Au Eq at La Nueva Victoria, Mexico

October 04, 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce assay results from the second and third holes of the Company’s Phase 1 drill program at the near surface, La Nueva Victoria Mineralized Zone (“La Nueva Victoria”) of the El Colomo property in Sierra Madre Golden Belt, Mexico.

The mineralization encountered in hole DHEC160002 (“Hole 2”) commenced at 19.40 meters from surface for 72.20 meters of 0.41 g/t Au and 20.21 g/t Ag (0.69 g/t Au Eq) and for hole DHEC160003 (“Hole 3”) commenced at 10.50 meters from surface for 34.20 meters of 1.19 g/t Au and 86.57 g/t Ag (2.39 g/t Au Eq).

 

Table 1 – Holes DHEC160002/3 from the La Nueva Victoria Zone at El Colomo:

HOLE ID

FROM(m)

TO(m)

Width(m)

Au_g/t

Ag_g/t

Au_Equivalent*

DHEC160002

19.40

91.60

72.20

0.41

20.21

0.69

Including

57.00

73.20

16.20

0.74

28.88

1.14

DHEC160003

10.50

44.70

34.20

1.19

86.57

2.39

Including

10.50

14.00

3.50

4.32

438

10.39

And

27.10

44.70

17.60

1.29

37.06

2.29

*Au Equivalent calculated using a price of $1,300 US/oz for gold and $18 US/oz for silver.

 

Holes 2 and 3 targeted the center of the silicified vein breccia zone, consisting of gray quartz veining and permeable lithic tuff. Hole 2 was targeted at -80° below, the previously released, hole DHEC160001 and Hole 3 was targeted to intersect this zone to the northwest, by approximately 28 meters. Hole 1 intercepted over 70 meters of 1.14 g/t Au Eq (please see the Company’s news release dated September 28th, 2016).

Rafael Gallardo, Senior Geologist of Minera Cascabel S.A. de C.V., who is leading the drill program, commented, “the results encountered from drill holes 2 and 3 show that Au-Ag mineralization is being encountered near surface and the mineralized structure is open at depth and along strike at La Nueva Victoria.”

David Coburn, CEO of Gainey, commented, “we are encouraged by the further success of the drill program at the La Nueva Victoria zone. This is one of 21 surface mineralized zones that we have identified in the 3 km by 1 km area of the El Colomo Project referred to as the “Golden Corridor” and we are looking forward to progressing through our drill testing of these zones to evaluate their mineralization potential”.

El Colomo Property

El Colomo is a highly prospective, 187 km2 property with district-scale gold-silver potential located within the ‘Golden Corridor’ in Sierra Madre, Mexico. High-grade and bulk tonnage targets have already been identified through prior exploration and there are strong indications of continuity between La Higuerita, La Nueva Victoria and El Arrayan (at least 2 km in strike length).

97% of this 18,766-hectare project has not been explored using modern concepts & technology. All 21 mineralized zones identified to date are located in the central portion of the property and within a 1.5 km radius of each other.

Qualified Person

David Hladky, P. Geo. is the Qualified Person with respect to NI 43-101 at El Colomo.

La Nueva Victoria Drilling and Assay QA/QC

All drill core from this release is drilled at HQ diameter and is split into equal halves near site. All samples are assayed using standard 33 element ICP and 50 gram fire assay with atomic absorption finish by ALS in Vancouver, Canada.

QA/QC programs using internal standard samples, field and lab duplicates and blanks, indicate good accuracy and precision in a large majority of standards assayed. As the mapped mineralized corridors strike N-S, the drill holes were designed to have azimuths perpendicular or as close to perpendicular to the strike as the permitted pad would allow. As this is the first drill program by Gainey at El Colomo, the dip of the main structure is not entirely known but is believed to dip steeply to the west based on mapping and historical work, and thus the intercept is estimated to represent 50-60% of the true width.  No intercept was reported that averaged less than 0.4 g/t Au and/or 10.0 g/t Ag and no intercept had more than five consecutive meters of less than 0.2 g/t Au and/or 10 g/t Ag, or began or ended with values less than 0.2 g/t Au and/or 10 g/t Ag.

Gainey Intersects Near-Surface Mineralization Over 70 Meters of 1.14 g/t Au Eq at La Nueva Victoria, Mexico

September 29, 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce assay results from the first hole of the Company’s ongoing, Phase 1 drill program at the near surface, La Nueva Victoria Mineralized Zone (“La Nueva Victoria”) of the El Colomo property in Sierra Madre Golden Belt, Mexico. The mineralized interval commences at 5.15 meters from surface for 70.85 meters of 0.65 g/t Au and 35.31 g/t Ag (1.14 g/t Au Eq), please see Table 1 below for more details:

 

Table 1 – New drill results from the La Nueva Victoria Zone at El Colomo:

HOLE ID

FROM

TO

Width

Au_g/t

Ag_g/t

Au_Equivalent*

DHEC160001

5.15

76.00

70.85

0.65

35.31

1.14

Including

5.15

44.8

39.65

0.79

43.86

1.39

and

60.50

76.00

15.50

0.73

38.54

1.27

*Au Equivalent calculated using a price of $1,300 US/oz for gold and $18 US/oz for silver.

Hole 1 targeted the center of the silicified vein breccia zone, consisting of grey quartz veining and permeable lithic tuff, of the La Victoria structure at a dip of -60 degrees. Two additional holes targeting this zone are currently being processed, and the results are anticipated shortly.

Rafael Gallardo, Senior Geologist of Minera Cascabel S.A. de C.V., who is leading the drill program, commented, “the results that we have received for the first drill hole are very encouraging and I look forward to the results from the other two holes designed to target this zone. The near-surface Au-Ag mineralization we have encountered is typical of epithermal low-sulphidation type deposits found in the area.”

David Coburn, CEO of Gainey, commented, “the maiden drill results on La Nueva Victoria confirm our model for sub-surface mineralization following up on our initial detailed sampling program. Further drilling along trend and at depth has the potential to see this zone expand significantly and, in addition to future drilling at La Higuerita and El Arrayan, have the potential to support the discovery of an under-explored gold-silver mineralized system.”

 

El Colomo Property

El Colomo is a highly prospective, 187 km2 property with district-scale gold-silver potential located within the ‘Golden Corridor’ in Sierra Madre, Mexico. High-grade and bulk tonnage targets have already been identified through prior exploration and there are strong indications of continuity between La Higuerita, La Nueva Victoria and El Arrayan (at least 2 km in strike length). Please refer to Figure 1 on page 2 of this release for a map showing the extent of the El Colomo property.

97% of this 18,766-hectare project has not been explored using modern concepts & technology. All 20 mineralized zones identified to date are located in the central portion of the property and within a 1.5 km radius of each other. 

 

Qualified Person

David Hladky, P. Geo. is the Qualified Person with respect to NI 43-101 at El Colomo.

La Nueva Victoria Drilling and Assay QA/QC

All drill core from this release is drilled at HQ diameter and is split into equal halves near site. All samples are assayed using standard 33 element ICP and 50 gram fire assay with atomic absorption finish by ALS in Vancouver, Canada.

QA/QC programs using internal standard samples, field and lab duplicates and blanks, indicate good accuracy and precision in a large majority of standards assayed. As the mapped mineralized corridors strike N-S, the drill holes were designed to have azimuths perpendicular or as close to perpendicular to the strike as the permitted pad would allow. As this is the first drill program by Gainey at El Colomo, the dip of the main structure is not entirely known but is believed to dip steeply to the west based on mapping and historical work, and thus the intercept is estimated to represent 50-60% of the true width.  No intercept was reported that averaged less than 0.4 g/t Au and/or 10.0 g/t Ag and no intercept had more than five consecutive meters of less than 0.2 g/t Au and/or 10 g/t Ag, or began or ended with values less than 0.2 g/t Au and/or 10 g/t Ag.

Figure 1 – Full Extent of the El Colomo Property

Gainey Provides Corporate Exploration Update

September 08, 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) announces that the Phase 1 Drilling campaign has completed the first three Diamond Drill holes at the El Colomo Gold-Silver Project in Mexico. The first of the three holes targeting the La Nueva Victoria Mineralized Zone has been sampled and shipped to ALS Labs Vancouver, BC for analysis and the other two holes are currently being processed at the Company’s core logging facility to be submitted shortly. Preliminary results from these drill holes are anticipated within the next few weeks.

Furthermore, the Company is pleased to announce that the program continues to advance with the commencement of drilling on the first of four targets at the La Higuerita/El Arrayan Mineralized Zones.

Gainey’s exploration team, led by Rafael Gallardo of Minera Cascabel S.A. de C.V., notes that though they have encountered two serious weather systems in the region, the program has not met any serious delays, and drilling progress has continued on the target zones. David Coburn, CEO of Gainey, commented, “we are looking forward to the first set of drilling results over the next 2-3 weeks. The Exploration Team has done an excellent job meeting their objectives given they have encountered challenging weather conditions.” 

The Company recently upgraded its exploration team with the addition of David Hladky, P.Geo. to the Technical Advisory Board, who is also the Company’s acting Qualified Person as defined by NI 43-101, please see the Company’s news release on July 26, 2016 for full details. Mr. Hladky’s previous position was with Cayden Resources Inc. as the Qualified Person and one of the leaders in the exploration of the Morelos Sur and El Barqueno projects in Mexico, that were successfully sold to Agnico Eagle Mines for $205 Million in 2014.

The Company also reports the grant of up to an aggregate 2.5 million common share purchase options, exercisable at a price of $0.20 per share, to its directors, officers, employees and consultants.

Gainey Capital Announces Appointment to the Board

August 26, 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce the appointment of Mr. Barry Lee to the Company’s Board of Directors. Mr. Lee is a co-founder of Gainey and was an original member of the Company’s Board until 2014.  He has extensive board and senior management experience and has provided strategic planning, corporate governance, and M&A expertise for both public and private companies within various sectors over the past twenty-two years.  He is currently a director and/or senior officer of several public companies listed in both Canada and the United States.

Mr. Lee has returned to the Board to replace Mr. Lawrence Segerstrom, who has resigned as a director.

“On behalf of the Board of Directors, I would like to thank Mr. Segerstrom for his dedication and service to the Company over the past two years,” said David Coburn, CEO of Gainey. “We are fortunate to have Mr. Lee rejoin our Board at such an important time for our Company.”

Gainey Capital Strengthens Technical Advisory Board

Gainey Capital Strengthens Technical Advisory Board

July 26 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce the addition of David Hladky, P.Geo, to its Technical Advisory Board.

David Hladky is a bilingual, registered Professional Geologist with over 18 years of international mineral exploration experience. Mr. Hladky’s last position was with Cayden Resources Inc. as the Qualified Person and one of the leaders in the exploration of the Morelos Sur and El Barqueno projects in Mexico that were successfully sold to Agnico Eagle Mines for $205 Million in 2014. Mr. Hladky also spent several years working for Great Panther Silver in the exploration of their Guanajuato Mine and Km 66 project, both also in Mexico.

“After visiting the El Colomo Property and analyzing the Company’s current drill program in progress, I am very excited to be an addition to the already strong technical team that has been assembled and is exploring the El Colomo Gold-Silver Project. I look forward to working with Rafael Gallardo and the Cascabel team in moving this exciting project forward,” said David Hladky.

David Coburn, President and CEO of Gainey Capital, stated, “David Hladky is a key addition to our team as we move our El Colomo Gold-Silver project forward. His direct experience within similar geological and mineralization settings in Mexico is a great asset for Gainey and our shareholders.”

Gainey Capital Provides Update on Phase 1 Drill Program at the El Colomo Gold-Silver Project in Western Mexico

July 5th, 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to report that the Company is in the process of completing the first three holes of its Phase 1 drill program on the La Nueva Victoria mineralized zone located within the El Colomo Gold-Silver Project (“El Colomo”) in Western Mexico.  As these first three holes are completed, and the drill core is assayed, the Company will disseminate results to the public.

As previously announced in the Company’s news release on May 25th, 2016, Phase 1 of the drilling program will comprise between 2,000 and 5,800 meters of HQ diamond core drilling and will focus on the La Nueva Victoria, La Higuerita, El Arrayan, and La Penita mineralized zones which are hosted within the El Colomo Project.

David Coburn, CEO of Gainey, commented, “We are extremely pleased with the drilling progress at the La Nueva Victoria mineralized zone thus far. We look forward to publicly disseminating the assay results as soon as they become available.”

Gainey Capital Announces Drilling Program at the El Colomo Gold-Silver Project in Western Mexico

May 26, 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to report that drilling will commence by the end of May 2016 at the El Colomo Gold-Silver Project (the “Project”), located in the Sierra Madre Occidental Trend in Western Mexico.

The Phase 1 drilling program will comprise between 2,000 and 5,800 meters of HQ diamond core drilling and will focus on the following four mineralized zones that have already been encountered by the Company:

  • La Higuerita: highlight assays of 33.30-gpt gold / 1,550.00-gpt silver and 20.00-gpt gold / 895.00-gpt silver;
  • La Nueva Victoria: highlight assays of 9.73-gpt gold / 155.00-gpt silver and 3.54-gpt gold / 261.70-gpt silver;
  • El Arrayan: highlight assays of 12.35-gpt gold / 938.00-gpt silver and 2.68-gpt gold / 248.10-gpt silver;
  • La Peñita: highlight assays of 24.50-gpt gold / 1,300.00-gpt silver and 2.36-gpt gold / 138.30-gpt silver

Gainey’s field crew has been mobilized and preparation of the drill pads is underway. The Company expects the Phase 1 drilling program to commence prior to the end of May 2016.   

David Coburn, CEO of Gainey, commented, “the commencement of the Phase 1 Drilling Program will target four out of the 21 high priority Mineralized Zones at El Colomo that have already been identified by the Company’s technical team. Our most recent exploration activity on the Project, which includes assay results and detailed mapping, gives us reason to be optimistic that the anticipated results of our Phase 1 drilling program will be the foundation of building a great company.” 

Gainey Provides Corporate Update on AGM Results

April 28, 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce a record number of shareholders voting at the Company’s AGM on Wednesday, March 30, 2016 which includes a 99.98% vote in favour of the current Gainey management.  

 

The Company’s management team is looking forward to a strong 2016 with numerous Mineral Processing agreements expected to commence within the year as well as a Phase 1 drill program projected to start in May, 2016, on the Company’s El Colomo project.

 

Final negotiations are currently being undertaken at the El Colomo project between the Company and several drilling companies who are evaluating proposed drill targets.

 

Gainey’s renowned geologists: Larry Segerstrom, Director and QP of Gainey, and Rafael Gallardo, Senior Geologist of Minera Cascabel S.A. de C.V. (“Cascabel”), have signed-off on 21 priority drill targets totaling 5,800 meters, which could be divided into various tranches. These targets are within mineralized zones at El Colomo, which include:

  • La Higuerita, with highlight assays of 33.30-gpt gold / 1,550.00-gpt silver and 20.00-gpt gold / 895.00-gpt silver;
  • La Nueva Victoria, with highlight assays of 9.73-gpt gold / 155.00-gpt silver and 3.54-gpt gold / 261.70-gpt silver;
  • El Arrayan, with highlight assays of 12.35-gpt gold / 938.00-gpt silver and 2.68-gpt gold / 248.10-gpt silver;
  • La Peñita, with highlight assays of 24.50-gpt gold / 1,300.00-gpt silver and 2.36-gpt gold / 138.30-gpt silver

 

The Company also expects to commence several mineral processing agreements in the near future which have the potential for Gainey to operate its’ wholly owned, 300 TPD processing facility, in a cash flow positive environment. The 50/50 profit-sharing agreements between Gainey and local groups offer the potential for near-term revenues, which will be used to supplement the Company’s exploration and drilling programs on the El Colomo project.  

 

David Coburn, CEO of Gainey, commented, “With the high voter turnout at the Company’s most recent AGM, I am excited about 2016 for Gainey shareholders as the Company is in the process of finalizing and moving forward with the proposed drilling program. Furthermore, the Company is in the process of executing agreements for mineral processing with multiple miners.”