We are very excited to share that the company is close to processing mineralized materials from several local groups in Western Mexico, which could add further cash flow to our company, greatly benefiting both shareholders and Gainey Capital.
The varying levels of mineralized material that we’ve been sampling over the last few months has allowed us to get a strong handle on our overall costs, production efficiencies and productivity levels as well as establish strong working relationships with key local groups. I am very comfortable in saying that we will continue to be a very low-cost tolling operator in Mexico and we will eventually start to process some of our very own mineralized material from our 100%-owned El Colomo property.
As the precious metals market and prices continue to fluctuate, we will survive and prosper in the months and years to come.
As I’ve mentioned, our strategy is to move towards a model that allows us to purchase and process mineralized material at a discount from properties in the area, which provides us with capital to further develop our own exploration properties.
In 2015, we will bulk sample our own mineralized material from our 192-km2, El Colomo property located in the highly prolific Sierra Madre Occidental Trend in western Mexico at our 100% owned Toll Processing Centre.
I’m happy to say that we are finally close to putting together a solid revenue and profit sharing strategy with the following local groups:
We have been sampling Goldplay’s mineralized material from 2 of its 3 highly prospective gold properties, which turned up very positive results that both Gainey and Goldplay were excited to discover. Based on these strong early results, we see a significant opportunity to executive a profitable processing strategy that could last as long as 12-14 months. We are very close to putting together a working agreement with Goldplay, which will be profitable for both companies.
Goldplay’s properties are strategically located in close proximity to Gainey’s Huajicori, Nayarit Toll Processing Center. Mineralized material from Goldplay’s first, second and third property contains ~6,000-7,000 tons, ~10,000-12,000 tons and ~100,000 tons, respectively and could potentially total more.
As an added note, Goldplay is working on several other sampling and processing programs with Gainey. Goldplay comes with a very strong technical team who has over 30 years of experience working throughout this area and is led by Geologist, Frank Powell, who has a proven track record of major discoveries throughout Latin America.
We are working with Belmex on an opportunity that involves the shipment of mineralized material from a new property in the area that looks extremely promising. We’ve already begun receiving mineralized material from their properties and will further explore the potential of this new prospect. We will provide further updates soon.
Another exciting opportunity that has tremendous upside potential is the renowned El Tigre property, which is located merely 7-km from our Toll Processing Centre. El Tigre was once a very successful gold and silver producer with its own processing centre. More to come on this shortly as we continue to work with the owners of El Tigre.
PICACHOS EJIDO COMMUNITY
We’re currently discussing the many opportunities that the Ejido community has brought forth. They occupy 2,000-km2 in the area and are located only 3-km from our Toll Processing Center. More to come on this opportunity as well.
GARABALDI RESOURCES AND COSALA MINING
We’re are continuing to work on other processing opportunities with Garibaldi and Cosala, which may require further sampling in the months to come. There are a lot of factors to consider in the tolling process and we are moving forward in exploring all potential opportunities and synergies.
Through these new opportunities and strong working relationships with local groups, Gainey is one step closer to becoming one of the most successful tolling operations in Mexico. We’re very excited for the coming year and look forward to providing further updates on our progress as the year goes on.
David Coburn, CEO of Gainey Capital