Over the next 30-45 days, Gainey will share the assay results from its detailed mapping and stream sediment sampling programs that were announced over the past months. These programs have been carried out by Minera Cascabel SA de CV of Hermosillo, Mexico, a group that is considered leaders in precious metals exploration throughout Mexico. Minera Cascabel’s Senior Geologist, Rafael Gallardo, is leading our aforementioned programs and has come up with some significant findings.
Early discussions with our geological team indicated that we could have a very large mineralized system with high gold and silver grades on our 100% owned El Colomo property located in the highly-prolific Sierra Madre Occidental Trend in Western Mexico
Rafael Gallardo was quoted earlier this year saying, “El Colomo is one of the best properties with the highest potential I've seen in my 31 years of exploration. I'm excited to see our soon to be defined drill campaign test these prospective targets in the coming months.”
We’ve focused our detailed mapping initiatives on the aptly-named ‘Golden Zone.’ This is an area 3 km long and 1 km wide within our El Colomo Mineral Concessions, which currently contains 21 mineralized vein systems. The Golden Zone is a prolific gold region along the Sierra Madre Occidental trend where our 192 km2 El Colomo property is located. The mineralized vein systems that we are focused on within the Golden Zone include La Nueva Victoria, La Higuerita, El Arrayan, La Bufa, El Guayabo and Las Minitas areas
This detailed mapping program will help us identify specific drill targets for our proposed, upcoming drill program that is to commence early 2016. This drill program has been pushed into early 2016 because of the unexpected weather conditions we encountered this Monsoon Season in Mexico. We’re currently negotiating with several drilling companies that have extensive experience with this type of geological system within Mexico. Numerous drilling companies will be visiting Gainey’s Golden Zone area to conduct due-diligence site visits over the next 2-3 weeks in order to thoroughly analyze the property and targeted zones.
Gainey’s El Colomo property is on the investment community’s radar and has been visited by several large precious metal investment groups, funds and corporations for the following reasons:
1) 192 km2 land package in a potentially high gold and silver mineralized zone
2) Strong working agreement with the local Indian community
3) No security issues in this region of Mexico
4) Infrastructure in place (water, power, labour force, roads, etc.
In addition, please continue to be aware that Gainey is close to putting together a solid revenue and profit sharing strategy with various local groups. We are continuing to sample and process their mineralized materials at our 100%-owned, 300-tpd Toll-Processing Facility, which can immediately expand to 600-tpd if needed. We will also continue to provide further updates on these collaborations over the next weeks and months.
We’re on track to becoming a district play within Mexico and look forward to providing further updates on Gainey’s exploration and toll-processing activities.
David Coburn, CEO of Gainey Capital