Gainey’s Toll Processing/Revenue Sharing Facility has been operational for little over 6 months and we have been making considerable headway. We want to provide our shareholders an update as we have been receiving considerable interest from mining groups in the area of western Mexico.
Let us highlight the following map that shows the mining groups that we’re currently in discussions with to process their mineralized material at Gainey’s 100% owned Toll Processing/Revenue Sharing Facility.
As you can see in the following map, there are numerous groups that have already entered into full discussions with the company. The overwhelming interest is just the beginning of Gainey’s strategy to become one of the largest toll-producers in the state of Nayarit, Mexico. We’re close to closing several of these tolling and revenue sharing agreements, which we expect to announce in this quarter.
Our Toll Processing/Revenue Sharing Facility is becoming well known in the area since the major overhaul and continuous upgrades to the Gainey processing centre. In addition to these major renovations, our attractive revenue sharing model continues to initiate countless high-level discussions between Gainey and local groups to process their materials from surrounding properties. Not to mention, current operations at our Toll Processing/Revenue Sharing Facility have resulted in the company being cash flow positive per our last two quarters at our Mexican operation.
We’d like to note that Gainey plans on bulk-sampling its own mineralized material from its 100% owned 18,766 hectare El Colomo property located in the Sierra Madre Occidental Trend in western Mexico in 2015 at its 100% owned Toll Processing/Revenue Sharing Facility. In conjunction to processing Gainey’s own material, as the company progresses, we aim to move towards a model that allows Gainey to purchase and process the mineralized material at a discount from properties in the area, which will give the company numerous funds to further develop its own exploration properties.
Gainey’s Toll Processing/Revenue Sharing Facility can support processing of 300 tpd and has the capacity to immediately expand to 600 tpd. Through these toll-processing agreements the company will further expand operations and has the capacity to process upwards of 1000 tpd when the opportunity arises.
Gainey is often compared to companies with the toll processing business model, like Dynacor Gold (TSX: DNG) and Inca One Gold (TSX.V: IO), who have been in business for many years. Given the historical progression of companies like these, Gainey is well ahead of the curve and making substantial headway in comparison.
We’re not going to be successful overnight but we are well on track to becoming a very successful Toll Processing/Revenue Sharing company in Mexico.
As we continue our regional outreach related to the many independents in Sierra Madre we’ll update this map and I’ll be sure to share with you. Meanwhile, if you have any questions, please don’t hesitate to get in touch.
David Coburn, CEO of Gainey Capital