High-grade mineralized material from Garibaldi’s gold project to be bulk-sampled at Gainey’s advanced mill and processing centre
Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce it has signed a letter of intent with Garibaldi Resources to bulk sample mineralized material from Garibaldi’s La Patilla project at Gainey’s advanced 300 TPD mill and processing centre. Following successful bulk sampling of the material, which has assayed as high as 10.4 gpt Au, the companies will evaluate the potential for processing over the long term via a Tolling/Revenue/Profit sharing business model agreement.
Gainey’s 100%-owned mill and processing centre, which is the only one in the region with gravity and flotation circuits for optimized returns, is located in close proximity to Garibaldi’s La Pailla property. Both the mill and Garibaldi’s property are easily accessible and surrounded by excellent infrastructure in established mining districts.
David Coburn, CEO of Gainey Capital, commented, “ Garibaldi’s La Patilla gold mining project is located close to our mill and their 2014 drill program returned very impressive grades and wide mineralization. With our mill and processing centre fully operational and capable of doubling its capacity with very low additional capital expenditure and at short notice, we are excited by the potential for Gainey and Garibaldi.”
Steve Regoci, CEO of Garibaldi Resources, said, “Garibaldi acquired La Patilla as a near-term exploitation project and our drilling has delivered tremendous first pass results. What’s more, we own our own drill rig, which keeps costs low. This agreement with Gainey gives us access to the most advanced mill and processing centre in the region and has the potential for a longer term partnership that could deliver considerable economic gain for both companies.”