Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) is pleased to provide David Coburn’s year-end summary of company milestones achieved in 2017 and a look at plans for 2018.
Dear Valued Shareholders,
For Gainey Capital, 2017 has proven to be a pivotal year as we advanced existing assets, negotiated the acquisition of an additional exploration project and secured further funding. The last several years have been trying times in the junior exploration sector but I believe the work we have completed to date positions us to add significant value to the company in the coming years. In addition, our success should be complimented by a gradual improvement in the natural resources sector over the longer term.
During 2017, we continued to advance the El Colomo project. Early in the year our geological team finalized the Phase I drilling program which had successfully encountered near surface mineralization at the La Nueva Victoria zone, including 70.85 m of 0.65 g/t Au and 35.31 g/t Ag. The drilling confirmed the district hosts significant gold and silver mineralization in line with results of surface sampling performed by the company. In the latter half of 2017 a second phase of exploration work was initiated on the property to follow up on results of the Phase I program and further define a number of the remaining untested mineralized zones. A number of drill ready targets have been defined and will be prioritized in line with other opportunities being considered by the company.
In an effort to diversify its exploration portfolio, the company has been actively reviewing projects located in western Mexico. As part of this program, the La Minita property was identified as a likely candidate for acquisition based on signicant copper, gold and silver grades at surface and substantial exploration potential across the large land package (approximately 9,200 hectares). Additionally the La Minita property, located in southern Sinaloa state, presents great infrastructure and location as it lies less than 5 kilometers from Mexican Highway 15 and less than 10 kilometers from a rail line. In late 2017 we successfully negotiated terms to acquire 100% of the property and signed a letter of intent with the company controlling the property. We look forward to finalizing the formal purchase agreement in early 2018 and beginning work on this exciting project.
During the second half of 2017 the company successfully closed a private placement that consisted of several tranches and raised nearly $2,000,000 CAD. We are now finanacially positioned to carry out the next phases of exploration at El Colomo and La Minita. In 2017 we were also able to strengthen our technical team with the addition of Mark Bailey as Technical Advisor and Brian Metzenheim as VP of Exploration, both with significant prior experience operating in Mexico with Minfinders Corporation.
In 2018 we are looking forward to leveraging our exploration assets, financial position and expertise to unlock additional value for our shareholders. With formal acquisition of the La Minita property slated to take place in early 2018, we will quickly advance to a first phase exploration program on the property. Work will focus on defining drill targets along known mineralized trends as well as identifying additional zones. Barring unforeseen circumstances, we should be drilling on the property by the second quarter of 2018. At El Colomo, we will continue to evaluate the potential of the numerous untested mineralized zones on the property and weigh their potential against success at La Minita to prioritize exploration efforts and funds. Furthermore, we continue to evaluate outside exploration opportunities with several intriguing possibilities currently being considered. Additionally, the company is carrying on its evaluation and review of sources of feed material for our processing mill located near Huajicori in Nayarit, Mexico. Toll milling contracts are currently being discussed with a number of major companies within Mexico and I look forward to updating shareholders on this in the near future.
With a number of significant opportunities facing the company, 2018 promises to be a busy and transformative year for Gainey Capital. I would like to thank all of our shareholders for their loyal support over the last several years and extend best my best wishes for the coming year. We look forward to a successful year as we continue to explore our properties and implement strategies to increase shareholders value.
Gainey Capital Corp.
Brian Metzenheim, Vice President Exploration, Gainey Capital Corp. is the Company’s Qualified Person as defined by NI 43-101 and has reviewed and approved the technical information in this news release.
For information, please contact the Company:
FORWARD LOOKING STATEMENTS: This press release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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