VANCOUVER, BC / ACCESSWIRE / June 3, 2015 / Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce that it has signed a Confidentiality Agreement with Ignacio Echavarria Valenzuela of Cosala Mining Corp. (“Cosala”). Gainey is in the process of receiving mineralized material from a number of Cosala’s concession holdings located in the Sierra Madre mining district in the state of Sinaloa, Mexico. This shipment of material is to be sampled and assayed at Gainey’s, 100%-owned, 300-tpd Processing Centre, which is in close proximity to Cosala’s properties.
Cosala is a privately held Mexican mining company, which is wholly-owned by Ignacio Echavarria Valenzuela, and has significant concession holdings in the highly prolific Sierra Madre mining belt located in Western Mexico.
The initial test shipment from Cosala will be comprised of mineralized vein material and tailings from their nearby properties. This preliminary material shipment will evaluate the economic feasibility of shipping to and processing at the Gainey,100%-owned, 300-tpd Processing Centre. Positive sample and assay results from this initial shipment will be followed by a subsequent shipment of 20,000 tonnes of production ready materials.
Ignacio Echavarria Valenzuela, owner of Cosala, commented, “We’ve been eager to explore synergies between Cosala and Gainey for some time now. We’re excited to finally be entering into formal agreements to test, and potentially process, our materials at Gainey’s Processing Center, which is the best in the region with its upgraded gravimetric and floatation systems and facility efficiencies. We’re confident that this is the beginning of a long and significant working arrangement and look forward to collaborating with Gainey in the years to come.”
David Coburn, CEO of Gainey Capital, commented, “We’re pleased to have such profound interest from local companies in the area like Cosala. We see this working relationship as an opportunity to expand operations at our processing centre and ramp up production. Gainey is ready to start processing Cosala’s first shipment at our 300-tpd processing centre, which can be expanded to 600-tpd if necessary. Establishing strong working relationships like this can open many doors and will only continue to increase the flow of incoming material to our Processing Centre in the coming year, which will benefit both local Mexican companies and our shareholders.”
About Cosala Mining Corp.
Cosala Mining Corp. is a private Mexican mineral exploration company that is wholly-owned by Ignacio Echavarria Valenzuela. The company holds numerous mineral concessions located in the Sierra Madre mining district in the state of Sinaloa, Mexico.