Gainey Capital Signs Letter of Intent With Grupo Wolinak for Bulk Sample Processing at Huajicori Mill
Gainey Capital Signs Letter of Intent With Grupo Wolinak for Bulk Sample Processing at
Huajicori Mill
VANCOUVER, BC / ACCESSWIRE / February 28, 2018 / Gainey Capital Corp. (TSXV: GNC)
(OTC PINK: GNYPF) ("Gainey" or the "Company") is pleased to announce that it has signed a letter of
intent ("LOI") with Grupo Wolinak S.A. de C.V. ("Grupo Wolinak") for the purchase and processing of a
gold and silver mineralized bulk sample at the Company's Huajicori mill. The bulk sample will be
sourced from mineralized material located on surface at a historic gold, silver district within trucking
distance of the mill. Prior work indicates grades of the bulk sample should be in the range of 2 - 2.5 g/t
gold and 250 - 300 g/t silver. Results of the test work will be utilized to determine the viability of entering
into a longer term processing agreement.
As part of the LOI, Grupo Wolinak will source the mineralized material for the bulk sample which will be
transferred to the Huajicori mill for processing. Initial shipments are anticipated to arrive at the mill
during the week of March 5th. Grupo Wolinak is a private Mexican company based in Torreon, Coahuila
with knowledge of low cost sources of mill feed within Mexico and could be instrumental in establishing
additional mill feed sources for Gainey.
Results from the processing of the bulk sample will determine the average grade of the sampled material,
the recoveries attainable by the mill and costs associated with processing the material. If the results are
favorable, the parties intend to move forward by negotiating a formal ore processing agreement and
evaluating the remaining surface mineralized material. A study completed in 2007 estimated in excess of
30,000 tonnes of surface mineralized material located at various locations on the property at an average
grade of 2.65 g/t gold and 300 g/t silver. While the report is justification for proceeding with a bulk
sample it was not prepared in accordance with NI 43-101 and should not be relied upon until verified.
In addition to the property potentially representing a low cost source of feed material for the Huajicori
mill, the Company is also reviewing the property as a potential exploration acquisition. Initial due
diligence indicates numerous historic high grade Au-Ag workings clustered in a number of closely spaced
districts. The majority of the mineralized zones are within short trucking distance of each other and
highway access. Potential exists for the discovery of both small scale mineralized structures as well as
larger tonnage, high grade zones.
David Coburn, Gainey Capital's CEO stated, "We are confident this processing partnership will allow
Gainey to establish a longer term tolling strategy utilizing our 300 TPD gravity/ flotation mill. Positive
cash flow generated from a potential agreement will allow the company to move forward more
aggressively on exploration projects we are currently considering."
In light of recent opportunities, the company has elected to not move forward with the La Minita property
located in Sinaloa, Mexico.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
"David Coburn”
David Coburn, Chief Executive Officer
For information, please contact the Company:
Phone: 480-347-8904
E-mail: [email protected]
Website: www.gaineycapital.com
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or
accuracy of this Release.
SOURCE: Gainey Capital Corp.