October 04, 2016 – Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce assay results from the second and third holes of the Company’s Phase 1 drill program at the near surface, La Nueva Victoria Mineralized Zone (“La Nueva Victoria”) of the El Colomo property in Sierra Madre Golden Belt, Mexico.
The mineralization encountered in hole DHEC160002 (“Hole 2”) commenced at 19.40 meters from surface for 72.20 meters of 0.41 g/t Au and 20.21 g/t Ag (0.69 g/t Au Eq) and for hole DHEC160003 (“Hole 3”) commenced at 10.50 meters from surface for 34.20 meters of 1.19 g/t Au and 86.57 g/t Ag (2.39 g/t Au Eq).
Table 1 – Holes DHEC160002/3 from the La Nueva Victoria Zone at El Colomo:
HOLE ID | FROM(m) | TO(m) | Width(m) | Au_g/t | Ag_g/t | Au_Equivalent* |
DHEC160002 | 19.40 | 91.60 | 72.20 | 0.41 | 20.21 | 0.69 |
Including | 57.00 | 73.20 | 16.20 | 0.74 | 28.88 | 1.14 |
DHEC160003 | 10.50 | 44.70 | 34.20 | 1.19 | 86.57 | 2.39 |
Including | 10.50 | 14.00 | 3.50 | 4.32 | 438 | 10.39 |
And | 27.10 | 44.70 | 17.60 | 1.29 | 37.06 | 2.29 |
*Au Equivalent calculated using a price of $1,300 US/oz for gold and $18 US/oz for silver.
Holes 2 and 3 targeted the center of the silicified vein breccia zone, consisting of gray quartz veining and permeable lithic tuff. Hole 2 was targeted at -80° below, the previously released, hole DHEC160001 and Hole 3 was targeted to intersect this zone to the northwest, by approximately 28 meters. Hole 1 intercepted over 70 meters of 1.14 g/t Au Eq (please see the Company’s news release dated September 28th, 2016).
Rafael Gallardo, Senior Geologist of Minera Cascabel S.A. de C.V., who is leading the drill program, commented, “the results encountered from drill holes 2 and 3 show that Au-Ag mineralization is being encountered near surface and the mineralized structure is open at depth and along strike at La Nueva Victoria.”
David Coburn, CEO of Gainey, commented, “we are encouraged by the further success of the drill program at the La Nueva Victoria zone. This is one of 21 surface mineralized zones that we have identified in the 3 km by 1 km area of the El Colomo Project referred to as the “Golden Corridor” and we are looking forward to progressing through our drill testing of these zones to evaluate their mineralization potential”.
El Colomo Property
El Colomo is a highly prospective, 187 km2 property with district-scale gold-silver potential located within the ‘Golden Corridor’ in Sierra Madre, Mexico. High-grade and bulk tonnage targets have already been identified through prior exploration and there are strong indications of continuity between La Higuerita, La Nueva Victoria and El Arrayan (at least 2 km in strike length).
97% of this 18,766-hectare project has not been explored using modern concepts & technology. All 21 mineralized zones identified to date are located in the central portion of the property and within a 1.5 km radius of each other.
Qualified Person
David Hladky, P. Geo. is the Qualified Person with respect to NI 43-101 at El Colomo.
La Nueva Victoria Drilling and Assay QA/QC
All drill core from this release is drilled at HQ diameter and is split into equal halves near site. All samples are assayed using standard 33 element ICP and 50 gram fire assay with atomic absorption finish by ALS in Vancouver, Canada.
QA/QC programs using internal standard samples, field and lab duplicates and blanks, indicate good accuracy and precision in a large majority of standards assayed. As the mapped mineralized corridors strike N-S, the drill holes were designed to have azimuths perpendicular or as close to perpendicular to the strike as the permitted pad would allow. As this is the first drill program by Gainey at El Colomo, the dip of the main structure is not entirely known but is believed to dip steeply to the west based on mapping and historical work, and thus the intercept is estimated to represent 50-60% of the true width. No intercept was reported that averaged less than 0.4 g/t Au and/or 10.0 g/t Ag and no intercept had more than five consecutive meters of less than 0.2 g/t Au and/or 10 g/t Ag, or began or ended with values less than 0.2 g/t Au and/or 10 g/t Ag.
About Gainey Capital Corp.
Gainey Capital is a gold and silver exploration, development and mineral processing company exploring an aggregate of 187-km2 strategically located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. The company’s processing center, located outside of Huajicori, in Nayarit, Mexico, is capable of processing up to 300 tons of mineralized material per day and the company has the capability to upgrade to 600 tons per day with a low capital expenditure. Additional information on Gainey Capital, its current operations and its vision is available on the Company’s website atwww.gaineycapital.com or from [email protected].
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.
Original Article: http://www.gaineycapital.com/8-news/84-gainey-intersects-further-near-surface-mineralization-of-34-2-meters-of-2-39-g-t-au-eq-at-la-nueva-victoria-mexico.html
