Gainey (TSX:
$GNC.V; OTCQX:
GNYPF) Intersects Near-Surface
Mineralization Over 70 Meters of 1.14 g/t Au Eq at La Nueva Victoria, Mexico
September 29, 2016 – Vancouver, British
Columbia - Gainey Capital Corp. (TSXV: GNC; OTCQX: GNYPF)
(“Gainey” or the “Company”) is pleased to announce assay
results from the first hole of the Company’s ongoing, 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 mineralized interval commences at 5.15
meters from surface for 70.85 meters of 0.65 g/t Au and 35.31 g/t Ag (1.14 g/t
Au Eq), please see Table 1 below for more details:
Table 1 – New drill results from the La Nueva Victoria
Zone at El Colomo:
|
HOLE ID
|
FROM
|
TO
|
Width
|
Au_g/t
|
Ag_g/t
|
Au_Equivalent*
|
|
DHEC160001
|
5.15
|
76.00
|
70.85
|
0.65
|
35.31
|
1.14
|
|
Including
|
5.15
|
44.8
|
39.65
|
0.79
|
43.86
|
1.39
|
|
and
|
60.50
|
76.00
|
15.50
|
0.73
|
38.54
|
1.27
|
*Au Equivalent calculated using a
price of $1,300 US/oz for gold and $18 US/oz for silver.
Hole 1 targeted the center of the silicified vein breccia zone, consisting
of grey quartz veining and permeable lithic tuff, of the La Victoria structure
at a dip of -60 degrees. Two additional holes targeting this zone are currently
being processed, and the results are anticipated shortly.
Rafael Gallardo, Senior Geologist of Minera
Cascabel S.A. de C.V., who is leading the drill program, commented, “the
results that we have received for the first drill hole are very encouraging and
I look forward to the results from the other two holes designed to target this zone.
The near-surface Au-Ag mineralization we have encountered is typical of
epithermal low-sulphidation type deposits found in the area.”
David Coburn, CEO of Gainey,
commented, “the maiden drill results on La Nueva Victoria confirm our model for
sub-surface mineralization following
up on our initial detailed sampling program. Further drilling along trend and
at depth has the potential to see this zone expand significantly and, in addition
to future drilling at La Higuerita and El Arrayan, have the potential to support the discovery of an
under-explored gold-silver mineralized system.”
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).
Please refer to Figure 1 on page 2 of this release for a map showing the extent
of the El Colomo property.
97% of this
18,766-hectare project has not been explored using modern concepts &
technology. All 20 mineralized zones identified to date are located in the
central portion of the property and within a 1.5 km radius of each other.
Figure 1 – Full
Extent of the El Colomo Property
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 at www.gaineycapital.com or from info@gaineycapital.com.
ON BEHALF OF
THE BOARD OF DIRECTORS
“David Coburn”
David
Coburn, Chief Executive Officer
For information, please contact the Company:
Phone:
480-347-8904
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