Gainey Capital's (TSXV: GNC; US-OTC: GNYPF) first pass sampling at its newly-optioned Las Margaritas gold project in Durango, Mexico, sampled up to 40 grams gold per tonne and confirmed the project's previously reported 1.5-1.6 km strike length. Peter Megaw leads the company's exploration team.
The company took 42 samples at Las Margaritas including chip samples from old pits, chip-channel samples from exposed veins and grab samples from old mine dumps. The company's samples ranged from nil to 40 grams gold, with 21 samples grading higher than 1 gram gold and 11 samples grading more than 5 grams gold.
Gainey optioned the property from First Mining Gold (TSX: FF; US-OTC: FFMGF) in August 2018. Gainey can earn its interest by making annual cash and share payments to First Mining and spending US$1 million on exploration over four years. First Mining will retain a 2% net smelter royalty on the project; Gainey can pay First Mining US$1 million to buy back 1%.
Surface work by the Mexican Geological Survey and First Mining previously identified a vein system at the property that extends for at least 1.5 km along strike and averages 1 metre in width.
The property is 140 km southeast of Mazatlan, Sinaloa, and consists of two mineral concessions totaling 5 square kilometres. The property sits to the north of Gainey's El Como gold-silver project. Gainey believes that El Como and Las Margaritas together could represent a district scale opportunity. The company is continuing to map and sample the area.
In early January the company closed a $750,000 private placement. Shares of the company are currently trading at 9 ? with a 52-week range 4 ? to 11 ?. The company has a $5 million market capitalization.