MEXICO – Gainey Capital
’s first pass sampling at its newly optioned Las Margaritas gold project in Durango has sampled up to 40 g/t gold and confirmed the project’s previously reported 1.5 to 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 g/t gold, with 21 samples grading higher than 1 g/t gold and 11 samples grading more than 5 g/t gold.
Gainey optioned the property from First Mining Gold
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% of the NSR.
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 1.0 metre in width.
The property is 140 km southeast of Mazatlan, Sinaloa and consists of two mineral concessions totaling 5 km2
. 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.
This story first appeared on www.NorthernMiner.com.