Gold Set to Soar in 2015

Gainey Capital Generates Cash Flow With Gold Mill in Mexico - By Financial Press

VANCOUVER, BC / ACCESSWIRE / January 21, 2015 / So far, gold is having a good year. In 2015, the spot price of gold is up 6%, ishares Silver Trust (SLV-NYSE) is up 12% and the gold junior ETF (GDXJ-NYSE) has surged 20%. The combined assets of SLV and GDXJ are now $6.7 billion.

The U.S. Mint has also set a new sales record for its American Eagle silver bullion coins, with sales of 43 million coins. Physical bar & coin consumption is now 46% of industrial demand - a 500% increase in the last six years.

The most successful junior metal companies are generating cash by processing gold from 3rd party miners. The share price of Inca One (IO-TSX.V) - operating a gold milling facility in Peru - is pushing a 52-week high. Dynacor (DNG-TSX) Mines also operates a gold ore-processing business. Its share price has risen from .20 to $1.65 in the last 5 years - an increase of 1,300%.

Gainey Capital (GNC-TSX.V) (OTC: GNYPF) is a junior gold/silver company following the same business model as Inca One and Dynacor. The cash positive company is a toll-processor and exploration company operating in Mexico.

"Last year we spent about $500,000 upgrading our systems to optimal efficiency," stated Gainey CEO & Director David Coburn in an exclusive interview with Financial Press, "Negotiations for long-term milling contracts are ongoing and include mom-and-pop mining operations in Mexico and publically traded miners."

Gainey plans on Bulk Sampling 30,000-60,000 Metric Tons of Material through its 300 TPD Mill/Processing Center in 2015. Revenues are projected around $5.8 million USD with EBITDA in the 35% level. GNC employs a conservative $940 an ounce gold benchmark in analyzing the economics of processing/bulk sampling from its fully owned Mineralized zones. The 300 tpd facility is planned to be increased to 600 tpd by the end of Q4 2015.

Gainey's mill/processing center is the only one in the region to include a gravimetric/flotation processing center, which optimizes gold and silver recovery rates.

"Gravitational separation is a cost effective system that uses an inclined table with a shaker to move the material along a table," explained Coburn, "The combination of gravitational separation and floatation achieves extremely high recovery rates."

Gainey's best-in-class mining team includes former Barrick Gold management Jorge Valenzeula Cantua a Mexican silver veteran who has strong ties to the local community, exploration leaders Minera Cascabel and MAG Silver's Dr. Peter Megaw and technical board member Larry Segerstrom who was the Geological Manager for Freeport McMoRan at Grassberg, one of the largest gold mines in the world.

"Our proximity to power, transportation, water and skilled labor has kept operating costs well below industry standards," stated Coburn. "We are connected directly to the federally operated power grid."

The water systems have also been upgraded with new pumps and motors. With power and water issues solved, Gainey is projected to maintain below-industry operating costs in the future.

The mill/processing center is located 15 kilometers on a paved road from Highway 15 South, which is a main Federal highway connecting the many ports and airports to the USA. It is only 5 km from a large military base, ensuring high security and a strong supply of skilled labor.

"We've formed a strong relationship with the local Huajicori community, which has been supplying skilled and unskilled labor," stated Coburn. "We are also renting equipment from them, which has saved money and strengthened our working relationship."

Gainey's flagship El Colomo property is about 19,000 hectares. A detailed prospecting program around the main vein systems will be announced by the middle of February, 2015 and will commence in Q1 2015. With dozens of visible outcrops of substantial size, prior exploration delivered grades as high as 13.75 grams per tonne gold equivalent.

Gainey's strategy of combining toll processing and exploration activities mitigates risk by generating revenues from the mill to fund exploration and development in this mineral rich area of Sierra Madre in western Mexico.

Gainey's largest single investor is Mexican billionaire Ernesto Echavarria who operates a conglomerate of companies close to El Colomo.

Gainey's mill/processing center is paid in full and is currently processing ore. By the end of 2015, the company intends to process its own ore and become a fully sustainable mining/processing company with positive revenues from its own gold/silver production.

"We have about $2.5 million in cash and no underlying debt," stated Coburn. "Optimizing relationships with metal producers in the area and ramping up tonnage at our modern processing facility, we are positioned to become a profitable gold and silver producer in 2015."

To date, GNC has delivered on its publically stated financial and operational milestones.

Gainey Capital is currently trading at .25 with a market cap of $5.94 million.



For information, please contact the Company:

Gainey Capital Corp.
Phone: +1 602-315-1231
E-mail: info@gaineycapital.com
Website: www.gaineycapital.com



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