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Monday, 01/19/2015 1:25:26 PM

Monday, January 19, 2015 1:25:26 PM

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GAINEY CAPITAL CORP. (GNC:TSX-V) (GNWPF:OTC) A GOLD MINING COMPANY WITH MONEY TO BURN

One of the reasons that gold companies don’t make it is “burn rate.”

They are undercapitalized, and so they burn through their cash, using up their funding during the expensive exploration stage. As a result, they run out of money and close their doors before they can even begin to produce.

A Junior Gold Company with Deep Pockets

One under-publicizing junior mining company in Mexico, Gainey Capital Corp. (GNC:SX-V) , won’t have this problem.

That’s because they have $3 million in cash and zero debt. More important, the company owns its own mill. And they can earn great revenues processing gold for other mines near El Camino in the prolific Sierra Madre Occidental Trend, located extremely close to a number of high grade ore bodies for toll processing. Nearby mines include Primero, First Majestic, Great Panther, and Goldcorp.

$2 million a year potential cash flow – before even one ounce of gold is pulled out of the ground.

The mill uses a modern gravity and floatation plant, equipped with a fully permitted tailing reservoir, powered by the national utility grid in Mexico. Recovery rate for gold and silver is over 90%.

The mill can process 300 tons of gold ore a day for its customers.. When it runs 5 days a week, 52 weeks a year, the mill will bring in $2.1 million in annual cash flow. If demand increases, management can double the mill production to 600 tons per day without further permitting.

As. J. Taylor, editor of Gold, Energy & Tech Stocks, notes: “Companies that can generate cash flows from which to fund exploration offer a huge advantage. These shares offer a bargain.”

Spending money to make more money

Cash and mill revenues will be used to explore the company’s 46,950 acres including the El Colomo Dome, which is in the center of the property -- without depleting cash, diluting the stock, or seeking additional funding.

The mine’s high-grade targets are exemplified by La Nueva Victoria vein. This rich vein has a historical drilled resource of 442,000 tons at an average grade of 13.73 grams per ton Au-Eq, non-NI 43-101 compliant. The mineralized body is open along strike and death.


Put your trust in Mexico’s top exploration geologist

The company’s chief of exploration, Dr. Peter Megaw , has a 30-year track record of successfully discovering profitable new gold and silver deposits throughout Mexico. A PhD in geology, he is a Certified Professional Geologist by the American Institute of Professional Geologists.

Dr. Megaw’s major discoveries include Excellon Resources’ Platosa Mine, the highest grade operating mine in Mexico, as well as MAG Silver’s, Batoplas, Santa Eulalia, and Juanicipio properties – the latter being one of the world’s largest silver discoveries.

Dr. Megaw has advised over 25 companies including Kennecott, Teck, and BHP on precious metals exploration in Mexico. Peter’s clients and their shareholders have profited handsomely from his discoveries. In just 2 ½ years, Excellon Resources gained 1,029% and MAG Silver was up 282%. Another firm Dr. Megaw worked for, Garibaldi Resources, gained 358% in 6 months.

The bottom line is: there is no geologist on the planet with a track record of finding and developing profitable gold and silver mines in Mexico equal to that of Dr. Megaw.

"Mexican billionaire loves the stock!"

Mexican billionaire Ernesto Echavarria is so bullish on Gainey Capital Corp. that he bought 15% of the company for $1.3 million. Says Echavarria: “I am excited to participate as a major investor, because it is in an area that contains very high gold and silver mineralization and has an operational mill.”

Management has kept the wraps on this gem of a gold mine as they quietly put the mill and other infrastructure in place. They’ve built a cash reserve and an income stream to comfortably fund exploration without fear of running out of funds. The first gold production should begin in 5 to 6 months, and once that happens, the announcement could send the stock price higher.

For a free copy of J. Taylor’s research report on the stock, normally available only to his paid subscribers, CLICK HERE NOW