Brien Lundin: Gainey Capital (TSX-V: GNC) Price Drop is "a Good Buying Opportunity"
(TSX-V: GNC)(OTC: GNYPF)
Gainey Capital has some smart financiers behind it, and some equally smart geologists interested in the potential of its El Colomo property in the Sierra Madre Golden Belt of Mexico.
The company’s share price had been climbing in the weeks as leading up to the release of the firsts from a maiden program on El Colomo’s La Nueva Victoria zone.
It’s a bit early in this market to be betting on drill results, so I chose to wait until we got some hard data before mentioning the company.
Well, results from the first hole came in earlier this month and — at 70.85 meters running 1.14 g/t gold equivalent (0.65 g/t gold and 35.31 g/t silver) — they were pretty good for a first effort.
Gainey followed up on these results by releasing assays from two more holes targeting La Nueva Victoria. Hole 2 hit 72.20 meters of 0.69 g/t gold equivalent (0.41 g/t gold and 20.21 g/t silver) beginning at 19.40 meters depth. Hole 3 cut 34.20 meters of 2.39 g/t gold equivalent (1.19 g/t gold and 86.57 g/t silver) beginning at 10.50 meters depth.
These were decent hits, but the weight of the broader markets has resulted in a slight slide in the stock price. However, the company has strong shareholders and is well funded to continue drilling the targetrich El Colomo property. I encourage you to view the recent drop in its share price as a good buying opportunity.
Gainey Capital Corp.
Recent Share Price: ................C$0.33
Shares Outstanding: ....... 43.8 million
Market Cap:................C$14.5 million
Shares Outstanding Fully Diluted:...................72.6 million
Market Cap Fully Diluted:..............C$24.0 million