JERSEY CITY, N.J., March 13 /PRNewswire-FirstCall/ -- General Metals
Corporation (OTC Bulletin Board: GNLM) announced that it has completed the
first stage of drilling on the tailings at its Independence Mine in the Battle
Mountain Mining District in Northern Nevada. The Independence claims are
completely surrounded by Newmont Mining's Phoenix Mine and is a 240 acre
island with legal access. Newmont's Phoenix Mine will commence operation of
both gold and copper in mid 2006, with reserves of 8.5 million ounces of gold
and 660 million pounds of copper and additional mineralized material that can
be upgraded to reserves. www.newmont.com
Our Independence Mine cannot claim any reserves, according to SEC Industry
Guide 7, even though the mine operated commercially through the mid 1980's and
produced between 10,000 - 15,000 ounces of gold and hundreds of thousand
ounces of silver. Our exploration and operations efforts are designed to bring
the information regarding the known contained mineralized material into Guide
7 compliance. This recent drilling and sampling operation resulted in
approximately 130,000 tons of mill tailings and oversized ore that was
stockpiled for future production, being tested.
Drift Drilling and Exploration of Calgary Alberta, Canada was retained to
conduct the drilling, under the supervision of staff geologist Karl Frost.
Holes were drilled to 30' depth at 50' spacing and samples were collected and
assayed every 5 feet. The results of the assays of the tailings performed by
ALS Chemex Labs in both Elko and Reno, NV, showed gold values averaging from
.026-.036 opt (ounce per ton) gold with the richer values nearer the surface
and just over .5 opt silver. In addition to the tailings, a stockpile of
oversized ore estimated to contain 65,000 tons was sampled and assayed which
resulted in average grades of .046 opt gold and 3.39 opt silver. The result
is that there is 130,000 tons of already mined mineralized material that
according to assays, gives us over 4,000 ozs gold and over 250,000 ozs silver
that is ready for processing and a good start for a heap leaching operation.
Management's "Battle Plan" for 2006, Drill Targets: Previous exploration
campaigns by Tech Exploration, Noranda Exploration, Northern Dynasty Minerals
and Great Basin resulted in over 1.5 million ounces of gold being identified
in three separate drill targets with over 80 holes being reported.
Surface/ Shallow Target: 3 million tons @ .02 opt gold (60,000 oz)
A shallow bench of low grade mineralized material that goes from surface
to around 50' deep has been identified. There is no overburden and mining is
inexpensive. Our drilling will be infill to identify a mineable resource to
add to the proposed heap leach.
Independence Mine Target: 3- 5 million tons @ .05 opt gold (250,000 oz)
The surface and near surface mineralization contains drill intercepts to
40' @ 0.148 opt gold and several holes have been ended in mineralized material
containing in excess of 0.10 opt gold. The surface target contains an oxide
target potential in the range of 250,000-300,000 ounces of gold (See
Carrington Report below). We plan to drill the Independence Mine area from
above to establish if it is feasible to open pit the remaining mineralized
material. There are over 3 miles of underground workings currently developed.
Our target is 3-5 million tons @ .05 opt gold and 2+ opt silver (150,000-
250,000oz gold and 6- 10 million oz silver)
Independence Deep Target: 1.4 - 2 million ounces of gold @ 3,000 feet deep
This target has immediate potential to develop 1.4 to 2 million ounces of
contained gold, according to the Carrington Report found under Independence
Mine on our website www.generalmetalscorporation.com. Northern Dynasty
Minerals reported an estimated resource of 818,000 ounces of contained gold,
with an average grade of 0.27 opt gold and Noranda Exploration, in an
interoffice memo estimated 2 million ounces. Approximately 25,000 feet of
drill core is on site and has been recently relogged.
Conclusion: We start the production permitting process simultaneously with
the infill drilling to create early cash flow.
We have already established, to managements satisfaction that we will at
least leach 130,000 tons of material that should generate over $3,000,000 of
revenue on recovery before operating and capital expenses. An internal
feasibility study will determine the economics of the tailings, stockpiled
material and further drilled material. Drilling in the shallow and
Independence Mine targets to establish reserves that can be readily processed
on the heap leach will create early cash flow. By initiating the permitting
process for the heap leach now we will save valuable time in the recapture of
investment which will provide momentum for development of the deep zone.
The Company is initiating a Phase 1 private placement financing round for
$500,000. A Phase 2 round will follow in the $2,500,000 range with a Phase 3
in the $10 million range. Dave Salari, P.Eng, Director says "This project is
shaping up to be another version of the Cyanide Heap leach that I just
developed, constructed and operated in the Comstock Lode. As part of our
upcoming study, I will be in touch with the associated contractors that built
the facility in the Comstock. Also paramount to our Battle Plan, will be a
continued working relationship with both State and Federal regulators."
For further information please contact:
Steve Parent, Chief Operating Officer
Safe Harbor Disclosure -- This Press Release contains or incorporates by
reference "forward-looking statements," including certain information with
respect to plans and strategies of General Metals Corp. For this purpose, any
statements contained herein or incorporated herein by reference that are not
statements of historical fact may be deemed to be forward-looking statements.
Without limiting the forgoing, the words "anticipate(s)," "believe(s),"
"expect(s)," "intend(s)," "plan(s)," "potential(ly)" and similar expressions
are intended to identify forward- looking statements. There are a number of
important factors that could cause actual events or actual results of GNLM to
differ materially from those indicated by such forward-looking statements
SOURCE General Metals Corporation