General Metals Corporation Announces Results of Drilling Program and Proposes Plan for Further Development at Independence Mine
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 firstname.lastname@example.org 775.721.6428 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
More by this Source
General Metals Sets Date For Special Meeting Of The Stockholders
Jun 13, 2013, 00:16 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.