General Metals Corporation Receives Go Ahead to Commence Drilling on Independence Mine Tailings
JERSEY CITY, N.J., Feb. 13 /PRNewswire-FirstCall/ -- General Metals Corporation ("GNLM" or the "Company") (OTC Bulletin Board: GNLM) announced that it has received authorization by the Bureau of Land Management, Battle Mountain Field Office in Nevada to immediately commence drilling of 24 holes on the existing tailings pond at the Company's Independence Mine. According to historic independent engineering reports, the tailings pond contains about 70,000 tons of previously crushed and leached ore that still contain, on the average, 0.04 ounces of gold per ton and 4 ounces of silver per ton. The drilling program is designed to totally sample the tailings and to test the samples for both gold and silver values as well as best available methods of mineral recovery. Historic panning sampling resulted in concentrates containing 1.9 ounces of gold per ton and 22 ounces of silver per ton, which demonstrates that conventional gravity recovery methods appear to be effective. A drilling contract has been awarded today and mobilization will occur at the mine site on Friday, February 17, 2006. Drilling should take about a week to 10 days with testing taking another 3 weeks or so. Should test results be favorable, using the above un- concentrated metals values as baseline grades and assuming an 80% recovery at today's prices would net the Company in excess of $2,000,000.00. The proposed operation would process 500 tons per day and should conclude in around 4 months once operating permits and reclamation requirements are obtained. The equipment required is readily available. "The tailings project is the fastest economic operation to produce cash flow", says Director, Dave Salari." We also plan to drill the surface target next with the deep target to follow", he continues. "With over 1.5 million ounces of gold already identified by previous drilling efforts as referenced in the Carrington report on our website, http://www.generalmetalscorporation.com, we are confident that additional drilling will lead to a mineable reserve in a mine plan that will satisfy SEC Industry Guide 7 criteria." Further information the Independence Mine progress and other Company developments will be made available in the near future. Safe Harbor Disclosure -- This Press Release contains or incorporates by reference "forward-looking statements," including certain information with respect to plans and strategies of and General Metals Corporation. 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
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