Target ranges 2 - 5 million ounces of gold.General Metals Update: Phase 1 Finance Discussions Underway and Phase 2 Deep Drilling Expansion Program on Course
Mar 28, 2007 8:38:00 AM
Copyright Business Wire 2007
RENO, Nev.--(BUSINESS WIRE)--
General Metals Corporation (OTCBB:GNLM) is pleased to announce that discussions with potential equity funding groups for Phase 1 financing has commenced, although no definitive terms have been agreed to at this time. The Company is working towards completion of Phase 1, up to $2,000,000, by April 30, 2007, our year end. The proceeds will be used to drill the Independence surface and shallow target and the North surface target, which collectively are estimated to contain 235,000 ounces of gold and 2,500,000 ounces of silver. Some of the proceeds will be used to continue the permitting process for the proposed cyanide heap leach program designed to process the above gold and silver from an open pit operation.
The Company is also negotiating to purchase some privately owned land with good road and power access located just south of and adjacent to Newmont's Phoenix Mine Plan of Operations boundary. This land will host the Company's mineral production operations and will allow us to get into operation more simply and expeditiously than if we set up operations on the Independence claims. It also gives us the greatest surface access on a continuous basis for a growing operation. There is also a water source nearby, but that is not included in the land purchase.
In addition, the Company's expansion plans for drilling its deep target are proceeding on course at this time. Upon successful completion of the negotiation for the extra claims, our deep target will more than double. The existing estimated deep target contains from 1,400,000-2,000,000 ounces of gold as indicated by 25,000 feet of core drilling by Noranda Exploration. The expanded target could enable the discovery of an additional 2,000,000-3,000,000 ounces of gold, according to Akright and Carrington in their 1997 reports, for a total potential deep target of some 5,000,000 ounces of gold.
About General Metals Corporation: We control 100% of the Independence claims, which are completely surrounded by Newmont Mining's Phoenix Mine (www.newmont.com) and is a 240-acre island with legal access that is shared in some instances with Newmont.
From 1983-1997, there were several exploration campaigns conducted by Noranda, Teck Exploration, Northern Dynasty and Great Basin Minerals which resulted in about 80 reverse circulation and core drill holes being drilled and reported. The 1997 Carrington Report, the 1997 Akright Report, the 2006 Carew Report and the 2005 Frost and Larsen findings are available for review in their entirety at the Company's office in Reno, Nevada. An Executive Summary is available on the Company's website, www.generalmetalscorporation.com
Phase 1 Shallow Target: An initial budget of $1,350,000 will be expended for geology, geophysics, Phase 1 drilling and early permitting Targeted recovery: 235,000 oz. of gold and 2.5 million oz. of silver. Phase 2 Deep Target: Budget will be determined on completion of expansion. Target ranges from 2,000,000-5,000,000 ounces of gold.