"an island in the giant Phoenix Project"General Metals Update: Management Discussion of November 27, 2007 Assay Results and Clarification of New Mineralized Discovery at Independence Mine
Nov 29, 2007 8:06:00 AM
RENO, NV -- (MARKET WIRE) -- 11/29/07 -- General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) -- In response to several questions from shareholders, Management is pleased to provide a brief explanation of the final drill results (assays) contained in its November 27, 2007 Press Release and the significance of the mineralized material discussion that followed the assay information.
The prior Press Release contained the following presentation:
"Holes 1, 2, 3 and 5 form a 'fence' of drill holes along Section 1600 N. The holes drill tested the projected extension of mineralization southerly beyond the Wilson Independence Mine in an area of favorable geology. As may be seen on the attached cross-section, (see 11/27/07 PR) all holes encountered mineralization over drill intercepts ranging from 30 to 55 feet. The drilling indicates mineralization from the surface which remains open at depth and along strike to the North and South."
The following Table presents the salient drill data from the holes discussed in this press release.
Drill | Mineralized Intercepts | Gold Equivalent
Hole | |
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From To Intercept Gold Gold Silver Silver oz/t Au g/t Au
(feet) (feet)(feet) oz/t g/ton oz/t g/ton Equiv @ Equiv @
$15 Ag $15 Ag
$800 Au $800 Au
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GM-1 50 95 45 0.046 1.431 1.38 42.92 0.072 2.236
GM-2 165 195 30 0.012 0.373 1.37 42.61 0.038 1.172
GM-3 155 210 55 0.015 0.467 1.03 32.04 0.034 1.067
GM-5 150 205 55 0.032 0.995 1.58 49.27 0.062 1.919
Including 160 175 15 0.070 2.177 2.89 89.89 0.124 3.863
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GM-6 PENDING
Note: All notations of "t" and "ton" refer to a US "short" ton weighing 2000 pounds. All gold equivalent is calculated at a gold price of $800 (US) and a silver price of $15 per ounce, and does not consider variations which may exist in metallurgical recovery.
Explanation of Presentation of Drill Results and new mineralized discovery:
The location of these drill holes are about 300 feet south of the Independence mine workings (see attached Independence Mine Drill map) and represent a new discovery and an extension of the now known mineralization from 1,500 feet to 1,800 feet of strike length. This could increase the volume of mineralized material previously thought to exist by about 18% or more, should future holes provide the required continuity. Open at depth and along strike to the North and South means that the extent of mineralization has yet to be determined in all directions. What is known so far is limited by the extent of the drill holes only. The objective of the drill program is to FIND and DEFINE those limits.
The above table presents the ounces and grams/ton of both gold and silver over the contained depth of intercept in the designated drill hole as well as gold equivalent ounces per ton. Gold Equivalent is a method whereby, in a polymetallic gold deposit, the gross value of metals other than gold are converted to dollars-per-ton, then to equivalent ounce-per-ton values of gold. The 'equivalent' ounce-per-ton values are then added to the actual ounce-per-ton gold values to indicate the total value of the polymetallic rock in ounces per ton of gold. This allows comparison in ounce-per-ton value of polymetallic gold deposits with 'gold only' deposits. As an example, GM-1 has 0.046 opt gold, which equals $36.80 /ton. Using the gold equivalent calculation of 0.072opt gold equivalent, the result for the same rock equals$57.60/ton, which is the gross value, unadjusted for metallurgical or recovery variances.
An extensive technical discussion follows in the November 27, 2007 Press Release which shows that the identical signature elements that were present in the famous Fortitude deposit, the giant Phoenix project and the Cove McCoy project are present at Independence and that there is substantial evidence that the shallow mineralization is most probably a result of feeder systems from the deep mineralization that has already been identified historically.
As stated in the previous release: "The presence of coincident gold - silver - bismuth anomalies together with classic epithermal path finder elements such as arsenic and antimony support management's opinion that the near surface mineralization at the Wilson Independence property represents the epithermal expression of a leakage halo associated with, gold skarn style mineralization in the Independence Deep target. The Independence Deep target has an estimated potential 1-2 million ounces of gold.
These initial drill results support the model of near surface, potentially bulk mineable mineralization in the vicinity of the historic Wilson Independence Mine. The Independence Shallow target potential is estimated at 235,000 ounces of gold and 2,500,000 ounces of silver and target potential in the Independence Deep target is estimated at 1-2 million ounces of gold established through historical drilling and reports."
More information on the balance of the initial 25 drill holes that have been completed will be forthcoming once final assays have been received. The Company commenced drilling on Stage 2 of Phase 1, the next 25 holes, today. Management is encouraged by these initial discoveries and results.
About General Metals Corporation: The Company controls 100% of the 240-acre Independence property located in the southern part of the Battle Mountain Mining District, Humboldt County, Nevada., which is an island in the giant Phoenix Project. The Company also owns 150 sq. km. of mining concessions for gold, diamonds and base metals in Ghana, West Africa and plans to commence exploration activities this year.