"have near term production opportunities"General Metals Management Gets Board Approval for Acquisition of Near Term Production Properties Under Review to Expand Company's Mining Portfolio and to Monetize Resources During Record Metals Prices
Feb 27, 2008 8:02:00 AM
View Additional ProfilesRENO, NV -- (MARKET WIRE) -- 02/27/08 -- General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce that The Company's Board of Directors has approved Managements plan to expand its mineral property portfolio with advanced properties that have near term production opportunities. Several properties have been under review and those that offered near term production opportunities have been selected to proceed to acquisition completion. With gold over $950/oz and silver over $19/oz, the opportunity to acquire properties that demonstrate the ability to be put into production represent an excellent opportunity to expand our active mining portfolio.
Selected Properties
(1.) A high grade gold and silver project with reclamation bond in place which contains 140,000 ounces of historical reported reserves (not 43-101 or Industry Guide 7 compliant) is in Final Definitive Agreement stage and should complete within the next week or so. Location: Eastern Canada
(2.) A high Grade copper project targeted for a small investment by the Company to further develop a deposit is in Final Definitive Agreement and should complete in the next few days. Location: Nevada
(3.) A substantial initial dump clean up operation attached to high grade gold veins over a large area. Economics of dump recovery is exciting at current prices and cash flow can assist in future development drilling and production. At letter of Intent stage, moving to Definitive Written Agreement. Location: Nevada
Further details will be released as each acquisition closes. There is no guarantee that any will close until such time as they actually do so. The Company continues to evaluate potential acquisitions and plans to grow our acquisitions program to enable rapid growth where appropriate.
Company President and CEO, Steve Parent, said: "With our Independence drill program advancing with such good results and our commitment to near term production, we are planning to have 3 producing mining operations in Nevada by 2009 and 1 in eastern Canada this year. It is the Company's view that by expanding our known mineralized material that development work should lead to expanded reserves that are able to be converted to early cash flow during these exciting economic times for our industry."
Company CFO, Dan Forbush, says: "We are committed to proven and probable reserves as our foundation blocks, so when opportunities to acquire advanced projects that can be developed into those categories with a small amount of additional drilling and metallurgical work are a no brainer as acquisitions. We built Glamis, initially off a 25,000 ounce/year gold production and through acquisitions, we grew to over 250,000 ounces of gold/year. We intend to do the same at General."
A detailed description of the exploration and production history of the Independence property is available on the Company's web site at www.gnmtlive.com
About General Metals Corporation: The Company is production and growth oriented and controls 100% of the strategically situated Independence Mine property located in the prolific Battle Mountain Mining District on the Battle Mountain - Eureka gold trend, in Humboldt County, Nevada, adjacent to the giant Phoenix project. The current drilling program is designed to confirm early estimates of mineralized material thought to contain 235,000 oz. gold and 2,500,000 oz. silver and to expand the mineralized envelope which enhances near term production numbers. 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.