General Metals Corporation (OTCBB: GNLM)
General Metals Update: Long Term Gold and Silver Prices Adjust Upwards Which Adds Confidence To Proposed Mine Developments
RENO, Nev.–(BUSINESS WIRE)–General Metals Corporation (OTCBB:GNLM – News)- Recent high gold and silver prices have renewed interest in the mine development sector and the recent upward adjustments in the long term price of gold price forecasts have added confidence for the foreseeable future. Credit Suisse, in an Equity Research article on Newmont Mining (NEM) gave the following metal price revisions: “Higher Gold Price Assumptions – We are raising our 2007-2010 gold price forecasts. For 2007, we are raising our forecast from $550/oz to $670/oz. For 2008, we are raising our forecast from $475/oz to $650/oz, for 2009 & 2010, we are raising our forecast from $400/oz to $500/oz.” In this same article Credit Suisse rated Newmont at Outperform.
Of interest to General Metals is that our Independence Mine is located as an island in Newmont’s Phoenix Mine located in Battle Mountain, Nevada. Phoenix will become the largest producing gold mine in the US and contains 8.5 million ounces of gold and 660 million pounds of copper in reserves with substantial additional mineralized material that can be brought up to reserve category.
While small by comparison, our location is at Newmont’s door and the mineral they are mining has similar metallurgical characteristics which enables relatively straight forward recovery. The Independence claims contain two distinct targets, the shallow target which has identified an estimated 235,000 oz of gold and 2,500,000 oz of silver and the deep target, originally drilled by Noranda, is estimated to contain from 800,000 – 1,400,000 oz of gold. According to Geologist reports referenced below. While there has been insufficient drilling(over 100 holes) to qualify as reserves according to SEC Industry Guide 7, the Company has an initial exploration budget for the Independence Mine of $1,350,000 which will be expended for geology, geophysics, phase 1 drilling and permitting for the proposed heap leach operation development on the shallow target. This program is designed to identify an Industry Guide 7 compliant resource and mine model.
In addition to the Independence mine our Company is involved in pursuing acquisitions in Ghana, West Africa. A 150 sq. km. mining concession, which is scheduled to close by March 15, 2007 and a fully permitted open pit gold mine. The large concession shares a border with Newmont and is within the 50 mile area of Newmont’s interest. Newmont has added more than 12 million ounces to reserves since 2002, for a combined 16 million ounces at year-end 2004. Newmont also forecasts gold recovery costs in Ghana to be in the $200/ounce range rather than the $300 plus in Nevada.
Advisory Board member, Robert Carrington, PGeol commented: “Being so close to Newmont can’t be a bad thing. I have always maintained that ‘if you want to find gold, then why not go look where they are already mining it’. The fact that Credit Suisse has upgraded the forecast price of gold give us a greater level of confidence in undertaking our development plans.”
About General Metals: We currently control 100% of the Independence claims which are completely surrounded by Newmont Mining’s Phoenix mine and is a 240-acre island with legal access. 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
Notice Regarding Forward-Looking Statements:
This news release contains “forward-looking statements”, as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, any future metal price forecasts, any future performance of Newmont Mining, and any reserves they have reported in their Phoenix Mine or any reserve estimates in Newmont’s interest in Ghana, the budget for, and any exploration of, the Independence Mine, that an estimated 235,000 ounces of gold and 2,500,000 ounces of silver are contained in the mineralized material in the phase 1 target, and the budget, expenses and permitting associated with any Phase 1 drilling program.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2006 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Contact:
General Metals Corporation
Steve Parent, CEO, 775-686-6078
775-721-6428 cell
generalmetals@hotmail.com
Source: General Metals Corporation
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