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Gold Prices are likely to stay in the $670 range (currently at $675) as an average through 2007, which would constitute a rise of 11% over the average in 2006. A Natixis Commodity Markets report on commodities maintained that it is likely with a weakening dollar and rising energy prices will push the average price into the $700 range in 2008. These prices do not factor in the possible geopolitical events that could drive the price dramatically higher. Perennial hotspots such as the whole of the Middle East remain tense and could flare up at anytime. A possible regional war is becoming more likely everyday, thanks to events in Turkey, Iraq, Lebanon, and Iran. A recent comment by the Turkish Prime Minister suggested that Turkish forces may enter Kirkuk, Iraq if Kurdish rebels continue to target its military and civilian populace. This and maneuvers across the Middle East only serve to ratchet up the level of tensions, and investors begin to look for safe investments which has historically been gold. General Metals is in a position to benefit from rises in gold prices in that it owns mining rights for a mine that is completely surrounded by the US’s largest operating gold mine. GNLM’s Independence Mine is projected to have 250,000 ounces of gold in a shallow target scenario, while a deep target is projected to have mineralized material with up to 1.4 million ounces of gold. The shallow target is also expected to yield 2.5 million ounces of silver once mining operations commence. Other recent company news included the news that the company has received an upgrade on their license from Ghana. The 150-sq.-km. Nyhinahin Mining Concession has been upgraded from a reconnaissance license to a full prospecting license with mineral rights for gold, diamonds and base metals. The property is located between two geological gold belts, the Bibiani Belt to the west and the Asankrangwa to the east. About General Metals Corporation: The Company controls 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. Newmont enjoys 8.5 million ounces of gold and 660 million pounds of copper in reserves with substantial additional mineralized material, which is target to be upgraded. The Phoenix Mine is the largest operating gold mine in the U.S. |
