General Metal’s discussions with potential equity funding groups for Phase 1 financing have the potential to be very productive, although no definitive terms have been agreed to at this time. 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 Wilson Independence mine has the potential for near surface open pit and deeper high grade underground production. Significant gold is indicated in three discrete drilled zones with sufficient values and spacing to warrant additional exploration drilling. Based on drill intercepts and drill hole spacing, General Metals believes there is potential to develop a near surface mineralized deposit with between 3Mt and 5 Mt of material with a grade of 0.03 to 0.05 opt and a deeper deposit containing 5 to 6 Mt of material with grades between 0.27 and 0.35 opt.
The location of the Wilson-Independence Mine is of paramount importance. Newmont’s Phoenix mine which surrounds the Wilson Independence mine, commenced production in the fourth quarter of 2006. Newmont classfies the Phoenix as a “significant production property” in its 10Q filed March 19, 2007. The Phoenix mine property has 8.5 million ounces of gold and 660 million pounds of copper in reserves. Newmont is currently spending in excess of $3.0 billion to develop this mine into the largest operating gold mine in the United States. Newmont has been mining gold in Nevada since 1965 and has multiple Nevada operations including the new Phoenix gold/copper project, located 10 miles south of Battle Mountain which commenced commercial production in the fourth quarter of 2006. Newmont notes in this report that a portion of the gold from Phoenix in Nevada, is contained in a concentrate and further notes the probable grade to be 0.027
For four years running, the Denver-based company Newmont has discovered more gold than it has mined. Barron’s describes Newmont’s reserves as: “concentrated in a handful of key areas that boast huge ore deposits and mines with lives running 16, even 20 years — the kind of world-class properties that are exceedingly rare discoveries these days. ” If you are judged by the company you keep, General Metals is keeping very good company.
General Metals is in very good company and following Newmont’s own example by locating in close proximity to a producing mine! Imitation is the best form of flattery.
Contact:
General Metals Corporation
Steve Parent, CEO, 775-686-6078
775-721-6428 (cell)
generalmetals@hotmail.com
Source: General Metals and Barrons
General Metals Corporation
1 E. Liberty St. Suite 6000
Reno, NV 89501
Phone: (775) 686-6078
Website: http://www.stockguru.com/blog/www.generalmetalscorporation.com%20
Forward Looking Statements: This 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 and any reserves they have reported in their Phoenix Mine or any reserve estimates.
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.
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