General Metals Corporation (OTCBB: GNLM)
General Metals Corporation (OTCBB: GNLM) is a junior mineral resource exploration company engaged in the acquisition, mining and exploration of gold, silver and other precious metal properties.
It controls 100% of the Wilson-Independence mine, which sits as an island in Newmont Mining Corporation’s Phoenix mine in Battle Mountain- Cortez gold belt of Northern, Nevada. 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.
The Wilson-Independence gold project represents an opportunity for a fast-track gold-sliver operation with 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 Wilson-Independence Property is comprised of 14 unpatented mining claims on public lands administered by the Bureau of Land Management. The mine 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 project is wholly owned by General Metals Corporation through a Mining Lease/Option Agreement with Independence Gold Silver Mines of Seattle, WA. Surrounding land is under location by Newmont Mining Corporation with operations at the Phoenix Mine that adjoins the property to the east.
According to the 2004 Carrington Report, the Wilson Independence Property covers a mineralized zone on strike with the World Class, Fortitude / Phoenix Gold Skarn Deposit (Past Production + Reserves exceed 7 million ounces). The property has potential to develop a 2 to 5 million ounce high grade underground resource in the Antler Sequence, together with a smaller surface / near surface resource in the overlying Pumpernickel Formation. Situated at the intersection of the Battle Mountain-Eureka Gold Trend and the Northern Nevada Rift (Twin Creeks-McCoy lineament), the Independence Project, like Fortitude and Cove Mcoy, is one of a number of Gold Skarns, which occur along the Battle Mountain – Eureka and Northern Nevada Rift Zone mineral lineaments.
The Independence mine is a predominately silver mine that produced intermittently from 1938 through 1987. Production came from 8 miles of underground workings developed along a 1,500 ft strike length of the Independence fault zone (Carrington, 1997). Reported historic production by the various operators totaled 750,200 ounces silver and 11,029 ounces gold. Historic mining operations have generated in excess of 70,000 tons of waste dumps, mill tailings, and other waste rock products on the property. Samples of this material contain gold and silver values, which suggest potential to recover some values in the form of gold and silver from them. The average recovered grade of all recorded production was 0.17 and 11.53 ounces of gold and silver per ton respectively.
Exploration Targets
Targets are located in the north part of the property, in and adjacent to the Independence mine workings and at depth beneath the Independence mine. Targets are referred to as the North Target, Independence Target and the Wilson Deep, respectively. General Metals believes there is potential to develop a gold resource of 200,000 ounces in the surface targets and 1.5 million ounces in the Wilson Deep.
North Target
The North target is a shallow low grade occurrence situated on the north end of the property approximately 1,200 ft SE of Newmont’s Sunshine mine. Target is based on 11 drill holes with a nominal spacing of 380 ft defining a mineralized area approximately 1000 ft by 470 ft. Gold mineralization occurs in a granitic host rock and extends from the surface to 250 ft. Averaged gold intercepts values range from 0.01 opt to 0.026 opt and mineralization is open to the north, east, south and at depth.
Independence Target
The Independence target is situated adjacent to and including the old Independence mine workings. The target is defined by 21 drill holes within Gold mineralization occurs within thin bedded cherts and argillites of the Pumpernickel Formation. Mineralization extends from surface to 360 ft and averaged gold intercept values range from 0.01 opt to 0.26 opt.
Wilson Deep Target
The Wilson Deep mineralization is stratigraphicly beneath the Independence mine in the lower plate of the Golconda Thrust. Between 1985 and 1989 Noranda Exploration drilled six deep core holes (IND-1, IND-2 and IND –4 through 7) that intercepted gold bearing skarn mineralization hosted in the Battle Formation units of the Antler sequence. Later, Great Basin Gold drilled two deep holes (WI-1 & WI-2), also intercepting gold in skarns. Gold mineralization in the deep zones occurs between 2,000 and 3,340 ft depth. Averaged gold intercepts range from 0.073 opt to 0.431 opt. Gold ore minerals consist of gold, electrum and iliiianite.
Recent Activity
General Metals Corp. is investigating the gold content remaining in the old tailings ponds and the oversize stockpile from historic operations. It is anticipated this will confirm a readily available source of gold that could be used for an initial, small gravity recovery operation or as initial leach material in future operations.
Tailings Characterization
General Metals has recently completed a drilling program to evaluate the gold potential remaining in the tailings of the Independence mine. A total of 36 reverse circulation holes were drilled on a nominal 50 spacing, indicating approximately 61,000 tons of material with an average grade of 0.026 opt Au and 0.52 opt Ag remain in the tailings. Evaluation of the results and the effect of using higher cut off grades are in progress. Metallurgical test results are pending.
Stockpile
Based on 30 samples collected from the old mill stockpile, potential exists for an estimated 31,600 tons of material grading 0.046 opt Au and 3.39 opt Ag remaining on the property.
Mining Concession Acquisition 150 Sq. Km. Nyhinahin Mining Concession near Bibiani, Ghana, West Africa
Effective March 15, 2007, General Metals ompleted the acquisition of 100% interest in Mikite Gold Resources (”Mikite”), a Ghanaian corporation with exclusive exploration rights to the Nyinahin Mining Concession near Bibiani, Ghana. The Mineral rights are for gold, diamonds and base metals.
The 150 square kilometer Nyinahin mining concession is located between two geological gold belts, the Bibiani Belt to the west and the Asankrangwa to the east. The property shares borders with several major mining companies, including Newmont Mining, Napoli Gold and Dunkwa Continental Goldfields. The district is home to the famous Ashanti Goldfields-Obuasi Mines and is one of the most active exploratory areas in the world.
A preliminary survey by Geodita Resources LTD, Ghana, indicates that the Nyinahin Concession has significant potential for lode gold mineralization and for recovery of alluvial gold. There are 3 major anomalous zones: Owusbukurom anomaly in the center Ntoboroso anomaly in the southeast and the Krakyekurom anomaly in the southwest. There are 4 known mineralized trends: Baaneekurom-Nyinahin, Ntoboroso, Owusukurom-Adupiri and Krakyekurom-Adupiri. The reconnaissance has also shown several abandoned surface mines that are yet to be investigated due to time and budget constraints of the current owners.
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