Message #14 From:
Stock News Bot Date: March 28, 2007 05:38:00 AM
GNLM News General Metals Update: Phase 1 Finance Discussions Underway and Phase 2 Deep Drilling Expansion Program on Course
RENO, Nev.--(BUSINESS WIRE)--General Metals Corporation (OTCBB:GNLM) is pleased to announce that discussions with potential equity funding groups for Phase 1 financing has commenced, although no definitive terms have been agreed to at this time. The Company is working towards completion of Phase 1, up to $2,000,000, by April 30, 2007, our year end. 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 Company is also negotiating to purchase some privately owned land with good road and power access located just south of and adjacent to Newmont’s Phoenix Mine Plan of Operations boundary. This land will host the Company’s mineral production operations and will allow us to get into operation more simply and expeditiously than if we set up operations on the Independence claims. It also gives us the greatest surface access on a continuous basis for a growing operation. There is also a water source nearby, but that is not included in the land purchase.
In addition, the Company’s expansion plans for drilling its deep target are proceeding on course at this time. Upon successful completion of the negotiation for the extra claims, our deep target will more than double. The existing estimated deep target contains from 1,400,000-2,000,000 ounces of gold as indicated by 25,000 feet of core drilling by Noranda Exploration. The expanded target could enable the discovery of an additional 2,000,000-3,000,000 ounces of gold, according to Akright and Carrington in their 1997 reports, for a total potential deep target of some 5,000,000 ounces of gold.
About General Metals Corporation: We control 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 that is shared in some instances with Newmont.
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
Phase 1 Shallow Target: An initial budget of $1,350,000 will be expended for geology, geophysics, Phase 1 drilling and early permitting Targeted recovery: 235,000 oz. of gold and 2.5 million oz. of silver. Phase 2 Deep Target: Budget will be determined on completion of expansion. Target ranges from 2,000,000-5,000,000 ounces of gold.
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, that the Company will close a Phase 1 financing of up to $2,000,000 by April 30, 2007, the use of the proceeds for drilling at its Independence Mine in Nevada or for permitting or a cyanide heap leach program, any acquisition of additional land adjacent to Newmont’s Phoenix Mine, that an estimated 235,000 ounces of gold and 2,500,000 ounces of silver are contained in the mineralized material in the shallow target, that, in addition to the shallow target, the deep target may contain 2,000,000 ounces of gold, and the plans and program for the deep target 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.
