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General Metals Corporation (OTCBB: GNMT, Frankfurt: GMQ) is a production oriented junior mining company engaged in the evaluation, acquisition, exploration and advancement of gold exploration and development projects in Nevada, North America and West Africa. General Metals controls 100% of The Independence Mine, located in the Battle Mountain Gold District of northern Nevada and forms an island in Newmont Gold's Phoenix Mine, the largest operating gold mine in the U.S. www.newmont.com. The Independence Mine - The Independence mine is predominately a silver mine that produced intermittently from 1938 through 1987. Reported historic production by the various operators totaled 750,200 ounces silver and 11,029 ounces gold. The average recovered grade of all recorded production was 0.17 and 11.53 ounces of gold and silver per ton respectively. Shallow Targets: Estimated 235,000 oz. of gold, 2.5 million oz. of silver. The estimates above are not CNI 43-101 or SECIG-7 compliant and should not be relied upon by investors. During 2007, the Company completed 32 RC drill holes ranging from 100 to 550 feet deep, with a combined drilled footage of 10,475 feet. All holes were angle holes drilled in an easterly direction to test the mineralized zone in the Independence Shallow Target on the southern portion of the Company's strategically located property. The 2007 program tested roughly 1800 feet of strike around the Independence Mine. While several mineralized intercepts exceeded 200 feet of true width and several more exceeded 100 feet of true width, the average, length weighted, drill intercept for all of the largest (and generally the lowest grade) intercepts along the entire 1,800 feet of the target tested thus far is 76.6 feet with an average grade of 0.028 opt Au Equiv. per ton. Our Phase 1 development drilling campaign is designed to bring the shallow target into a compliant reporting category referenced above. Independence Deep Target: 1.4 - 2 million ounces of gold This target has immediate potential to develop an estimated 1.4 to 2 million ounces of contained gold, according to the Carrington Report. Northern Dynasty Minerals reported an estimated resource of 818,000 ounces of contained gold, with an average grade of 0.27 opt gold and Noranda Exploration, in an interoffice memo estimated 2 million ounces. Approximately 25,000 feet of drill core from Noranda's drilling campaign is on site and has been relogged. Eight deep holes have been reported, all contain significant gold intercepts, but none of the above is CNI 43-101 or SECIG-7 compliant and should not be relied upon by investors. Near Term Production at Independence Mine: Based upon favorable final Phase 1 results and a compliant report and mine model, the proposed development program will also involve the permitting and construction of a cyanide heap leach pad that will accommodate 5-6 million tons of mineralized material. The gold and silver will be recovered by a Merrill Crowe processing system, with precipitate being smelted on site and shipped to the refinery as a gold and silver bar. Management has recently constructed and operated a similar project for another company in Nevada's Comstock Lode. Dyer Engineering of Reno, NV has been recently engaged to further the above development plans and permits. Dyer Engineering also directed the construction and development of the Comstock project for our management team. Recent Acquisition: Mining Concession Acquisition 150 Sq. Km. Nyhinahin Mining Concession near Bibiani, Ghana, West Africa Effective March 15, 2007, General Metals completed 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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