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 Project Summary In January 2006, the Company acquired General Gold Corporation and its primary asset, The Independence Mine, located in the Battle Mountain Gold District of northern Nevada. General Metals now controls 100% of The Independence Mine. The Independence Mine forms an island in Newmont Gold's Phoenix Mine, the largest operating gold mine in the US. (See photo). General Gold Corporation, a Nevada Corporation, announced on April 29, 2005 the acquisition of a 20-year lease with option to purchase all assets of the Wilson Independence (Independence Mine) unpatented gold mining claims from Gold Range, LLC. Robert Carrington, Geologist, and President of Gold Range, LLC states the Wilson Independence Property covers a mineralized zone on strike with the World Class, Fortitude / Phoenix Gold Skarn Deposit. "The claims are completely surrounded by Newmont Mining's holdings in the Battle Mountain-Eureka Gold Trend of Northern Nevada," said Carrington. Newmont's Phoenix Project surrounds the Independence claims and commenced operation in mid-2006. The Independence Mine - General Metals 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. According to Akright in his 1997 report, "the gold resource potential of the Independence property occurs in two distinct categories: a shallow open pit mineable target, suitable for heap leach and a deep underground target. Insufficient drilling has been done to calculate a proven or probable reserve for the shallow target. However, mineralized material containing 235,000 ounces of gold and 2,500,000 ounces of silver have been estimated by Carrington (1997) ... the deep target ... could contain mineralized material with 1.4 million ounces of gold." The deep target will be pursued in a Phase 2 drilling program, while the shallow target is our focus for near term development leading to early cash flow. The Plan: Shallow Targets : 235,000 oz. of gold, 2.5 million oz. of silver GNLM's 2006 exploration drilling campaign is designed to bring the shallow target into a resource category, according to SEC Industry Guide 7. The development program will 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 is 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. The shallow target has identified mineralized material which contains 235,000 ounces of gold and 2,500,000 ounces of silver. Record gold and silver prices of over $550 and $11 per ounce respectively have encouraged rapid development of the Independence Mine. Independence Deep Target: 1.4 - 2 million ounces of gold This target has immediate potential to develop 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.
Carrington Report Photos
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