RENO, Nev., Oct. 14, 2010 (GLOBE NEWSWIRE) -- General Metals Corporation (the "Company") (OTCBB:GNMT) (Frankfurt:GMQ) president, Paul Wang, provides this open letter to our shareholders and investment community.
Dear Shareholders and Friends;
I find it an honor to be appointed by the Board of Director to serve as President of General Metals Corporation. The company contains all traditional Gold and Silver mining potentials such as a low cost open pit operation, and exploration reserves which provide economic justification for developing deep mine operations. The Company is also entering into a unique period of a strong run up in gold demand and pricing. It has been reported that Gold-mining companies are accelerating new projects and scouring the globe with renewed vigor, seeking to take advantage of soaring prices of the precious metal.
I would like to review some reasons why General Metals Corporation is now positioned to take advantage of the current world economic situation with its mining operations in an active gold mining area.
Our Company is the proud owner of the "Independence Mine Project", comprised of 14 whole and fractional mining claims encompassing 240 acres of the Independence Mine, and 480 acres for heap leaching, tailing ponds, milling, mineral processing and storage situated in the Battle Mountain Mining District, Lander Country, Nevada. The Independence Mine has a history of producing gold and silver and is contiguous to active Gold mining operations.
At our annual meeting in May 2010, we presented a draft of the completed Canadian National Instrument 43-101 report that we have since submitted to the Toronto Ventures Exchange for approval prior to applying for a listing on that exchange of our 100% owned subsidiary General Gold Corporation. The report is not SEC Industry Guide 7 compliant. It indicated that the shallow open pit minable deposits contains 210,400 gold and 3,990,500 silver ounces in the Measured and Indicated Category and 66,000 gold and 395,800 silver ounces in the Inferred Category. For discussion of our Deep mining reserves please see GNMT recent 10-Q.
At the London PM fix on October 11, 2010 of $1,351.50 per ounce for gold and $23.32 per ounce for silver, a deposit containing 100,000 ounces of gold and 1.33 million ounces of silver would be worth $ 166 million.
In the last fiscal year ending April 30, 2010, we
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completed 12,895 feet in 44 drill holes. This drilling program augmented our previous drilling in order to:
- upgrade all the Hill Zone gold-silver mineralization into measured and indicated categories,
- provide sufficient drill density to identify higher grade zones within the Hill Zone mineralization, and
- provide sufficient detail to facilitate pit design and detailed mine planning.
- concluded the independent Quality Assurance – Quality Control (QA – QC) assessment on the drilling and assaying completed prior to April 30, 2009; thereby confirming that the reported results were accurate.
- re-assayed Noranda Exploration pulps from their 1984 - 1987 diamond core drilling program Great Basin Gold Corp. in 1998 and completed the QA/QC on these re-assays for the major mineralized drill intercepts in the Independence Gold Skarn in the Independence Deep Target. The results correlate exceptionally well with original drill data and were consistently (an average four percent (4%)) higher than the original assays. Through analysis and modeling of the Noranda and Great Basin Gold drilling in the Independence Gold Skarn system, we identified a target more than half a mile wide and three quarters of a mile long which contains three highly prospective structural / stratigraphic zones.
- completed the baseline environmental surveys recently including flora, fauna and bat studies.
- collected and delivered two bulk samples of surface oxide mineralization collected under the supervision of personnel from McClelland Laboratories Inc. (McClelland) of Sparks, Nevada for metallurgical testing including column leach tests at the Independence Mine Project. Both the Hill Zone and Independence South Zone samples indicate excellent solution access regardless of size. Due to the exceptional recovery in the coarse fractions of the bottle rolls, we completed large diameter column leach tests at 2 and 6 inch sizes from the Independence Hill Zone which yielded greater than 90% gold extraction after a 140 day leach cycle. These test results suggest improved project economics.
- received, through General Gold Corporation, our wholly owned subsidiary, a grant of water rights for portions of Sections 28 and 33 (T31N, R43E), in Lander County, NV, the proposed center of the Independence Mine's mining area. In addition, we were formally awarded water rights on the Company's 480 acre processing site which will be immediately available upon completion of a well.
These are just a few of the accomplishments in 2009 which will lead the company into Gold and Silver production. Permitting has progressed, and drilling will continue to add valuable ounces to the resource, with the goal of term production.
Moving into fiscal year 2011 which began May 1, 2010, we will continue to build upon the success we saw in fiscal year 2010. We intend to progress the Independence Mine Project to production with a target date of 2011-2012 through:
1. proving up additional resources from the completed drilling program.
2. finalizing all metallurgical testing to provide the information necessary to receive approval in our plan of operations.
3. completing an in house economic feasibility report.
4. developing the mine plan.
5. designing the heap leach and processing facilities.
6. commissioning an independent economic feasibility report.
7. confirming and documenting key strategic partnerships and alliances.
We are very grateful to our loyal investors who have stood by us through this difficult market; we know your patience will be rewarded shortly.
The company is currently working on a "Fast Ramp Up To Production" program whereby we expect to shorten the lead time to production of Gold and Silver. All the details are not worked out but we will look to contract mining to accelerate the development of an open pit ore target and the construction of the first phase of a four phase expandable heap leach operation. We believe our current Water permits will cover all phases.
We are also encouraging the development of a following of Stock Mining Analysts to evaluate our progress for potential international institutional investors.
I express my appreciation to General Metal's previous management and shareholders for their significant contributions to bringing the Independence Mining Project forward.
Paul Wang
President
Further details regarding the Independence mineralization, drilling efforts, both historical and current together with current permitting activity are available on the Company's website www.generalmetalscorporation.com.
About General Metals Corporation: General Metals Corporation is an aggressive junior minerals exploration and development company, based in Reno, Nevada. The Company is actively exploring and developing its 100% controlled Independence property strategically located in the prolific and highly prospective Battle Mountain Mining District of Nevada.
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 proceeds from the recent private placement will allow the Company to proceed with permitting at its Independence Mine in Nevada or any shallow mining production later this year, that any estimated ounces of gold or silver are contained in the mineralized material in the "Shallow Target," and is proposed to be mined and loaded onto a cyanide heap leach pad, or any future financings that the Company may enter into.
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 most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.