General Metals Signs Confidentiality Agreement on Ofelia Gold Mine in Sonora, Mexico, About 30 Miles South of Arizona Border
General Metals Corporation (OTCBB: GNLM) (FRANKFURT: GMQ) (the “Company”) confirms that on July 4, 2007 a Confidentiality Agreement was mutually executed which gives General Metals 90 days to exclusively review and undertake due diligence with the aim of purchasing the Ofelia Gold Mine located in Sonora, Mexico about 30 miles south of the Arizona border. The Ofelia mine represents another near term production opportunity for about 200,000 ounces of reported gold. There is exploration potential for up to 500,000 ounces of gold according to reports on work conducted by Canadian Companies who conducted substantial drilling in1997. The work is not yet SEC Industry Guide 7 compliant, but the Company intends to bring it into compliance should we complete this acquisition.
Company COO Dave Salari, P.Eng. said: “I have worked in this area in mining for more than 10 years and while installing a process operation for a neighboring company, I came across this opportunity. I presented it to management at the Annual Board meeting last week and it appears to satisfy our commitment to ‘proven and probable reserves and near term cash flow’ as expressed by Dan Forbush, our CFO.” He continued: “I find the region both a safe and easy place to work and there are talented local geologists and laborers that are not so easy to find in the US and Canada these days. Our plan will be to try to grow this opportunity to an aggregate operating potential in the million ounce of gold range this year through additional acquisitions and exploration. The target here is an open pit operation with low stripping ratio. Reported grades are in the 2+grams/ton range and amenable to heap leaching.”
About General Metals Corporation, Inc: General Metals is a gold and silver mining Company that operates the Independence Mine in Battle Mountain, NV. The Independence Mine is located as an island in Newmont Mining’s Phoenix Mine, which is the largest operating gold mine in the US. The Independence mine is predominately a silver mine that produced from 1938 through 1987. 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 oz. gold and 11.53 ounces of silver per ton. Historical and recent geologist and engineering reports discuss an estimated 235,000 ounces of gold and 2.5 million ounces of silver in the Independence shallow target (Phase 1) and from 818,000-2 million ounces of gold in the Independence deep target (Phase 2). The Company recently acquired 150 sq. km. with a full prospecting license for gold, diamonds and base metals in Ghana, West Africa. A more detailed discussion is available at www.generalmetalscorporation.com
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, any future price of the Company’s shares, that an estimated 235,000 ounces of gold and 2,500,000 ounces of silver are contained in the mineralized material in the shallow operation, that the deep target in the southern area of the property could contain mineralized material with 1.4 million ounces of gold at an average grade of 0.17 ounces gold per ton, or 818,000 ounces of gold at a grade of 0.27 ounces gold per ton. It is uncertain whether the Company’s Confidentiality efforts with Ofelia will be successful. 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 fiscal year 2007, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Contact: Steve Parent President & CEO generalmetals@hotmail.com 775.686.6078 office 775.721.6428 cell
SOURCE: General Metals Corporation