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General Metals Corporation (OTCBB: GNLM)
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General Metals Corporation is a junior mineral resource exploration company that is identifying, acquiring, exploring and developing gold, silver and other precious metals properties. The Company recently acquired 100% control of the Wilson-Independence mine, located in the gold belt region of northern, Nevada. The Company has rights to 14 mining claims spread across a 240 acres property. This area is known to be rich in gold and silver content. Samples collected by General Metals geologists reveal the presence of high-quality gold and silver deposits in abundant quantities.
The Wilson-Independence mine is primarily a silver mine but also has significant gold reserves. This property was mined between 1938 and 1987. During this period, the mine produced an estimated 11,000 oz. of gold and 750,000 oz. of silver. Gold and the silver produced from the Independence mine was high grade, with a content of 0.17 oz of gold and 11.53 oz of silver per ton of mined ore.
A 1997 geologist report by Akright estimates that the Wilson-Independence mine contains 2.5 million ounces of silver and 235,000 ounces of gold at shallow depths in a mineralized material form. According to a memo from Noranda, a deep target at the Independence mine is estimated to hold 2 million oounces of gold. The Company is currently conducting drilling on the property to determine the grade and quantity of gold and silver present in the mines.
General Metals plans to use surface open pit exploration techniques which will minimize its production costs and bring the mine back into production mode quickly. The Company has identified three distinct drill zones that indicate the presence of gold and silver in sufficient quantities to warrant commercial mining.
The Company plans to conduct a three-phased drilling program at its Independence mine. Phase I of the drilling program is already underway. In Phase I, the Company plans to drill 15 to 20 holes with a depth of 500 meters to determine the continuity of the surface, two reverse circulation holes of 1,000 meters to determine the vertical location and another 5 to 10 shallow holes to analyze and determine the grades of gold reserves.
In Phase II, the Company plans to drills 20 holes of 500 feet in the Independence target for resource delineation and conversion. In Phase III, the Company intends to drill five holes of over 3,000 feet in depth in the Wilson-Independence Deep target to determine the grade, quality and quantity of gold and silver reserves and the economic feasibility for commercial exploration and mining.
The Company recently raised $265,000 through an equity private placement to finance the initial portion of the Phase I drilling program. General Metals is on-track to complete the initial resource identification portion of Phase I on schedule and begin planned shallow mining production later this year. The Company also plans to conduct a deep drilling program to ascertain the quantity of gold and silver reserves in the Independence mine. In addition to its promising Independence mine prospect, General Metals also owns a 100% interest in Mikite Gold Resources, a Ghanaian corporation with exclusive exploration rights to the Nyinahin Mining Concession near Bibiani, Ghana. This concession will also be explored later this year, funding and resources permitting.

Market Opportunity
Global demand for gold and silver is rising due to the increasing economic development and robust demand for gold jewelry from developing countries such as India, China and Turkey. Gold prices have moved up from a low of $275 per ounce in the mid-1990s to $690 per ounce today. The gold and precious metal industry has been experiencing supply shortages which have driven gold prices up significantly over the past year.
Global inflation worries, geo-political tensions, high crude oil prices, depreciation of the US dollar against major global currencies and rising US public debt have caused major investment funds to invest in gold to hedge their risks. With the supply of gold remaining static and demand rising rapidly, gold prices are likely to rise. Analysts are predicting higher gold prices by the end of 2007. General Metals with its rich gold properties and aggressive development plans, is well-positioned to capitalize on rising gold prices.
Acquisitions to Drive Future Growth
The Company plans to grow by acquiring other gold and silver properties. Acquiring mining properties will enable the Company to scale up its operations quickly and compete more effectively with the industry's major mining companies. General Metals recently acquired a 100% interest in Mikite Gold Resources, with exclusive exploration rights to the Nyinahin Mining Concession near Bibiani, Ghana. The mineral rights are for gold, diamonds and base metals.
This acquisition also enables the Company to establish a global footprint, expand into foreign markets, take advantage of lower costs of production and diversify its risks. General Metals is presently evaluating other gold and precious metals properties outside the US it believes may have significant gold reserves and commercial development opportunities.
Successful Private Placement
The Company raised gross proceeds of $265,000 from an equity private placement in April. The proceeds enabled it to start the first portion of the Phase I drilling program on the Independence Mine shallow target. General Metal's financing strategy is to raise funds in small increments that allow it to complete exploration of a specific targeted area while minimizing dilution to existing shareholders. The Company is also negotiating with an equity firm that has provided as much as $500 million in funding to other junior mining firms and may provide General Metals with $2 million in funding. The Company has budgeted $1.35 million for its Phase I drilling activities.
Significant Gold and Silver Deposits Indicated
General Metals has identified both shallow and deep mining targets on its claim at the north end of the Independence mine property. These consist of two shallow targets, the North Target and the Independence Target, and the Wilson Deep Target. General Metals believes there is potential to develop a gold resource of 235,000 ounces from its shallow targets and 1.5 million ounces from its deep target.
Advisory Board to give Strategic Guidance
General Metals Advisory Board is comprised of geologists, engineers and consultants with over 25 years of experience in geology, mining, exploration and engineering. The Advisory Board is directing the Company's exploration activities at the Wilson-Independence mine and also helping it identify acquisition opportunities.
Robert G. Carrington, P.Geo., B.Sc., a Consulting Geologist in Reno, Nevada, joined the Company's Advisory Board in February 2007. Carrington is a Registered Professional Geologist and a Registered Engineering Geologist with more than 28 years experience in domestic and international exploration, development and production. P.K. Rana Medhi, of Casa Grande, Arizona, is Chairman of the Company's Advisory Board. Medhi is an independent consultant and a principal of Minerals Management, International. He has an extensive background in exploration and mine development as well as worldwide mining contacts.
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