With our plans to begin drilling at Independence Mine, we're more than thrilled to hear gold is making a comeback
RENO, Nev. (PRWEB) March 9, 2007
"With our plans to begin drilling at Independence Mine, we're more than thrilled to hear gold is making a comeback," states company CEO Stephen Parent. "We're even more excited with our location; it's a proven producer."
General Metals acquired the Independence Mine in northern Nevada and became a public company last year, trading under the symbol GNLM. Predominantly a silver mine from 1938 to 1987, the Independence Mine is estimated to contain over two million ounces of gold, as well as over two million ounces of additional un-mined silver. As the Independence Mine is essentially an island within Newmont Mining's Phoenix Mine, the area is already a proven producer. According to Parent, they plan to remove the precious metals in two phases.
"Phase one includes our 'shallow' targets," says Parent. "The shallow targets contain less gold, but they're easily and quickly accessible, which will encourage early cash flow. Phase two is where the majority of our gold will come from. It's deep mining, but we expect it to produce 1.4 to 2 million ounces of gold."
They expect to produce 20,000 ounces of gold in the first year, 60,000 ounces in the second year and 70,000 ounces in the third year -- approximately $101 million from early estimates. The company also anticipates an additional $1.36 billion to be gained from phase two production.
In an effort to increase their mining production, General Metals has recently acquired the Nyinahin Mining Concession in Ghana. Located in one of the most active exploratory areas in the world, this concession shares borders with several major mining companies, including Newmont Mining, Napoli Gold and Dunkwa Continental Goldfields.
"Financial experts are predicting gold to play a key role in investor's profiles during 2007," adds Parent. "But due to the timely nature, potential investors will need to act quickly in order to maximize their gains."