General Mining Corporation Limited is pleased to announce that the initial round of drilling at its Mt Success Project in WA has intersected significant gold mineralisation at grades of up to 6.6gpt. The drilling at Mt Success, which is located 15km north of Mt Magnet in the Murchison Goldfield, saw 15 holes drilled to test a mineralised quartz vein structure which had been mapped along 600m of strike. These holes have confirmed that the vein system is continuous over the 600m strike to a depth of about 50m. It remains open in all directions. All holes intersected the reef structure, which exhibited broad zones of up to 5m of quartz veining with sulphide mineralisation within a sheared basalt host rock. All but one of the holes intersected anomalous gold mineralisation within the quartz reef.

Six of the holes returned plus 1g/t Au intersections, with three returning significant gold mineralisation. The significant results appear to be clustered in a central area which General Mining believes could indicate the presence of a high-grade shoot.  This view is supported by the fact that each of the zones  intersected returned +10g/t Au mineralisation. The Company intends to follow up these exciting results with additional deeper drilling focussing on defining the geometry and distribution of the high grade shoot(s).

Surrounding Ground Acquisition

General Mining is also pleased to announce that it has recently entered into an option agreement with a syndicate of prospectors who hold the ground surrounding the Mt Success Mine area. The tenements significantly increase the Company’s land holding in the project area. The optioned tenements include the strike extensions of the Mt Success Reef structure which has returned anomalous gold values from rock-chip sampling completed by the vendors. Information provided by the vendors, but yet to be verified by the Company, also shows a number of old workings and costeans to the east and west of the Mt Success reef structure that have returned anomalous rock chip sampling results.

The option has been granted for an initial term of 12 months for a payment of $40,000. The option fee is payable on signing however, the option term commences only when the Company receives the necessary native title clearances for the first drilling program. The Company can elect to extend the option for a further 12 months by paying an additional $60,000.  It can elect to exercise the option to purchase a 100% interest in the tenements at any time by payment of $625,000 to the vendors. The vendors will also be entitled to a production-based royalty capped at $1.875M. 

Securing  this  option  provides General Mining  with sufficient  ground  to commence  a systematic exploration program over  a prospective area that has received  little  attention  in recent  times.“These are outstanding results, particularly for an initial drilling program, and give us every reason to be confident about the potential of Mt Success,” General Mining Chairman Michael Wright said. “We will start the next drilling program within weeks with the aim of testing what appears to be a high-grade shoot within a highly promising WA gold exploration project.”