General Mining : 22 June 2016 - Significant pegmatite repetition encountered at Mt Cattlin

Microsoft Word - GMM 2016-06-22 Mt Cattlin

ASX ANNOUNCEMENT 22 June 2016

General Mining Corporation ABN: 95 125 721 075

ASX Code: GMM Issued Capital: 318,197,526 shares

15,200,000 unlisted options

Share Price:

$0.81 per share

Market Capitalisation:

AUD$257.2M

Board of Directors Mr Michael Fotios Executive Chairman

Mr Alan Still

Non‐executive Director

Mr Michael Kitney

Non‐executive Director

Company Secretary

Ms Karen Brown

www.generalmining.com Address:

89 Burswood Road Burswood WA 6100

Telephone:

08 9227 1186

Facsimile:

08 9227 8178

SIGNIFICANT PEGMATITE REPETITION ENCOUNTERED UNDER KNOWN RESOURCE AT MT CATTLIN

HIGHLIGHTS

• Significant 11m intercept of spodumene‐bearing pegmatite encountered in diamond hole MTCDD3, beneath Dowling Pit
• Presence of significant spodumene in pegmatite at depth confirms scope of large lithium mineralised system, open in all directions.

General Mining (ASX:GMM), together with its partner Galaxy Resources Limited (ASX:GXY) is pleased to inform the market that Hole MTCDD3 has intersected a significant (11m downhole) zone of coarse‐grained spodumene‐bearing pegmatite, from a depth of 376.6m downhole, as part of a deep stratigraphic diamond drilling programme at its Mt Cattlin Lithium‐Tantalum deposit in south‐western WA. This zone is significant as the spodumene is coarse‐grained and prevalent throughout the pegmatite intersection; and is the widest yet‐encountered below the known pegmatite resource, and of similar dimension to the pegmatite zones contributing to the current resource.

In the latest drilling, multiple new intercepts of spodumene‐bearing pegmatite have been intersected in Holes MTCDD2 and MTCDD3, and the following spodumene‐bearing pegmatite intervals (minimum width approximately 2.5m) noted 1:

Hole MTCDD2

 28.5‐33.1m

 403‐407.5m

Hole MTCDD3

 0‐16.5m

 130‐134.1m

 376.6‐387.6m

1 These intervals are not Exploration Results for the purposes of the JORC Code 2012 and the Company will announce the Exploration Results of the drilling upon completion of assaying and test work

True widths are expected to be 80‐100% of the pegmatite drill interval. Currently only the first interval in each hole is captured by the current resource model.

The company has previously released geological information to the ASX on the 11th April and 25th February 2016 on the current drilling programme, which is designed to provide greater geological understanding of the Mt Cattlin orebody and to assist in determining optimal depths for planned infill and extensional drilling of the known lithium‐tantalum resource.

All additional intercepts encountered thus far are considered significant in that the pegmatite, while mostly flat‐lying, can roll and swell in thickness along dip and strike, and represent exploration targets for further drilling. The Company is of the belief that the 4.5m intercept in hole MTCDD2 correlates with the 11m intercept in hole MTCDD3, nearly 150m apart (refer Figure 7).

Figure 1: Coarse‐grained spodumene crystals in pegmatite, intersection in NQ drill core, Hole MTCDD3, depth approx. 379m

Hole MTCDD3 is still underway and is currently at 448.8m depth as at 20th June. The hole is designed to terminate after confirming the geometry and thickness of an ENE‐ trending Proterozoic dyke, which outcrops in the southern wall of the Dowling Pit, stoping the pegmatite body (refer Figure 6). The Proterozoic dyke has not yet been encountered in the current hole. The dyke was encountered in Hole MTCDD2 at approximately 605m, suggesting a sub‐vertical dip to the south, and that hole was subsequently terminated at 641.3m.

Figure 2: Pegmatite intersection in cut NQ drill core, Hole MTCDD3, depth approx. 376m, with abundant coarse spodumene crystals

The next hole (MTCDD4) is planned to test some 100m north of the significant intercept in Hole MTCDD3, and will be achieved by steepening the planned dip from the current collar position, located within the current pit (refer Figures 4 and 5), and will be followed by an additional hole testing the same pegmatite horizon some 100m further east by rotating the rig orientation at 90 degrees upon completion of hole MTCDD4.

Assays for pegmatite intersections from Hole MTCDD1 are awaited, with results expected imminently. The significant intersection in Hole MTCDD3 has already been processed for sampling, and transported to the laboratory for expedited analysis. Additional sampling of other pegmatite intercepts is continuing.

Figure 4: Diamond drilling of MTCDD3, Dowling Pit, June 2016 Figure 5: Location plan of holes in current stratigraphic drilling programme, section line for composite section for Figure 6, and cross section in Figure 7