General Minerals drops Escalones (August 10, 2001)

Vancouver — With a large lease payment due this month on the Escalones copper skarn project, Denver-based General Minerals (GNM-T) has decided to drop the promising property, which is located southeast of Santiago, Chile.

General Minerals was unsuccessful in finding a joint-venture partner to help with the further development of the project. The company also failed to renegotiate terms with the local landowner.

As a result of this decision, General Minerals will take a $5.5 million non-cash writeoff during the third quarter.

Previous work on the once highly touted property focused on magnetite skarn mineralization around the edges of an intrusion.

In all, General Minerals completed 23 drill holes (10,159 metres) at the property since late 1998.

Of these holes, 14 were completed under a joint venture with Asarco. This was terminated when the copper producer was taken over by Grupo Mexico in late 1999.