Source: Proactive Investors                       Date: 26 August, 2010

Perth-based General Mining is to commence drilling in September at its fully owned Uvs Basin potash project in Mongolia, once all necessary approvals are received. The project comprises 5 granted exploration licenses covering more than 2,000 km2 within the Uvs Nuur Basin that is considered prospective for bedded and domal (salt diapir) potash deposits as well as for lithium and potassium brines.

Some rock salt, soda ash and gypsum deposits and base metal occurrences have been discovered within the Uvs Basin and limited drilling at the northern periphery of the basin in the 1950-60s intersected shallow potash mineralisation in up to 600 m thick Devonian evaporates. These drilling results from the Russian part of the Uvs Nuur Basin confirm the prospectivity for solid potash and/or potassium brine deposits.

The company has commissioned a drilling contractor to commence structural drilling of a series of drill holes at these circular features to a depth of about 150 m and totaling 1,200 line meters. If confirmed by this structural drilling, salt diapir structures could become a priority target for subsequent specialized exploratory drilling aiming at the domal type of potash deposits.