SOURCE: General Metals Corporation

November 24, 2008 08:08 ET

General Metals Revised Drill Results Expands Mineralization at Independence Project Including 85 Feet at 0.06 opt Au Equiv. Contained Within 210 Feet of 0.031 opt Au Equiv.

RENO, NV--(Marketwire - November 24, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce revised results for drill holes GM-73, 74, 77 and 78, previously published on November 19, 2008, which include 85 feet of high grade near surface oxide mineralization averaging 0.060 opt Au Equivalent in GM-73 contained within 210 feet of lower grade mineralization grading 0.031 opt Au Equivalent. These results expand similar high grade mineralization encountered in holes GM-57 and 58 as announced in the Company's press release dated June 8, 2008, and incorporated in Table 1 below for reference.

The Company's drilling has identified a large body of near surface oxide mineralization over a strike length of more than 4,100 feet and discovered the new Hill Zone. The Company believes this mineralization, which is open to depth and along strike to the north, is amenable to open pit mining and heap leaching, with an estimated true width ranging from 45 to more than 200 feet, in the Hill Zone at the Company's Independence Project.

After a thorough review of the Company's drill data to date, combined with historic drill data, the Company's consultants calculate a drill inferred Global Estimate of 39,089,939 tons of mineralized material, containing 569,347 ounces of gold and 11,327,160 ounces of silver in the near surface oxide mineralization. This estimate is a global estimate of mineralization in the now targeted zones on the property, and does not yet indicate the material is minable or economical.

Discussion

The Company continues to be very encouraged by the results of its recently completed Phase 1 drilling at the Independence Project. Every hole of its combined 2007 - 2008 program has encountered significant surface oxide mineralization both as to width and grade. Drilling indicates exceptional continuity of mineralization both along strike and up and down dip, confirming the Company's confidence in the near term production potential at the Independence. The mineralized drill intercepts are generally much larger and higher grade than the intercepts to the south in the vicinity of the historic mine workings. The Company is focusing its efforts to maximize the definable resource in the Independence Shallow and Hill Zone Areas of the Property. Drilling has targeted surface oxide mineralization to provide sufficient drill density and sampling to maximize the surface oxide resources in these areas in preparation for completing a resource estimate.

Table 1 below presents the salient drill data for these holes.

                                 Table 1

Drill      From   To  Intercept Gold   Gold  Silver  Silver   oz/t   g/t
Hole       (ft)  (ft)  (ft)     oz/t   g/ton  oz/t    g/ton    Au     Au
                                                             Equiv. Equiv.
GM-73       225   435   210     0.026  0.81   0.27     8.27   0.031  0.96
Including   305   390    85     0.051  1.59   0.49    15.24   0.060  1.87
GM-74       255   350    95     0.017  0.53   0.22     6.87   0.021  0.66
Including   320   345    25     0.034  1.06   0.45    13.90   0.042  1.32
GM-77        70   215   145     0.016  0.50   0.18     5.66   0.019  0.60
Including    70   105    35     0.035  1.09   0.18     5.60   0.038  1.19
Also        185   200    15     0.024  0.75   0.24     7.43   0.028  0.89
GM-78         0    50    50     0.019  0.68   0.35     6.13   0.026  0.80
As Previously Announced
GM-57       210   350   140     0.038  1.18   0.24     7.46   0.043  1.32
Including   210   245    35     0.093  2.89   0.4     12.44   0.101  3.13
GM-58        60   185   125     0.024  0.75   0.36    11.32   0.031  0.96
Including   110   155    45     0.037  1.15   0.75    23.27   0.051  1.59

General Note: All notations of "t" and "ton" refer to a US "short" ton
weighing 2000 pounds.  All gold equivalent is calculated at a gold price of
$800 (US) and a silver price of $15 per ounce, and does not consider
variations which may exist in metallurgical recovery.

Section 3800 North

Drill holes GM-73, 74, 77 and 78 were drilled on Section 3800 North to establish nominal 100 foot offsets up and down dip along projections of mineralization encountered in holes GM-57 and 58, as announced in the Company's press release dated June 8, 2008 in the high grade Hill Zone. All holes have intersected significant mineralization within the target zone and confirm continuity of mineralization between sections and up and down dip, significantly expanding high grade mineralization in the Hill Zone area. Mineralization remains open at depth and is normally completely oxidized within 300 to 400 feet of the surface.

Planning For Near Term Production

Engineering and permitting for production is underway by Dyer Engineering of Reno who is planning an open pit mine and cyanide heap leach recovery operation for the Company.

A detailed description of the 2007 - 2008 Phase 1 Definition Drilling Program is available on the Company's web site, under " Independence Interim Drilling Report" link on our Homepage at www.gnmtlive.com

About General Metals Corporation: General Metals Corporation is an aggressive junior minerals exploration and development company, based in Reno, Nevada. The Company is actively exploring its 100% controlled Independence property strategically located in the prolific and highly prospective Battle Mountain Mining District, Nevada. Permitting and Engineering for heap leach production is underway at the Independence Mine. The Company recently entered into an agreement to sell its 150 sq. km. mining concession for gold, diamonds and base metals in Ghana, West Africa for $1,000,000 in cash and stock and retains a royalty.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that the proceeds from the recent private placement will allow the Company to proceed with Phase 1 drilling at its Independence Mine in Nevada or any shallow mining production later this year, the budget for the Phase 1 drilling program, that an estimated 569,347 ounces of gold and 11,327,160 ounces of silver are contained in the mineralized material in the "Shallow Target," and is proposed to be mined and loaded onto a cyanide heap leach pad, or any future financings that the Company may enter into.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2008 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Wayne Meyerson
    Investor Relations
    General Metals Corporation
    wayne@gnmtlive.com
    775.583.4636 office
    775.830.6429 cell