SOURCE: General Metals Corporation

January 08, 2008 08:16 ET

General Metals Update: Drilling Continues to Expand Surface Oxide Mineralization at Independence Gold - Silver Project

RENO, NV--(Marketwire - January 8, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce results for drill holes GM-8 on Section 1400 North and holes GM-9, 10 and 11 on Section 1700 North. All encountered mineralization in the projected target zone, and all intercepts meet or exceed targeted projections for the Independence Shallow target zone. Mineralization has now been tested to depths as great as 300 feet down dip, and remains open in all directions.

The following table provides salient data for these holes.

Drill Hole  Mineralized                                     Gold Equivelant
            Intercepts
           From   To  Intercept Gold  Gold   Silver Silver  oz/t Au  g/t Au
          (feet) (feet) (feet)  oz/t  g/ton  oz/t   g/ton   Equiv @  Equiv.
                                                            $15 Ag
                                                            $800 Au
GM-8        305   335    30     0.005  0.14   0.32   9.81    0.011   0.33
GM-9        105   225    120    0.007  0.23   0.65   20.32   0.020   0.61
Including   120   160    40     0.014  0.44   1.71   53.07   0.046   1.44
GM-10       10    15     5      0.098  3.05   3.91   121.56  0.171   5.33
GM-10       110   225    115    0.011  0.34   0.65   20.15   0.023   0.72
Including   110   120    10     0.018  0.54   2.55   79.31   0.065   2.03
Also        150   200    50     0.020  0.61   0.86   26.75   0.036   1.11
GM-11       165   245    80     0.006  0.18   0.85   26.38   0.022   0.67
Including   195   215    20     0.009  0.29   2.14   66.68   0.050   1.54

Results

Section 1400 North

Drill hole GM-8 was drilled on Section 1,400 North to test stratigraphic projections beyond the interpreted limits of the target zone in the Independence Shallow Target. The mineralized intercept is roughly 300 feet down dip from the surface projection of the mineralized zone, and provides the deepest test of favorable stratigraphy to date. The pierce point lies within favorable stratigraphy but well outside the indicated structural zone associated with mineralization in the Wilson Independence Shallow Zone.

Importantly this hole demonstrates the presence of mineralization along favorable stratigraphy beyond the limits of the structural features associated with mineralization at the Independence. Drill hole GM-8 intersected 30 feet of mineralization, from 305 to 335 with a gold equivalent grade of 0.011 ounces per ton within the favorable stratigraphic units of the Pumpernickle formation. The drill fence on Section 1400 N is the southernmost drilling of the 2007 program at Independence property.

Section 1700 North

Drill holes GM-9, 10 and 11 were drilled on Section 1700 North to test the northward projection of mineralization from Section 1.650 North as previously announced. All holes were designed to test the target envelope defined by favorable stratigraphy and structures known to be associated with mineralization.

GM-9, tested mineralization nearest to the surface encountering 120 feet of mineralization from 105 to 225 feet with an average 0.020 opt Au equivalent. Included within this is 40 feet grading 0.046 opt Au equivalent.

GM-10 was drilled to intersect the target zone roughly 40 feet down dip from GM-9. GM-10 encountered 115 feet of mineralization from 110 to 225 feet grading 0.023 opt Au equivalent, including two higher grade zones from 110 to 120 grading 0.065 opt Au equivalent and a second larger 50 foot intercept corresponding to the main zone of mineralization from 150 to 200 feet which averaged 0.036 opt Au equivalent across the 50 foot intercept. GM 10 also encountered a shallow mineralized interval from 10 to 15 feet grading 0.171 opt Au equivalent. This intercept does not correspond with known mineralized structures or zones. The relatively high grade nature of this interval suggests it may be leakage from an important source at depth and will be more fully evaluated as additional data is generated.

Hole GM-11 was drilled to pass roughly 40 feet down dip from GM-10 to provide further down dip information on the target zone and to evaluate the continuity of mineralization. GM-11 successfully intersected 80 feet of mineralization from 165 to 245 feet with an average grade of 0.022 opt Au equivalent. Included within this is a higher grade zone of mineralization from 195 to 215 feet which averaged 0.050 opt Au equivalent over the 20 foot drill intercept.

As presented in the table above and shown on the attached Section 1700 North, each of these holes encountered high grade intercepts ranging from ten to fifty feet with an average intercept length of 30 feet, and an average intercept grade of 0.044 opt Au Equivalent. Each higher grade intercept is situated within broader intercepts of mineralization ranging from 80 to 120 feet which averaged 0.021 opt Au Equivalent over the entire intercept length. To the extent possible the drilling is oriented perpendicular to the mineralized zones and thereby yields an approximate "true" thickness. These intercepts are however, drilled intercept lengths and do not necessarily represent true widths of mineralization.

The attached Section 1700 North shows interpreted mineralization projected from Section 1650 North in grey, projected to Section 1700 North. This projection demonstrates the excellent continuity of width and grade of mineralization observed thus far in the mineralization in the Independence Shallow Target drilling.

Discussion

The combined results of the Company's 2007 Stage 1 of its Phase I drilling program received to date show the Independence Shallow Target Zone is a highly mineralized, thoroughly oxidized zone with excellent continuity along strike and down dip. Mineralization remains open both along strike and down dip. These results support the Company's opinion that the Independence Shallow Target represents a shallow near surface target that may be amenable to low cost bulk mining and treatment techniques such as open pit mining and heap leaching.

One of the Company's consultants, Robert Carrington, P.Geol., states that, "With all the time I have spent on this property over the last 30 years, it is gratifying to see these drill results coming back even better than I expected."

A detailed description of the exploration and production history of the Independence property is available on the Company's web site at www.gnmtlive.com

About General Metals Corporation: The Company controls 100% of the strategically situated Independence property located in the prolific Battle Mountain Mining District on the Battle Mountain - Eureka gold trend, in Humboldt County, Nevada. The current drilling program is designed to confirm early estimates of mineralized material thought to contain 235,000 oz. gold and 2,500,000 oz. silver and to expand the mineralized envelope which enhances near term production numbers. The Company also owns 150 sq. km. of mining concessions for gold, diamonds and base metals in Ghana, West Africa and plans to commence exploration activities this year.

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 235,000 ounces of gold and 2,500,000 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 2004 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
    775.686.6078 office
    775.830.6429 cell