SOURCE: General Metals Corporation

June 25, 2008 08:06 ET

General Metals 2008 Drill Program Continues to Find High Grade and Wide Mineralized Intercepts, Expanding Bulk Mining Material Suitable for Leaching

RENO, NV--(Marketwire - June 25, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) excitedly announced today a 20 foot intercept of .092 ounces per ton gold equivalent (opt Au Equiv.), which was included in a 140 foot intercept in Hole GM - 46 averaging 0.029 opt Au Equiv.

Drill holes GM - 40 through GM 46 added critical information left incomplete from the 2007 drill program. These results confirm the continuity of mineralization across the 500 foot strike length between Sections 1700 North and 2200 North as discussed in the Company's Press Releases of March 18, 2008, which may be viewed on the Company's website.

Section 1800 North which included Holes GM - 40, 41, 42, 44 and 45 is an infill fence that was first drilled this year. All holes were drilled in an easterly direction at an angle of 45 degrees below horizontal. The holes identified mineralization within the target envelope northward from section 1700 North. The results found a low grade halo surrounding higher grade mineralization.

Steve Parent, President and CEO, stated, "The results we are seeing this year continue to impress me. Both the high grade and halo mineralization exhibits excellent continuity along strike and the results continue to tie each section to the adjacent sections thereby confirming our reliance on that continuity to provide a high level of confidence in making the production decision upon which we began our permitting process. "

"This mineralization also remains open to depth," said Dan Forbush, Company CFO. "The results, though anticipated, continue to surprise me. This project is becoming better and better. The anticipation of seeing the next results increases each time we receive a batch of assays and sometimes is heightened with the reports from the geologists as to what they are seeing in the rocks coming from each hole."

The following Table presents the salient drill data from the holes discussed in this press release.

                     Mineralized Intercepts                    Equivalent
                     ----------------------                    ----------
                                                              oz/t    g/t
Drill    From  To  Intercept Gold    Gold   Silver  Silver     Au      Au
Hole     (ft) (ft)   (ft)    oz/t    g/ton   oz/t    g/ton   Equiv.  Equiv.
------   ---- ---- --------- -----   -----  ------  ------   ------  ------
GM-40     125  165    40     0.017    0.53   1.00    31.10    0.036   1.11
GM-41     225  295    70     0.006    0.21   0.38    11.94    0.013   0.41
Incl.     275  295    20     0.036    1.23   0.66    20.37    0.048   1.50
GM-42     310  395    85     0.008    0.27   0.37    11.48    0.015   0.46
GM-43     280  395   115     0.013    0.45   0.62    19.28    0.024   0.75
Incl.     335  395    60     0.031    1.06   1.42    44.10    0.058   1.79
GM-44     120  130    10     0.010    0.34   1.11    34.52    0.031   0.96
          185  195    10     0.006    0.21   0.43    13.25    0.014   0.44
GM-45      15   20     5     0.019    0.65   0.18     5.63    0.022   0.70
Also      115  145    30     0.012    0.41   0.39    12.01    0.019   0.60
GM-46     125  265   140     0.012    0.41   0.94    29.11    0.030   0.92
Incl.     130  150    20     0.042    1.44   2.67    83.05    0.092   2.86

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.

Holes GM 43 and 46, drilled on Section 2000 North, were also drilled easterly at 45 degrees below horizontal. Holes GM 29 and 30, also drilled on Section 2000 North during 2007, were discussed in the Company's Press Releases of March 18, 2008, which may be viewed on the Company's website. The results of these holes are presented again below for reference.

                     Mineralized Intercepts                    Equivalent
                     ----------------------                    ----------
                                                              oz/t    g/t
Drill    From  To  Intercept Gold    Gold   Silver  Silver     Au      Au
Hole     (ft) (ft)   (ft)    oz/t    g/ton   oz/t    g/ton   Equiv.  Equiv.
------   ---- ---- --------- -----   -----  ------  ------   ------  ------
GM-29     175  265     90    0.009    0.28   0.79    24.71   0.024    0.70
Incl.     225  255     30    0.013    0.39   1.57    48.96   0.042    1.30
GM-30       5   45     40    0.020    0.62   0.78    24.11   0.035    1.00
Incl.      30   35      5    0.106    3.30   3.58   111.35   0.173    5.30

Again, all holes on this section encountered mineralization within the target envelope as modeled and confirm the presence of a high grade core surrounded by a halo of lower grade mineralization.

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

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. At the Independence, the Company is exploring near surface mineralization it believes to be amenable to bulk mining and heap leaching. 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 2007 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
    615 Sierra Rose Dr. Suite 1
    Reno, NV 89511
    775.583.4636 office
    775.830.6429 cell