SOURCE: General Metals Corporation

June 10, 2008 08:08 ET

General Metals 2008 Drilling Intersects 100 Feet of 0.045 opt Au Equivalent at Independence Mine and Continues to Expand Mineralization

RENO, NV--(Marketwire - June 10, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce results for drill holes 33 through and including GM-37 of the Company's ongoing 2008 drill program. All holes have encountered potentially economic mineralization with the best results in this series of holes in GM-35 which returned 100 feet averaging 0.045 ounces per ton of gold Equivalent (opt Au Equiv.). The Company's 2008 program is an extension the Company's highly successful 2007 program, and is intended to provide sufficient drill hole density to permit a resource calculation compliant with CNI 43-101, in the near future.

GM-33 is located on Section 1400 North and holes GM-35 through GM-37 are on Section 1500 North. The holes were drilled as step-out holes from mineralization encountered in the Company's 2007 program. Management continues to be encouraged by the oxidized nature of this near surface mineralization and the potential to develop a low cost bulk mineable deposit. These and pending drill holes were drilled to increase density of drilling to a level sufficient to support a resource calculation for the Independence Shallow Target area.

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

                Mineralized                                    Gold
                 Intercepts                                  Equivalent

Drill  From   To  Intercept Gold   Gold   Silver  Silver  oz/t Au  g/t Au
Hole   (ft)  (ft)  pt (ft)  oz/t   g/ton   oz/t    g/ton   Equiv.   Equiv.

GM-33   75    100    25     0.010   0.29   0.94    27.42   0.028    0.82
GM-34   90    105    15     0.008   0.23   0.47    13.83   0.017    0.50
GM-35  200    300   100     0.016   0.47   1.54    44.95   0.045    1.31
GM-36   90     95     5     0.007   0.20   0.83    24.06   0.023    0.67
GM-37   20     40    20     0.008   0.23   0.98    28.53   0.026    0.76

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.

Drill hole GM-33, drilled approximately 100 feet east of hole GM-7 on Section 1500 North, extends mineralization up dip from GM-7 to within 60 feet of the surface, encountering 25 feet from 75 to 100 feet with an average grade of 0.028 ounces per ton of gold equivalent (opt Au Equiv.). Importantly this hole demonstrates the continuity of mineralization up dip in the shallow subsurface.

Holes GM-34, 35, 36 and 37, all located on Section 1400 North were drilled to check continuity of mineralization up dip toward the surface. All holes encountered significant mineralization within the target zone, and extend mineralization encountered in drill hole GM-8, 275 feet up dip, to within 20 feet of the surface. Drill hole GM 35 was drilled vertically across the intercept in GM-8 to check continuity and test for possible structurally controlled mineralization that may not have been adequately tested in hole GM-8. Hole GM-35 bottomed in mineralization, returned the best mineralized intercept in this series of holes, with the 100 feet from 200 to 300 feet averaging 0.045 opt Au Equiv.

Discussion

The interpreted geometry of the mineralized zones, based on available drill data supports management's opinion that potential to develop an open pit type mining operation exists in the Independence Shallow Target Zone. All of the mineralization encountered on the property to date has been deeply and thoroughly oxidized. Oxidized ores characteristically are amenable to low cost recovery techniques such as heap leaching. The grade of mineralization encountered in the Company's drilling to date are comparable with the grades of mineralization found in other operating open pit, heap leach mines in the State of Nevada today.

Drilling results continue to expand mineralization at the Independence Project and support the model of near surface, potentially bulk mineable gold -- silver mineralization in the vicinity of the historic Wilson Independence Mine. Mineralization remains open to along strike to the north, south and to depth.

Permitting for mining and production has been started by Dyer Engineering of Reno, NV, and steps to establish near term production are underway.

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: General Metals Corporation is an aggressive junior minerals exploration and development company, based in Reno, Nevada. The Company controls 100% of the strategically situated Independence property located in the prolific and highly prospective Battle Mountain Mining District on the Battle Mountain - Eureka gold trend, in Humboldt County, Nevada. 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
    wayne@gnmtlive.com
    775.583.4636 office
    775.830.6429 cell