SOURCE: General Metals Corporation

June 09, 2009 07:38 ET

General Metals Announces 5.2 Feet at 2.160 opt Gold (73.9 g/T) From High Grade Independence Gold Skarn Unpublished Core Drilling Results

RENO, NV--(Marketwire - June 9, 2009) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to release the following diamond drill results from the high grade Independence Gold Skarn Target at the Company's Independence property in the Battle Mountain Mining District of Nevada. These intercepts are historic in nature and from diamond drilling conducted by Noranda Minerals from 1985 through 1989 and Great Basin Gold Corp. in 1998. Except for Great Basin Gold drill hole WI-001, none of these results have been previously disclosed. General Metals considers these important mineralized intercepts integral to understanding the significant target potential of the Independence Gold Skarn system and related mineralization at the Independence Mine. Table 1 below summarizes the Noranda diamond drill intercepts, and Table 2 presents the Great Basin Gold diamond drill intercepts.

                               Table 1

        Significant Mineralized Intercepts from Noranda Minerals
                  Diamond Core Drilling (1985 - 1989)

Drill          From              To           Interval
Hole                                                        Au       Au
           Feet    meters   Feet    Meters   Feet  meters  (opt)    (g/T)

IND-01     2895.0   882.6   2940.0   896.3   45.0   13.7   0.157    5.37
Including  2920.0   890.2   2940.0   896.3   20.0    6.1   0.246    8.41
IND-02      320.0    97.6    360.0   109.8   40.0   12.2   0.148    5.07
IND-02     2965.0   904.0   2974.0   906.7    9.0    2.7   0.145    4.96
Including  2965.0   904.0   2970.0   905.5    5.0    1.5   0.210    7.20
IND-04     2430.0   740.9   2455.0   748.5   25.0    7.6   0.134    4.58
Including  2440.0   743.9   2450.0   747.0   10.0    3.0   0.202    6.91
IND-04     2905.0   885.7   2975.0   907.0   65.0   19.8   0.134    4.59
Including  2925.0   891.8   2940.0   896.3   15.0    4.6   0.431   14.73
IND-04     3045.0   928.4   3055.0   931.4   10.0    3.0   0.319   10.90
IND-05     2865.0   873.5   2900.0   884.1   35.0   10.7   0.075    2.56
Including  2890.0   881.1   2900.0   884.1   10.0    3.0   0.141    4.84
IND-05     3280.0  1000.0   3345.0  1019.8   65.0   19.8   0.060    2.06
Including  3310.0  1009.1   3340.0  1018.3   30.0    9.1   0.085    2.90
IND-06     2255.0   687.5   2290.0   698.2   30.0    9.1   0.145    4.96
Including  2255.0   687.5   2270.0   692.1   15.0    4.6   0.197    6.73
IND-07     2025.0   617.4   2045.0   623.5   20.0    6.1   0.065    2.24
Including  2042.0   622.6   2045.0   623.5    3.0    0.9   0.178    6.09
IND-07     2595.0   791.2   2602.0   793.3    7.0    2.1   0.133    4.54
IND-07     3023.0   921.6   3037.0   925.9   14.0    4.3   0.094    3.22

* Note: All gold values listed under "Au (opt)" are in troy ounces per
  Imperial ton of 2000 pounds.  All gold values listed under "Au (g/T)"
  are grams of gold per metric ton of 1,000 kilograms or 2,200 pounds.

In addition to the above Noranda drilling, Vancouver based Great Basin Gold drilled two holes to test additional areas of mineralization in the Independence Gold Skarn. Great Basin announced a portion of the results in a press release dated July 7, 1998 but did not disclose mineralized intercepts in its second hole which was drilled near the northern end of the property, more than 3,300 feet (1,000 meters) north of the earlier Noranda drilling. Both holes intersected significant and potentially economic mineralization in known favorable host rocks beneath the Golconda Thrust. To ensure completeness, General Metals presents all mineralized intercepts for the Great Basin diamond core drilling in Table 2, below.

                      Table 2

   Great Basin Gold Diamond Drill Results (circa 1998)

Drill         From              To            Interval
Hole
         Feet     Meters   Feet     Meters   Feet   Meters

WI-001   3164.1   964.7    3175.9   968.3    11.8     3.6
WI-001   3297.5   1005.3   3302.7   1006.9    5.2     1.6
WI-002   1490.0   454.3    1496.0   456.1     6.0     1.8
WI-002   1549.5   472.4    1552.5   473.3     3.0     0.9
WI-002   2361.0   719.8    2366.0   721.3     5.0     1.5
WI-002   2960.0   902.4    2965.0   904.0     5.0     1.5


Drill      Au       Au           Status /
Hole      (opt)   (g/T)        Disclosure

WI-001    0.445    15.23    Previously Announced
WI-001    2.160    73.90    Previously Announced
WI-002    0.221     7.56       Not Announced
WI-002    0.091     3.11       Not Announced
WI-002    0.112     3.83       Not Announced
WI-002    0.108     3.70       Not Announced

* Note: All gold values listed as "Au (opt)" are in troy ounces per
  Imperial ton of 2000 pounds.  All gold values listed as "Au (g/T)"
  are grams of gold per metric ton of 1,000 kilograms or 2,200 pounds.

General Metals is pleased to announce it is delivering original Noranda pulps for the majority of all mineralized intercepts summarized in Table 1 together with samples above and below these intercepts to American Assay Laboratories of Sparks, Nevada for extensive check assays of the mineralized zones. These are original pulps from Noranda Minerals, 1985 - 1989 diamond drill programs which have been maintained by the underlying property owners together with the entire original Noranda core library. General Metals is in the process of verifying the location and chain of custody of the samples from the Great Basin Gold drilling program and intends to submit these samples for similar check assay once they are properly verified. Once completed this level of check assay will meet or exceed industry best practices and the requirements of all regulatory regimens. The results of these check assays will be incorporated in the independent technical report General Metals is having prepared at this time. All core from the Great Basin Drilling is also stored in the properties core library.

When taken together, the Noranda and Great Basin Gold drilling in the Independence Gold Skarn system identify a target more than half a mile wide and three quarters of a mile long which contains three highly prospective structural / stratigraphic zones, all of which have been demonstrated to host significant levels of gold mineralization. This target is found in the same favorable sedimentary rocks below the Golconda thrust which hosted the 2.2 million ounce Fortitude Gold Skarn deposit mined by Battle Mountain Gold and which host a significant portion of the giant Phoenix gold deposit which is contiguous with the Independence Property.

General Metal's consultants have been rigorously modeling and re-examining the core from these programs, and are of the opinion that significant intervals of favorably altered and mineralized rock was not sampled in several of the historic core holes. The Company intends to relog and validate the integrity of this unsampled core, and anticipates sampling and assaying this core as warranted in the future.

To date more than 25,000 feet of core in eight holes have been drilled to test mineralization in the Independence Gold Skarn. At current costs for drilling, assaying and supervision, it is estimated this work has a replacement value in excess of $3,800,000(US). Virtually every hole which has targeted the gold skarn to date has intersected significant gold mineralization over an area which is more than three quarters of a mile long and half a mile wide, with most holes containing multiple mineralized horizons.

The highest grade portion of the Independence Gold Skarn occurs in favorable carbonate rich rocks below the Golconda Thrust, and directly beneath the Surface Oxide Mineralization which was the subject of General Metals 2007 - 2008 Reverse Circulation Drilling program. It is highly likely that the sub-vertical structural system which controls the surface oxide mineralization acted as a conduit, permitting mineralizing fluids circulating in the gold skarn to migrate to the near surface, depositing the gold and silver that form the Surface Oxide portion of the Independence System as the "fingerprint" of the deeper gold skarn. Surface "leakage" halos or fingerprints related to deeper mineralization form the basis for modern geochemical prospecting, and many such features related to deeper high grade mineralization are known along the Battle Mountain gold trend, including the Cove - McCoy system to the south and the Ivanhoe - Hollister system to the north where high grade underground ore bodies exhibited surface geochemical halos that were in themselves economically viable mines.

General Metals believes the combined Independence Surface Oxide and Gold Skarn represents a world class target in the world class Battle Mountain Mining District along an indisputable world class gold trend.

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 permitting or advance production timing may not occur.

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
    615 Sierra Rose Dr., Suite 1
    Reno, NV 89511
    wayne@gnmtlive.com
    775.583.4636 office
    775.830.6429 cell