SOURCE: General Metals Corporation

November 13, 2008 08:08 ET

General Metals Completes Phase I Drilling at Independence Project and Grows Oxide Mineralization to 569,347 oz Gold and 11,327,160 oz Silver

RENO, NV--(Marketwire - November 13, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce it has completed its 2007- 2008 Phase 1 drilling program at its Independence Gold and Silver Mining Project in Battle Mountain, Nevada. The Independence is situated directly adjacent to the massive Phoenix Project, which is the largest operating gold mine in the US. All samples from the drilling have been delivered to American Assay Labs Reno facility for analysis. Final results are still pending on a few holes which will be announced as they are received and interpreted.

2007-2008 Phase 1 Drilling and Historical Results

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. Mineralization is open to depth and along strike to the north. 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.

During the 2007 -2008 Phase I drilling program, the Company completed 26,055 feet in 84 drill holes. Holes range from vertical to 45 degrees easterly and vary from 25 to 580 feet deep and average 336 feet in depth. Upon receipt of final analysis for all drill samples and vetting of the data base, the company will complete an Independent technical report by a Qualified person to assess the results. Until the report is complete, investors are cautioned not to rely on these results and estimates for investment purposes.

Steve Parent, Company President and CEO said: "This drilling program has been incredible. Every hole has contained mineralization and our target has grown from an initial estimated 235,000 ounces of gold and 2.5 million ounces of silver to almost 570,000 ounces of gold and over 11,000,000 ounces of silver in shallow near surface oxide mineralization. This validates management's early confidence in this deposit and sets the stage for significant production."

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.

Sampling, Assaying and Quality Control

The Company's samples are collected in accordance with accepted industry best practices. All drilling is Reverse Circulation (RC) type drilling, using an MPD 1000 track mounted drill, drilling a nominal 5.25 inch diameter hole. Cuttings are split using a riffle type splitter set to produce duplicate sample splits. One sample is warehoused and stored for future reference and or metallurgical purposes. The other sample is sent for analysis. Assaying procedure follows fire assay with atomic absorption finish.

The samples were submitted to American Assay Labs at their Reno, Nevada facility. American Assay Laboratories participates in the following accreditations; Certificate of ISO/IEC 17025; Certificate of Laboratory Proficiency PTP-MAL, accredited by Standards Council of Canada; Geostats of Australia certificate, and the Society of mineral analysts - Round Robin testing.

Gold was analyzed by fire assay with ICP/AES finish, and silver and base metal analyses were determined with ICP/AES techniques. As standard procedure, the Company conducts routine QA/QC analysis on all assay results, including the systematic utilization of certified reference materials, blanks, field duplicates, and umpire laboratory check assays.

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
    775.686.6078 office
    775.830.6429 cell