SOURCE: General Metals Corporation

November 11, 2010 14:54 ET

General Metals Corporation Signs Memorandum of Understanding With Gold Canyon Mining & Construction, LLC for Mine Development at the Independence Mine Project

RENO, NV--(Marketwire - November 11, 2010) - General Metals Corporation ("General Metals" or the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ), is pleased to announce that the Company's President Paul Wang, and Kerry Bjornson, CEO of Gold Canyon Mining & Construction, LLC ("GCM"), entered into a Memorandum of Understanding to establish an exclusive mining construction arrangement for the company's Independence Mine Project in the Battle Mountain Gold & Silver Mining District, Lander County, Nevada. 

Gold Canyon Mining & Construction is a leading provider of mining construction and contract mining services in North America. GCM is a premier mine construction contractor, currently working with 12 major mining companies in eight different states and recently built the largest gold heap leach operation in Alaska. GCM maintains a high standard for environmentally sound and safe operations and has achieved a current safety record of 900,000 hours without a lost-time accident.

The MOU covers the construction, development and ongoing contract mining at General Metals Independence Mine including open pit mining, hauling, construction of the haul roads and heap leach pads with retention ponds.

It is intended that GCM will send a survey team to the Independence Mine to evaluate the optimum equipment which may be used for operations, possibly to include 100 Ton Caterpillar Haul Trucks known as "triple 7's" currently in service at Newmont's Phoenix mine, which is adjacent to the Independence , and a 400,000 lb Hitachi shovel. GCM has demonstrated expertise in all phases of mine construction, and has demonstrated ability to bring projects to completion on budget. The availability and utilization of GCM equipment will provide significant economies of scale to the mine design and future operations at the Independence Project.

"This is a significant development for our 'fast ramp up' program at the Independence Gold and Silver Mine Project," said Paul Wang, President and Director of General Metals. "I am pleased with the progress made to date and look forward to a continued relationship with Gold Canyon in order to advance our project."

General Metals Corporation owns a 100% undivided leasehold interest in the Independence Mine situated in Battle Mountain, Nevada. The Independence near surface target is described in the 2008 Independence Interim Drill report. The current NI 43-101 compliant resource estimate for surface targets stands at 210,400 ounces of gold and 3,990,500 ounces of silver in Measured and Indicated Resource categories.

Addition information about Gold Canyon Mining & Construction, LLC, General Metals Corporation and the Independence Mine Project is available at:
Gold Canyon Mining and Construction, LLC -- www.gcmining.com.
General Metals Corporation -- www.generalmetalscorporation.com

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 at its Independence Mine in Nevada or any shallow mining production later this year, that any estimated ounces of gold or 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 most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Important Note to U.S. Investors
This press release uses the terms "measured resources," "indicated resources," "inferred resources," and "historical resources" which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification system. The United States Securities and Exchange Commission (the "SEC") does not recognize these terms and the SEC guidelines (Industry Guide 7) provide that such terms shall not be included in a registrant's filings with the SEC (unless required to be disclosed by foreign or state law). The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at http://www.sec.gov.

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