SOURCE: General Metals Corporation

March 27, 2008 08:16 ET

General Metals Discusses 2007 Exploration Program Results and Plans for 2008 Negotiates Drill for All of 2008 -- Engages Dyer Engineering of Reno, NV for Engineering & Permitting Through Production

RENO, NV--(Marketwire - March 27, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to provide the following discussion of the Company's 2007 Reverse Circulation (RC) drilling program and current plans for 2008. 2007 drilling successfully tested the Independence Shallow oxide gold - silver target. 100% of the holes encountered oxide mineralization in the target zone, and most encountered higher grade and wider zones of mineralization than had been previously estimated or currently expected. To allow the Company to follow up on its highly successful 2007 RC drilling program, the Company's management has negotiated with Drift Exploration Inc. to provide an RC drill and crew to the project for the entire year of 2008.

2008 Program

The Drift crew has completed 10 holes of the 2008 drill program which is designed to initially add valuable data to add to the 2007 drill and assay data which is being used in the preparation of a CNI 43-101 compliant report and the preliminary mine model.

The Company has also engaged Dyer Engineering of Reno, Nevada to advance permitting and engineering studies necessary to place the property into commercial production. Dyer worked with management on construction of the cyanide heap leach operation built in 2003 and 2004 in Nevada's Comstock Load for another Company, in which management was previously involved.

2007 Program

During 2007, the Company completed 32 RC drill holes ranging from 100 to 550 feet deep, with a combined drilled footage of 10,475 feet. All holes were angle holes drilled in an easterly direction to test the mineralized zone in the Independence Shallow Target on the southern portion of the Company's strategically located property. The 2007 program tested roughly 1800 feet of strike around the Independence Mine.

While several mineralized intercepts exceeded 200 feet of true width and several more exceeded 100 feet of true width, the average, length weighted, drill intercept for all of the largest (and generally the lowest grade) intercepts along the entire 1,800 feet of the target tested thus far is 76.6 feet with an average grade of 0.028 opt Au Equiv. per ton.

Discussion

Drilling continues to define a body of near surface, completely oxidized mineralization with excellent continuity along strike and down dip. Mineralized drill intercepts correlated well up and down dip and along strike from section to section. The interpretation is supported by accessible mine workings. Potentially surface bulk mineable mineralization in the Company's drill intercepts is consistently wider than anticipated from underground mapping and sampling results.

The mineralized zone intersected in drilling typically consists of a higher grade core surrounded be a broad halo of low grade which is often 100 to 200 feet wide. All mineralization encountered is thoroughly oxidized throughout the zones being tested. Exposures in historic mine workings suggest the mineralization is oxidized to depths of more than 400 feet below the present surface and has a high degree of continuity along strike and down dip.

Results including grade, width, and oxide nature of mineralization, indicate excellent potential for a low cost, open pit heap leach operation with near term production potential for which planning is underway.

The orientation of the mineralized zone at the Independence allows the Company to drill holes which are roughly perpendicular to mineralization, resulting in drill intercepts which are believed to represent approximate true thickness.

Geochemical and structural modeling of the property indicates that mineralization may extend northerly on the Company's property for more than 3,000 feet in the direction of the Sunshine Open Pit Mine formerly operated by Battle Mountain Gold Corp., now Newmont Mining.

The following table lists the reported data which has been prepared by Management:

Drill    Mineralized                                            Gold
Hole     Intercepts                                           Equivalent
         From    To Intercept  Gold   Gold   Silver Silver   oz/t    g/t
                               oz/t   g/ton   oz/t   g/ton    Au      Au
                                                             Equiv.  Equiv.
---------------------------------------------------------------------------
GM-1       50     95    45    0.046   1.431   1.38   42.92   0.072   2.236
GM-2      165    195    30    1.012   0.373   1.37   42.61   0.038   1.172
GM-3      155    210    55     .015   0.467   1.03   32.04   0.034   1.067
GM-4      220    270    55    0.013   0.404   0.52   17.72   0.023   0.706
Including 220    245    25    0.020   0.622   0.77   26.14   0.034   1.067
GM-5      150    205    55    0.032   0.995   1.58   49.27   0.062   1.919
Including 160    175    15    0.070   2.177   2.89   89.89   0.124   3.863
GM-6      190    245    55    0.006   0.192   0.32   10.88   0.012   0.377
GM-6      275    305    30    0.017   0.529   0.31   10.70   0.023   0.711
Including 275    290    15    0.026   0.809   0.38   13.17   0.033   1.033
GM-7      140    200    60    0.015   0.467   1.46   50.07   0.042   1.318
Including 170    195    25    0.032   0.995   2.32   79.62   0.076   2.350
GM-8      305    335    30    0.005   0.140   0.32    9.81   0.011   0.330
GM-9      105    225   120    0.007   0.230   0.65   20.32   0.020   0.610
Including 120    160    40    0.014   0.440   1.71   53.07   0.046   1.440
GM-10      10     15     5    0.098   3.050   3.91  121.56   0.171   5.330
GM-10     110    225   115    0.011   0.340   0.65   20.15   0.023   0.720
Including 110    120    10    0.018   0.540   2.55   79.31    0.65   2.030
Also      150    200    50    0.020   0.610   0.86   26.75    0.36   1.110
GM-11     165    245    80    0.006   0.180   0.85   26.38   0.022   0.670
Including 170    195    25    0.032   0.995   2.32   79.62   0.076   2.350
GM-12      15     65    50    0.018   0.560   0.00    0.06   0.018   0.561
Including  35     60    25    0.024   0.746   0.04    1.24   0.025   0.770
GM-12     225    280    55    0.008   0.249   0.50   15.55   0.017   0.540
Including 265    280    15    0.012   0.373   1.17   36.39   0.034   1.056
GM-13     280    350    70    0.021   0.660   0.42   13.11   0.029   0.910
Including 290    315    25    0.041   1.280   0.84   26.13   0.057   1.770
GM-14     145    300   155    0.007   0.150   0.45   14.15   0.016   0.490
Including 170    195    25    0.018   0.560   1.03   32.04   0.037   1.040
And       235    245    10    0.027   0.840   0.60   18.66   0.038   1.190
Note GM-14 bottomed in mineralization at 300 Feet
GM-15     195    230    35    0.018   0.570   0.43   13.49   0.026   0.820
GM-16     190    300   110    0.005   0.160   0.58   17.98   0.016   0.490
Including 215    260    45    0.035   1.100   1.10   34.21   0.056   1.740
Note GM-16 bottomed in mineralization with 0.065 opt AU equivalent
 at 300 Feet
GM-17     145    350   205    0.007   0.150   0.45  14.150   0.016   0.490
Including  170   185    15    0.008   0.250   0.73   22.81   0.022   0.680
Also      270    285    15    0.014   0.450   0.47   14.51   0.023   0.720
And       335    350    15    0.018   0.560   4.30  133.75   0.099   3.070
Note GM-17 bottomed in mineralization with 0.022 opt AU equivalent
 at 350 Feet
GM-19     170    320   150    0.025   0.790   0.67   20.74   0.038   1.180
Including 210    270    60    0.057   1.770   1.43   44.58   0.084   2.610
GM-20     150    165    15    0.004   0.130   0.40   12.44   0.012   0.370
And       190    205    15    0.009   0.270   0.33   10.26   0.015   0.460
GM-21      50     60    10    0.000   0.000   0.60   18.66   0.011   0.350
And       140    150    10    0.008   0.250   0.20    6.22   0.012   0.370
GM-22     305    430   125    0.024   0.760   0.19    5.85   0.028   0.870
Including 315    380    65    0.041   1.270   0.35   10.77   0.047   1.470
GM-24      25    285   260    0.020    0.62   0.22    6.84   0.024    0.75

Including  25     45    20    0.034    1.06   0.24    7.37   0.038    1.20
Including 150    285   135    0.025    0.78   0.30    9.33   0.031    0.95
GM-25       0     15    15    0.011    0.24   0.48   14.94   0.020    0.63
And       130    165    35    0.010    0.30   0.23    7.15   0.014    0.43
GM-26     225    385   160    0.020    0.62   0.48   14.87   0.029    0.90
Including 225    235    10    0.044    1.35   0.96   29.80   0.061    1.91
Including 290    330    40    0.032    1.00   0.61   18.96   0.044    1.35
GM-27      40    160   120    0.008    0.24   0.56   17.32   0.018    0.56
And       100    140    40    0.012    0.36   1.15   35.68   0.033    1.03
GM-28     205    255    50    0.020    0.62   0.80   24.88   0.035    1.09
Includin  230    245    15    0.030    0.93   0.53   16.48   0.040    1.24
And       395    400     5    0.159    4.95   0.15    4.67   0.162    5.03
GM-29     170    265    95    0.009    0.28   0.79   24.71   0.024    0.74
Including 225    255    30    0.013    0.39   1.57   48.96   0.042    1.31
GM-30       5     45    40    0.020    0.62   0.78   24.11   0.035    1.07
Including  30     35     5    0.106    3.30   3.58  111.35   0.173    5.38
GM-31     185    360   175    0.028    0.87   1.06   32.97   0.048    1.49
Including 225    295    70    0.057    1.77   1.80   55.99   0.091    2.82
Including 260    290    30    0.069    2.15   2.72   84.69   0.120    3.74
GM-32     225    250    25    0.015    0.47   0.56   17.42   0.026    0.79

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.

It should be noted that even though the assays are believed to be both independent and reliable, they are not yet National Instrument 43-101 or SEC Industry Guide 7 compliant and therefore cannot be relied upon. Investors are cautioned that until such time as results are reported in a compliant document, they cannot and should not be relied upon.

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: The Company is production and growth oriented and controls 100% of the strategically situated Independence Mine property located in the prolific Battle Mountain Mining District on the Battle Mountain - Eureka gold trend, in Humboldt County, Nevada, adjacent to the giant Phoenix project. The current drilling program is designed to confirm early estimates of mineralized material thought to contain 235,000 oz. gold and 2,500,000 oz. silver and to expand the mineralized envelope which enhances near term production numbers. 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 f iscal 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