SOURCE: General Metals Corporation

February 21, 2008 08:04 ET

General Metals Drilling Intersects 155 Feet of Near Surface Oxide Mineralization at Wilson Independence Mine With Holes Bottoming in Mineralization

RENO, NV--(Marketwire - February 21, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce the following additional drill results from its Wilson Independence Shallow 2007 drilling program for holes GM - 13, 14 and 15. Holes GM 13, and 14 are situated on Section 2400 North, and hole GM 15 is on Section 2900 North as attached to this press release. All holes encountered oxide mineralization with grades equal to or higher than anticipated over larger than expected intervals within the targeted zones, as a result two holes bottomed in mineralization.

Discussion

Drilling results to date are developing a clear picture of a body of near surface oxide mineralization exhibiting excellent continuity along strike and down dip. The mineralized body appears composed of a higher grade core surrounded be a broad halo of low grade oxide mineralization. Mineralization is thoroughly oxidized, outcrops along much of the area being drilled and extends beyond the limits of present drilling on strike and at depth. Exposures of this mineralization in historic mine workings confirm the high degree of continuity being found in the drilling. These results indicate high potential for an open pit heap leach operation with near term production potential for which planning is underway.

Drill holes GM 13 and 14 on Section 2400 represent a 700 foot step out to the north from holes previously announced on Section 1700 North, in the Company's press release dated January 8, 2008. Drill hole GM 15 on Section 2900 North represents a 500 foot step out to the north beyond holes GM 13 and 14.

The following table provides salient data for these holes.

Table 1


                                                                   Gold
                               Mineralized Intercepts           Equivalent
                      ----------------------------------------- ---------
                                                               oz/t Au
                                                                 Equiv
                                                                @ $15
                                  Inter-                          Ag  g/t
                      From   To   rcept Gold  Gold Silver Silver $800 Au
                     (feet)(feet)(feet) oz/t  g/ton oz/t  g/ton   Au Equiv.
                      ----- ----- ----- ----- ----- ----- ----- ----- -----
GM-13                   280   350    70 0.021  0.66  0.42 13.11 0.029  0.91
                      ----- ----- ----- ----- ----- ----- ----- ----- -----
Including               290   315    25 0.041  1.28  0.84 26.13 0.057  1.77
                      ----- ----- ----- ----- ----- ----- ----- ----- -----


*Note: GM 13 bottomed in mineralization at 350 feet.

GM-14                   145   300   155 0.007  0.15  0.45 14.15 0.016  0.49
                      ----- ----- ----- ----- ----- ----- ----- ----- -----
Including               170   195    25 0.018  0.56  1.03 32.04 0.037  1.04
                      ----- ----- ----- ----- ----- ----- ----- ----- -----
and                     235   245    10 0.027  0.84  0.60 18.66 0.038  1.19
                      ----- ----- ----- ----- ----- ----- ----- ----- -----

*Note: GM 14 bottomed in mineralization at 300 feet.

GM-15                   195   230    35 0.018  0.57  0.43 13.49 0.026  0.82
                      ----- ----- ----- ----- ----- ----- ----- ----- -----
                        200   220    20 0.030  0.93  0.56 17.35 0.041  1.26
                      ===== ===== ===== ===== ===== ===== ===== ===== =====

Results

Section 2400 North

All holes on this section intersected deeply oxidized mineralization over significant widths within the projected target zone. As stated above, these holes represent a 700 foot step out to the north from previously announced holes. Both holes bottomed in mineralized material, intersecting wider than anticipated zones of mineralization. GM - 13 bottomed in mineralization assaying 0.028 opt Au equiv after passing through 70 feet of mineralization with an average grade of 0.029 opt Au equiv. Higher grade mineralization with an average grade of 0.057 opt Au equiv. occurs over the 25 foot interval from 290 to 315.

GM - 14 intersected 155 feet of mineralization with an average grade of 0.016 opt Au equiv over the interval from 145 to 300 feet. Higher grade mineralization was intersected in two zones within this interval, the 25 feet from 170 to 195 averaging 0.037 opt Au equiv. and the interval from 235 to 245 feet averaging 0.038 opt Au equiv. Hole GM - 14 bottomed in mineralization assaying 0.01 opt gold equiv.

Hole 13 was drilled to test projections of mineralization, structure and stratigraphy down dip from the historic Independence Mine while GM 14 was drilled to test similar up dip projections closer to the surface. Both holes successfully tested mineralization within the projected target zone intersecting mineralization over larger than expected intervals and both ending in ore.

Section 2900 North

Drill hole GM - 15 was drilled roughly 700 feet north of GM-14, testing projections of mineralization, structure and stratigraphy up dip from the historic Independence Mine working. This hole provides the highest test of the up dip projections of mineralization to date. GM - 14 intersected thoroughly oxidized mineralization averaging 0.026 opt Au equiv. over the 40 foot interval from 190 to 230 feet, including a higher grade 20 foot interval from 200 to 220 which averaged 0.041 opt Au equiv.

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 2004 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