SOURCE: General Metals Corporation

February 25, 2008 08:06 ET

General Metals Drilling Intersects 205 Feet of Near Surface Oxide Mineralization in Hole GM-17, 150 Feet in Hole GM-19, 125 Feet in Hole GM-22 and 110 Feet in Hole GM-16 Which Bottoms in Mineralization at Wilson Independence Mine

RENO, NV--(Marketwire - February 25, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce that drilling at the Company's Wilson Independence Property has encountered additional significant widths of near surface, oxide mineralization, including the 205 feet in hole GM-17. This is the largest intercept to date in the Independence Shallow Target. Other significant intercepts include 150 feet in GM-19, 125 feet in hole GM-22 and 110 feet in GM 16, as summarized below in Table 1.

Results for drill holes GM - 16, 17, 19, 20, 21 and 22 from its Wilson Independence Shallow 2007 drilling program are presented herein. Holes GM 16 and 17 are situated on Section 2800 North, and holes GM 19, 20, 21 and 22 are on Section 2200 North. Cross sections showing the relative positions of these holes are attached to this press release. All holes encountered oxide significant mineralization within the targeted zones. Several mineralized intersections were significantly larger than anticipated, as a result holes GM-16 and 17 on Sections 2800 North bottomed in mineralization.

Discussion

Drilling continues to define a body of near surface, completely oxidized mineralization with excellent continuity along strike and down dip. The mineralization consists of a higher grade core surrounded be a broad halo of low grade up to 200 feet wide. Remarkably, the mineralization is thoroughly oxidized throughout the zone being tested. Exposures in historic mine workings suggest the mineralization is oxidized to depths of more than 400 feet below the present surface.

Recent work by the Company indicates this zone of mineralization extends well beyond the limits of the area currently being drilled. Exposures of this mineralization in historic mine workings confirm the high degree of continuity being found in the drilling.

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 Company plans to initiate permitting for such an operation.

Drill holes GM 16 and 17 are on Section 2800 North which is situated roughly 100 feet south of hole GM 15 announced in the Company's press release dated February 24, 2008 and shown on Section 2800 North for interpretive purposes. Drill holes GM 19, 20, 21, 22 and 23 are all situated on Section 2200 North. The holes on this Section, designed to define mineralization within a 700 foot long gap which exists between the drilling on Section 1700 North and that on Sections 2800 and 2900 North.

The dipping nature 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.

The following table provides salient data for these holes.

Table 1

                Mineralized Intercepts                    Gold Equivelant
Drill
Hole     From   To  Intercept Gold   Gold  Silver Silver  oz/t Au   g/t
        (feet) (feet) (feet)  oz/t   g/ton  oz/t   g/ton  Equiv @   Au
                                                          $15 Ag    Equiv.
                                                          $800
                                                           Au

GM-16     190   300    110   0.005   0.16   0.58  17.98   0.016     0.49
Including 215   260     45   0.035   1.10   1.10  34.21   0.056     1.74
*Note: GM 16 bottomed in mineralization  with 0.065 opt Au Equiv. @300 feet
GM-17     145   350    205   0.007   0.15   0.45  14.15   0.016     0.49
Including 170   185     15   0.008   0.25   0.73  22.81   0.022     0.68
Also      270   285     15   0.014   0.45   0.47  14.51   0.023     0.72
and       335   350     15   0.018   0.56    4.3 133.75   0.099     3.07
*GM-17 bottomed in 0.022 opt Au Equiv. @ 350 feet
GM-19     170   320    150   0.025   0.79   0.67  20.74   0.038     1.18
Including 210   270     60   0.057   1.77   1.43  44.58   0.084     2.61

GM-20     150   165     15   0.004   0.13   0.40  12.44   0.012     0.37
and       190   205     15   0.009   0.27   0.33  10.26   0.015     0.46

GM-21      50    60     10   0.000   0.00   0.60  18.66   0.011     0.35
and       140   150     10   0.008   0.25   0.20   6.22   0.012     0.37

GM-22     305   430    125   0.024   0.76   0.19   5.85   0.028     0.87
Including 315   380     65   0.041   1.27   0.35  10.77   0.047     1.47

Results

Section 2200 North

Results are included here for holes 19, 20, 21 and 22, all located on Section 2200 North, results are pending for hole GM-23 also on Section 2200. These holes are all angle reverse circulation holes drilled 45o below horizontal in an easterly direction, to increase definition of mineralization in a roughly 700 foot long gap that existed along the strike of the mineralized zone. All holes encountered mineralization with the two best holes, GM 19 and GM-22, encountering 150 feet of 0.038 opt Au Equiv and 125 feet of 0.028 opt Au Equiv respectively. Each of these holes contained higher grade intercepts within the larger low grade halo. Within the large low grad halo, GM-19 contained 60 feet with an average grade of 0.084 opt Au Equiv., and hole GM-22 encountered 65 feet with an average grade of 0.047 opt Au Equiv.

Mineralization encountered in holes GM 20 and 21, extending up dip from hole GM-19 is narrower and somewhat lower grade than in holes GM-19 and GM-22, but clearly demonstrates the persistence of mineralization along permissive structures.

Section 2800 North

Holes GM-16, 17 and 18 were drilled on this section. Results for GM-16 and GM-17 are presented herein. Results for GM-18 are pending and will be announced upon receipt and evaluation of the data.

GM-16 encountered a larger that expected zone containing 110 feet of mineralization grading 0.016 opt Au Equiv from 190 to 300 feet. Contained with in this is an interval of 45 feet from 215 to 260 feet which contained an average grade of 0.056 opt Au Equiv. Hole GM-16 bottomed in mineralization grading 0.065 opt Au Equiv at a depth of 300 feet.

GM-17 also encountered wider than anticipated mineralization, intersecting 205 feet with an average grade of 0.016 opt Au Equiv. which contained several higher grade zones, the most notable of which occurs in the 15 feet from 335 to 350 feet which contain an average grade of 0.099 opt Au Equiv. Hole GM-17 bottomed in mineralization grading 0.022 opt Au Equiv. at a depth of 350 feet.

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