SOURCE: General Metals Corporation

March 02, 2010 13:27 ET

General Metals Drills 15 Feet (4.6 Meters) Grading 1.019 opt (38.51 g/T) Gold Within 295 Foot (70.1 Meter) Interval Averaging 0.079 opt (3.14 g/T) Gold on Section 3700 North, Identifies Potential Bonanza Target in Hill Zone at Independence Property

RENO, NV--(Marketwire - March 2, 2010) -  General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce final delineation drilling results for Section 3700 North in the Hill Zone at Company's Independence Gold - Silver Property appear to identify a shallow, significant Bonanza Target zone when coupled with results from the Company's other drilling and historic drill results. Drilling encountered a 15 foot (4.6 meter) zone estimated to represent the approximate true thickness of high grade gold - silver mineralization which averaged 1.033 ounces per ton (opt) or 39.04 grams per metric tonne (g/T) gold equivalent (Au Equiv) from 310 to 325 feet (94.5 - 99.1 meters). This bonanza grade intercept is contained within a much larger 230 foot (70.1 meter) intercept which averages 0.083 opt (3.14 g/T) Au Equiv from 295 to 525 feet (89.9 - 160.1 meters). This drilling completes the planned delineation drilling for Section 3700 North situated 100 feet (30.5 meters) of Section 3600 North, the results of which were announced in the Company's Press Release of February 16, 2010.

Table 1 below summarizes the significant intercepts contained in hole GM128 on Section 3700 North.

Table 1 Current Drill Results Section 3700 North

 
Drill Hole From To Intercept Gold Eqiv. Gold Silver
  feet meters feet meters Feet meters opt g/T opt g/T opt g/T
GM-128 295 89.9 525 160.1 230 70.1 0.083 3.14 0.079 2.99 0.24 9.07
Including 310 94.5 325 99.1 15 4.6 1.033 39.04 1.019 38.51 0.99 37.42
 
COVENTION: To avoid confusion, where gold and silver are expressed in imperial units it is expressed in troy ounces per short ton of 2000 pounce expressed (opt) where expressed in metric units they are expressed in grams per metric tonne of 1,000 kilograms (~2,200 pounds) expressed as (g/T)

High Grade Target Zone Identified

This bonanza grade intercept coupled with other similar high grade intercepts appear to define a zone more than 1,300 feet (400 meters) long along strike. This zone is thought to be the offset northward extension of high grade mineralization originally produced in the historic Independence underground mine where spectacular grades up to 63 opt (2,381 g/T) gold and 19,500 opt (736,974 g/T) silver have historically been reported. 

This high grade mineralization, like that in the old Independence Mine workings occurs in the brittle, highly fractured and porous, uppermost semi-massive chert beds, just below a more ductile unit composed of mudstones, shale and sandy shale (argillite). The ductile and less permeable argillite unit appears to have acted as a physical barrier to the upward migration of mineralizing fluids, causing them to pool in the fractured cherts below, resulting in a semi continuous zone of high grade mineralization that was mined underground, continuously over a strike length of more than 1,500 feet. 

The Company's Consultants are of the opinion that this high grade mineralization in GM-128 is likely continuous with similar high grade mineralization intersected in drill hole GM-88 located more than 400 feet south-southeast of GM-128 and with a similar high grade intersection in drill hole GM-52 located more than 150 feet south-southeast of, and on trend both GM-88 and GM-128. This trend of mineralized intercepts also aligns well with a historic high grade intercept in TECK Corporations drill hole IN-10 which contained 10 feet (3 meters) averaging 0.300 opt (11.3 g/T) Au. Together these high grade intercepts appear to define a high grade target zone with more than 1,300 feet (400 meters) of strike length that remains open in a north-northwest direction. For reference, GM-88 intercepted 10 feet (3 meters) averaging .233 opt (8.8 g/T) Au and 14.24 opt (538 g/T) Ag as announced in the Company's release of November 24, 2009 and drill hole GM-52 contained a 5 foot (1.5 meter) mineralized intercept from 90 to 95 feet which assayed 0.311 opt (11.75 g/T) gold and 200.5 opt (7,577.6 g/T) silver as announced in the Company's press release dated June 30, 2008.

The large, 230 foot intercept, contained in drill hole GM128 is approximately 100 feet (30 meters) down dip from an equally large 210 foot intercept in hole GM-73, essentially exactly as projected by the Company's consultants but with higher than projected average grade.

Table 2 below summarizes the significant intercepts contained in holes GM 57, 58, 73, 74, 77 and. As previously announced by the Company.

Table 2 Previously Released Drill Results Section 3600 North

 
Drill Hole From To Intercept Gold Eqiv. Gold Silver
  feet meters feet meters feet meters opt g/T opt g/T opt g/T
GM-57 210 64.0 350 106.7 140 42.7 0.043 1.32 0.038 1.18 0.24 7.46
Including 210 64.0 245 74.7 35 10.7 0.101 3.13 0.093 2.89 0.40 12.44
GM-58 60 18.3 185 56.4 125 38.1 0.031 0.96 0.024 0.75 0.36 11.32
Including 110 33.5 155 47.3 45 13.7 0.051 1.59 0.037 1.15 0.75 23.27
GM-73 225 68.6 435 132.6 210 64.0 0.031 0.96 0.026 0.81 0.27 8.27
Including 305 93.0 390 118.9 85 25.9 0.060 1.87 0.051 1.59 0.49 15.24
GM-74 255 77.7 350 106.7 95 29.0 0.021 0.66 0.017 0.53 0.22 6.87
Including 320 97.6 345 105.2 25 7.6 0.042 1.32 0.034 1.06 0.45 13.90
GM-77 70 21.3 215 65.5 145 44.2 0.019 0.60 0.016 0.50 0.18 5.66
Including 70 21.3 105 32.0 35 10.7 0.038 1.19 0.035 1.09 0.18 5.60
Also 185 56.4 200 61.0 15 4.6 0.028 0.89 0.024 0.75 0.24 7.43
GM-78 0 0.0 50 15.2 50 15.2 0.026 0.80 0.019 0.68 0.35 6.13
COVENTION: To avoid confusion, where gold and silver are expressed in imperial units it is expressed in troy ounces per short ton of 2000 pounce expressed (opt) where expressed in metric units they are expressed in grams per metric tonne of 1,000 kilograms (~2,200 pounds) expressed as (g/T)

All 2009 - 2010 drill results have thus far encountered widths and gold and silver grades equal to or greater than expected by the Company's consultants. The 2009 - 2010 drilling program was designed specifically to increase drill hole density and thereby the statistical confidence levels for resource modeling in the Hill Zone. As the Company moves forward into Feasibility and Production, this tighter drill hole spacing is necessary for mine planning and to define Proven and Probable reserve categories.

Collectively the drilling on Section 3700N continues to define a cohesive, shallow to moderately west-dipping zone of near surface oxide gold - silver mineralization which exhibits excellent continuity with mineralization on adjoining drill sections to the north and the south of 3600 North.

All sampling was conducted by industry accepted standards and samples split to approximately 1/8 of the original volume using a "Jones Type" riffle splitter. Samples were stored on site until either shipped to the laboratory or picked up in the field by the laboratory. In keeping with the Company's practice of following industry accepted "best practices," drilling is sampled in five (5) foot intervals. The Company inserts a series of Standards, blanks and Certified Reference materials at a rate of approximately 1 in 30, for Quality Assurance - Quality Control.

Further details regarding the Independence are available on the Company's website 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 and developing its 100% controlled Independence property strategically located in the prolific and highly prospective Battle Mountain Mining District of Nevada.

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.

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