SOURCE: General Metals Corporation

November 08, 2010 10:19 ET

General Metals Drills 445 Feet (135 Meters) of Surface Oxide Gold Mineralization Near High Grade Assaying Over 1 Ounce per Ton at Independence Project, Nevada

RENO, NV--(Marketwire - November 8, 2010) -  General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce the following drill results in the Hill Zone of the Company's Independence Project continue to intersect very large, continuously mineralized zones of surface and near surface, oxidized gold mineralization up to 445 feet (135 meters) in length within the potential open pit, heap leach target at the Company's Independence Project. The large intercepts reported in the current holes are hosted in favorable sedimentary host rocks, east of structurally controlled high grade oxidized mineralization in "feeder structures" (faults or breaks in the rocks which increase porosity, permeability and receptivity), as identified in holes GM-127 and GM-128, where GM-127 contained interval as previously announced which assayed 0.908 ounces of gold per ton (opt Au) and 0.36 ounces of silver per ton (opt Ag) over 10 feet with an individual high of 1.586 opt Au over 5 feet and GM-128 which contained 1.019 opt Au and 0.99 opt over 15, and an individual high sample of 2.897 opt Au over five feet. These intercepts represent the approximate true width of the large and expanding Independence Surface Oxide Target.

Management is highly encouraged by these most recent results, which when combined with all of the Company's previous highly successful drilling, have drill tested approximately 3,100 feet of the prospective surface mineralization at the Independence, leaving over 2,200 feet of the strike length yet to be drilled. Recently modeled soil geochemistry and limited historic drilling in this comparatively untested area contain highly anomalous gold in soil values to over 1,000 ppb gold in soil, and drill intercepts in excess of 1/3 of an ounce of gold per ton. Surface oxide gold mineralization remains open to the north and to depth in all cases.

The drill intervals reported herein are of thoroughly oxidized, near surface mineralization from the Hill Zone, and are similar in character to material which recently yielded more than 91% extractable gold from 4 inch crush material in large diameter bulk column leach tests previously reported by the Company. These results continue to build on the Company's previous work and further demonstrate the large potential of the Independence project.

Table 1
Hill Zone Surface Oxide Resource Area Drill Results

Drill Hole   Intercept (Feet)   Gold Eqiv.   Gold   Silver
  From   To   Length   opt   opt   opt
GM-123   360.0   400.0   40   0.018   0.015   0.21
GM-125   40   360   320   0.011   0.010   0.07
Including   90   140   50   0.024   0.023   0.05
GM-126   5   450   445   0.011   0.010   0.09
Including   165   215   50   0.042   0.340   0.31

CONVENTION: To avoid confusion, where gold and silver are expressed in imperial units it is expressed in troy ounces per short ton of 2000 pound 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).

Discussion of Results
Large intercepts such as in Table 1 above, combined with the Company's other highly successful drill results and very favorable metallurgy, as announced by the Company in its press release dated May 9, 2010, continue to confirm management's confidence in the Independence Project. As noted in the Company's press release of October 27, 2010, many mines around the world and in Nevada are operating profitably on similar grade ores and report costs of less than $500 per ounce of gold produced.

Hole GM-123 was drilled on Section 4000N approximately 110 feet easterly and down dip from hole GM-55. Hole 123 confirms the continuity of mineralization between sections 3900N and 4100N as well as the down dip continuity from the intercept in GM-55 and other holes on Section 4000 N. Oxide gold mineralization remains open to the west beyond hole GM-123.

Hole GM-125 drilled on Section 4200N, intersected 50 feet of oxide gold - silver mineralization grading 0.023 opt Au and 0.05 opt Ag from 90 to 140 feet within a large 320 foot intercept from 40 to 360 feet which averages 0.01 opt Au and 0.07 opt Ag over this large continuously mineralized zone and confirms the westerly and down dip continuity of mineralization from hole 120. Hole GM-125 is located approximately 100 feet westerly of hole GM-120, and was drilled easterly and into the foot wall of, and away from the high grade zone of mineralization encountered in holes GM-127 and 128, where GM-127 which contained 10 feet averaging 0.908 opt Au and .36 opt Ag and Hole GM-128 contained 15 feet assaying 1.019 opt Au and 0.99 opt Ag as previously announced by the Company.

Drill Hole GM-126, also on Section 4200N, is located approximately 125 feet east of hole 125 and like hole 125 was drilled in the foot wall and drilled away from the very high grade zone of mineralization identified by holes GM-127 and 128 referred to above. Hole GM-126 intersected a very large, 445 foot zone of continuous surface oxide gold- silver mineralization grading 0.011 opt Au and 0.09 opt Ag from 5 to 450 feet. Higher grade mineralization was intersected over the 50 foot interval from 165 to 215 feet that averaged 0.034 opt Au and 0.31 opt Ag. GM-126 confirms the westerly continuation of mineralization from hole 125 and other holes on this section and indicates that the width of the Hill Zone mineralization is increasing to the west in the direction of the zone of high grade of mineralization identified in holes GM-127 and 128.

Further information regarding the Company and the Independence Project, including a map of drill holes is available on the Company's website at www.generalmetalscorporation.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 Project, strategically located in the prolific and highly prospective Battle Mountain Mining District of Nevada, and contiguous with Newmont's, 5.6 million ounce Phoenix open pit gold mine. The Project is comprised of 14 whole and fractional mining claims encompassing 240 acres, and 480 acres of private land for future mineral processing and infrastructure. The Independence Project enjoys excellent access and infrastructure with electrical power is available on the private land, paved and county maintained all weather gravel roads access the property and the State of Nevada has granted the Company water permits sufficient for its anticipated processing requirements. Natural gas may be available from nearby.

Sample Procedures and QA - QC
All drilling is Reverse Circulation (RC) style drilling, and all sampling was conducted in accordance with industry accepted standards. Samples were collected on the drill site and split to approximately 1/8 of the original volume using a "Jones Type" riffle splitter. Split samples were stored on site behind secured locked gates until either shipped to, 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. All analytical services were performed by American Assay Laboratories of Nevada. Gold content was determined by 30 gram fire assay with an AA finish. High gold values are checked by 30 gram fire assay with a gravimetric finish. Silver is determined by 2 acid digestion with an ICP finish. High grade silver samples are checked by 30 gram fire assay with a gravimetric finish.

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