SOURCE: General Metals Corporation

June 12, 2008 08:12 ET

General Metals Extends High Grade Oxide to Surface; Mineralization Remains Open at Depth Beyond 165 Vertical Feet

RENO, NV--(Marketwire - June 12, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce results for holes GM 38 and 39 drilled on Section 1600 North. As set out in the table and discussion below, both holes GM 38 and 39 encountered excellent mineralization continuing the expansion of the target zone at the Independence Project; thereby supporting the model of near surface, potentially bulk mineable gold - silver mineralization in the vicinity of the historic Wilson Independence Mine. Hole GM - 38 intercepted 15 feet of mineralization averaging 0.054 ounces per ton of gold equivalent (opt Au Equiv.) roughly ten feet vertically below the surface, while hole GM-39, as discussed in detail below, verified the large 175 foot intercept previously reported in hole GM - 31 which averaged 0.048 opt Au equiv.

"The excitement of management grows with each result," says Dan Forbush, the Company's CFO. "We have recently completed a review of all of the available drill, trench and sample data including assays and geology related thereto. This analysis along with our current results continue to confirm management's expectation that we have a deeply and thoroughly oxidized ore grade zone."

"The mineralization exhibits excellent continuity in width and grade, along strike and up and down dip in the target zone. This oxidized material characteristically is amenable to low cost recovery techniques such as heap leaching.

"Finding mineralization this close to the surface will allow for an open pit mining model that may be able to bring ore to the pad quickly and at a very low strip ratio thereby improving the startup economic model," added President and CEO Steve Parent.

The following Table presents the salient drill data from the holes discussed in this press release.

                 Mineralized                                    Gold
                 Intercepts                                  Equivalent

Drill  From   To  Intercept Gold   Gold   Silver  Silver  oz/t Au  g/t Au
Hole   (ft)  (ft)  pt (ft)  oz/t   g/ton   oz/t    g/ton   Equiv.   Equiv.

GM-38   15     35    15     0.021   0.61   1.75    51.16   0.054    1.58
GM-39  150    165    15     0.007   0.20   0.44    12.95   0.015    0.44
ALSO   200    320   120     0.010   0.29   0.65    18.90   0.022    0.64
GM-31  185    360   175     0.028   0.87   1.06    32.97   0.048    1.49

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.

Hole GM-38 drilled due east at an inclination of 45 degrees below horizontal to test the projected up dip extensions of mineralization encountered in hole GM-1 which averaged 0.072 opt Au Equiv. over the interval from 50 to 95 feet encountered mineralization averaging 0.054 opt Au Equiv. over the interval from 15 to 35 feet. This intercept extends mineralization encountered in hole GM-1 to "grass roots" at roughly 10 feet below the surface.

GM-39 drilled as a vertical hole across the large 175 foot intercept in hole GM-31which averaged 0.048 opt Au Equiv. from 185 to 360 feet. identified significant mineralization within the targeted interval from 200 to 320 feet which averaged 0.22 opt Au Equiv. The mineralized material is thoroughly oxidized, and corresponds well to the intercept in hole GM-31.

A detailed description of the exploration and production history of the Independence property is available on the Company's web site at

About General Metals Corporation: General Metals Corporation is an aggressive junior minerals exploration and development company, based in Reno, Nevada. The Company controls 100% of the strategically situated Independence property located in the prolific and highly prospective Battle Mountain Mining District on the Battle Mountain - Eureka gold trend, in Humboldt County, Nevada. 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 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
    775.830.6429 cell

    General Metals Corporation
    615 Sierra Rose Dr. Suite 1
    Reno, NV 89511
    775.583.4636 office