SOURCE: General Metals Corporation

June 30, 2008 08:04 ET

General Metals Hits 35 Feet of 0.619 Ounce per Ton Gold Equivalent Including Five Feet Assaying 0.311 Opt Gold and 200.5 Opt Silver (4.05 Opt AU Equiv.)

RENO, NV--(Marketwire - June 30, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce results for holes GM 47 through and including GM 53. All holes encountered significant mineralization in the target zones, including a 35 foot interval in hole GM-52 that assayed a phenomenal 0.619 ounces per ton gold equivalent (opt Au Equiv.) which also contained a 5 foot interval assaying 0.311 opt Au and 200.5 opt Ag (4.05 opt Au Equiv.). Such high grade values are in keeping with historical production from the mine where previous operators encountered values to 60 ounces gold and over 15,000 ounces silver per ton.

The results presented in this press release are uncut length weighted averages. Common practice is to cap extremely high results such as in hole GM-52 by various methods, however historical data and production at the Independence confirm the presence of such high grade values throughout the historical mine area. If the highest grade interval in GM-52 is capped at 1.0 opt Au Equiv. the average grade of the reported 35 foot intercept would be 0.183 opt Au Equiv.

As has become almost typical at the Independence, all holes encountered mineralization within the target envelope as modeled and confirm the presence and continuity of mineralization. The intersection of significant high grade mineralization in hole GM-52 suggests potential for additional similar bonanza grade mineralization as exploration proceeds to the north and out of the area which has historically been mined. All mineralization remains open to the north along strike to depth.

The presence of significant high grade mineralization on the northernmost of the drill sections could dramatically enhance economic potential in the northern area of the property where the mineralized zone has historically been thought to be shallower than on the southern area explored to date. More importantly, there is no historic underground mining which would have depleted the high grade zones.

Hole GM-47 was drilled on Section 2400 North midway between 2007 holes GM-13 and 14. Holes GM-47 and GM-49 were drilled on Section 2600 North roughly 100 feet west and east of 2007 hole GM-28 respectively to expand mineralization encountered in that hole. Holes GM-50 and GM-51 were drilled on Section 3000 North to expand and infill mineralization encountered in 2007 holes GM-26 and GM-27 also on this section, and holes GM-52 and GM-53 were drilled on Section 3200 North to expand and confirm mineralization encountered in holes 24 and 25 of the 2007 program. All holes were drilled easterly at an inclination of 45 degrees below horizontal.

Steve Parent, CEO, President says: "With high grade results showing in the holes north of the Canyon Fault, it suggests that the same mineralized zone historically mined south of the Canyon Fault extends north. It will be interesting to see the next few assays to better understand this system. There was little if any historical drilling in this area, so this could be determined a new discovery of significance."

Dan Forbush, CFO said: "I am both pleased and excited that mineralization is increasing both in width and grade as we move north. We are in hole GM-62 now and I fully expect to see additional high grade intercepts as we get the assays back. These results continue to support Management's decision to begin production planning and permitting which get us to cash flow earlier."

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

                                                                  Gold
                     Mineralized Intercepts                    Equivalent
                     ----------------------                    ----------
                                                              oz/t    g/t
Drill    From  To  Intercept Gold    Gold   Silver  Silver     Au      Au
Hole     (ft) (ft)   (ft)    oz/t    g/ton   oz/t    g/ton   Equiv.  Equiv.
------   ---- ---- --------- -----   -----  ------  ------   ------  ------
GM-47     260  385   125     0.013    0.40   0.63    19.56    0.025   0.77
Including 310  380    70     0.018    0.56   0.88    27.25    0.034   1.07
GM-48     255  360   105     0.011    0.34   0.70    21.83    0.024   0.75
Including 275  310    35     0.023    0.72   1.37    42.64    0.049   1.51
GM-49     135  200    65     0.010    0.31   0.45    14.09    0.018   0.58
Including 155  175    20     0.017    0.53   0.93    28.93    0.034   1.07
GM-50     365  475   110     0.035    1.09   0.36    11.17    0.042   1.30
GM-51     200  210    10     0.012    0.37   0.60    18.72    0.023   0.72
Also      250  325    75     0.013    0.40   0.37    11.51    0.020   0.62
GM-52      70  105    35     0.062    1.93  29.69   923.31    0.619  19.24
Also      170  280   110     0.019    0.59   0.35    10.89    0.026   0.80
GM-53       0  135   135     0.018    0.55   0.47    14.59    0.026   0.82
Including  85  125    40     0.035    1.09   0.91    28.27    0.052   1.62

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.

Section 2400 North

Hole GM-48 was drilled roughly midway between holes GM-13 and GM-14 to test continuity of mineralization between these holes and provide sufficient drill density of approximately 100 foot spacing on this section for future resource calculations. This hole encountered a 105 foot intercept grading 0.024 opt Au Equiv. which included 35 feet grading 0.049 opt Au Equiv and confirms the continuity of mineralization and grade between holes GM-13 and GM-14.

Section 2600 North

Holes GM-47 and 49 were drilled on Section 2600 North to expand mineralization up and down dip from the single 2007 hole, GM 28 drilled on this section. GM-47 encountered 125 feet of mineralization from 260 to 385 which averaged 0.025 opt Au Equiv. and contained 70 feet within that interval from 310 to 380 feet which averaged 0.034. Hole GM-49 intersected mineralization over the interval from 135 to 200 feet which averaged 0.018 opt Au Equiv. and contained higher grade mineralization averaging 0.034 opt Au Equiv. from 155 to 175 feet.

Section 3000 North

Holes GM-50 and 51 were drilled on Section 3000 North to expand and infill the drill pattern, again to prove continuity of mineralization and provide sufficient drill hole density to permit future resource calculations. Hole GM 50 intersected 110 feet of mineralization which averaged 0.042 opt Au Equiv. from 365 to 475 feet. This hole was lost in brecciated, mineralized rock grading 0.038 at 475 feet. Hole GM-51 encountered significant mineralization as a halo surrounding the historic Bonner Cole Stope. This hole encountered ten feet of mineralization grading 0.023 opt Au Equiv. before encountering the stope. After passing through the stope, the hole continued in mineralization for another 75 feet from 250 to 325 feet which averaged 0.020 opt Au Equiv. After encountering a significant void, Reverse Circulation drilling usually requires 15 to 20 feet of additional drilling before samples can be recovered. It is likely that the actual stope width at the point of intersection is 15 to 20 feet and remaining 20 feet where samples were lost is mineralized material that could not immediately be recovered. The 40 feet of lost samples are directly on projection with higher grade mineralization grading 0.033 to 0.044 opt Au Equiv. in holes GM 26 and GM 27 of the Company's 2007 drill program.

Section 3200 North

Holes GM-52 and GM-53 were drilled on Section 3200 North. These holes, also drilled to prove continuity of mineralization for future resource calculations infilled and expanded mineralization substantially. Hole GM-52 was drilled across GM-25 which had encountered a mineralized structure previously unknown to the Company. Hole GM-52 encountered 35 feet of high grade mineralization averaging 0.619 opt Au Equiv. over the interval from 70 to 105 feet, including bonanza grade mineralization over the interval from 90 to 95 feet which averaged 0.311 opt Au and 200.5 opt Ag ( 4.05 opt Au Equiv.). GM-52 also encountered additional mineralization which averaged 0.026 opt Au Equiv. over the 110 foot interval from 170 to 280 feet. Drill hole GM-53 also drilled on this same section, 220 feet to the east provided an up dip test of projected mineralization, encountering mineralization from the surface to 135 feet which averaged0.026 opt Au Equiv. and included a 40 foot interval from 85 to 125 which contains 0.052 opt Au Equiv.

Discussion

The interpreted geometry of the mineralized zones, based on available drill data continues to exhibit excellent continuity along strike and to depth. The geometry of the mineralized zones encountered throughout is similar to adjacent sections, and dipping nature of the mineralized zone which is sub parallel to the surface suggest the near surface oxidized portion of the deposit may be mined by open pit methods.

Oxidized ores characteristically are amenable to low cost recovery techniques such as heap leaching. The grade of mineralization encountered in the Company's drilling to date are comparable with the grades of mineralization found in other operating open pit, heap leach mines in the State of Nevada today.

The mineralized zone exhibits excellent continuity in width and grade as the preferred target zone gradually rakes upward closer to the surface in a northerly direction.

Table 2 below present previously announced drill results discussed in this press release for reference.

                                                                  Gold
        Table 2 - Previously Announced Drill Results           Equivalent
        --------------------------------------------           ----------
                                                              oz/t    g/t
Drill    From  To  Intercept Gold    Gold   Silver  Silver     Au      Au
Hole     (ft) (ft)   (ft)    oz/t    g/ton   oz/t    g/ton   Equiv.  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   0.6     18.66    0.038   1.19
          *Note:  GM 14 bottomed in mineralization at 300 feet.
GM-28     205  255    50     0.02     0.62   0.8     24.88    0.035   1.09
Including 230  245    15     0.03     0.93   0.53    16.48    0.04    1.24
GM-28     395  400     5     0.159    4.95   0.15     4.67    0.162   5.03
GM-24      25  285   260     0.02     0.62   0.22     6.84    0.024   0.75
Including  25   45    20     0.034    1.06   0.24     7.37    0.038   1.2
Including 150  285   135     0.025    0.78   0.3      9.33    0.031   0.95
GM-25       0   15    15     0.011    0.24   0.48    14.94    0.02    0.63
and       130  165    35     0.01     0.3    0.23     7.15    0.014   0.43
GM-26     225  385   160     0.02     0.62   0.48    14.87    0.029   0.9
Including 225  235    10     0.044    1.35   0.96    29.8     0.061   1.91
Including 290  330    40     0.032    1      0.61    18.96    0.044   1.35
GM-27      40  160   120     0.008    0.24   0.56    17.32    0.018   0.56
Including 100  140    40     0.012    0.36   1.15    35.68    0.033   1.03

Sampling, Assaying and Quality Control

All drilling is Reverse Circulation (RC) type drilling, using an MPD 1000 track mounted drill, drilling a nominal 5.25 inch diameter hole. Cuttings are split using a riffle type splitter set to produce two duplicate splits. One sample is warehoused and stored for future reference and or metallurgical purposes. The other sample is sent for analysis. Assaying procedure follows fire assay with atomic absorption finish.

Quality control programs include the use of duplicates, standards and internal and external check assaying. Certified Reference Material (CRM) are submitted with the normal sample stream sent to the laboratory. Ten percent of the samples will be sent to a third party laboratory for external check assay.

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: General Metals Corporation is an aggressive junior minerals exploration and development company, based in Reno, Nevada. The Company is actively exploring its 100% controlled Independence property strategically located in the prolific and highly prospective Battle Mountain Mining District, Nevada right next to the largest producing gold mine in the US, The Phoenix Mine. The Company also owns 150 sq. km. of mining concessions for gold, diamonds and base metals in Ghana, West Africa where exploration begins 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
    General Metals Corporation
    wayne@gnmtlive.com
    775.583.4636 office
    775.830.6429 cell