SOURCE: General Metals Corporation

August 19, 2008 08:08 ET

General Metals Management Discusses Results Identified in Interim Report and Continues on the Path to Near Term Production

RENO, NV--(Marketwire - August 19, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) management is excited about the results reported in the Interim Report prepared by Samuel G. Nunnemaker, Reg. Geo., B.Sc., consulting geologist to the Company. Nunnemaker is a Qualified Person who has supervised the entire development drilling program discussed in the report and continues to do so throughout 2008 thus far. Mr. Nunnemaker has already begun updating the report for the results received since hole GM-59 (Hole GM-60 through GM-74).

"I am most enthused by the report's description of the Hill Zone," said Dan Forbush, Company CFO. "The Hill Zone was discovered as a part of the ongoing integration of current drill and analytical data with the historic geologic, geochemical and mining data."

Historically, mineralization at the Independence mine was believed to be terminated to the north by the Canyon fault. Interpretation of General Metals drilling in the Independence target and historic gold-silver surface sampling data indicated the offset of the Canyon fault to be minimal and projected the favorable hosts and the mineralized zone to continue north of the Canyon Fault. Based on this interpretation 7 drill holes were located to test the projected mineralization. At the time of this writing, results of 5 of the drill holes have been received and confirm the continuation of gold-silver mineralization to the north. This drilling has extended the gold-silver mineralization an additional 1,000 feet to the north. Although the indicated width and thickness of the Hill Zone mineralization is similar to the Independence target, mineralization remains open to the west, north and east. Drilling results from previous operators suggest the Hill Zone mineralization may be significantly wider than that in the Independence target.

Robert Carrington, lead consulting geologist and member of the Company's Advisory Board, stated, "We have drilled approximately 40% of the property. Every historical drill hole as well as all of the company's drilling has encountered mineralized material, the geometry of which suggests to me that the identified near surface oxidized mineralization should be amenable to mining by open pit methods and potentially recoverable by low cost heap leach processing."

Drilling by General Metals has confirmed the presence of significant gold silver mineralization remaining at the Independence target. The gold silver deposit identified to date consists of a broad envelope of gold and silver mineralization grading trace (0.1 g/T) gold to 0.01 opt (0.31 g/t) old and 0.2 opt to 0.7 opt silver surrounding a higher grade core with values ranging from .01 opt to .06 opt Au and 0.07 opt to 3 opt silver. The mineralized body strikes N-S and dips 55° - 65° to the west, within the core mineralization high grade ore shoots develop along NW to E-NE trending cross faults that, historically, have yielded ore grades up to 1 opt gold and 39.4 opt silver. Several of these types of ore shoots were discovered by past operators and mined from the underground workings present on the property. The largest of the historic ore shoots was mined by APCO between 1974 and 1976, yielding 35,517 tons of ore at average grades of 0.11 opt gold and 11.0 opt silver. The richest ore shoot was the Bonner-Cole, mined from 1954 to 1958, that produced 2,796 ounces gold and 110,294 ounces of silver at average grades of 1 opt and 39.4 opt, respectively.

Steve Parent, Company President and CEO, explained, "We intend to continue developing the potential economic potential of this property by continuing to drill the property, completing a Canadian National Instrument 43-101 compliant resource calculation, and bringing this substantial property into production as soon as permitting will allow. To that end we have approved a budget of $600,000 which will produce the reports and the permits."

The following activities are expected to cost $400,000 of the budgeted $600,000 are necessary to move the Independence project toward a NI 43.101 resource or IG-7 report and production feasibility study.

--  Complete definition drilling in the Independence NS and Hill Zone
    targets.
--  Determine bulk sample requirements for advanced metallurgical work --
    large diameter core or underground bulk sample.
--  Verify and locate previous operator's underground sampling.
--  Re-log and analyze the unsplit Noranda core.
--  Inventory previous operator's sample splits and sample pulps remaining
    on the property, determine viability of check assays to bring the results
    into NI 43.101 and IG-7 compliance.
--  Begin initial metallurgical work, starting with bottle roll recovery
    tests for gold-silver from the bulk rejects or secondary sample splits.
--  Obtain check assays and third party review of the QA-QC data.
--  Begin initial 3D modeling and variography of the deposit to confirm
    optimum drill density.
--  Begin permitting process with the BLM for extended exploration.
--  Catalog and index data and reports on file from previous operators.
--  Digitize underground workings, geology and sample data in 3D format.
    

The Independence Property consists of 14 unpatented lode mining claims which cover an area roughly 2,800 feet wide and more than a mile long in a north-south direction. Situated at the heart of the prolific Battle Mountain-Eureka Gold Trend in the Battle Mountain Mining District the property is located approximately 4,000 feet southwest from the historic Fortitude deposits (2.2 million ounces of gold) and directly adjacent to current mining operations in the giant Phoenix Project, which is the largest operating gold mine in the US.

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. At the Independence, the Company is exploring near surface mineralization it believes to be amenable to bulk mining and heap leaching. 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 2008 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
    wayne@gnmtlive.com

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

    775.583.4636 office
    775.830.6429 cell