SOURCE: General Metals Corporation

February 27, 2008 08:02 ET

General Metals Management Gets Board Approval for Acquisition of Near Term Production Properties Under Review to Expand Company's Mining Portfolio and to Monetize Resources During Record Metals Prices

RENO, NV--(Marketwire - February 27, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce that The Company's Board of Directors has approved Managements plan to expand its mineral property portfolio with advanced properties that have near term production opportunities. Several properties have been under review and those that offered near term production opportunities have been selected to proceed to acquisition completion. With gold over $950/oz and silver over $19/oz, the opportunity to acquire properties that demonstrate the ability to be put into production represent an excellent opportunity to expand our active mining portfolio.

Selected Properties

(1.) A high grade gold and silver project with reclamation bond in place which contains 140,000 ounces of historical reported reserves (not 43-101 or Industry Guide 7 compliant) is in Final Definitive Agreement stage and should complete within the next week or so. Location: Eastern Canada

(2.) A high Grade copper project targeted for a small investment by the Company to further develop a deposit is in Final Definitive Agreement and should complete in the next few days. Location: Nevada

(3.) A substantial initial dump clean up operation attached to high grade gold veins over a large area. Economics of dump recovery is exciting at current prices and cash flow can assist in future development drilling and production. At letter of Intent stage, moving to Definitive Written Agreement. Location: Nevada

Further details will be released as each acquisition closes. There is no guarantee that any will close until such time as they actually do so. The Company continues to evaluate potential acquisitions and plans to grow our acquisitions program to enable rapid growth where appropriate.

Company President and CEO, Steve Parent, said: "With our Independence drill program advancing with such good results and our commitment to near term production, we are planning to have 3 producing mining operations in Nevada by 2009 and 1 in eastern Canada this year. It is the Company's view that by expanding our known mineralized material that development work should lead to expanded reserves that are able to be converted to early cash flow during these exciting economic times for our industry."

Company CFO, Dan Forbush, says: "We are committed to proven and probable reserves as our foundation blocks, so when opportunities to acquire advanced projects that can be developed into those categories with a small amount of additional drilling and metallurgical work are a no brainer as acquisitions. We built Glamis, initially off a 25,000 ounce/year gold production and through acquisitions, we grew to over 250,000 ounces of gold/year. We intend to do the same at General."

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: The Company is production and growth oriented and controls 100% of the strategically situated Independence Mine property located in the prolific Battle Mountain Mining District on the Battle Mountain - Eureka gold trend, in Humboldt County, Nevada, adjacent to the giant Phoenix project. The current drilling program is designed to confirm early estimates of mineralized material thought to contain 235,000 oz. gold and 2,500,000 oz. silver and to expand the mineralized envelope which enhances near term production numbers. 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 2004 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
    775.686.6078 office
    775.830.6429 cell