SOURCE: General Metals Corporation

December 06, 2007 08:12 ET

General Metals Phase 1 Drilling Expands New Mineralization and Encounters a Second New Mineralized Zone at Wilson Independence

RENO, NV--(Marketwire - December 6, 2007) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to provide the following update for its ongoing drill program at the Wilson Independence Property, in the Battle Mountain Mining District of Nevada. Drill results continue to expand mineralization, which remains open on strike and to depth. The Company has received final results for holes GM-4, 6, 7 and 12. Management continues to be encouraged by the oxidized nature of this near surface mineralization and the potential to develop a low cost bulk mineable deposit.

Holes 4 and 12 were drilled to test mineralization in the Independence Shallow target on Section 1650 North, as attached. These holes were also drilled to permit testing of possible cross cutting structures for mineralization. Holes GM-4 and 12 confirmed projected gold/silver mineralization as anticipated, within the projected target zone. Hole GM-4 contained a 55 foot mineralized intercept from 220 to 275 feet with an average grade of 0.023 ounce per ton gold equivalent (opt Au eqiv.). Contained within this is a 25 foot intercept of higher grade mineralization from 220 to 245 feet with an average grade of 0.035 opt Au equiv.

Drill hole GM-12, tested the down dip projection of mineralization from GM-4, encountering 55 feet of mineralization which averaged 0.017 opt Au equiv., from 225 to 280 feet and included 25 feet from 265 to 280 feet which averaged 0.034 opt Au equiv. In addition, GM-12 intersected a gold mineralized zone between 15 to 65 feet that averaged 0.018 opt gold over the 50 foot drill intercept. This mineralization is situated approximately 260 feet west of previously identified mineralization and has a higher gold to silver ratio than the main Independence Shallow Zone. The location of the intercept and the change in gold/silver ratio suggests this intercept may represent a new discovery of gold mineralization that is distinctly different from the mineralization in the main Independence Shallow Zone.

Hole GM-6, as shown on the attached Section 1600 North, successfully tested the down dip projection of mineralization intersected and previously announced in holes GM-1, 2, 3 and 5, and expands that mineralization to depth. The 30 foot interval from 275 to 305 feet averaged 0.023 ounces of gold equivalent per ton (opt Au equiv.). This intercept is approximately 100 feet down dip from the drill intercepts previously reported for holes 2, 3 and 5 on Section 1600N in the Company's press release of November 27, 2007. Hole GM-6 also intersected 55 feet of mineralization from 190 to 245 feet that contained an average of 0.012 opt Au equiv. over the interval. This mineralization may be an extension of the new zone intersected in hole GM-12, roughly 50 feet north.

Drill Hole GM-7, situated on Section 1500 North intersected 60 feet of mineralization grading 0.042 opt Au equiv. from 140 to 200 feet within the target zone. Included within this intercept is 25 feet from 170 to 195 feet with an average grade of 0.076 opt Au equiv.


The interpreted geometry of the mineralized zones, based on current drilling, supports management's opinion that potential to develop an open pit type mining operation exists in the Independence Shallow Target Zone. All of the mineralization encountered on the property to date has been deeply and thoroughly oxidized. 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.

These drilling results continue to expand mineralization at the Independence Project and support the model of near surface, potentially bulk mineable gold/silver mineralization in the vicinity of the historic Wilson Independence Mine. Mineralization remains open at depth and along strike to the north and south. A detailed description of the exploration and production history of the Independence property is available on the Company's web site at

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

Drill Hole  Mineralized                                     Gold Equivalent

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

GM-4        220  270     55     0.013   0.404  0.52    17.72  0.023   0.706
GM-4        220  245     25     0.020   0.622  0.77    26.14  0.034   1.067
GM-6        190  245     55     0.006   0.192  0.32    10.88  0.012   0.377
GM-6        275  305     30     0.017   0.529  0.31    10.70  0.023   0.711
Including   275  290     15     0.026   0.809  0.38    13.17  0.033   1.033
GM-7        140  200     60     0.015   0.467  1.46    50.07  0.042   1.318
Including   170  195     25     0.032   0.995  2.32    79.62  0.076   2.350
GM-12       15    65     50     0.018   0.560  0.00    0.06   0.018   0.561
Including   35    60     25     0.024   0.746  0.04    1.24   0.025   0.770
GM-12       225  280     55     0.008   0.249  0.50    15.55  0.017   0.540
Including   265  280     15     0.012   0.373  1.17    36.39  0.034   1.056

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.

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
    General Metals Corporation
    775.686.6078 office
    775.830.6429 cell