SOURCE: General Metals Corporation

August 14, 2008 08:21 ET

General Metals Receives Interim Drilling Report for 2007-2008 Exploration Program

RENO, NV--(Marketwire - August 14, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce receipt of an Interim Drilling Report, dated August 3, 2008, that provides a comprehensive discussion and summary of activities for the combined 2007 and 2008 drill program through hole GM 59 as discussed in the Company's July 29, 2008 Press Release as well as guidance for the Company's activities for the 2008 - 2009 operating period. The report can be viewed in its entirety on the Company's website at www.gnmtlive.com under the Interim Drill Report link on the Home page.

The purpose of this report is to provide General Metals Corporation with an interim summary report of progress on the Wilson-Independence Project, encompassing the on-going surface drilling program that began in September of 2007 and is ongoing in 2008. Portions of this report may contain data from the ongoing part of the program.

The report was prepared by Samuel G. Nunnemaker, Reg. Geo., B.Sc., consulting geologist. Nunnemaker is a Qualified Person who has supervised the entire exploration program discussed in the report. The results discussed in the report are NOT CNI 43-101 or SEC Industry Guide 7 compliant, but the appropriate QA/QC procedures have been followed. He is also NOT Independent, and his report should not be relied upon by investors. Check assays and third party confirmation is scheduled upon completion of the drilling program.

Report Conclusions

Based on review of the historical data and work completed by General Metals the following conclusions are offered:

--  General Metals drilling on the Wilson-Independence Project has defined
    a large low-grade deposit of gold-silver mineralization.
--  The geometry and oxidized character of the mineralized material
    indicate it would be amenable to low cost bulk mining and heap leach
    extraction of the gold and silver.
--  Drill intercepts of higher grade material suggest potential to
    significantly increase the gold/silver grades in parts of the deposit.
--  The size and tenor of mineralization is similar to known operating
    mines in Nevada.
--  Continued definition drilling and metallurgical work is warranted,
    with a high probability of leading to production feasibility.
    

2008 Drill Program Highlights (Ongoing)

--  Completed 9,120 feet of reverse circulation drilling in 27 drill
    holes.
--  Confirmed continuous gold-silver mineralization within the
    Independence N.S. (near surface) target.
--  Extended gold-silver mineralization 1,000 ft along strike with
    discovery of additional gold/silver mineralization at the newly discovered
    Hill Zone.
--  Identified potential high-grade gold-silver 'feeder' mineralization
    within the Independence N.S. and Hill Zone targets.
--  Defined 13 million tons of mineralized material containing an
    estimated 250,000 ounces of gold and 6.8 million ounces of silver.
    

Robert G. Carrington, P. Geo., the Company's lead geologist, pointed out, "Every hole (100%) of the 59 drill holes completed to the report date encountered mineralization of potential ore grade over potentially mineable widths throughout the entire range of the target areas drilled thus far."

The aggressive, ongoing program of exploration drilling to date (over 20,000 feet of RC drilling in 72 drill holes) has significantly exceeded historic estimates of target potential both as to width and grade of mineralization outlining a zone of surface, oxide gold and silver mineralization approximately 400 feet wide, more than 2,600 feet long and with strong potential to exceed one mile of strike. The mineralized zone is open to the north and is open down dip.

The drill results show the Company's success in exploring for shallow near surface bulk mineable gold/ silver mineralization that is planned for near term production. In addition, the deep seated, high-grade gold skarn mineralization identified in 1987 by Noranda Exploration adds a valuable "second tier" development. A 1987 inter-office memo by Noranda, after completing the 1987 diamond drilling (25,000 feet) program estimated this deep gold skarn target contained 2 million ounces of gold. These are historical results and are also non compliant with IG7 and should not be relied upon by investors.

Management and the Company's technical personnel believe the surface mineralization represents the epithermal "finger print" of the deeper high-grade gold skarn. Recent re-examination of the Noranda core indicates that high-grade structurally controlled mineralization may extend semi-continuously between these two deposits over a vertical range of nearly 3,000 feet.

General Metal has contracted with Drift Exploration of Calgary, Alberta to provide an RC drill and crew for the entire year of 2008. The Company plans to continue aggressively growing this emerging and significant new discovery of near surface oxide gold mineralization with exceptionally high potential to become a near term producing gold - silver mine. To that end, Dyer Engineering of Reno, Nevada has already initiated the engineering, production permitting and planning processes.

General Metals is presently completing the last of the minimum drilling it believes will be necessary to complete a Canadian National Instrument 43-101 compliant resource calculation for the southernmost block, referred to as the Independence Shallow Target. Upon completion of this drilling the Company will initiate this resource calculation, whereupon drilling will focus on expanding mineralization along trend to the north where recent drill results have returned significant results including 90 feet assaying 0.076 opt Au Equiv. in drill hole GM-56 as announced on July 8, 2008.

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