SOURCE: General Metals Corporation

September 08, 2011 05:54 ET

General Metals Receives Updated Independent Technical Report Including CNI 43-101 Compliant Resource Calculation; Measured and Indicated Resources Increase 7.5%

RENO, NV--(Marketwire - Sep 8, 2011) - General Metals (OTCBB: GNMT) received the updated Canadian National Instrument 43-101 compliant technical report for the Company's Independence Project, which will be submitted for review and approval by the British Columbia Securities Commission prior to making application for a listing of the Company on the Toronto Venture Exchange. The report includes the 2009-2010 drill program of 44 holes completed in January 2010, the results of which were announced during the fiscal year ended April 30, 2011. These assay results were not included in the CNI 43-101 Compliant Resource Calculation previously announced in October 2009. See the table below for the current CNI 43-101 Compliant Resource Calculation.

The Measured and Indicated gold resource in the shallow mineralization increased by 7.5% from that previously reported to 223,200 ounces in 16.1 million tons. The silver resource totals 3,784,400 ounces in the shallow mineralization; an increase of 5.4% from the amount reported in October 2009.

In the October 2009 announcement, the Measured resources accounted for 41% of the ounces and 37.8% of the tons. In the CNI 43-101 Compliant Resource Calculation included in the updated report the Measured resources account for 57.4% of the ounces and 51.9% of the tons.

"This is a significant improvement in the quality of the resource," remarked Daniel J. Forbush, President, CEO and CFO of General Metals. "The purpose of the 2009-2010 drill program was to further delineate the Hill Zone surface oxide mineralization, develop additional resources, increase the quantity of resource included in the Measured and Indicated categories and upgrade the quality of the resource by moving more of the mineralization into the Measured category. As noted above the program accomplished all of its goals."

Walter A. "Del" Marting, Jr. of General Metals' Board of Directors commented, "The dollar value of the mineralization in the shallow resource in the ground has almost doubled from the 2009 estimate levels to over $0.5 billion today, as a result of the increases in the amount of the resource and the higher gold price. These are in-situ estimates with actual recoveries still to be determined and the price of gold undoubtedly will change, nevertheless we see a doubling of the resource values at the Independence. It is important to note that at a lower mineral value and gold price the GNMT price per share was $0.09 per share in October 2009 compared to $0.03 per share today."

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, east and at depth. Drilling results from previous operators suggest the Hill Zone mineralization may be significantly wider than that in the Independence target.

To date, the Company has drilled approximately 60% of the indicated strike length of the Surface mineralization, where geochemistry, with multiple large gold in soil anomalies greater than 500 ppb gold, indicates additional undrilled targets exist. Management is confident future drilling will develop additional resources and increase the quantity of resource included in the Measured and Indicated categories. With mine planning, design, metallurgical and other work, Measured and Indicated resource categories are expected to be upgraded to Proven and Probable reserves as part of a Feasibility Study in the near future.

This estimate adheres to the Canadian Institute of Mining and Metallurgy (CIM) guidelines, however the reader is strongly cautioned that under CIM guidelines Inferred resources are not additive to Measured and Indicated resources and that the confidence level inherent in Inferred resources are insufficient to permit meaningful application of technical or economic modeling and must be excluded from estimates forming the basis of feasibility or other economic models. The reader is also cautioned that this resource estimate is not compliant with SEC Industry Guide 7 guidelines which recognize only Proven and Probable reserves and do not recognize any resource category. Management has published this information for the benefit of our Canadian and European investors, who readily understand CNI 43-101 compliant information and regularly use it for comparison of similar development stage mining companies.

Mr. Forbush commented further, "We have taken the initial steps to upgrade the Measured and Indicated resource categories to Proven and Probable reserves as part of a Feasibility Study. Over the next several months we will be undertaking mine planning, leach pad and waste dump siting and design, metallurgical and other work necessary to complete this current step on the pathway to production. We are delighted with the accelerating rate at which progress toward production is beginning to move. We expect to report additional updates on our progress in the coming weeks. I am personally motivated to reward the patience of our shareholders by completing the task they have given me to 'Mine that Mountain' as soon as possible."

Further details regarding the Independence mineralization, drilling efforts, both historical and recent and current permitting activity are available on the Company's website www.generalmetalscorporation.com.

Independence Gold and Silver Resources
Shallow Deposit
Cutoff Tons Grade Ounces Grade Ounces
(oz AuEq/ton) (oz Au/ton) Gold (oz Ag/ton) Silver
Measured Resources 0.008 8,328,000 0.015 128,200 0.296 2,466,900
Indicated Resources 0.008 7,728,000 0.012 95,000 0.170 1,317,500
Measured & Indicated Resources 0.008 16,056,000 0.014 223,200 0.236 3,784,400
Cutoff Tons Grade Ounces Grade Ounces
(oz AuEq/ton) (oz Au/ton) Gold (oz Ag/ton) Silver
Inferred Resources 0.008 4,592,000 0.010 46,400 0.046 211,200

* Gold equivalent is based on $1100 per ounce gold and $31 per ounce silver. No metallurgical recoveries used.

Deep Skarn Deposit
Inferred Resources
Tons Grade Ounces
(oz Au/ton) Gold
4,182,000 0.190 796,200

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 and developing its 100% controlled Independence property strategically located in the prolific and highly prospective Battle Mountain Mining District of Nevada.

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in Form 10-K which may be secured from us, or from the SEC website at http://www.sec.gov/edgar.shtml.

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 permitting at its Independence Mine in Nevada or any shallow mining production at any time, that any estimated ounces of gold or 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-K for the most recent fiscal year, our quarterly reports on Form 10-Q 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
    1155 West Fourth Street, Suite 210
    Reno, NV 89503
    wayne@gnmtlive.com
    775.583.4636 office