SOURCE: General Metals Corporation

October 21, 2009 07:38 ET

General Metals Reports CNI 43-101 Compliant Resource Calculation Totaling 1.07 Million Ounces Gold and 3.9 Million Ounces Silver at Independence Mine, Battle Mountain, Nevada

ZURICH, SWITZERLAND--(Marketwire - October 21, 2009) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ1), is pleased to announce it has recently received the independent resource estimate to be included in the CNI 43-101 compliant technical report for the Company's Independence Project. This estimate identifies a resource of 1,069,279 ounces of gold and 3,858,471 ounces of silver in Measured, Indicated and Inferred resource categories.

This 1,069,279-ounce gold resource is distributed between the Independence Shallow and Independence Deep zones while the 3,858,471-ounce silver resource exists in the shallow zone alone.

Table 1. Independence Resources

Independence Surface
+ INDICATED (tons)   Gold    Silver  Gold Equivalent  Gold     Silver
14,700,398           0.014   0.244   0.018            207,536  3,590,487
Independence Surface
(tons)               Gold    Silver  Gold Equivalent  Gold     Silver
5,956,016            0.011   0.045   0.012            65,515   267,984
Independence Deep
(tons)               Gold    Silver  Gold Equivalent  Gold     Silver
4,181,869            0.190   Nil     0.190            796,228  Nil

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.

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

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, Nevada. Permitting and Engineering for our proposed heap leach production is underway at the Independence Mine. The Company is currently evaluating acquisition opportunities to develop from future cash flow from the Independence Project.

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 later this year, 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-KSB for the most recent 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
    615 Sierra Rose Dr. Suite 1
    Reno, NV 89511
    775.583.4636 office
    775.830.6429 cell