SOURCE: General Metals Corporation

March 18, 2008 08:02 ET

General Metals Reports Final 2007 Drill Results and Intersects 175 Foot (True Width) Zone of Oxide Mineralization Grading 0.048 Ounces per Ton Gold Equivalent at Independence Gold - Silver Project

RENO, NV--(Marketwire - March 18, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to report Final 2007 drill results with the following results for drill holes GM-28, 29, 30, 31 and 32, which include multiple large high grade intercepts such as hole GM-31 which intersected an estimated true width of 175 feet grading 0.040 opt gold equivalent (opt Au Equiv.) All holes reported herein were drilled as part of the Company's 2007 First Stage - Phase I RC drilling program at the Independence Gold - Silver Project. The length weighted average for all of the largest, and typically lowest grade, intercepts for all reported holes drilled along the 1,800 foot southern portion of the Independence Shallow Target tested to date as a part of the Company's 2007 drill program thus far is 0.028 opt Au Equiv. over an average 77 foot drill intercept. Mineralization remains open along strike in all directions and at depth.

All holes encountered oxide mineralization with potentially economic grades over potentially economic widths in the projected target zone. The drilling also demonstrates excellent continuity of mineralization both along strike and down dip. Management is very encouraged by these results as they are by the entire 2007 drill program.

Discussion

This release presents results for holes GM28 on Section 2600 North, GM 29 and 30 on Section 2000 North, GM 31 on Section 1600 North, and GM 32 on Section 1500 North.

With the current release, only results for holes GM-18 and 23 remain pending; all other results have been released for all other drill holes drilled in the Company's 2007 RC drilling program. To date, 100% of the holes drilled as a part of the Company's 2007 program at the Independence have encountered potentially economic concentrations of oxide mineralization over potentially economic widths for a low cost open pit, heap leach type of operation. The average, length weighted, drill intercept for all of the largest (and generally the lowest grade) intercepts along the entire 1,800 feet of the target tested thus far is 76.6 feet with an average grade of 0.028 opt Au Equiv. per ton.

The orientation of the mineralized zone at the Independence allows the Company to drill holes which are roughly perpendicular to mineralization, resulting in drill intercepts which are believed to represent approximate true thickness.

Company President, CEO Steve Parent says: "With the average, length weighted, drill intercept being 76.6 feet with an average grade of 0.028 opt Au Equivalent per ton over the 32 holes (GM#18 & GM#23 have not reported yet) of oxide gold and silver bearing mineralized material, management is excited about the prospects for the planned near term heap leach production operation. Stage 2 Phase 1 drilling is now underway and now that we have the majority of assays, the fill-in drilling will become more meaningfully targeted to enable a CNI 43-101 compliant report on resources/ reserves."

Dan Forbush, CPA, CFO has said: "We are certainly pleased with Stage 1 Phase 1 drill results. In every hole, the width of mineralization and reported grade has at least equaled or exceeded the geologist's expectations. Our 2008 drill program will also complete those 2007 holes that bottomed in mineralization and we will continue to explore where now known mineralization remains open, in order to better define the deposit. Management's confidence in the Independence shallow mining operation has enabled us to plan to drill numerous additional holes in the newly defined 5 additional targets, a discussion of which is contained in our 10QSB , which was recently filed with the SEC."

The following table provides salient data for these holes.

Table 1

                       Mineralized Intercepts               Gold Equivelant
           ----------------------------------------------   ---------------
                                                            oz/t Au
Drill      From   To Intercept Gold    Gold  Silver Silver  Equiv @  g/t Au
Hole      (feet)(feet) (feet)  oz/t    g/ton  oz/t  g/ton   $15 Ag   Equiv.
                                                            $800 Au
---------  ----  ----  ------  -----   -----  ----  -----   -------  ------
GM-28       205   255     50   0.020   0.62   0.80  24.88    0.035    1.09
Including   230   245     15   0.030   0.93   0.53  16.48    0.040    1.24
GM-28       395   400      5   0.159   4.95   0.15   4.67    0.162    5.03

GM-29       170   265     95   0.009   0.28   0.79  24.71    0.024    0.74
Including   225   255     30   0.013   0.39   1.57  48.96    0.042    1.31

GM-30         5    45     40   0.020   0.62   0.78  24.11    0.035    1.07
Including    30    35      5   0.106   3.30   3.58 111.35    0.173    5.38

GM-31       185   360    175   0.028   0.87   1.06  32.97    0.048    1.49
Including   225   295     70   0.057   1.77   1.80  55.99    0.091    2.82
ALSO
Including   260   290     30   0.069   2.15   2.72  84.69    0.120    3.74

GM-32       225   250     25   0.015   0.47   0.56  17.42    0.026    0.79

Results

Section 2600 North

Hole GM-28 was drilled easterly 45 degrees below horizontal and successfully encountered a broad, 50 foot wide zone of gold and silver mineralization with an average grade of 0.035 opt Au Equiv. over the interval from 205 to 255 feet. This drill hole test the projected target zone slightly more than 300 down dip below the surface indications of mineralization. As shown on the attached cross section additional planned drill holes will test up dip continuity of mineralization in the future at roughly 100 foot step outs.

Also as seen on the attached drill section an historic core hole drilled in the late 1980s by Noranda should penetrate the down dip projection of mineralization roughly 300 feet below hole GM-28. The Noranda holes were typically not sampled within 500 feet of the surface because the mineral estate was split and Noranda only had rights to those minerals more than 500 feet below the surface. Noranda's focus was a deeper high grade sulfide rich gold skarn similar to the nearby, high-grade Fortitude deposit that yielded 2.2 million ounces of gold.

The Company is examining the unsplit core from this and other core holes which it has warehoused, and which are unsampled. The Company will sample these holes as deemed appropriate.

Section 2000 North

Holes GM 29 and 30 are drilled on this section. The holes confirm the projections of this area, and help to close a 500 foot gap in the drilling pattern. The holes are drilled to provide a 200 foot step out from each other, and confirm the though going presence of a high central core surrounded by a broader halo of low grade mineralization.

Section 1600 North

Hole GM-31 was drilled on Section 31 North. This hole was targeted to provide a 130 foot down dip drill test of mineralization encountered in holes GM2 and GM3 as previously announced by the company. GM-31 successfully intersected a very broad, 175 foot zone of gold silver mineralization averaging 0.048 opt Au Equiv. across the interval from 185 to 360 feet. This mineralized intercept is nearly 100 feet wider than had been anticipated. Within this very large mineralized zone a high grade zone of mineralization grading 0.120 opt Au Equiv. per ton extends over the 30 foot interval from 260 to 290 feet in hole GM-31.

Section 1500 North

Drill hole GM-32, drilled on Section 1500 North, also in an easterly direction 45 degrees below horizontal. The hole was successfully drilled as a 50 foot, down-dip offset from hole GM-7 to test continuity of mineralization encountered in hole GM-7 as previously announced by the Company. The hole successfully intercepted mineralization in the target zone. The drill intersected mineralization almost exactly as projected, with the intercept averaging 0.026 opt Au Equiv. across the 25 feet from 225 to 250 feet.

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