SOURCE: General Metals Corporation

August 17, 2009 07:59 ET

General Metals Reports Final Re-Assays From High Grade Independence Gold Skarn Are 4-6% Higher Than Original Noranda Assays -- Great Basin Re-Assays Were Bang On; Bulk Metallurgical Samples Delivered for Processing

RENO, NV--(Marketwire - August 17, 2009) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce it has completed QA/QC on all final re-assays for the major mineralized drill intercepts in the Independence Gold Skarn. The results correlate exceptionally well with original drill data by Noranda Exploration and Great Basin Gold. Re-assay of Noranda Exploration pulps from their 1984 - 1987 diamond core drilling program returned results that were consistently higher than original assays and on average four percent (4%) higher in grade than the original assays. High grade mineralization containing greater than 0.200 ounces per ton gold (opt Au) exhibited slightly higher variation with the Company's assays returning values, averaging 6% higher than the original assays of the same sample pulps. . Importantly, drift in higher grade samples consistently showed that the original Noranda assays underreported the gold content of the gold skarn as shown in Chart 1 below.

The Company's re-assay of Great Basin Gold's pulps showed virtually perfect correlation with the original assays

These are the original samples that were assayed during the original Noranda core drilling campaign. The Company submitted all contained mineralized intercepts for a 100% check assay program together with standards and certified reference materials which upgrade QA/QC for the data to current best industry practices and assures compliance with modern regulatory regimes while validating the historic database. This work is essential to calculation of a resource to be included in the Company's current Canadian NI 43-101 format independent technical report which is anticipated to include resources for both the Surface Oxide mineralization and the high grade Independence Gold Skarn system.

General Metals submitted 253 original pulps from the diamond core drill programs conducted by Noranda Exploration and Great Basin Gold from the Independence Gold Skarn to American Assay Laboratories of Reno, Nevada together with standards at the above normal rate of approximately 1 in 10. 214 of the pulps were from the seven original Noranda core holes and 39 were from the two Great Basin Gold core holes. The Company was not able to re-assay all mineralized intervals from the Noranda drilling, due in part to Noranda's practice of running multiple check assays, sometimes as many as five check assays consumed all of the original pulp such that there was insufficient material for re-assay.

To date more than 25,000 feet of core in eight holes have been drilled to test mineralization in the Independence Gold Skarn. At current costs for drilling, assaying and supervision, it is estimated this work has a replacement value in excess of $3,800,000(US). Virtually every hole which has targeted the gold skarn to date has intersected significant gold mineralization over an area which is more than three quarters of a mile long and half a mile wide, with most holes containing multiple mineralized horizons.

The highest grade portion of the Independence Gold Skarn occurs in favorable carbonate rich rocks below the Golconda Thrust, and directly beneath the Surface Oxide Mineralization which was the subject of General Metals 2007 - 2008 Reverse Circulation Drilling program. It is highly likely that the sub-vertical structural system which controls the surface oxide mineralization acted as a conduit, permitting mineralizing fluids circulating in the gold skarn to migrate to the near surface, depositing the gold and silver that form the Surface Oxide portion of the Independence System as the "fingerprint" of the deeper gold skarn. Surface "leakage" halos or fingerprints related to deeper mineralization form the basis for modern geochemical prospecting, and many such features related to deeper high grade mineralization are known along the Battle Mountain gold trend, including the Cove - McCoy system to the south and the Ivanhoe - Hollister system to the north where high grade underground ore bodies exhibited surface geochemical halos that were in themselves economically viable mines.

General Metals believes the combined Independence Surface Oxide and Gold Skarn represents a world class target in the world class Battle Mountain Mining District along an indisputable world class gold trend.

The highest grade portion of the Independence Gold Skarn occurs in favorable carbonate rich rocks below the Golconda Thrust, and directly beneath the Surface Oxide Mineralization which was the subject of General Metals 2007 - 2008 Reverse Circulation Drilling program. It is highly likely that the sub-vertical structural system which controls the surface oxide mineralization acted as a conduit, permitting mineralizing fluids circulating in the gold skarn to migrate to the near surface, depositing the gold and silver that form the Surface Oxide portion of the Independence System as the "fingerprint" of the deeper gold skarn. Surface "leakage" halos or fingerprints related to deeper mineralization form the basis for modern geochemical prospecting, and many such features related to deeper high grade mineralization are known along the Battle Mountain gold trend, including the Cove - McCoy system to the south and the Ivanhoe - Hollister system to the north where high grade underground ore bodies exhibited surface geochemical halos that were in themselves economically viable mine.

Charts 1 and 2 below show graphical plots of the respective correlation results.

During 2009 the Company has undertaken an aggressive permitting and engineering program to rapidly move the Independence project toward production. The company has commissioned necessary studies and permits to allow it to proceed to production in the near term. To further expedite the planned near term production, the Company has contracted Dyer Engineering of Reno, Nevada to organize and initiate environmental, archaeological and other studies required by the permitting process necessary to place the Independence Mine into commercial production.

Bulk Metallurgical Samples

The Company is also pleased to report it has collected and delivered two bulk samples of surface oxide mineralization for metallurgical testing including column leach tests at the Independence. The samples were collected under the supervision of personnel from McClleland Laboratories Inc. (McClleland) of Sparks, Nevada. Each sample weighed approximately 2 1/2 tons and both samples have been delivered to McClleland for processing.

More information is available on the Company's activities on the Company's website 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. Permitting and Engineering for heap leach production is underway at the Independence Mine. The Company recently sold its 150 sq. km. mining concession for gold, diamonds and base metals in Ghana, West Africa for $1,012,500 in cash and stock and retains a royalty.

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 or advance production timing may not occur.

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 most recent annual report on Form 10-KSB, 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
    wayne@gnmtlive.com
    775.583.4636 office
    775.830.6429 cell