SOURCE: General Metals Corporation

April 12, 2011 08:28 ET

General Metals Reviews Silver Institute Report; Independence Project Drilling Results Previously Reported Included Good Silver Values

RENO, NV--(Marketwire - Apr 12, 2011) - General Metals (OTCBB: GNMT) announced today that a report released March 28, 2011 by the Silver Institute forecasts a healthy outlook for global silver industrial demand, the largest component of annual silver fabrication demand. The report states that industrial uses of silver should rise sharply over the next five years to 666 million troy ounces (Moz) by 2015, representing 60 percent of total fabrication demand that year -- a 36 percent increase over 2010's figure of 487 Moz.

The report, The Future of Silver Industrial Demand, was produced by the leading precious metals consultancy, GFMS Ltd, on behalf of the Silver Institute. The report assesses the future prospect of total silver industrial demand over the next five years, and where sector growth opportunities are likely to emerge. The report underscores silver's unique characteristics that make it the metal of choice for a wide range of established industrial uses, particularly in electronics and thermal applications.

The report also focuses on many new uses that rely on silver's antibacterial qualities, where the incorporation of silver makes the difference between an ordinary product and a unique one. Noteworthy in the report is the potential market impact of 11 recent applications that incorporate silver. These uses, which range from food packaging to radio frequency identification tags to autocatalysts, taken together could exceed 40 Moz of industrial demand by 2015.

Key findings from the report:

  • The report maintains that stronger silver industrial demand in the U.S. and Asia will be a key factor in driving growth in the global total through 2015, and healthy developing country demand, especially in markets such as China and India, will also be an important factor.
  • Much of the forecast growth will come from established applications, such as silver's use in electrical contacts and in the photo-voltaic market.
  • The technical proficiency of silver limits the ability to switch in favor of lower-cost alternatives, making the metal largely price inelastic.
  • Emerging end-uses that benefit from silver's antibacterial properties or incorporate silver's electrical and thermal conductivity are expected to boost silver consumption through 2015.

"The report demonstrates how buoyant silver industrial demand is, not only because of the lack of substitution, but also because of the wide range of established and growing new uses that make up industrial demand," stated Michael DiRienzo, Executive Director of the Silver Institute. "This report maintains that we expect to see robust gains in industrial silver demand over the next five years, further emphasizing silver's essential role in industry," DiRienzo added.

Please use the link below to download your electronic copy of The Future of Silver Industrial Demand report.

The Silver Institute is a nonprofit international industry association headquartered in Washington, D.C. Established in 1971, the Institute serves as the industry's voice in increasing public understanding of the value and many uses of silver.

General Metals reported the following first-time resource estimate in May 2010 which was prepared by independent, registered mining engineer, James Ashton of Reno, Nevada in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and utilizes industry standard methods that conform with the CIM Mineral Resource and Mineral Reserve definitions, for General Metals Corporation and its wholly owned subsidiary, General Gold Corporation. The Technical Report was prepared as part of the Company's project assessment and to provide a common frame of reference for the Company's foreign investors. US shareholders are cautioned that US Industry Guide 7 (IG-7) does not contain or define resource categories of Measured, Indicated or Inferred and that under IG-7, such resource categories may be classified as "mineralized material." Investors are further cautioned that while Measured and Indicated resources are generally converted into either Proven or Probable reserves upon further work, there is no assurance that the resources will be economically viable in the future. Table 1 summarizes the resource estimate for the surface oxide mineralization.

Table 1
Surface Oxide Resource Area
Measured & Indicated Resources
(oz AuEq/ton)(oz AuEq/ton)Gold Eq.(oz Au/ton)Gold(oz Ag/ton)Silver

As can be seen in the table above any significant increase in the price of silver may have a very positive effect on the potential value of the Independence Project.

Further details regarding the Independence mineralization, drilling efforts, both historical and current together with 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 of Nevada.

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
    615 Sierra Rose Dr. Suite 1
    Reno, NV 89511
    775.583.4636 office