SOURCE: General Metals Corporation

September 18, 2008 08:08 ET

General Metals Target Triples: 400 Ft. Step Out Expands Surface Oxide Gold Mineralization to More Than 3,000 Ft. Strike Length, 50 Ft. Intercept Ave. 0.060 Opt Au Equiv.

RENO, NV--(Marketwire - September 18, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce drill holes GM 60 and 61 drilled on Section 4,400 North both encountered significant mineralization as shown in the table below. The results in these drill holes expand the known strike length of surface oxide gold mineralization at Independence to more than 3,000 feet within a 400 to 1,000 foot wide corridor.

These holes represent a 400 foot northerly step out from previously announced drill holes and demonstrate the exceptional continuity of surface gold mineralization found at the Independence Project and in the newly discovered Hill Zone. The following discussion is cited from the Independence Interim Drilling Report received August 3, 2008

"The Hill Zone was discovered as a part of the ongoing integration of current drill and analytical data with the historic geologic, geochemical and mining data. Historically, mineralization at the Independence mine was believed to be terminated to the north by the Canyon fault. Interpretation of General Metals drilling in the Independence target and historic gold-silver surface sampling data indicated the offset of the Canyon fault to be minimal and projected the favourable hosts and the mineralized zone to continue north of the Canyon Fault. Based on this interpretation 7 drill holes were located to test the projected mineralization. At the time of this writing, results of 5 of the drill holes have been received and confirm the continuation of gold-silver mineralization to the north. This 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 and east. Drilling results from previous operators suggest the Hill Zone mineralization may be significantly wider than that in the Independence target.

"The gold soil anomalies (geochemical data) at the newly discovered Hill Zone are much higher and continuous. This may be due to a shallow source of mineralized material, a higher grade gold source or both. The gold soil anomaly extends to the north of the drilled limits of the Hill Zone to form a broad zone of moderate gold values with locally strong areas of anomalous gold. The strength of this anomaly suggests the gold zone widens to the north of the Hill Zone in an area that both General Metals' and historic drilling indicates is open for additional mineral discovery.

"The Company believes that the potential shallow target has tripled over the historical estimate prepared by Akright in 1997 of 235,000 ounces of gold and 2,500,000 ounces of silver.

"For internal use only and not CNI 43-101 or SEC Industry Guide 7 compliant, the Independence Interim Drilling Report discusses a sectional estimate of gold-silver resource potential that was calculated (Rassuchine, 2008) using General Metals' drill holes GM-01 through GM-58. A total of 14 drill sections representing 2,800 feet of deposit strike length were used. The results of the estimate of mineralized material are listed in table below:

                     Mineralized Material

                            Au      Ag        Au         Ag
                 Tons       opt     opt     ounces     ounces
---------     ----------   -----   -----   -------   ---------
Indicated     10,996,200   0.019    0.47   201,009   5,083,995
---------     ----------   -----   -----   -------   ---------
Inferred       2,080,000   0.024    0.81    49,920   1,684,800
---------     ----------   -----   -----   -------   ---------
Total         13,076,200   0.020    0.52   250,929   6,768,795
---------     ----------   -----   -----   -------   ---------

"The mineralized material outlined at the Wilson Independence project shows excellent geologic potential, with which to develop a deposit with a minimum of the contained ounces and grade listed above. Additionally, high grade drill intercepts in holes GM-1, GM-50, GM-52 and GM 56 indicate potential to significantly upgrade gold and silver values in select areas.

"On the upside, the Wilson-Independence Deep target (on which none of the Company's potential value has been based) was estimated by Noranda Exploration to contain mineralized material with 1.4 million to 2.0 million ounces of contained gold. Northern Dynasty Minerals reported an estimated resource of 818,000 ounces of contained gold with an average grade of 0.27 ounces of gold per ton."

A detailed description of the 2007 - 2008 Definition Drilling Program is available on the Company's web site, under the "Independence Interim Drilling Report" link on our Homepage at www.gnmtlive.com.

Discussion

Drilling of hole GM 60 and 61 on Section 4400 North continues to demonstrate the exceptional continuity of mineralization present at the Independence Project. These holes are situated 400 feet north of holes GM 55, 56 and 59 as announced in the Company's press release dated July 29, 2008. The interpreted geometry of this mineralization is consistent with mineralization drilled on sections further south on strike in the same zone and indicates excellent continuity along strike and to depth.

Additional parallel zones of mineralization are indicated in historic drilling performed by Teck - Cominco Corporation (Teck) west of the current drilling. Teck's holes encountered significant mineralization in that area including 30 feet grading 0.111 opt Au. Importantly, Teck did not assay for silver in most of its drilling, as a result it should be noted that the Teck data generally only reports gold values.

As previously stated, the discovery of multiple, parallel, mineralized zones containing high grade mineralization north of the Canyon Fault significantly increases the exploration potential on the northern portion of the Independence Property. Drilling by the company now demonstrates oxide mineralization in a continuous zone of mineralization more than 3,000 feet long with a vertical range of more than 600 feet and up to 400 feet wide. Historic drilling by Noranda and Great Basin Gold indicate a total vertical range of the mineralized system in excess of 3,000 vertical feet (Independence Deep Target). The geometry of the mineralized zones suggest this near surface oxidized mineralization is potentially amenable to mining by open pit methods and potentially recoverable by low cost heap leach processing. Near term production permitting activity is underway.

The presence of significant high grade mineralization in the northern drill sections enhances the economic potential of the property. Mineralization is wider and closer to the surface than in the southern area explored to date. The lack of historic underground mining north of the Canyon Fault means there is no depletion of the high grade mineralization as has been the case in the vicinity of the historic Independence Mine to the south.

Table 1 below presents the salient drill data for holes GM-60 and 61 as discussed in this press release.

                                 Table 1

                                                                Gold
                     Mineralized Intercepts                  Equivalent
           ----------------------------------------------   -------------
                                                            oz/t   g/t
  Drill    From  To  Intercept  Gold   Gold  Silver Silver    Au     Au
  Hole     (ft) (ft)   (ft)      oz/t  g/ton  oz/t  g/ton   Equiv. Equiv.
---------  ---- ---- ---------  -----  ----- -----  -----   ------ ------
GM-60       200  245     45     0.009   0.28  0.37  11.41    0.016   0.49
---------  ---- ---- ---------  -----  ----- -----  -----   ------ ------
GM-61       245  415    170     0.018   0.56  0.30   9.39    0.024   0.74
---------  ---- ---- ---------  -----  ----- -----  -----   ------ ------
Including   245  295     50     0.046   1.43  0.73  22.58    0.060   1.85
---------  ---- ---- ---------  -----  ----- -----  -----   ------ ------

Note: All notations of "t" and "ton" refer to a US "short" ton weighing
      2000 pounds. All gold equivalent is calculated at a gold price of
      $800 (US) and a silver price of $15 per ounce, and does not consider
      variations which may exist in metallurgical recovery.

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 also owns 150 sq. km. of mining concessions for gold, diamonds and base metals in Ghana, West Africa and plans to provide development opportunities 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 in the near term, the budget for the Phase 1 drilling program, that an estimated 250,929 ounces of gold and 6,768,795 ounces of silver are contained in the mineralized material in the "Independence Shallow Target," and newly discovered "Hill Zone" 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 2008 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
    775.583.4636 office
    775.830.6429 cell