SOURCE: General Metals Corporation

June 03, 2009 07:48 ET

General Metals Undertakes Verification of Historical Gold Skarn Core Drilling Data Base at Independence Mine

RENO, NV--(Marketwire - June 3, 2009) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce it has successfully located all of the sample pulps from the historic (1985-1987) Noranda Minerals drilling in the Independence Gold Skarn target on the Company's Independence Mine Property and is presently in the process of inventorying this pulp library. These are the original samples that were assayed during the original 25,000 ft Noranda drilling campaign. Upon completion of the inventory the Company intends to submit all contained mineralized intercepts for a 100% check assay program together with standards and certified reference materials which will upgrade QA/QC for the data to current best industry practices and will assure compliance with modern regulatory regimes while validating the historic data base. This work is preparatory 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.

The Independence Gold Skarn is situated directly below the Independence Surface deposit on the Independence property, and is hosted in the same "lower plate" rocks that hosted the nearby 2.2 million ounce Fortitude deposit located approximately 4,000 feet to the northeast which contained 10 million tons at an average grade of 0.22 ounces (6.42 grams) gold per ton, mined by Battle Mountain Gold Corp. from 1985 through 1990. The Company has been advised that the inclusion of this data for the Independence Gold Skarn will not delay the completion of the independent technical report the Company's consultants are now working on.

Unlike many junior company's, General Metals has been exceptionally fortunate to have access to virtually 100% of the core for the gold skarn target and the extensive historic data base for both the Surface Oxide mineralization and the Gold Skarn at depth. The company is compiling and modeling this data for the Independence Gold Skarn, which it believes will allow it to report a deep resource calculated in the upcoming Independent report.

The Independence mine was historically predominately a silver mine that produced intermittently from 1938 through 1987 in seven separate operations. Production came from 8 miles of underground workings developed along a 1,500 ft strike length of the Independence fault zone. Reported historic production by the various operators totaled 750,200 ounces silver and 11,029 ounces gold. The average recovered grade of all recorded production was 0.17 and 11.53 ounces of gold and silver per ton respectively. (See Executive Summary). Poor silver prices in 1987 led to the shutdown of the mine. With today's silver at over $15 per ounce and Gold at over $950 per ounce, development is timely.

From 1995-1997 there were several exploration campaigns conducted by Noranda, Teck Exploration, Northern Dynasty and Great Basin Gold which resulted in about 80 reverse circulation and core drill holes being drilled on the property. The 1997 Carrington Report, the 1997 Akright Report, the 2006 Carew Report and the 2005 Frost and Larsen findings are available for review in their entirety at the Company's office in Reno, Nevada. An Executive Summary has been prepared containing a thorough discussion of production and exploration activities and is available on the Company's website http://www.generalmetalscorporation.com/.

The Company's 2007-2008 Reverse Circulation drilling program covered over 26,000 feet with 84 holes averaging around 300 feet deep. This program was designed to define the surface/shallow oxide mineralization on the southern half of the Independence Property along the Independence Fault system, that is the subject matter of an Independent Report that is being prepared which will calculate the various resource categories available for near term production.

According to Akright in his 1997 report, "the gold resource potential of the Independence property occurs in two distinct categories: a shallow open pit mineable target, suitable for heap leach and a deep underground target" additional potential may exist in high angle structures that allowed mineralizing fluids from the Independence Skarn to migrate toward the surface. The validation of the data base for the Independence Skarn will also enable a reportable deep resource should one be determined to exist.

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 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
    615 Sierra Rose Dr., Suite 1
    Reno, NV 89511
    wayne@gnmtlive.com
    775.583.4636 office
    775.830.6429 cell