SOURCE: General Metals Corporation

September 09, 2008 08:08 ET

General Metals Update: Drill Results Include 185 Feet of Surface Oxide Mineralization Averaging 0.026 opt Au Equivalent

RENO, NV--(Marketwire - September 9, 2008) - General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce the following results for drill holes GM-62 through and GM-69 which are all in the surface oxide portions of the Independence Shallow and Hill Zone target areas at the Company's Independence Gold - Silver Project in Battle Mtn., NV. These results which include 185 feet assaying 0.026 ounces gold equivalent in hole GM-69 add critical information in preparation of the Company completing an independent resource estimation and subsequent technical report.

Discussion

The Company is focusing its drilling efforts on a delineation program to maximize the definable resource in the Independence Shallow and Hill Zone Areas of the Property. This drilling is carefully targeted to expand known surface oxide mineralization and provide sufficient drill density and sampling to maximize the surface oxide resources in these areas in preparation for completing a resource estimate in the near term, preparing the way for production at the Independence Mine.

Company President and CEO, Steve Parent said: "The Company is taking the necessary steps to obtain a CNI 43-101 compliant resource report based on the 2007-2008 Phase 1 drilling program which continues and has completed 77 holes (approximately 25,000 feet) to date. There are at least 6 additional holes to be drilled in these target zones to complete the matrix of known mineralization. When completed, this drilling will have covered about 40% of the targets that are slated for future drilling as the mine approaches production."

Section 3200 North

Drill holes GM-68 and 69 are on Section 3200 North and 100 feet west of hole GM-52. GM-68 encountered a tunnel on the 1 Level of the mine and was abandoned at 325 feet because sample recovery could not be regained in this important mineralized zone. GM-69, a twin of hole 68, was moved 10 feet easterly to avoid the mine workings. GM-68 intersected 130 feet of oxide mineralization which averaged 0.028 opt Au equiv. from 160 to 290 feet where it encountered the tunnel. This mineralized interval included a higher grade zone from 225 to 250 feet which averaged 0.110 opt Au equiv. over the 25 foot intercept. GM-69 drilled 10 feet up dip from 68 successfully tested the entire width of the highly mineralized target zone with excellent sample recovery. Hole 69 encountered identical oxide gold - silver mineralization averaging 0.026 opt Au equiv. over 185 feet from 150 to 335 feet. Contained within this broad interval, is the same high grade core intersected in 68, which averaged 0.051 opt Au equiv. over 20 feet from 195 to 215 feet in hole GM69.

Section 2600 North

Drill hole GM-66 on Section 2600 North is located approximately 140 feet east of hole GM-49 to test up dip extensions of mineralization in hole 49. Hole GM-66 was collared in surface oxide mineralization grading 0.019 opt Au from 0 to 35 feet. This hole encountered a second oxidized and mineralized zone from 105 to 135 feet grading 0.020 opt Au gold equivalent. As in hole GM-65 located 200 feet to the south, the mineralized zone in deeper drill holes splits into two separate zones in the very near surface.

Table 1 below presents the salient drill data for holes GM-62 through 69.

Table 1

                   Inter-                             oz/t   g/t   Mineral-
  Drill   From  To  cept  Gold   Gold  Silver Silver   Au     Au   ization
  Hole    (ft) (ft) (ft)   oz/t  g/ton  oz/t  g/ton  Equiv. Equiv.  Style
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
GM-62(1)   260  375  115  0.008   0.25  0.43  13.47  0.016   0.50   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
Including  320  335   15  0.021   0.65  1.23  38.29  0.044   1.37   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
GM-63      375  435   60  0.012   0.37  1.09  33.97  0.032   1.01   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
Including  410  430   20  0.017   0.53  2.30  71.41  0.060   1.87   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
GM-64(2)   265  295   30  0.011   0.34  0.50  15.43  0.020   0.63   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
GM-64(2)   335  355   20  0.014   0.44  0.51  15.89  0.024   0.73   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
GM-65      105  135   30  0.006   0.19  0.55  16.95  0.016   0.50   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
GM-66        0   35   35  0.011   0.43  0.43  13.47  0.019   0.59   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
And        105  135   30  0.011   0.34  0.50  15.40  0.020   0.63   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
GM-67      105  130   25  0.004   0.12  1.55  48.15  0.033   1.03   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
GM-68      160  290  130  0.013   0.43  0.79  24.51  0.028   0.86   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
Including  225  250   25  0.046   1.43  3.41 106.03  0.110   3.42   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
GM-69(3)   150  335  185  0.019   0.43  0.38  11.88  0.026   0.81   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------
                                                                   Surface
Including  195  215   20  0.034   0.43  0.90  27.96  0.051   1.58   Oxide
--------- ---- ---- ----  -----  ----- -----  -----  -----  -----  -------

Note 1: Hole GM-62 encountered mine workings at 220 feet and recovered no
        samples to 260 feet, and bottomed in mineralization assaying 0.13
        opt Au Equiv at 375 feet.
Note 2: Hole GM-64 encountered mine workings at295 feet and did not recover
        samples to 335 feet, it is likely the two intercepts above and
        below this void represent a continuous mineralized intercept.
Note 3: Hole GM-68 encountered mine workings at 290 feet and did not
        recover samples to 325 feet where the hole was stopped. GM-69 is a
        redrill of GM68, 10 feet to the east. GM-69 was lost in broken
        mineralized rock assaying 0.021 opt Au Equiv. at 335 feet.

General 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.

Several of the drill holes in this press release encountered mine workings and while it is possible to drill beyond the mine working with reverse circulation drilling methods, sample recovery is normally not achieved until the drill is 20 to 30 feet beyond the tunnel, so when a drill hole encounters a 10 foot wide tunnel, there will normally be an additional 20 to 30 feet of drilling before samples are again recovered resulting in 30 to 40 feet of no sample recovery which often means the highest grade mineralization is lost and not sampled. When larger mine workings are intersected in drill holes the hole may also change direction by a small amount which normally does not exceed 1 or 2 degrees.

Section 2800 N

Drill holes GM-62, 63 and 67 are drilled on Section 2800 North to twin and extend the mineralized area tested by holes GM-16 and GM-18 respectively, each of which bottomed in mineralization due to difficult drilling conditions and larger than expected zones of mineralization.

Drill hole GM-62 encountered the same mine working encountered by GM-16 in the Company's 2007 drilling program and the mineralization was nearly identical in width and grade to the intercept in GM-16. Like hole 16, GM-62 was abandoned at 375 feet in mineralization due to difficult drilling conditions. Drill hole GM-63 likewise contained a mineralized intercept nearly identical in width and grade to that in GM-18.

GM-67 was drilled to test up dip extensions of mineralization approaching the surface and better define mineralization in this area. As had been modeled by the Company's consultants, the mineralization narrows from intercepts greater than 100 feet to 25 feet, due the divergence of the mineral controlling structures and favorable stratography.

Section 2400 North

Drill holes GM-64 and 65 are drilled on Section 2400 North. Hole GM-64 twinned GM-13 which had bottomed in mineralization. GM-64 encountered mine workings on the 4 Level of the mine at 295 feet and did not recover any samples until 335 feet. Mineralization grading 0.02 opt Au equiv. was encountered from 265 to 295 feet where the hole entered the mine workings. Upon recovering samples beyond the mine working, contained a mineralized intercept grading 0.024 opt Au equiv from 335 to 355 feet.

The Company is of the opinion that the mineralized intercepts in hole GM-64 are actually one continuous intercept separated only by a zone of lost samples due to hitting an mine tunnel. The grades of the two intercepts compare well with mineralization in hole GM-13, unfortunately the interval of lost samples straddled the projection of the higher grade core in GM-13 which averaged 0.057 opt Au equiv. from 290 to 315 feet.

Drill hole GM-65, was drilled to provide an up dip offset, closer to the surface of mineralization encountered in hole GM-14. GM-65 showed the mineralization to narrow, split into two zones with lower grade than in hole 14. Company believes this is the result of the divergence of favorable structure and stratiography near the surface in the Independence South Zone. The results provide important information as to the continuity of mineralization, structure and receptive lithology as the system reaches the surface.

Sampling, Assaying and Quality Control

The Company's samples are collected in accordance with accepted industry best practices. All drilling is Reverse Circulation (RC) type drilling, using an MPD 1000 track mounted drill, drilling a nominal 5.25 inch diameter hole. Cuttings are split using a riffle type splitter set to produce duplicate sample splits. One sample is warehoused and stored for future reference and or metallurgical purposes. The other sample is sent for analysis. Assaying procedure follows fire assay with atomic absorption finish.

The samples were submitted to American Assay Labs at their Reno, Nevada facility. American Assay Laboratories participates in the following accreditations; Certificate of ISO/IEC 17025; Certificate of Laboratory Proficiency PTP-MAL, accredited by Standards Council of Canada; Geostats of Australia certificate, and the Society of mineral analysts-Round Robin testing.

Gold was analyzed by fire assay with ICP/AES finish, and silver and base metal analyses were determined with ICP/AES techniques. As standard procedure, the Company conducts routine QA/QC analysis on all assay results, including the systematic utilization of certified reference materials, blanks, field duplicates, and umpire laboratory check assays.

A detailed discussion of the Company's 2007-2008 definition drilling is available on the Company's website www.gnmtlive.com under the link "Independence Interim Drill Report" on our home page.

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 later this year, 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