General Minerals Corporation

General Minerals Corporation

May 26, 2005 13:37 ET

General Minerals Corporation Announces Phelps Dodge Subsidiary Will Proceed with Drilling at Escalones in Chile

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 26, 2005) - General Minerals Corporation ("GMC")(TSX:GNM) is pleased to announce that Minera Aurex (Chile) Limitada ("Aurex"), a Chilean subsidiary of Phelps Dodge Corporation, has elected to conduct further exploration at the Escalones copper-gold porphyry prospect. Escalones is located 97 kilometres southeast of Santiago in central Chile and 35 kilometres east of the El Teniente mine, the world's largest underground copper mine. In March GMC announced that Aurex could earn up to 72% joint venture interest in the property (see GMC PR 05-03, March 21, 2005).

Aurex has completed its own initial exploration of the property during the past two months. The focus during this phase has been the completion of a geophysical Induced Polarization ("IP") survey. Aurex ran approximately 12 kms of IP and located a strong response in an area of approximately 1,000 by 500 metres located in the NW segment of the property approximately 1,000 metres to the west of the majority of the earlier drilling. The present plan is to drill three deep holes in the area of the anomaly later in the year when the snow has cleared as the Chilean winter is now setting in. The target is the "porphyry copper" related to the skarn which GMC drilled previously.

Ralph Fitch, President and CEO of GMC, stated, "This is a very exciting development. Aurex has been able to complete a limited geophysical survey in very rugged terrain and identify a porphyry copper target which they will drill late in the year. Knowing that we are in similar geology to the giant El Teniente copper mine to the west and with the knowledge that we have already drilled one percent copper in skarn on the property, the coming drill program could potentially be very rewarding."

In late 1998, GMC announced the discovery of significant skarn and porphyry copper mineralization from the first diamond drill hole. GMC had originally joint ventured Escalones with ASARCO, a major copper producing company at the time, but shortly after ASARCO was taken over by Grupo Mexico the joint venture was cancelled. The copper system at Escalones is defined by a large, approximately six square kilometre alteration zone within which the company has defined a geophysically anomalous (Self Potential anomaly) of approximately four square kilometres. Drill hole ES-1 intersected skarn and porphyritic intrusive-hosted copper mineralization at the surface. ES-1 was drilled by GMC in November 1998 and reported in December (see GMC PR98-20, Dec. 3, 1998). The analyses were reported by Acme Analytical Laboratories (Chile) Ltda. in Santiago, Chile. Representative samples from the core were subsequently reanalyzed by Bonder-Clegg of Santiago as a check. Highest copper grades occurred in the uppermost 377 metres of the hole. The first 76.5 metres averaged 1.32% copper plus 0.13 gpt gold and 4.1 gpt silver. The last drill hole, ES-25 penetrated the porphyry rather than the skarn system. This hole intersected hydrothermally altered granodiorite and diorite that contained porphyry-style, vein hosted and disseminated chalcopyrite, bornite and molybdenite mineralization, along with highly anomalous gold values. At the time that results on drill hole ES-1 were released, Dec. 3, 1998, requirements to identify a Qualified Person on the project under National Instrument 43-101 had not been established. In the case of drill ES-25, released on Aril 20, 2001, those standards were in effect and Dr. Lawrence A. Dick, Executive Vice President, Exploration for GMC was the Qualified Person for the Escalones project.

General Minerals Corporation is an international minerals exploration company focusing its activities in North and South America. The Company has six properties in the US, two in Bolivia and one in Chile. The target mineralization is copper, silver and gold. In addition to Escalones, three of these properties are now under option to other mining companies: Malku Khota (Bolivia) with Apex Silver Mines Ltd., Monitor (USA) with Teck Cominco Ltd. and Dragoon (USA) with BHP Billiton. The Company also assists other groups of entrepreneurial geologists through equity investment to form companies and develop early stage exploration projects with discovery potential. Two of these companies, Foundation Resources Ltd. and Afghan Minerals Inc., were established in 2004 where the primary country focus has been in Mongolia and Afghanistan, respectively.

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