General Minerals Corporation

General Minerals Corporation

March 21, 2005 10:34 ET

General Minerals Corporation Options Escalones Porphyry Copper-Gold Prospect Located in Chile to Phelps Dodge Corporation




MARCH 21, 2005 - 10:34 ET

General Minerals Corporation Options Escalones
Porphyry Copper-Gold Prospect Located in Chile to
Phelps Dodge Corporation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2005) - General
Minerals Corporation ("GMC") (TSX:GNM) is pleased to announce that it
has entered into a letter agreement with Minera Aurex (Chile) Limitada
("Aurex"), a Chilean subsidiary of Phelps Dodge Corporation, whereby
Aurex can earn up to a 72% joint venture interest in the Escalones
property. Escalones is located 97 kilometres southeast of Santiago in
central Chile and 35 kilometres east of the giant El Teniente producing
copper mine. Under the terms of the agreement Aurex has the exclusive
rights to initially earn a 60% interest in the Escalones property by
incurring expenditures and making annual payments over the five year
earn in period.

To complete its initial earn-in to 60% Aurex must incur expenditures of
US$4,000,000 on the Escalones property within five years of June 1,
2005. Aurex will carry out an Induced Polarization ("IP") geophysical
survey of the property and must pay GMC US$10,000 before June 1, 2005.
Thereafter, Aurex must expend a minimum of $500,000 per year and pay GMC
a total additional US$250,000 in five equal annual installments to
maintain the option. Upon completing the initial earn-in within the five
year period, Aurex may elect to increase its interest to 72% by
completing a feasibility study within seven years.

Aurex has already started the IP geophysical survey on the property with
the intention of completing the survey quickly before winter snows make
access difficult.

Ralph Fitch, President and CEO of GMC, stated, "We are very pleased to
have attracted a Phelps Dodge subsidiary to Escalones. Following on the
recent announcement of our agreements with Teck Cominco on the Monitor
copper property in Arizona and with Apex Silver on the Malku Khota
silver property in Bolivia this third agreement continues to demonstrate
the quality of our properties in both North and South America. We are
continuing to show our other properties to potential partners and are
hopeful that we will be securing additional agreements."

GMC originally optioned Escalones in late 1996 and after drilling 25
diamond drill holes with encouraging results returned the property to
the original landowner in August of 2001 due to the depressed price of
copper at the time. GMC renewed the option in 2004 because the price of
copper has more than doubled since 2001 and there has been a renewed
interest by the industry in searching for new, undeveloped copper
projects. 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. 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 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. Three of these
properties are now under option to other mining companies. 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,

SEC 12g3-2(b): 82-34810


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