RENO, NV -- 06/12/08 --
General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce results for holes GM 38 and
39 drilled on Section 1600 North. As set out in the table and discussion
below, both holes GM 38 and 39 encountered excellent mineralization
continuing the expansion of the target zone at the Independence Project;
thereby supporting the model of near surface, potentially bulk mineable
gold - silver mineralization in the vicinity of the historic Wilson
Independence Mine. Hole GM - 38 intercepted 15 feet of mineralization
averaging 0.054 ounces per ton of gold equivalent (opt Au Equiv.) roughly
ten feet vertically below the surface, while hole GM-39, as discussed in
detail below, verified the large 175 foot intercept previously reported in
hole GM - 31 which averaged 0.048 opt Au equiv.
"The excitement of management grows with each result," says Dan Forbush,
the Company's CFO. "We have recently completed a review of all of the
available drill, trench and sample data including assays and geology
related thereto. This analysis along with our current results continue to
confirm management's expectation that we have a deeply and thoroughly
oxidized ore grade zone."
"The mineralization exhibits excellent continuity in width and grade, along
strike and up and down dip in the target zone. This oxidized material
characteristically is amenable to low cost recovery techniques such as heap
leaching.
"Finding mineralization this close to the surface will allow for an open
pit mining model that may be able to bring ore to the pad quickly and at a
very low strip ratio thereby improving the startup economic model," added
President and CEO Steve Parent.
The following Table presents the salient drill data from the holes
discussed in this press release.
Mineralized Gold
Intercepts Equivalent
Drill From To Intercept Gold Gold Silver Silver oz/t Au g/t Au
Hole (ft) (ft) pt (ft) oz/t g/ton oz/t g/ton Equiv. Equiv.
GM-38 15 35 15 0.021 0.61 1.75 51.16 0.054 1.58
GM-39 150 165 15 0.007 0.20 0.44 12.95 0.015 0.44
ALSO 200 320 120 0.010 0.29 0.65 18.90 0.022 0.64
GM-31 185 360 175 0.028 0.87 1.06 32.97 0.048 1.49
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.
Hole GM-38 drilled due east at an inclination of 45 degrees below
horizontal to test the projected up dip extensions of mineralization
encountered in hole GM-1 which averaged 0.072 opt Au Equiv. over the
interval from 50 to 95 feet encountered mineralization averaging 0.054 opt
Au Equiv. over the interval from 15 to 35 feet. This intercept extends
mineralization encountered in hole GM-1 to "grass roots" at roughly 10 feet
below the surface.
GM-39 drilled as a vertical hole across the large 175 foot intercept in
hole GM-31which averaged 0.048 opt Au Equiv. from 185 to 360 feet.
identified significant mineralization within the targeted interval from 200
to 320 feet which averaged 0.22 opt Au Equiv. The mineralized material is
thoroughly oxidized, and corresponds well to the intercept in hole GM-31.
A detailed description of the exploration and production history of the
Independence property is available on the Company's web site at
www.gnmtlive.com
About General Metals Corporation: General Metals Corporation is an
aggressive junior minerals exploration and development company, based in
Reno, Nevada. The Company controls 100% of the strategically situated
Independence property located in the prolific and highly prospective Battle
Mountain Mining District on the Battle Mountain - Eureka gold trend, in
Humboldt County, Nevada. The Company also owns 150 sq. km. of mining
concessions for gold, diamonds and base metals in Ghana, West Africa and
plans to commence exploration activities 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
235,000 ounces of gold and 2,500,000 ounces of silver are contained in the
mineralized material in the "Shallow Target," 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 2007 fiscal year, our quarterly reports on
Form 10-QSB and other periodic reports filed from time-to-time with the
Securities and Exchange Commission.
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Contact:
Wayne Meyerson
Investor Relations
775.830.6429 cell
wayne@gnmtlive.com
General Metals Corporation
615 Sierra Rose Dr. Suite 1
Reno, NV 89511
775.583.4636 office
