"adjacent to the giant Phoenix project."General Metals Reports Final 2007 Drill Results and Intersects 175 Foot (True Width) Zone of Oxide Mineralization Grading 0.048 Ounces per Ton Gold Equivalent at Independence Gold - Silver Project
Mar 18, 2008 8:02:00 AM
View Additional ProfilesRENO, NV -- (MARKET WIRE) -- 03/18/08 -- General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to report Final 2007 drill results with the following results for drill holes GM-28, 29, 30, 31 and 32, which include multiple large high grade intercepts such as hole GM-31 which intersected an estimated true width of 175 feet grading 0.040 opt gold equivalent (opt Au Equiv.) All holes reported herein were drilled as part of the Company's 2007 First Stage - Phase I RC drilling program at the Independence Gold - Silver Project. The length weighted average for all of the largest, and typically lowest grade, intercepts for all reported holes drilled along the 1,800 foot southern portion of the Independence Shallow Target tested to date as a part of the Company's 2007 drill program thus far is 0.028 opt Au Equiv. over an average 77 foot drill intercept. Mineralization remains open along strike in all directions and at depth.
All holes encountered oxide mineralization with potentially economic grades over potentially economic widths in the projected target zone. The drilling also demonstrates excellent continuity of mineralization both along strike and down dip. Management is very encouraged by these results as they are by the entire 2007 drill program.
Discussion
This release presents results for holes GM28 on Section 2600 North, GM 29 and 30 on Section 2000 North, GM 31 on Section 1600 North, and GM 32 on Section 1500 North.
With the current release, only results for holes GM-18 and 23 remain pending; all other results have been released for all other drill holes drilled in the Company's 2007 RC drilling program. To date, 100% of the holes drilled as a part of the Company's 2007 program at the Independence have encountered potentially economic concentrations of oxide mineralization over potentially economic widths for a low cost open pit, heap leach type of operation. The average, length weighted, drill intercept for all of the largest (and generally the lowest grade) intercepts along the entire 1,800 feet of the target tested thus far is 76.6 feet with an average grade of 0.028 opt Au Equiv. per ton.
The orientation of the mineralized zone at the Independence allows the Company to drill holes which are roughly perpendicular to mineralization, resulting in drill intercepts which are believed to represent approximate true thickness.
Company President, CEO Steve Parent says: "With the average, length weighted, drill intercept being 76.6 feet with an average grade of 0.028 opt Au Equivalent per ton over the 32 holes (GM#18 & GM#23 have not reported yet) of oxide gold and silver bearing mineralized material, management is excited about the prospects for the planned near term heap leach production operation. Stage 2 Phase 1 drilling is now underway and now that we have the majority of assays, the fill-in drilling will become more meaningfully targeted to enable a CNI 43-101 compliant report on resources/ reserves."
Dan Forbush, CPA, CFO has said: "We are certainly pleased with Stage 1 Phase 1 drill results. In every hole, the width of mineralization and reported grade has at least equaled or exceeded the geologist's expectations. Our 2008 drill program will also complete those 2007 holes that bottomed in mineralization and we will continue to explore where now known mineralization remains open, in order to better define the deposit. Management's confidence in the Independence shallow mining operation has enabled us to plan to drill numerous additional holes in the newly defined 5 additional targets, a discussion of which is contained in our 10QSB , which was recently filed with the SEC."
The following table provides salient data for these holes.
Table 1
Mineralized Intercepts Gold Equivelant
---------------------------------------------- ---------------
oz/t Au
Drill From To Intercept Gold Gold Silver Silver Equiv @ g/t Au
Hole (feet)(feet) (feet) oz/t g/ton oz/t g/ton $15 Ag Equiv.
$800 Au
--------- ---- ---- ------ ----- ----- ---- ----- ------- ------
GM-28 205 255 50 0.020 0.62 0.80 24.88 0.035 1.09
Including 230 245 15 0.030 0.93 0.53 16.48 0.040 1.24
GM-28 395 400 5 0.159 4.95 0.15 4.67 0.162 5.03
GM-29 170 265 95 0.009 0.28 0.79 24.71 0.024 0.74
Including 225 255 30 0.013 0.39 1.57 48.96 0.042 1.31
GM-30 5 45 40 0.020 0.62 0.78 24.11 0.035 1.07
Including 30 35 5 0.106 3.30 3.58 111.35 0.173 5.38
GM-31 185 360 175 0.028 0.87 1.06 32.97 0.048 1.49
Including 225 295 70 0.057 1.77 1.80 55.99 0.091 2.82
ALSO
Including 260 290 30 0.069 2.15 2.72 84.69 0.120 3.74
GM-32 225 250 25 0.015 0.47 0.56 17.42 0.026 0.79
Results
Section 2600 North
Hole GM-28 was drilled easterly 45 degrees below horizontal and successfully encountered a broad, 50 foot wide zone of gold and silver mineralization with an average grade of 0.035 opt Au Equiv. over the interval from 205 to 255 feet. This drill hole test the projected target zone slightly more than 300 down dip below the surface indications of mineralization. As shown on the attached cross section additional planned drill holes will test up dip continuity of mineralization in the future at roughly 100 foot step outs.
Also as seen on the attached drill section an historic core hole drilled in the late 1980s by Noranda should penetrate the down dip projection of mineralization roughly 300 feet below hole GM-28. The Noranda holes were typically not sampled within 500 feet of the surface because the mineral estate was split and Noranda only had rights to those minerals more than 500 feet below the surface. Noranda's focus was a deeper high grade sulfide rich gold skarn similar to the nearby, high-grade Fortitude deposit that yielded 2.2 million ounces of gold.
The Company is examining the unsplit core from this and other core holes which it has warehoused, and which are unsampled. The Company will sample these holes as deemed appropriate.
Section 2000 North
Holes GM 29 and 30 are drilled on this section. The holes confirm the projections of this area, and help to close a 500 foot gap in the drilling pattern. The holes are drilled to provide a 200 foot step out from each other, and confirm the though going presence of a high central core surrounded by a broader halo of low grade mineralization.
Section 1600 North
Hole GM-31 was drilled on Section 31 North. This hole was targeted to provide a 130 foot down dip drill test of mineralization encountered in holes GM2 and GM3 as previously announced by the company. GM-31 successfully intersected a very broad, 175 foot zone of gold silver mineralization averaging 0.048 opt Au Equiv. across the interval from 185 to 360 feet. This mineralized intercept is nearly 100 feet wider than had been anticipated. Within this very large mineralized zone a high grade zone of mineralization grading 0.120 opt Au Equiv. per ton extends over the 30 foot interval from 260 to 290 feet in hole GM-31.
Section 1500 North
Drill hole GM-32, drilled on Section 1500 North, also in an easterly direction 45 degrees below horizontal. The hole was successfully drilled as a 50 foot, down-dip offset from hole GM-7 to test continuity of mineralization encountered in hole GM-7 as previously announced by the Company. The hole successfully intercepted mineralization in the target zone. The drill intersected mineralization almost exactly as projected, with the intercept averaging 0.026 opt Au Equiv. across the 25 feet from 225 to 250 feet.
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: The Company is production and growth oriented and controls 100% of the strategically situated Independence Mine property located in the prolific Battle Mountain Mining District on the Battle Mountain - Eureka gold trend, in Humboldt County, Nevada, adjacent to the giant Phoenix project. The current drilling program is designed to confirm early estimates of mineralized material thought to contain 235,000 oz. gold and 2,500,000 oz. silver and to expand the mineralized envelope which enhances near term production numbers. 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.
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