"adjacent to the giant Phoenix project."General Metals Discusses 2007 Exploration Program Results and Plans for 2008 Negotiates Drill for All of 2008 -- Engages Dyer Engineering of Reno, NV for Engineering & Permitting Through Production
Mar 27, 2008 8:16:00 AM
View Additional ProfilesRENO, NV -- (MARKET WIRE) -- 03/27/08 -- General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to provide the following discussion of the Company's 2007 Reverse Circulation (RC) drilling program and current plans for 2008. 2007 drilling successfully tested the Independence Shallow oxide gold - silver target. 100% of the holes encountered oxide mineralization in the target zone, and most encountered higher grade and wider zones of mineralization than had been previously estimated or currently expected. To allow the Company to follow up on its highly successful 2007 RC drilling program, the Company's management has negotiated with Drift Exploration Inc. to provide an RC drill and crew to the project for the entire year of 2008.
2008 Program
The Drift crew has completed 10 holes of the 2008 drill program which is designed to initially add valuable data to add to the 2007 drill and assay data which is being used in the preparation of a CNI 43-101 compliant report and the preliminary mine model.
The Company has also engaged Dyer Engineering of Reno, Nevada to advance permitting and engineering studies necessary to place the property into commercial production. Dyer worked with management on construction of the cyanide heap leach operation built in 2003 and 2004 in Nevada's Comstock Load for another Company, in which management was previously involved.
2007 Program
During 2007, the Company completed 32 RC drill holes ranging from 100 to 550 feet deep, with a combined drilled footage of 10,475 feet. All holes were angle holes drilled in an easterly direction to test the mineralized zone in the Independence Shallow Target on the southern portion of the Company's strategically located property. The 2007 program tested roughly 1800 feet of strike around the Independence Mine.
While several mineralized intercepts exceeded 200 feet of true width and several more exceeded 100 feet of true width, 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.
Discussion
Drilling continues to define a body of near surface, completely oxidized mineralization with excellent continuity along strike and down dip. Mineralized drill intercepts correlated well up and down dip and along strike from section to section. The interpretation is supported by accessible mine workings. Potentially surface bulk mineable mineralization in the Company's drill intercepts is consistently wider than anticipated from underground mapping and sampling results.
The mineralized zone intersected in drilling typically consists of a higher grade core surrounded be a broad halo of low grade which is often 100 to 200 feet wide. All mineralization encountered is thoroughly oxidized throughout the zones being tested. Exposures in historic mine workings suggest the mineralization is oxidized to depths of more than 400 feet below the present surface and has a high degree of continuity along strike and down dip.
Results including grade, width, and oxide nature of mineralization, indicate excellent potential for a low cost, open pit heap leach operation with near term production potential for which planning is underway.
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.
Geochemical and structural modeling of the property indicates that mineralization may extend northerly on the Company's property for more than 3,000 feet in the direction of the Sunshine Open Pit Mine formerly operated by Battle Mountain Gold Corp., now Newmont Mining.
The following table lists the reported data which has been prepared by Management:
Drill Mineralized Gold
Hole Intercepts Equivalent
From To Intercept Gold Gold Silver Silver oz/t g/t
oz/t g/ton oz/t g/ton Au Au
Equiv. Equiv.
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GM-1 50 95 45 0.046 1.431 1.38 42.92 0.072 2.236
GM-2 165 195 30 1.012 0.373 1.37 42.61 0.038 1.172
GM-3 155 210 55 .015 0.467 1.03 32.04 0.034 1.067
GM-4 220 270 55 0.013 0.404 0.52 17.72 0.023 0.706
Including 220 245 25 0.020 0.622 0.77 26.14 0.034 1.067
GM-5 150 205 55 0.032 0.995 1.58 49.27 0.062 1.919
Including 160 175 15 0.070 2.177 2.89 89.89 0.124 3.863
GM-6 190 245 55 0.006 0.192 0.32 10.88 0.012 0.377
GM-6 275 305 30 0.017 0.529 0.31 10.70 0.023 0.711
Including 275 290 15 0.026 0.809 0.38 13.17 0.033 1.033
GM-7 140 200 60 0.015 0.467 1.46 50.07 0.042 1.318
Including 170 195 25 0.032 0.995 2.32 79.62 0.076 2.350
GM-8 305 335 30 0.005 0.140 0.32 9.81 0.011 0.330
GM-9 105 225 120 0.007 0.230 0.65 20.32 0.020 0.610
Including 120 160 40 0.014 0.440 1.71 53.07 0.046 1.440
GM-10 10 15 5 0.098 3.050 3.91 121.56 0.171 5.330
GM-10 110 225 115 0.011 0.340 0.65 20.15 0.023 0.720
Including 110 120 10 0.018 0.540 2.55 79.31 0.65 2.030
Also 150 200 50 0.020 0.610 0.86 26.75 0.36 1.110
GM-11 165 245 80 0.006 0.180 0.85 26.38 0.022 0.670
Including 170 195 25 0.032 0.995 2.32 79.62 0.076 2.350
GM-12 15 65 50 0.018 0.560 0.00 0.06 0.018 0.561
Including 35 60 25 0.024 0.746 0.04 1.24 0.025 0.770
GM-12 225 280 55 0.008 0.249 0.50 15.55 0.017 0.540
Including 265 280 15 0.012 0.373 1.17 36.39 0.034 1.056
GM-13 280 350 70 0.021 0.660 0.42 13.11 0.029 0.910
Including 290 315 25 0.041 1.280 0.84 26.13 0.057 1.770
GM-14 145 300 155 0.007 0.150 0.45 14.15 0.016 0.490
Including 170 195 25 0.018 0.560 1.03 32.04 0.037 1.040
And 235 245 10 0.027 0.840 0.60 18.66 0.038 1.190
Note GM-14 bottomed in mineralization at 300 Feet
GM-15 195 230 35 0.018 0.570 0.43 13.49 0.026 0.820
GM-16 190 300 110 0.005 0.160 0.58 17.98 0.016 0.490
Including 215 260 45 0.035 1.100 1.10 34.21 0.056 1.740
Note GM-16 bottomed in mineralization with 0.065 opt AU equivalent
at 300 Feet
GM-17 145 350 205 0.007 0.150 0.45 14.150 0.016 0.490
Including 170 185 15 0.008 0.250 0.73 22.81 0.022 0.680
Also 270 285 15 0.014 0.450 0.47 14.51 0.023 0.720
And 335 350 15 0.018 0.560 4.30 133.75 0.099 3.070
Note GM-17 bottomed in mineralization with 0.022 opt AU equivalent
at 350 Feet
GM-19 170 320 150 0.025 0.790 0.67 20.74 0.038 1.180
Including 210 270 60 0.057 1.770 1.43 44.58 0.084 2.610
GM-20 150 165 15 0.004 0.130 0.40 12.44 0.012 0.370
And 190 205 15 0.009 0.270 0.33 10.26 0.015 0.460
GM-21 50 60 10 0.000 0.000 0.60 18.66 0.011 0.350
And 140 150 10 0.008 0.250 0.20 6.22 0.012 0.370
GM-22 305 430 125 0.024 0.760 0.19 5.85 0.028 0.870
Including 315 380 65 0.041 1.270 0.35 10.77 0.047 1.470
GM-24 25 285 260 0.020 0.62 0.22 6.84 0.024 0.75
Including 25 45 20 0.034 1.06 0.24 7.37 0.038 1.20
Including 150 285 135 0.025 0.78 0.30 9.33 0.031 0.95
GM-25 0 15 15 0.011 0.24 0.48 14.94 0.020 0.63
And 130 165 35 0.010 0.30 0.23 7.15 0.014 0.43
GM-26 225 385 160 0.020 0.62 0.48 14.87 0.029 0.90
Including 225 235 10 0.044 1.35 0.96 29.80 0.061 1.91
Including 290 330 40 0.032 1.00 0.61 18.96 0.044 1.35
GM-27 40 160 120 0.008 0.24 0.56 17.32 0.018 0.56
And 100 140 40 0.012 0.36 1.15 35.68 0.033 1.03
GM-28 205 255 50 0.020 0.62 0.80 24.88 0.035 1.09
Includin 230 245 15 0.030 0.93 0.53 16.48 0.040 1.24
And 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
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
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.
It should be noted that even though the assays are believed to be both independent and reliable, they are not yet National Instrument 43-101 or SEC Industry Guide 7 compliant and therefore cannot be relied upon. Investors are cautioned that until such time as results are reported in a compliant document, they cannot and should not be relied upon.
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.