"low cost open pit heap leach operation"General Metals Update: Hole GM-24 Intersects 260 Feet of Oxide Mineralization From 25 to 285 Feet at Wilson Independence Gold - Silver Project
Mar 11, 2008 8:16:00 AM
RENO, NV -- (MARKET WIRE) -- 03/11/08 -- General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to announce that drilling at the Company's Wilson Independence Property has encountered additional significant widths of near surface, oxide mineralization. Significant intercepts include 260 feet in hole GM-24 from 25 to 285 feet, 160 feet in hole GM 26, and 120 feet in hole GM - 27. These results and others are summarized below in Table 1.
All holes encountered significant mineralization within the targeted zones and most drill intersections were significantly larger than originally modeled. Holes GM 24 and 25 are situated on Section 3200 North and holes GM-26 and 27 are situated on Section 3000 North.
Discussion
Section 3200 North is the northern most section drilled during the Company's 2007 RC drilling program. The results for GM 24 and 25 clearly demonstrate that mineralization is open to the north where the Company controls more than 3,200 feet of additional claims along the projected strike of the mineralization and where historic surface geochemical sampling has returned highly anomalous values exceeding 500 ppm in soils.
Section 3000 North, where the Company completed holes GM- 26 and 27, is situated 200 feet south of Section 3200 North. These holes intersected mineralization much wider than anticipated, with an estimated true thickness of mineralization of 100 to 175 feet.
Drilling continues to define a body of near surface, completely oxidized mineralization with excellent continuity along strike and down dip. Mineralized drill intercepts correlated will 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 typicall 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.
Company CFO, Dan Forbush, CPA said: "The continuity of mineralization over these unexpected widths gives Management further confidence in our proposed mining and processing operation. Planning is underway as is Stage 2 Phase 1 drilling. This next round of drilling is designed to bring us to a CNI 43-101 reportable resource category and should enable the generation of a mine model from which to commence operations once permits are complete. It is also encouraging that, so far, every hole ever drilled on the Independence encounters mineralization, including all Stage 1 Phase 1 holes completed in 2007."
The following table provides salient data for these holes.
Mineralized Intercepts Gold EquivelantDrill From To Intercept Gold Gold Silver Silver oz/t Au g/t AuHole (feet)(feet) (feet) oz/t g/ton oz/t g/ton Equiv Equiv. @ $15 Ag $800 AuGM-24 25 285 260 0.020 0.62 0.22 6.84 0.024 0.75Including 25 45 20 0.034 1.06 0.24 7.37 0.038 1.20Including 150 285 135 0.025 0.78 0.30 9.33 0.031 0.95GM-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 0.43GM-26 225 385 160 0.020 0.62 0.48 14.87 0.029 0.90Including 225 235 10 0.044 1.35 0.96 29.80 0.061 1.91Including 290 330 40 0.032 1.00 0.61 18.96 0.044 1.35GM-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
Results
Section 3200 North
Holes GM 24 and GM 25 were completed from a single drill site on Section 3200 North and successfully tested projections of mineralization in this area. Hole GM-24 was drilled easterly at an inclination of 84 degrees below horizontal, while hole GM-25 was drilled easterly at 45 degrees below horizontal. Hole GM-24 unexpectedly encountered mineralization at 25 feet, and continued in mineralization to 285 feet. This hole was originally not projected to intersect mineralization until 190 feet. Hole GM-24 also interesected an unmapped stope from 75 to 90 feet, within the mineralized zone. The Company interprets the extensive zone of mineralization in GM-24 as being related to a large cross fault which provided additional ground preparation and resulting the the depositing of large volumes of mineralization in and near the m ineralized intersection zone.
Hole GM-25 was drilled to provide a 150 foot updip offset of hole GM-24. This hole also encountered mineralization unexpectedly shallow in the hole which is thought to be related to the cross fault discussed under hole GM-24 above. Hole GM-25 also encountered mineralization over the projected width within the target zone.
Section 3000 North
Holes GM-26 and 27 were drilled both drilled easterly at an angle of 45 degrees below horizontal on Section 3000 North and successfully tested projected mineralization. Both holes encountering much wider than expected zones of mineralization. GM-26 intersected 160 feet of mineralization grading 0.029 opt Au Equivalent, which contained higher grade intervals from 225 to 235 feet and 290 to 330 feet grading 0.061 opt Au Equivalent, and 0.044 opt Au Equivalent respectively. Hole GM-27 was drilled to provide a 260 foot up dip offset of hole GM-26. GM-27 intersected 120 feet of mineralization grading 0.018 opt Au Equivalent which contained a 40 foot higher grade zone containing 0.033 opt Au Equivalent from 100 to 140 feet, and which correlates well with the higher grade zone in GM-26 from 290 - 330 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. Through a recent purchase agreement on the Bannocburn Mine, the Company controls 140,000 ounces of historically reported gold reserves in south east Ontario, Canada.
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 2004 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 MeyersonInvestor RelationsGeneral Metals Corporation wayne@gnmtlive.com775.686.6078 office775.830.6429 cell