General Metals Discussion of 2007 Stage 1, Phase 1 Drill Program Successful Results, Makes Expansion Plans for 2008
General Metals Corporation (the “Company”) (OTCBB: GNMT) (FRANKFURT: GMQ) is pleased to provide the following progress report on the results of Stage I of the Company’s Phase I drilling program at the Wilson Independence Property and discussion of the Company’s exploration Plans for 2008. To the end of drilling for 2007, the Company completed 10,475 feet of Reverse Circulation (RC) drilling in 32 holes in the Independence Shallow Target at the Company’s Wilson Independence Gold Silver Property in the Battle Mountain Mining District of Nevada.
2007 Stage I — Phase I Reverse Circulation Drill Program
The Company has completed 32 angle and vertical RC drill holes at its Wilson Independence Property. These holes range from 100 to 550 feet in length. All samples for all 32 drill holes have been delivered to Chemex Laboratory’s sample preparation facility in Elko, Nevada. Analytical results have been finalized; preliminary interpretation made, and announced for holes GM 1, 2, 3, 4, 5, 6, 7 and 12. The remaining holes, GM 8, 9, 10, 11, and 13 through 32 are pending similar finalization and interpretation. The results will be announced as they become available. All holes have intersected visual indications of mineralization. Management is very encouraged by the success of drilling to date, the results of which have either met or exceeded expectations.
The drill rig has been demobilized from the property for maintenance and is expected to return to the property on or before March 1, 2008. General Metals benefits from this break as it will:
1) Allow Chemex assays to catch up with the significant backlog of samples that are presently at the laboratory.
2) Allow the company to avoid excessive costs associated with drilling during the worst of the winter weather.
3) Allow the Company’s consultants to compile and model the incoming sample results and drill hole data to maximize return on expenditures in the 2008 Stage 2 drill program.
2008 Stage 2 Expanded Drilling Program — Metallurgical Program
During 2008 the Company plans an aggressive and expanded multi-pronged drilling program to evaluate additional target areas at the Independence property. The Company’s consultants are currently interpreting data from the 2007 drill program on the Independence Shallow Zone, and making plans for an expanded 2008 Stage 2 drill program.
Independence Shallow Target Area
This target area lies completely south of the Canyon Fault, and was the focus of the Company’s 2007 drilling campaign., which extended the known mineralization from 1,500′ to 2,000′ along strike. During 2008 the Company plans to expand upon its 2007 drilling in this area to expand and better define mineralization to a Canadian National Instrument 43-101 compliant resource level. In addition, extensive metallurgical work will be undertaken to determine the best recovery methods for gold and silver.
Five Additional Exploration Targets At Independence: (See attached map)
East Fault Zone (EFZ) Target Area
This target area will evaluate projected near surface extensions of deep seated faults projected from the Independence Deep Gold Skarn Target. Developing mineralization in this highly prospective area would increase the near surface potential of the property, and enhance the economic parameters of developing a deep seated high grade gold skarn system.
Independence Extension Target Area
This target area will test projected extensions of the Independence Shallow Target north of the Canyon Fault. Successful drilling in this target area will materially expand the near surface potential of the Property. Recently compiled surface geochemistry suggests this zone has potential to extend mineralization similar to the Independence Shallow zone for up to an additional 1,200 feet to the north of the Canyon fault. Several historical drill holes have intersected mineralized material similar to that of the Independence Shallow Target Zone.
West Side Target Area
This target area is located to the north of the Independence Shallow Target and West of the Independence Extension Target Area. Favorable structural trends project into this target area from the Fortitude and Phoenix deposits. Holes in this area are specifically designed to test high grade mineralization indicated by historic soil geochemistry and drilling. Soil geochemistry has returned values up to 1,750 ppb (0.051 opt Au), while wide spaced historic drilling by Teck-Cominco intersected values in excess of 0.25 opt Au.
East Side Target Area
This target area lies along the eastern portion of the Wilson Independence Property, adjacent to the Giant Phoenix Project Plan of Operation boundary. Widely spaced soil geochemical samples in this area return uniformly high results ranging from 200 to more than 900 ppb gold (the Independence Shallow Target area is defined by a soil geochemical anomaly that ranges from 100 to 190 ppb Au). Historic surface rock chip samples are reported to contain up to 0.2 opt Au (7 ppm).
Independence North Target Area
This target area represents a large low grade target and is actually an extension of the Sunshine deposit, situated on the northern boundary of the Independence Property, which was mined by Battle Mountain Gold in 1995 – 1996. This target, like the Sunshine deposit is hosted in the Independence Stock, an apophisys of the Virgin Stock which is closely associated with the Fortitude – Phoenix deposits. This target area is indicated by multiple widely space drill holes and a consistent +100 ppb soil anomaly.
Sampling, Assaying and Quality Control
All drilling is Reverse Circulation (RC) type drilling, using an MPD 1000 track mounted drill, drilling a nominal 5.25 inch diameter hole. Cuttings are split using a riffle type splitter set to produce two duplicate splits. One sample is warehoused and stored for future reference and or metallurgical purposes. The other sample is sent to Chemex Laboratory’s Prep Lab in Elko, Nevada for sample preparation and fire assay, the remaining pulp is sent to Chemex’s Vancouver BC facility for geochemical analysis. General Metals has changed the assay protocol from fire assays with atomic adsorbtion finish to a gravimetric gold/silver fire assay in order to provide a better analysis for high grade silver.
Quality control programs include the use of duplicates, standards and internal and external check assaying. Certified sample standards provided by the Nevada Bureau of Mines and Geology are submitted with the normal sample stream sent to the laboratory. Ten percent of the samples will be sent to a third party laboratory for external check assay.
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 controls 100% of the strategically situated Independence property located in the prolific 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 in 2008.
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 Meyerson Investor Relations General Metals Corporation www.gnmtlive.com 775.686.6078 office 775.830.6429 cell wayne@gnmtlive.com
SOURCE: General Metals Corporation