General Metals Discovers New High Grade Zone Expanding Original Mineralized Target Estimates
General Metals Corporation (the “Company”) (OTCBB: GNMT) (Frankfurt: GMQ) announces the discovery of new high grade mineralization north of the Canyon Fault including 15 feet grading 0.324 ounces of gold equivalent per ton (opt Au Equiv.).
Drilling north of the Canyon Fault identified two parallel zones of mineralization, unlike the Independence Shallow Target which is dominated by a single mineralized zone at the south end of the property. This significant new discovery increases the exploration potential for near surface mineralization substantially over the originally estimated target potential, resulting in what the Company feels, represents an important addition to oxide gold mineralization in the Battle Mountain Mining District of Nevada.
“Importantly there is no historic mining north of Section 3400 North and as a result there is no depletion of high grade mineralization in the large northern target areas,” said Steve Parent, Company President and CEO. “With this exciting new discovery of multiple, parallel, mineralized zones containing high grade mineralization north of the Canyon Fault it appears the Independence Mine is clearly an important discovery in the Battle Mountain District. The target zone for surface mineralization at the Independence is now more than one mile long and open to depth. Drilled mineralization is limited only by the drilling accomplished to date, is open on strike and to depth.”
Holes GM 54, the first hole drilled north of the Canyon Fault on Section 3400 North, as well as 55 and 56 drilled on Section 4000 North, roughly 800 feet north of the Canyon Fault and 600 feet north of hole GM-54 tested the Company’s exploration model north of this fault structure. Historically this fault was considered the termination or “cut off” of the mineralized Independence Zone. Despite promising soil geochemistry and strong surface alteration, limited drilling was completed by others north of the Canyon Fault in the past. Review of data from previous operators and modeling by the Company’s geologists indicated excellent potential north of this fault.
The outcomes which includes high grade intercepts of 15 feet grading 0.324 opt Au Equiv. and five feet grading 0.266 opt Au Equiv. in GM-56 are contained within a larger 90-foot intercept grading 0.076 opt Au Equiv.
“These results confirm the geologic interpretation by our professionals,” continues Steve Parent. “We are extremely pleased and encouraged that, thus far we have achieved a 100% success rate, with virtually every hole of the 56 holes in the Company’s combined 2007 – 2008 drill program encountering mineralization of potential ore grade over potentially mineable widths.”
Drill results north of the Canyon fault thus far, appear shallower, higher grade and wider than the mineralization south of the fault. Unlike the mineralization drilled south of the Canyon Fault, which is dominated by a single mineralized zone, drilling to the north of the fault appears to identify two parallel, well mineralized zones.
Dan Forbush CFO added, “The Company’s exploration team, after successfully drilling and modeling mineralization on the southern portion of the property stepped across this fault with these first three holes and successfully tested mineralization north of this fault. Once again our commitment to this project and its potential is rewarded. We expect expansion of the mineralization to continue.”
The following Table presents the salient drill data from the holes discussed in this press release.
Gold Mineralized Intercepts Equivalent ———————————————— ————- oz/t g/t From To Intercept Gold Gold Silver Silver Au Au Drill Hole (ft) (ft) (ft) oz/t g/ton oz/t g/ton Equiv. Equiv. —– —– ——— —– —— —— —— —— —— GM-54 140 240 100 0.022 0.68 0.20 6.13 0.026 0.80 —– —– ——— —– —— —— —— —— —— Including 155 200 45 0.037 1.15 0.20 6.25 0.041 1.27 —– —– ——— —– —— —— —— —— —— Also 410 440 30 0.009 0.28 0.24 7.37 0.013 0.42 —– —– ——— —– —— —— —— —— —— GM-55 250 300 50 0.019 0.59 0.25 7.71 0.024 0.74 —– —– ——— —– —— —— —— —— —— Also 465 520 55 0.015 0.47 0.07 2.18 0.016 0.51 —– —– ——— —– —— —— —— —— —— GM-56 125 245 120 0.013 0.42 0.34 10.70 0.020 0.62 —– —– ——— —– —— —— —— —— —— Including 175 195 20 0.021 0.65 0.73 22.67 0.035 1.08 —– —– ——— —– —— —— —— —— —— GM-56 355 445 90 0.073 2.27 0.15 4.51 0.076 2.36 —– —– ——— —– —— —— —— —— —— Including 355 370 15 0.317 9.86 0.38 11.73 0.324 10.08 —– —– ——— —– —— —— —— —— —— and 435 440 5 0.264 8.21 0.11 3.55 0.266 8.28 —– —– ——— —– —— —— —— —— ——
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.
Section 3400 North
Hole GM-54 successfully encountered 100 feet grading 0.026 opt Au Equiv on the north side of the fault. A second zone of mineralization from 410 to 440 feet was encountered which graded 0.013 opt Au Equiv. This zone of low grade mineralization seems to correspond with larger stronger zones of mineralization encountered in holes GM 55 and 56 drilled 600 feet north on Section 4000 North.
Section 4000 North
Holes GM-55 and 56 tested targets identified by the Company’s consultants and intersected two mineralized zones. Each zone contains similar or higher grade mineralization over equal or greater widths than found in the Independence Shallow Zone south of the Canyon Fault.
The mineralized zones continue to exhibit excellent continuity along strike and to depth. Drilling by the company has demonstrated oxide mineralization over a vertical range of 700 feet of elevation, in the near surface targets. Historic drilling by Noranda and Great Basin Gold indicate a total vertical range of the mineralized system in excess of 3,000 vertical feet. The geometry of the mineralized zones suggest this near surface oxidized mineralization potentially amenable to mining by open pit methods.
“Oxidized ores characteristically are amenable to low cost recovery techniques such as heap leaching. The grade of mineralization encountered in the Company’s drilling to date are comparable with the grades of mineralization found in other operating open pit, heap leach mines in the State of Nevada today,” stated Dan Forbush. “The presence of significant high grade mineralization in the northern drill sections enhances the economic potential of the property because the mineralized zone appears to be both shallower and larger than in the southern area.
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 is actively exploring its 100% controlled Independence property strategically located in the prolific and highly prospective Battle Mountain Mining District, Nevada. Permitting and Engineering for heap leach production is underway at the Independence Mine. 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 initial 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.
Contact: Wayne Meyerson Investor Relations General Metals Corporation firstname.lastname@example.org 775.583.4636 office 775.830.6429 cell
SOURCE: General Metals Corporation