September 3, 2008
General Metals Enters Into Substantive Discussions for Sale / Joint Venture of Its 150 Sq. Km. Nyhinahin Mining Concession Near Bibiani, Ghana, West Africa
General Metals Corporation (OTCBB: GNMT) (FRANKFURT: GMQ) -- The Company is pleased to announce that it has entered into substantive discussions for the sale or joint venture of its 100% interest in Mikite Gold Resources ("Mikite"), a Ghanaian corporation with exclusive prospecting license and full exploration rights to the Nyinahin Mining Concession near Bibiani, Ghana. The Prospecting rights are for gold, diamonds and base metals.
Steve Parent, General Metals President and CEO comments: "Now that we are focused on permitting for production at our Independence Mine in Battle Mountain, NV, management has elected to seek opportunities for the development of our Ghana, West Africa project that will not be in competition for development dollars on the Independence Mine. To that end we have begun substantive discussions with another publicly traded company to explore the most effective method of exploiting this asset. I am personally excited to have the opportunity to develop this asset at this time and will endeavor to find the appropriate solution, weighted in favor of the rapid development of our Independence Mine with a future, longer term financial benefit to be generated from our Ghana assets."
The 150 square kilometer Nyinahin mining concession is located between two geological gold belts, the Bibiani Belt to the west and the Asankrangwa to the east. The property shares borders with several major mining companies, including Newmont Mining, Napoli Gold and Dunkwa Continental Goldfields. The district is home to the famous Ashanti Goldfields-Obuasi Mines and is one of the most active exploratory areas in the world.
A preliminary survey by Geodita Resources LTD, Ghana, indicates that the Nyinahin Concession has significant potential for lode gold mineralization and for recovery of alluvial gold. There are 3 major anomalous zones: Owusbukurom anomaly in the center Ntoboroso anomaly in the southeast and the Krakyekurom anomaly in the southwest. There are 4 known mineralized trends: Baaneekurom-Nyinahin, Ntoboroso, Owusukurom-Adupiri and Krakyekurom-Adupiri. The reconnaissance has also shown several abandoned surface mines that are yet to be investigated.
Ghana has proven to be one of the most prospective regions in Africa for gold development. Some have referred to Ghana and West Africa as the next Carlin Trend. CFO Dan Forbush comments, "Ghana is an important asset to General Metals, but with our focus on The Independence where we intend to apply every development dollar to accelerate permitting and production for near term cash flow. This leads to our overlooking Ghana and it is too important a development target to allow this to continue. I am very pleased and share a keen interest in its development."
A detailed discussion of the Company's 2007-2008 definition drilling is available on the Company's website www.gnmtlive.com under the link "Independence Interim Drill Report" on our home page.
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 provide development opportunities 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 2008 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 [email protected] 775.583.4636 office 775.830.6429 cell
SOURCE: General Metals Corporation