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| | May 13, 2010
General Metals Receives Initial 43-101 Technical Report And Resource Estimate For Independence Property
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| | Reno, NV May 13, 2010 General Metals Corporation (the "Company") (OTCBB: GNMT) (FRANKFURT: GMQ), is pleased to announce that it is in receipt of an initial independent resource estimate and technical report (the "Technical Report") that identifies near surface, oxide Measured and Indicated resources containing 210,400 ounce of gold and 3,990,500 ounces of silver. An additional 868,200 ounces of gold are estimated in the Inferred resource category within the surface oxide and skarn hosted mineralization.
This first-time resource estimate was prepared by independent, registered mining engineer, James Ashton of Reno, Nevada in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and utilizes industry standard methods that conform with the CIM Mineral Resource and Mineral Reserve definitions, for General Metals Corporation and its wholly owned subsidiary, General Gold Corporation. Table 1 summarizes the resource estimate for both the surface oxide mineralization and the high grade skarn hosted mineralization at depth.
Table 1
Surface Oxide Resource Area
Measured & Indicated Resources
| Cutoff |
Tons |
Grade |
Ounces |
Grade |
Ounces |
Grade |
Ounces |
| (oz AuEq/ton) |
|
(oz AuEq/ton) |
Gold Eq. |
(oz Au/ton) |
Gold |
(oz Ag/ton) |
Silver |
| 0.008 |
14,802,000 |
0.018 |
271,500 |
0.014 |
210,400 |
0.27 |
3,990,500 |
Inferred Resources
| Cutoff |
Tons |
Grade |
Ounces |
Grade |
Ounces |
Grade |
Ounces |
| (oz AuEq/ton) |
|
(oz AuEq/ton) |
Gold Eq. |
(oz Au/ton) |
Gold |
(oz Ag/ton) |
Silver |
| 0.008 |
5,997,000 |
0.012 |
72,000 |
0.011 |
66,000 |
0.066 |
395,800 |
Skarn Hosted Resource Area
Inferred Resources
| Tons |
Grade |
Ounces |
| |
(oz Au/ton) |
Gold |
| 4,182,000 |
0.19 |
796,200 |
The skarn hosted resource contains considerable high grade mineralization which at a cutoff of 0.25 ounces gold per ton (opt Au) contains an estimated 439,147 ounces of gold at an average grade of 0.403 opt Au in cohesive bodies with excellent continuity. These characteristics of grade and continuity are important deposit aspects and would likely have a positive impact on contemplated future underground mining operations. Table 2 below summarizes the response of the resource estimate in the skarn to various cutoff grades.
Table 2
| Inferred |
| Skarn Hosted Mineralization |
| Cutoff |
Tons |
Grade |
Ounces |
| (oz Au/t) |
| 0.000 |
4,181,869 |
0.19 |
796,228 |
| 0.100 |
2,978,358 |
0.242 |
720,167 |
| 0.120 |
2,441,224 |
0.271 |
661,816 |
| 0.140 |
1,876,739 |
0.315 |
590,422 |
| 0.160 |
1,671,347 |
0.335 |
560,236 |
| 0.180 |
1,610,844 |
0.341 |
549,942 |
| 0.200 |
1,523,086 |
0.35 |
533,232 |
| 0.225 |
1,137,261 |
0.396 |
450,469 |
| 0.250 |
1,089,155 |
0.403 |
439,147 |
The Technical Report recommends additional work within the known resource areas of the Property consisting of largely of drilling and metallurgical testing to result in an updated technical report to include a Preliminary Economic Assessment (PEA) and which would include the recently completed 44 definition drill holes in the Hill Zone. The report further recommends completing a preliminary feasibility report if the PEA indicates it is economically attractive to put the Independence into production.
It also recommends additional future exploration outside of the know resource area to explore highly prospective extensions of the current resource beyond the Company's present drilling and in areas of where gold in soil anomalies to more than of 1,000 ppb exist over large areas and in the skarn hosted mineralization at depth.
The Technical Report was prepared as part of the Company's project assessment and to provide a common frame of reference for the Company's foreign investors. US shareholders are cautioned that US Industry Guide 7 (IG-7) does not contain or define resource categories of Measured, Indicated or Inferred and that under IG-7, such resource categories may be classified as "mineralized material". Investors are further cautioned that while Measured and Indicated resources are generally converted into either Proven or Probable reserves upon further work, there is no assurance that resources in the Inferred category will be economically viable in the future. The Technical Report is the first step in the Company's process of evaluating a listing on a "mining oriented" Canadian Exchange. The preparation and filing of a compliant technical report with appropriate Canadian regulatory authorities is a requirement to securing such a listing.
A copy of the Technical Report will be available for review at the Company's annual shareholder meeting, May 15, 2010.
Further details regarding the Independence are available on the Company's website 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 and developing its 100% controlled Independence property strategically located in the prolific and highly prospective Battle Mountain Mining District of Nevada.
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 permitting at its Independence Mine in Nevada or any shallow mining production later this year, that any estimated ounces of gold or 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 most recent 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
615 Sierra Rose Dr. Suite 1
Reno, NV 89511
wayne@gnmtlive.com
775.583.4636 office
775.830.6429 cell |
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