General Metals Corporation Begins Removal of the Old Mill Buildings and Equipment from the Independence Project

RENO, Nev., Oct. 13, 2011 /PRNewswire/ -- General Metals (OTC.Q:GNMT)  announced today that it retained a Contractor to remove the old Independence Mill site to enable the Company to proceed in development of its mine to begin production at the company's Independence Mine Project in the Battle Mountain Gold & Silver Mining District, Lander County, Nevada.

The agreement allows for the survey and removal of existing mill site buildings, machinery, equipment, parts and debris on the Independence site with the objective of bringing the area into compliance with 43 CFR 3809. The Contractor has already begun removing the mill building and equipment used in recovering gold and silver during the last few years of production from the property in the 1980s.  Reported historic production by the various operators totaled 750,200 ounces silver and 11,029 ounces gold.

The old Independence mill site is located in the area of Company's planned open pit mine. The reclamation work addresses the mill site disturbance by previous Operators. The removal of these buildings and obsolete milling equipment will enable the Company to optimize the open pit design and thereby maximize the Project's mineable tonnage.

"Our plan all along has been to remove these structures first so we can begin mining," stated Daniel J. Forbush, President and Director of General Metals Corporation.  "The old buildings sit on top of the mineralized zone included in the resource calculations reported in our press release dated September 8, 2011. The Measured and Indicated gold resource in the shallow mineralized zone increased by 7.5% from the October 2009 calculations to 223,200 ounces in 16.1 million tons. The silver resource totals 3,784,400 ounces.  At the London PM fix on October 12, 2011 of $1,682.00 per ounce for gold and $32.89 per ounce for silver, a deposit containing 297,000 ounces of gold equivalents would have a gross in situ value of approximately $500 million."

The Company is developing a plan for open pit mining of the near surface gold and silver resources and for heap leaching the gold and silver ore.

"We are pleased to be able to begin the environmental cleanup of the old Independence Gold & Silver Mine site which had produced gold and silver since the 1970's," said Mr. Forbush. "The removal of these old mill structures will facilitate fast-track design of our open pit and leaching operations. We look forward to working with Merritt Construction and completing the task."

Further details and additional new information regarding the Independence mineralization, drilling efforts, both historical and current together with current permitting activity will be posted on the Company's website shortly www.generalmetalscorporation.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.

Cautionary Note to U.S. Investors - The U.S. Securities and Exchange Commission permits U. S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce.  We use certain terms in this presentation, such as "measured", "indicated", and "inferred" "resources", which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our form 10-K which may be secured from us or the SEC website at: http://www.sec.gov/edgar.html

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 at any time, 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-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact:
Wayne Meyerson
Investor Relations
General Metals Corporation
1155 West Fourth Street, Suite 210
Reno, NV 89503
[email protected]
775.583.4636 office

SOURCE General Metals