SOURCE: MGM Mineral Resources

September 21, 2006 09:45 ET

MGM Mineral Resources Completing Goals for Las Malvinas Mine and Negotiating Additional Property

TORONTO -- (MARKET WIRE) -- September 21, 2006 -- Metro Gold Mines Mineral Resources Inc. (PINKSHEETS: MGMX) is a growing gold mining company engaged in the acquisition and development of production properties in South and Central America.

As per previous Press Releases, Metro Gold Mines has recently completed negotiations with various additional mines and properties which continue expanding the Company's portfolio. The most recent negotiations were completed pertaining to Las Malvinas Mine, which is located just over a mile from the other known MGMX properties, such as La Esperanza.

The Company's geology and technical teams are still completing all the pertinent information in order to produce the results to the shareholders. They have been working diligently and are anxious to share all positive feedback as to the future potential of this mine. The Las Malvinas property is most definitely a producing mine, although currently not at any high production levels, but, the Company has already moved machinery and technical teams to the location as of last week. If all goes as anticipated, the mine can be fully expanded and operational within 45 to 60 days.

"While we are concentrating our production efforts on Las Malvinas property, since it will be bringing in revenue for our Company by end of year, we are also negotiating an additional producing property," said Jairo Giraldo. "The mine is called La Victoria and we will advise our shareholders when the negotiations are complete. As mentioned previously, we will continue concentrating our production efforts on Las Malvinas, while finalizing all exploration reports on our other properties and negotiating additional mines to join the MGM team."

The Company wanted to confirm that all the goals mentioned in the Press Release dated August 24, 2006 are being completed and fulfilled.

About MGM Mineral Resources (PINKSHEETS: MGMX)

Metro Gold Mines Mineral Resources Inc. is a growing, expertly managed gold mining company focused on acquiring and producing an impressive portfolio of exploration and production properties in South and Central America. MGM Mineral Resources is working to establish itself as a world-class gold company, capitalizing on smart acquisitions, breakthrough technology, modernized operations, deep industry expertise and a strong gold market to cost-effectively produce high quality gold. The company has identified a significant opportunity to exploit proven but under-developed mineral resources in Colombia. MGM Mineral Resources was initially targeting the richest gold zone in Colombia, Segovia, but, is now extending to other areas throughout the country. For more information please visit www.mgmmining.com

Forward-Looking Statements

Statements contained in this news release, which are not historical facts, are forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 that involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things: volatility and sensitivity to market prices for gold; replacement of reserves; procurement of required capital equipment and operating parts and supplies; equipment failure; unexpected geological or hydrological conditions; political risks arising from operating in certain developing countries; imprecision in reserve estimates; success of future exploration and development initiatives; competition; operating performance of the facilities; environmental and safety risks including increased regulatory burdens; seismic activity, weather and other natural phenomena; failure to obtain necessary permits and approvals from government authorities; changes in government regulations and policies including tax and trade laws and policies; ability to maintain and further improve positive labor relations; and other development and operating risks. Although MGM Mineral Resources believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this report. The company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • Contact:
    Mr. Kenneth Lamb
    President
    416-214-7847