Metallic Ventures Gold Inc.

Metallic Ventures Gold Inc.

October 17, 2006 08:30 ET

Metallic Ventures Gold Inc. Announces Development Drilling Program at its Converse Project in Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 17, 2006) - Metallic Ventures Gold Inc. (MVG) (TSX:MVG) is pleased to announce a development drilling program at its Converse Project in Nevada. The Converse Project drilling program will significantly advance the Project by obtaining critical data and defining the clear direction for the development of the Project.

MVG has budgeted $2,500,000 dollars to complete the program, during the first and second quarters of 2007. The purpose of the program is to define the higher grade portions of the deposit; the gold, silver, and copper mineralization within the deposit; as well as, the geometallurgy and geotechnical characteristics of the deposit. The program will include both core and reverse circulation drilling.

Newmont USA Limited d/b/a Newmont Mining Corporation (Newmont) retains a one time option, to enter into a Joint Venture, with a participating 50% interest in the Exploration Agreement Property as described in MVG's agreement with Newmont. This option is triggered upon a total expenditure of US $9,500,000 by MVG and its predecessors. The completion of the drilling program should reach the total expenditure requirement.

In order to acquire this 50% interest, Newmont would solely fund all activities, until it has expended a minimum of $47,500,000, and reconvey to MVG, its sliding scale, net smelter royalty interest of 3% to 5% that covers approximately 50% of the current resource. Regardless of Newmont's decision, MVG will remain the manager of the project, so long as, MVG's participating interest is equal to or greater than that of Newmont.

MVG continues to define the value of its gold resources. As press released in September, MVG's Goldfield Project is moving toward feasibility.

About The Company

Metallic Ventures Gold Inc. (TSX:MVG) is an Ontario incorporated gold company with its common shares listed and posted for trading on the Toronto Stock Exchange. MVG is focused on major past-producing mining districts in Nevada and controls two advanced projects with considerable near-term production potential: Converse and Goldfield. The Converse property is located in Humboldt County on the northern end of the Battle Mountain/Cortez trend near Newmont's Lone Tree, and Glamis' Marigold Mine. The Converse Project is one of the largest undeveloped gold resources in Nevada and is in the scoping study stage of development. The Goldfield project is located about 270 miles southeast of Reno, Nevada in a historic high grade district that produced more than 4,000,000 ounces of gold. The Goldfield Project is in the prefeasibility stage of development.

Metallic Ventures Gold Inc. has no debt and is well funded to advance the Goldfield and Converse Projects through prefeasibility. The company had US $18.8 million in cash and short-term investments at June 30, 2006.

MVG Gold Resources
Converse Goldfield Esmeralda Total
Measured 3,444,000 652,000 580,300 4,676,300
Indicated 493,000 415,800 372,400 1,281,200
Measured and Indicated 3,937,000 1,067,800 952,700 5,957,500
Inferred 500,000 105,300 231,500 836,800

Certain information required by National Instrument 43-101 of the Canadian Securities Administrators relating to the disclosure of mineral resource estimates is contained in MVG's Renewal Annual Information Form dated March 31, 2006 which is available on SEDAR. Jeffrey Ward, a mining engineer and Chief Executive Officer of the Company, is the "qualified person" as such term is defined in NI 43-101 for the above gold resource information.

MVG also has other exploration projects in the western U.S. and Nevada that are available for joint venture or sale to qualified companies.

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission (the "SEC") 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 on our website and in our press releases, such as "measured", "indicated", and "inferred" resources, that are recognized and required by Canadian regulations, however, the SEC guidelines strictly prohibit U.S. companies from including these terms in their filings with the SEC. We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission do not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves or will be economically or legally minable.

Certain statements included herein constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Metallic Ventures Gold or of the gold mining industry to be materially different from future results, performance or achievements expressed or implied by those forward looking statements. These risks, uncertainties and other factors include, but are not limited to, changes in the worldwide price of gold or certain other commodities and currencies and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in Metallic Ventures Gold's most recent Annual Information Form and Management's Discussion and Analysis of Financial and Operating Results on file with the Canadian provincial securities regulatory authorities.

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