SOURCE: MGM Mineral Resources

August 23, 2006 14:00 ET

MGM Mineral Resources Acquires Two Mines in the Segovia-Remedios Area of Colombia

TORONTO -- (MARKET WIRE) -- August 23, 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.

"Our Company advised our shareholders in a recent press release of a minimum of six mines that had been secured during the corporate meetings that took place in Medellin, Colombia," said Ken Lamb, President of MGM Mineral Resources. "The newest acquisitions will bring our Company's current mine portfolio up to four properties."

The Company's legal team was finalizing all the legal requirements to retain 100% ownership of the lands, along with the respective mining rights. The two properties are Cardenales and Doradal and they are all within the municipality of Segovia-Remedios, Colombia.

Cardenales is the smallest of these new acquisitions at 59 acres and is located in the Remedios area. This property is owned by Director Rodrigo Betancur.

Doradal is the larger of these two confirmed properties and falls within an area of 146 acres. The property is located in the same municipality as La Esperanza, Segovia, and is owned by Director Guillermo Restrepo.

MGM Mineral Resources has acquired 100% rights to these lands. The Directors mentioned above were appointed initially due to their expertise in their respective fields. They were also able to contribute towards the progress of the Company by negotiating the rights to the lands and placing them under MGMX. Nothing was finalized until the corporate meetings took place in Medellin last week.

"Our Directors, Management, and staff are very happy with the rapid growth," said Ken Lamb. "We are moving forward and our direction has never changed. There were several bumps in the road along the way, but, everything is coming together incredibly well at the present time and for the future."

The Company will release further information and technical data from these acquisitions in the near future.

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