SOURCE: MGM Mineral Resources Inc.

August 02, 2006 09:30 ET

MGM Mineral Resources Announces Corporate Update

Gold Company Resumes Quotation Services on Pink Sheets, Expanding Infrastructure and Upcoming Meeting of the Board of Directors

TORONTO -- (MARKET WIRE) -- August 2, 2006 -- Metro Gold Mines Mineral Resources Inc. (PINKSHEETS: MGMX), a growing gold mining company engaged in the acquisition and development of production properties in South and Central America, is pleased to announce various new developments pertaining to its operations.

"We are pleased to announce the fact that Pink Sheets has resumed our quotation services," said Kenneth Lamb, President of MGM Mineral Resources. "It was a very difficult time for our Company and shareholders, but we were able to prevail over an issue that seemed to linger over many weeks. Again, we initially neglected some of our administration duties and these were symptoms of a Company that was rapidly expanding. All is back in order and forging ahead."

The Company's infrastructure is rapidly expanding, as in the completion of various roads, facilities and the steady increase in production. As such, an additional geologist has been added to the MGM team and there have been recent discussions with a North American independent geologist to travel to La Esperanza and Manantiales mines in order to confirm all recent findings.

The entire Board of Directors will be holding a meeting in Medellin, Colombia on August 7, 2006, in order to discuss and implement upcoming strategies which will ensure production value versus costs. The meeting will also enable MGM Mineral Resources to dictate all plans for management, production, extraction, and exportation for the remainder of 2006 and beyond.

"There are several other meetings that are being planned and linked to our agenda while visiting Medellin, Colombia," added Ken Lamb, President. "We will share the outcome of the various upcoming ideas and projects once the trip is complete. We continue growing rapidly, while establishing operations not only at a national level, but internationally as well."

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. It has acquired La Esperanza Mine and Manantiales Mine in Colombia's highest yielding municipality and is in the later stages of negotiations with several high grade gold and silver properties. MGM Mineral Resources is initially targeting the richest gold zone in Colombia, where between 60 and 80 percent of the nation's gold is produced. 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