SOURCE: MGM Mineral Resources

January 16, 2007 13:09 ET

MGM Mineral Resources Announces Early 2007 Corporate Update

TORONTO -- (MARKET WIRE) -- January 16, 2007 -- 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.

The Company is pleased to announce that the CEO, President, Director of Operations, and other key management participated in a conference call yesterday to determine the outlook and objectives for 2007. All issues were discussed pertaining to exploration, production, price per share, shareholder confidence, safety and environmental policies, as well as the reorganization of various departments.

The start-up of operations throughout 2006 at the various mining sites has continued in the ordinary course. There were many substantive milestones that were achieved by MGM Mineral Resources, including the acquisition of seven properties, all with different exploration and extraction opportunities. The Company's initial property, La Esperanza, still remains as the site that could catapult MGM into becoming a high-yielding operation.

"For this to occur, it was decided in the conference call by our Directors that the Company will continue its process of reassessing the La Esperanza Mine and its reserves," says Mr. Ken Lamb, President of MGM Mineral Resources. "The purpose of reassessing the land and reserves would be to better formulate a proper drilling and mining program. Metro Gold Mines has been actively seeking a third party geologist to visit La Esperanza, as well as the other properties, which could then raise shareholder confidence and confirm to the world that the Company will be a force in the coming years."

A new reserve estimate and mine plan for the La Esperanza mine is planned for second quarter of 2007. The Company anticipates a mine plan that will include a drilling program, raise production levels and renew reserve estimates.

Las Malvinas was already in production when Metro Gold Mines acquired the mining rights and early estimates show that 2007 will be a very productive year for this property. The Company will release figures to its shareholders regarding mining rates for this property.

Many adjustments have been made to the various systems such as the water pumps, conveyors and pipelines for delivery of ore and water for ore processing at the plant. All adjustments and refinements continue to be made in the ordinary course for the proper operation of the plant. Las Malvinas remains on track to become a high-yielding operation by third quarter of 2007.

Exploration, small scale production and cost improvements continue throughout the various MGM properties, including improved processes to increase safety and reduce risk of damage to equipment.

"Our operation is now focusing primarily on completing gold recovery in Las Malvinas and renewing reserve estimates at La Esperanza and on our other properties," continues Mr. Ken Lamb. "There is also ongoing behind-the-scenes work with government authorities regarding environmental and other licensing issues, especially when negotiating with upcoming lands. MGM is now in a much better position than it was in throughout 2006 after implementing a number of initiatives. Such initiatives will have a positive impact on the balance sheet and income statement throughout 2007 and in turn should reflect in the Company's price per share which is of great interest to our shareholders who have been very patient." The Company is also considering setting up by Q2 07, an advisory board comprised of geologists, drill experts and ex-government officials that would oversee an efficient and productive work program on the Company' properties.

Throughout the conference call, management expressed great concern with the current price per share and understands that geological and financial data need to be quantified by independent third parties before being released. MGM is aware that releasing precise geological data, production numbers and updated financial information will play a major role in the share price. Geological data, production and financial information will be released to the public in short time once the 2006 information has been completed and filed.

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