SOURCE: MGM Mineral Resources

October 25, 2006 14:00 ET

MGM Mineral Resources Announces Recent Corporate Activities

TORONTO -- (MARKET WIRE) -- October 25, 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.

Although it has been some time since a recent news release, MGM Mineral Resources has been maintaining all short term and long term goals. A report was drafted recently by company C.E.O. Mr. Jairo Giraldo regarding the recent progress, acquisitions, and ongoing work at the mines.

During the week of October 8, 2006, Mr. Giraldo met with Manager of Operations, Mr. Fabian Llanos and reviewed the various issues pertaining to the Company. These included production, exploration, and communications. They are very content that all these issues are being addressed.

PRODUCTION -- Las Malvinas is the Company's main focus and is in current production. This includes all lab work, processing and extraction stages. Tunnels are in place, they are clean and very accessible, as well as in the process of transporting updated equipment to the site for more advanced extraction.

DEVELOPMENT -- La Esperanza remains the Company's cornerstone and is currently in talks with external international geologists in order to ratify all findings and geological numbers. The Company wants to confirm their findings and move this project into the high production stages.

COMMUNICATIONS -- The Company wants to improve their communications with the shareholders and has been attaining this goal in several ways. They are currently training a bilingual receptionist to which all shareholder calls and emails will be directed. As such, shareholders will be able to get in touch with someone in the South American or North American areas.

"As many may be aware, we have opened our doors to various shareholders lately in order to confirm the veracity of our Company," said Jairo Giraldo, C.E.O. of MGM Mineral Resources. "We have met with some of our shareholders and have been keeping in touch to the best of our current abilities, as well as have allowed pictures to be taken, including out in Segovia, at the shareholders own risk. We did notice that our shareholders have been posting various pictures of our operations and although the pictures are not officially sanctioned pictures of MGM Mineral Resources, they do reflect our Company and can add to shareholder confidence once they see the reality of our projects."

The Company will release additional pictures shortly, including parts of the operation that were not explored by some shareholders.

"We are anxious to release any upcoming technical information pertaining to Las Malvinas," concludes Jairo Giraldo. "Production and shareholder confidence has been our main focus over the past month and we will continue to push towards a bright 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