SOURCE: MGM Mineral Resources

May 04, 2006 06:00 ET

MGM Mineral Resources Appoints New Lead Senior Geologist to Direct Production of La Esperanza Gold Mine

TORONTO -- (MARKET WIRE) -- May 4, 2006 -- Metro Gold Mines Mineral Resources Inc. (OTC: MGMX), a growing gold mining company engaged in the acquisition and development of production properties in South and Central America, announced the appointment of Mr. Alvaro Alzate Castaño as Lead Senior Geologist. Mr. Castaño is charged with driving production of MGM Mineral Resources' newly acquired La Esperanza mine located in Segovia, the richest, most gold-bearing municipality in Colombia, as well as assessing future acquisitions.

MGM Mineral Resources is led by a team of senior experts in geology, mining, environmental biology and business administration with proven industry expertise and an extensive network of contacts in Colombia. Not only are they experts in their fields, they also have proven experience working directly in the area.

"Mr. Castaño is a talented and respected lead geologist with highly specialized expertise developing gold properties in the area and we are extremely pleased that he has chosen to join our team," said Ken Lamb, President of MGM Mineral Resources. "Mr. Castaño's career includes twenty years of increasing responsibility with Frontino Gold Mines LTD, which has produced more than 5 million ounces of gold from two local mines -- El Silencio and Providencia. Providencia is directly adjacent to our La Esperanza property."

Mr. Castaño is leading the geology team of MGM Mineral Resources including managing the various stages of La Esperanza mine. Mr. Castaño is a graduate of the National University of Colombia with a major in Business Administration. He worked for world renowned Frontino Gold Mines for over 20 years. Mr. Castaño worked for civil engineering firms Pervel and Mingtec, where he managed a major tunnel system expansion. Throughout his extensive career, he has been involved in all aspects of mining projects including planning, surveying, topography, and construction. Most recently, with Frontino Gold Mines, he directed the majority of production, management and planning.

"We are working diligently with Mr. Castaño to finalize the Geologist Report detailing the prospects of our La Esperanza mine and expect to announce the results shortly," said Jairo Giraldo, Chairman and CEO. "We believe Mr. Castaño will play a vital role in both the successful production of our first mine and the rapid growth of our company."

MGM Mineral Resources is focused on acquiring and developing world-class gold properties in Colombia. Colombia is South America's largest recorded gold producer, yielding more than 125 million ounces. But it is also the most under-explored and under-developed. With a few notable exceptions, the majority of local miners have not had the resources or technology to achieve and sustain maximum production of the nation's rich reserves.

About MGM Mineral Resources

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, leading edge 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 and is in the later stages of negotiations with several high-grade gold and silver properties. The company is ramping up operations in its newly acquired La Esperanza mine located in Segovia, the richest, most gold-bearing municipality in Colombia. MGM Mineral Resources is initially targeting Colombia's richest gold zone; where between 60 and 80 percent of the nation's gold is produced. For more information please visit www.mgmmineralresources.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
    905-704-8026