SOURCE: MGM Mineral Resources

August 24, 2006 09:45 ET

MGM Mineral Resources Completes Acquisition of Producing Mine

TORONTO -- (MARKET WIRE) -- August 24, 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.

Metro Gold Mines has recently completed negotiations with Las Malvinas Mine, located just over a mile from the other known MGMX properties, such as La Esperanza.

"Our President, Ken Lamb, assisted us with the initial stages of negotiations when he was down in Colombia two weeks ago, so, we are happy to announce that our Company was able to finalize all negotiations with Las Malvinas," said Jairo Giraldo, CEO of MGM Mineral Resources. "Our Company's portfolio continues to grow."

The Company's geology and technical teams have been to the mine and shared positive feedback as to the future potential. They confirmed that it is a producing mine, although currently not at any high production levels. The Company plans on moving its machinery and technical teams onto Las Malvinas property by the first week of September 2006. They have also confirmed that the mine can be fully expanded and operational within 45 to 60 days.

"This mine will be bringing in revenue for our Company by end of year," said Jairo Giraldo. "The mine already has employees that have known the area and property for many years. We will be concentrating our current production efforts on this mine while finalizing all exploration reports on our La Esperanza property."

The Company is reviewing all the technical data from Las Malvinas Mine and will release it to the public within the next week.

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