Morgain Minerals Inc.
TSX VENTURE : MGM

Morgain Minerals Inc.

November 17, 2005 05:30 ET

Morgain Minerals-Castillo Mine, Mexico: Interim Report on Bulk Mining and Leaching Tests

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2005) - Morgain Minerals Inc. (TSX VENTURE:MGM) reports on interim bulk mining and leaching tests at its 100% owned Castillo Mine in Durango, Mexico.

Mineralization at Castillo occurs in several rock types, with considerable differences in gold values within the planned open pit mine. As a result, bulk mining and leaching tests were planned to test two different rock types and ore grades. Pit 1 was chosen to represent low grade material. Pit 2, which lays approximately 250 meters away, was chosen to represent a harder and higher grade material.

Pit 1 was found to be easily mined with a ripper-bulldozer. Pit 2 required some drilling and blasting. Broken material was loaded with an excavator and placed on heaps, with 18,200 tonnes of material from Pit 1 on Heap 1, and 8,300 tonnes from Pit 2 on Heap 2.

Leaching conditions for both of these appear to be quite good. Cyanide consumption was notably low and copper presented no difficulties. Heap 1 is finished and Heap 2 is nearing completion. Recovered gold is being sent to a custom buyer in Idaho. Recovery percentages of gold and silver from the heap are being determined by screening and sampling large tonnages of leached-out material.

The purpose for doing the bulk mining and leaching tests is to determine the optimum mining and leaching conditions such that appropriate mine planning and permitting can be finalized. Tests were also done to check the validity of assumptions used in the January 2003 feasibility report prepared by A.C.A. Howe International Ltd.

Based on information received to date, mining and leaching costs are expected to be in the lower range of common industry practice.

Consulting firm, Metcon Research, has been retained to provide a report on the recoveries of gold, leaching conditions and costs. A sample of ore-grade rock from deeper in the Castillo Mine is being prepared for further analysis in Metcon's laboratory in Tucson, Arizona. The Metcon work is being carried out under the supervision of Joseph M. Keane, P.Eng. a qualified person under NI 43-101.

About Morgain Minerals Inc.

Morgain Minerals Inc. has a number of precious and base metal properties in Mexico. Its corporate strategy is to explore and develop properties with known resources that can be further explored to a production status. Visit www.morgainminerals.com for the latest corporate information.


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