Morgain Minerals Inc.

Morgain Minerals Inc.

June 06, 2007 15:08 ET

Morgain Updates Construction Status at El Castillo Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2007) - Morgain Minerals Inc. ("Morgain") (TSX VENTURE:MGM) is pleased to provide an update regarding the progress of construction at its El Castillo Gold Project ("Castillo") near Durango, Mexico.

Castillo, which is 100% owned by Morgain, is scheduled to produce approximately 350,000 ounces of gold over a 12 year mine life, averaging 30,000 ounces per year (see October 27, 2006 press release).

Construction of the new heap-leach pad and processing facilities are well underway. Concurrent with construction of new facilities, Morgain is reactivating the existing pilot test facilities in order to generate early gold sales and project cash flow. Preparations of the pilot scale facilities are now complete. Ore loading is expected to commence this month, with leaching to start at month-end, and first gold pour forecast for September 2007.

Morgain anticipates that construction of the new facilities will be completed by the end of July 2007. Loading of ore on the new heap-leach pad is scheduled to commence in August. Following a ramp-up phase, Morgain expects to reach a production rate of at least 20,000 ounces of gold per annum by the end of 2007. A second ramp-up phase to a production rate of approximately 30,000 ounces of gold per annum is currently scheduled to take place during 2008. Darren Koningen (P. Eng.), Vice-President - Engineering for Morgain, is the Qualified Person under National Instrument 43-101 for the Castillo Project.

Following are highlights of new construction to date:

- Major key capital items have been procured;

- Leach pad and pond earthworks are complete and liner installation has begun;

- Construction and permitting of the explosives storage magazines is complete;

- Work on the new water supply system is progressing well and completion is planned for mid-June;

- Stripping of waste in the El Castillo pit is underway; and

- Mining, crushing and loading of ore onto the leach pads will begin in one week.

Photos of the construction activities will be posted on Morgain's website periodically.

Morgain Minerals Inc. is an emerging gold producer focused in Mexico. Its corporate strategy is to acquire properties with known resources that can be further developed to production status. Visit Morgain's website for the latest corporate information.


Christopher E. Babcock, President & CEO


The technical and pre-feasibility reports referred to above contain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of metals, timing of exploration activities, mine life, economic viability and estimated internal rate of return, estimation of mineral resources, the results of drilling, estimated future capital and operating costs, future stripping ratios, projected mineral recovery rates and plans for developing, the projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the companies to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of metals. Although the companies have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The companies do not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

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