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Internal Geologic Report Confirms MGM Mineral Resources' La Esperanza Mine Contains More Than 800,000 Ounces of Gold Monday June 26, 9:15 am ET
TORONTO--(MARKET WIRE)--Jun 26, 2006 -- Metro Gold Mines Mineral Resources Inc. (Other OTC:MGMX.PK - News), a growing gold mining company engaged in the acquisition and development of production properties in South and Central America, announced that an internal geological study of its newly acquired La Esperanza mine has been completed.
The report confirms that La Esperanza contains measured resources of 800,000 ounces of gold thus far, with an estimated million or more ounces of indicated resources. The study included various surveys (magnetometer and electromagnetic), as well as mapping, and analyzing samples (crushing, milling, sifting, sampling for chemical and mineralogical analysis, Gravimetric separation in Wilfley table, hydro-cyclone and K Nelson, as well as cyaniding). All was performed with the objective of determining the tenors, thickness and continuity of the auro-argentiferous manifestations.
According to the geologic study the mine holds:
Measured Resources in La Esperanza Mine
823,000 ounces of gold-silver bearing material.
1,220,000 ounces of gold-silver bearing material, consisting of 850,000 ounces located in an interior block, plus another adjacent block of 370,000 ounces located several hundred meters to the east.
"La Esperanza is proving that it has the potential to become a world-class mine," said Ken Lamb, President of MGM Mineral Resources. "To put its resources into perspective, even if the price of gold were to plummet to $250 per ounce, this mine would still have precious metals in the ground worth more than half a billion U.S. dollars."
La Esperanza is located in the town of Segovia, which produces more gold than any other municipality in Colombia. As per the recent findings, the style of gold mineralization throughout the region is generally meso-thermal, characterized by high grade, quartz dominant poly event vein systems hosted within first, second and third order joint sets associated with major structural breaks. Taking into account all the information, it was decided to enable the easiest access tunnels in order to further the gathering of samples as well as to determine the continuity of the deposit, thickness and tenors. The network of veins through La Esperanza mine have an average range of thickness from one foot to three feet in some areas and three to six feet in other areas.
"This mine has been operating for a dozen years on a rudimentary basis. We fully expect that once full production is reached La Esperanza has the ability to produce, consistently, for over 50 years," commented Jairo Giraldo, CEO for MGM Mineral Resources.
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MGM Mineral Resources Announces an Update From Company C.E.O. Wednesday June 21, 9:20 am ET
"We are fresh on the heels of the Company's new acquisition, Manantiales," said Jairo Giraldo, C.E.O. of MGM Mineral Resources. "We feel it's appropriate to provide our shareholders with an update concerning recent developments."
The Company is proud to announce information regarding explosives and materials for mining use. The local Military Authority in Segovia is who controls and authorizes the purchase of explosives for the region. Last week, Mr. Giraldo signed a contract with the Military Authority in which he obtained the rights to explosives, materials and all other necessary substances for both Manantiales and La Esperanza.
Normally this process can take anywhere from six months to several years before obtaining such rights. MGM Mineral Resources has the leisure of a well renowned Geologist and C.E.O. at the helm of the Company. This will assist the Company greatly in future mining rights, materials, and acquisitions.
MGM Mineral Resources has commenced construction for a road of 400 meters, which runs from the neighboring mine, Providencia, through to La Esperanza. This will facilitate all inbound and outbound movement to La Esperanza from the local municipalities.
The Manantiales property included several smaller pieces of land, including an area of 15,000 square feet that will be used as a storage facility. This building will house compressors, welding units, and all other relevant mining equipment, along with a bathroom facility and a small office.
"A guest house was also included in the acquisition of the Manantiales property, which is located on the outskirts of Segovia," said Jairo Giraldo. "The Company will utilize the guest house as accommodation for any visiting member of company, including the Board of Directors and their families."
Since the urban center of Segovia is close to the mines, it will not be necessary to incur the additional expense of building a housing center for the miners and other laborers.
Lastly, Director Gilberto Zapata has commenced a census throughout the local communities, including the closest township to La Esperanza, Marmajon. This will be used to confirm the populations, ages, and employment needs of the surrounding communities. Metro Gold Mines looks forward to providing additional employment throughout the communities as the company continues to expand.
Mr. Jairo Giraldo concludes his Progress Report, "Please keep in mind that this is only the beginning. We are very happy with the trust that our shareholders have placed in our Company. As such, we will continue with our forward progress and provide our shareholders with strong results."
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This looks intersting I just read on another board that they have 800,000 million ounces of gold and that pinksheets has validated their company by quoting them.
-------------------- Love 'em or Leave 'em either way I already did it.
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