Internal Geologic Report Confirms MGM Mineral Resources La Esperanza Mine Contains More Than 800,000 Ounces of Gold
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.
At current gold prices of $550 per ounce, these measured resources have a value of over $450 million USD.
Indicated Resources in La Esperanza Mine
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.
At current gold prices of $550/ounce, these indicated resources have a value of $650 million USD.
“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.
About MGM Mineral Resources (Other OTC:MGMX.PK – News)
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 La Esperanza Mine and newly acquired Manantiales 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.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:
Contact: Mr. Kenneth Lamb President
(416) 214-7847
Source: MGM Mineral Resources
