Vancouver,
BC -- June 6, 2007 -- Morgain Minerals
Inc. ("Morgain") (TSX-V: 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 www.morgainminerals.com for the latest corporate
information.
ON BEHALF OF MORGAIN MINERALS INC.
Christopher E. Babcock, President &
CEO
For further information, please
contact:
Coal Harbor Communications Inc. - (604) 662-4505 or Toll-free
1-877-642-6200.
Caution
Regarding Forward Looking Statements:
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.
Dale Paruk
Coal Harbor Communications Inc.
Suite 701, 555 Jervis Street
Vancouver BC V6E 4N1
Tel: 1+ (604) 662-4505