LONDON, March 19 /CNW/ - Uruguay Mineral Exploration Inc. ("UME" or "the Company") today announces that it has signed an agreement with SouthernEra Diamonds Inc. ("SouthernEra") (TSX: SDM) to purchase its Uruguayan diamond exploration database. Under the terms of the agreement, SouthernEra will receive a cash payment of US$20,000 and an additional 0.8% royalty on any net diamond sales from any diamond deposit discovered by the Company in Uruguay. A further 0.2% royalty will be paid to Mr. N.R Baker, who has an interest in the database.
The database, which relates to exploration completed by SouthernEra and joint venture partners in Uruguay between 1993 and 2001, includes airborne geophysical survey data, heavy mineral results from reconnaissance and follow-up stream sample programmes, electron microprobe analysis of selected kimberlite indicator minerals, and results of a diamond drill programme.
The geophysical data includes 3,275 line kilometres of airborne magnetic and electromagnetic data from surveys of four areas of northern Uruguay, all of which were completed during 1994 at a line spacing of 200 metres. UME intends to process and interpret this aeromagnetic data for kimberlite pipe-like targets.
David Fowler, Chief Executive of Uruguay Mineral Exploration, commented: "The database we have purchased comprises more than 500 sample points, and more than 800 electron microprobe analyses. During the current quarter, we will incorporate this database, together with the processed geophysical data, into our diamond exploration programme. We expect this to reduce the need for sampling in some areas and accelerate our exploration programme for the Cinco Rios project. During February 2007, we carried out a 50 metre line-spaced ground magnetic survey for a total of 200 line kilometers at Cinco Rios and identified targets, some of which have reported pyrope garnet and chrome spinel, that will be trenched during the current quarter. These recent results and the purchase of the database support our plan to continue to build value in the project prior to a farm out or initial public offering."
Qualified Person Statement
The information presented in this press release has been reviewed and verified by Mr Martin Jackson, Exploration Manager Diamonds. Mr Jackson is the Qualified Person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies dated March 2006. Mr Jackson is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and SEG. He has 20 years of international experience in diamond exploration.
Forward Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Editors note: Uruguay Mineral Exploration Inc. is a gold producer and exploration company focused on identifying and developing mineral opportunities in Uruguay. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. The Company operates the only producing gold mine in Uruguay (San Gregorio), and is also the leading mineral exploration company in Uruguay having assembled an exploration portfolio based on gold, base metals (copper, nickel, lead, zinc) and diamond prospects.
Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and Collins Stewart Europe Limited is its Nominated Adviser and Broker.