-- River diversion completed to original specification and timetable.
-- Higher grade ore now being mined.
-- Production for the first quarter to August 31 2007 estimated at 21,000 ounces, with production for the full year expected to be 95,000 ounces.
LONDON, August 2 /CNW/ - Uruguay Mineral Exploration Inc (TSX VENTURE:UME) (LSE:UGY):
The Diversion of the Arroyo Corrales was completed in July. The diversion canal has been completed to the original specification and water is flowing as anticipated. The permanent northern flood protection dyke is 60% complete and already affording adequate protection against moderate flood conditions and it will be completed by 17 August, 2007. Construction of the southern flood protection dyke has commenced and is expected to be completed by the end of August. Temporary dykes have allowed the old water course to be dewatered and pit development to commence. Re-vegetation of the banks of the diversion canal has commenced and is progressing as planned. The first ore from the expansion has been mined and processed.
Lower grade material was mined in June and July while the river diversion was being completed. As a result, production for the first quarter 2007/8 is forecast to be 21,000 ounces. Production will recover in the following quarter in line with higher grades and is expected to be 95,000 ounces for the year to 31 May, 2008.
Qualified Person's Statement
The information presented in this press release has been reviewed and verified by Mr John Sadek, Vice President Operations. Mr Sadek is the Qualified Person for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. He has a Bachelor of Engineering (Mining) from the University of Sydney and is a member of the AusIMM and SME. He has over 20 years of international experience in mining.
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.