LONDON, March 5 /CNW/ - Uruguay Mineral Exploration Inc. (the "Company") (TSX:UME) (LSE:UGY) confirms that, in line with disclosed forecasts, it has produced 27,921 ounces of gold for the quarter ended February 28, 2007 making a total of 67,155 ounces for the nine months ended 28th February 2007. Ore processed for the quarter was 331,058 tonnes at a grade of 2.79 g/t at a 94 % recovery.
The Company is also pleased to announce that it has received final environmental approvals to commence the diversion of the Corrales stream as well as mining approvals for the expansion of the Arenal open pit. Easements covering the land on which the diversion will occur are expected to be granted this week, allowing construction to commence.
The second diamond drill hole at Lascano has been stopped at a depth of 700 meters due to poor ground conditions. From observation of the core for the second drill hole it is evident that over 600 meters of alternating mafic lava flows and mafic intrusive material were intersected, with the former predominating. The rocks encountered exhibit various degrees of iron oxide metasomatic alteration locally and some weak pyretic mineralization around faults. These observations are encouraging in as much as such iron metasomatic alteration can accompany copper/gold metalization. Petragraphic analysis and assays are pending. Drilling of the third hole will start in early March 2007. The results on the first two drill holes justify a further three diamond drill holes (making a total of six holes) that have now been planned to explain more fully the structural setting causing the anomaly. Drilling of the three additional holes is expected to start in April 2007 and to be completed in June 2007.
Tony Shearer, Chairman, said "We are on track to produce 95,000 ounces of gold for the year to 31st May 2007. The approval of the Corrales stream diversion demonstrates the continued commitment of the Uruguayan authorities to developing the mining industry. We are very pleased with the core that we have seen from the first two drill holes at Lascano, as is evident from our decision to extend the drilling program. Each new drill hole is providing important information to allow us to advance our interpretation of the geological setting. A full review of these and our other exploration activities will be included with the 3rd quarter results which will be released in mid April."
Qualified Persons Statement
The information presented in this press release has been reviewed and verified by Mr George Schroer Vice President Exploration and a Certified Professional Geologist. Mr Schroer is the Qualified Person for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. Mr Schroer has a Bachelor of Science in Geology from Colorado State University and is a member of SEG and AIPG. He has over 20 years of international experience in exploration.
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 focussed 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.