UME expects to produce 95,000 ounces for the Full Year
LONDON, September 12 /CNW/ - Uruguay Mineral Exploration Inc ("UME") advises that production in the first quarter ended 31 August 2007 was 18,464 ounces, lower than the target of 21,000 ounces announced on 2 August 2007. Profits and cash flow for the quarter will be lower than management expectations which were based on 21,000 ounces of gold production. Cash cost per ounce will be higher due to the lower production levels.
Production in the first quarter was below the target as the grade of ore mined in the first benches directly under the Arroyo Corrales was lower than estimated. More tonnes were encountered at lower grade with more overall ounces mined from the area than estimated. Ore was fed to the plant as presented and the additional ounces will be produced in future periods.
The first benches directly beneath the Arroyo Corrales were classified as Indicated Resources as they could not be fully drilled due to access restrictions. These results have no implications for the remainder of the Arenal resource estimates.
By the end of the month mining had advanced to deeper levels where grades were in line with reserve estimates. UME expects to achieve its stated target of 95,000 ounces of production for the full year.
Qualified Person's Statement
The technical information presented in this press release has been reviewed and verified by Mr John Sadek, Vice President Operations and a Mining Engineer. Mr. Sadek is the Qualified Person for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. Mr Sadek 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.
ENDS
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 RBC Capital Markets is its Nominated Adviser and Broker.