-- Production for 2006 Financial Year exceeds target
-- Petrographic work at Lascano confirms hydrothermal alteration
LONDON, June 13 /CNW/ - Production
Uruguay Minerals Exploration Inc (TSX VENTURE:UME)(LSE:UGY)("UME") confirms that it has produced 96,420 ounces of gold for the financial year to May 31, 2007, exceeding its target of 95,000 ounces. Ore processed for the year was 1,312,999 tonnes at a grade of 2.45 g/t and the recovery averaged 93.3%.
The diversion of the Arroyo Corrales is progressing as expected with the diversion canal expected to be completed before the end of this month and, dependent on rainfall events, to be operational by the end of July 2007.
Update on Lascano Exploration Programme
At Lascano, petrographic studies and geochemical analysis of diamond drill cores have demonstrated potassic alteration and anomalous mineralization within the significant geophysical anomaly. This is an important development in that no mineralization is evident in the surface exposure.
Three stratigraphic drill holes have been completed to date and drilling of a fourth hole is in progress and nearing completion. Petrographic studies and geochemical analyses have been completed for the first two holes. Potassic alteration has been confirmed in both these holes but is much stronger in hole LASDDH-02 which contains associated sulphides.
In LASDDH-02, which was drilled in the centre of one of the geophysical anomalies, rocks are predominately mafic in composition and consist of quartz monzonite to gabbro intruded into a pile of amygdaloidal basaltic lava flows. Alteration of these units varies with the most intense alteration occurring between 200 and 375 metres. (Mineralization and alteration occur in all rock types with similar intensities.) The alteration can be defined by moderate to strong potassic alteration with associated quartz-chalcedony veins and replacement silicification. Mineralization associated with this alteration is characterized by moderate to abundant magnetite and hematite veinlets and replacements (iron oxide metasomatism) along with trace to 2% sulfides. Sulfide mineralization is characterized by pyrite and or chalcopyrite. Visible gold mineralization has been identified in one sample hosted in chalcedony veins. The intercept between 201 and 327 metres was geochemically anomalous and averaged 168 ppm Cu with a higher grade intercept between 295 and 303 metres averaging 543 ppm Cu. The highest individual value was 0.1 % Cu. No significant gold values were reported.
The alteration and mineralization assemblage encountered to date has similarities to iron oxide, copper, gold and porphyry copper mineralized systems.
In hole LASDDH-01, which was drilled on the rim of the anomaly some 12 km from LASDDH2, the intrusive units at the top of the drill hole include pyroxene bearing granite, quartz-monzonite and quartz-feldspar porphyry. These rocks are underlain by basalt lava flows which exhibit weak biotite, chalcedony and carbonate alteration.
The fourth hole, LASDDH-04, is in progress and is intended to investigate the nature of host rocks just outside the geophysical anomaly.
David Fowler, Chief Executive of Uruguay Mineral Exploration commented: "I am pleased to confirm, as indicated at the third quarter results in April, that we have made up the shortfall in production from the first half of the year and ended the year with total production of 96,420 ounces, exceeding our target of 95,000 ounces. Drilling results from Lascano have been encouraging with geochemical analysis and petrographic studies enhancing the overall potential of the project."
A full update of exploration activities will be included with the full year's results that will be published mid August.
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.
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 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 the country (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 Limited is the Nominated Adviser and broker.