Last checked at 12 Sep 2008 14:30
September 12, 2008 SYMBOLS: UME (TSXV), UGY (AIM)
Uruguay Mineral Exploration Inc
Exploration Drilling Update
Uruguay Mineral Exploration Inc ("UME" or the "Company"), a South American gold production and exploration company, today reported encouraging exploration drill results for Arenal Deep and Nueva Australia, near the San Gregorio mine, and for Presidente Terra in Southern Uruguay.
David Fowler, Chief Executive Officer, commented: "We continue to see encouraging results from the drill campaign near the mine and have drilled significant intercepts at both Arenal and Nueva Australia. At Arenal Deep, best results in hole ADDL090 of 19.25 m @ 4.68 g/t Au indicate that we are encountering widths and grades that have the potential to support an underground operation. We are currently drilling offsets to the intercepts in Arenal Deep to further assess the potential and this programme should be completed by November 2008. We also drilled three holes at Nueva Australia to test mineralization at depth. Best results, 4.65 m @ 8.57 g/t Au in hole NADD003, indicate that thicker and higher-grade mineralization exists and has the potential to host a significant gold resource. Three offset drill holes are planned to be completed to test the extent of mineralization by December.
"Our first pass drill program at Presidente Terra was a broad spaced program of 51 holes over 6.6 km focusing on gold bearing vein/shear sets in granitic host rocks. A further 2 km remains to be tested during the 2008 calendar year as part of the first pass program. Results of this initial program demonstrate that gold mineralisation is continuous. Follow up exploration during the rest of 2008 will use these results to target higher-grade areas and bulk targets," closed Mr. Fowler.
Near Mine
Near the San Gregorio mine, the deep drill campaign continues to deliver significant intercepts from Arenal Deep and Nueva Australia. Location and details of drill holes reported from Arenal Deep and Nueva Australia are presented below.
| Hole ID | East | North | RL | Azimuth | Inclination | Depth (m) | |||||||
| ALDD090 | 530532.5 | 6505096 | 126 | 15 | -80 | 396.65 | |||||||
| ALDD091 | 530516 | 6504832 | 140 | 350 | -65 | 644.35 | |||||||
| NADD001 | 527021 | 6508149 | 182 | 15 | -65 | 272.2 | |||||||
| NADD002 | 526461 | 6508475 | 156 | 30 | -60 | 239.1 | |||||||
| NADD003 | 526177 | 6508092 | 156 | 32 | -63 | 493.7 |
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Drill hole details and collar locations for Arenal and Nueva Australia holes.
At Arenal Deep, of the two additional core holes completed, significant intercepts have been reported from hole ALDD090 and are presented below.
| Hole | From | Intercept and Grade |
| ALDD090 | 247.7 m | 19.25 m @ 4.68 g/t Au |
| including | 247.7 m | 2.75 m @ 3.45 g/t Au |
|
| 252.0 m | 4.1 m @ 5.08 g/t Au |
|
| 258.0 m | 5.3 m @ 4.32 g/t Au |
|
| 265.5 m | 1.5 m @ 20.51 g/t Au |
| ALDD090 | 269.7 m | 21.75 m @ 2.34 g/t Au |
| ALDD090 | 293.1 m | 1.75 m @ 2.48 g/t Au |
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Drill result composites of >0.5g/t, includes intervals of 1.0mt of
The intercepts in this hole are the best reported to date from the deep drill program and represent consistent grades above 2.5 g/t. The intercept is located over 60 meters from the nearest intercept in hole ALDD089. Drilling continues in the area with results pending for an additional two holes with a third in progress. The drilling is designed to test for mineralization up plunge to the northwest.
At Nueva Australia, three core holes were completed on a broad space drill pattern to test for mineralization at depth. One of the three holes completed, NADD003, intercepted significant mineralization. Results are presented below.
| Hole | From | Intercept and Grade |
| NADD003 | 420.3 m | 3.35 m @ 0.94 g/t Au |
| NADD003 | 445.9 m | 4.65 m @ 8.57 g/t Au |
| Including | 445.9 m | 2.00 m @ 16.83 g/t Au |
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Drill result composites of >0.5g/t. Drill hole thickness reported, approximate true thickness.
The drill hole collar is located south of the surface exposure of the Nueva Australia structure. The intercept is more than 400 meters down dip from the nearest drill hole intercept. This intercept indicates that thicker higher-grade mineralization exists within the Nueva Australia structure, and that the structure has the potential to host a significant gold resource. Three offset drill holes are planned to test the extent of the mineralization along strike and up dip. These holes should be completed by December 2008.
Dom Feliciano Belt
At Presidente Terra, drilling commenced in April of 2008 and has tested two of the three exploration tenements, the southern and the northern tenements, which cover an area of 12 square kilometres. Exploration permits have now been received to drill the central area. A total of 45 reverse circulation drill holes and 6 core drill holes have been completed for a total of 7,457 meters. The drilling concentrated on gold bearing vein/shear sets in granitic host rock and to date have tested a combined 6.6 km of strike length of the vein system.
Results are encouraging with over 45% of the drill holes reporting 2 meter or greater intercepts of more than 1.0 g/t Au. Over 70% of the drill holes intercepted the structural target and reported anomalous mineralization greater than 0.5 g/t. Results are pending on all six core holes as well as the last four reverse circulation drill holes.
Significant results are presented below.
| Hole ID | From | Intercept and Grade | Hole ID | From | Intercept and Grade | |
| PT-08-001 | 36.0 m | 4.0 m @ 1.31 g/t Au | PT-08-027 | 17.0 m | 4.0 m @ 2.88 g/t Au | |
| PT-08-002 | 31.0 m | 5.0 m @ 1.60 g/t Au | PT-08-029 | 36.0 m | 3.0 m @ 11.0 g/t Au | |
| PT-08-005 | 73.0 m | 2.0 m @ 3.11 g/t Au | PT-08-031 | 10.0 m | 4.0 m @ 3.48 g/t Au | |
| PT-08-006 | 40.0 m | 4.0 m @ 5.02 g/t Au |
| 23.0 m | 5.0 m @ 1.07 g/t Au | |
| including | 43.0 m | 1.0 m @ 17.52 g/t Au | PT-08-032 | 86.0 m | 2.0 m @ 1.76 g/t Au | |
| PT-08-007 | 29.0 m | 5.0 m @ 0.66 g/t Au | PT-08-036 | 11.0 m | 3.0 m @ 0.82 g/t Au | |
|
| 42.0 m | 4.0 m @ 1.82 g/t Au | PT-08-037 | 89.0 m | 2.0 m @ 1.62 g/t Au | |
|
| 48.0 m | 2.0 m @ 0.67 g/t Au | PT-08-040 | 72.0 m | 2.0 m @ 1.60 g/t Au | |
|
| 60.0 m | 2.0 m @ 2.15 g/t Au |
| 45.0 m | 2.0 m @ 4.60 g/t Au | |
| PT-08-015 | 54.0 m | 2.0 m @ 2.39 g/t Au | PT-08-041 | 31.0 m | 2.0 m @ 5.10 g/t Au | |
| PT-08-021 | 46.0 m | 2.0 m @ 2.79 g/t Au | PT-08-044 | 145.0 m | 2.0 m @ 3.47 g/t Au | |
| PT-08-026 | 23.0 m | 2.0 m @ 6.60 g/t Au | PT-08-045 | 24.0 m | 3.0 m @ 1.04 g/t Au |
Drill result composites of >0.5g/t, may include 1.0 mt intervals of
The vein shear system generally trends N15-18E and dips 60 to 70 degrees to the SE. Drilling has been directed to the NW at -60 to -65 degrees. Location and details of all drill holes are presented below.
| Drilled Hole ID | Easting | Northing | Az | Dip | Depth |
| PT-08-001 | 607334 | 6276196 | 285 | 60 | 128 |
| PT-08-002 | 607358 | 6276294 | 285 | 60 | 120 |
| PT-08-003 | 607384 | 6276391 | 285 | 60 | 125 |
| PT-08-004 | 607307 | 6276403 | 285 | 60 | 125 |
| PT-08-005 | 607449 | 6276526 | 285 | 60 | 133 |
| PT-08-006 | 606212 | 6276049 | 285 | 60 | 141 |
| PT-08-007 | 606617 | 6276799 | 285 | 60 | 125 |
| PT-08-008 | 605995 | 6276709 | 285 | 60 | 125 |
| PT-08-009 | 606228 | 6277110 | 285 | 60 | 146 |
| PT-08-010 | 606252 | 6277210 | 285 | 60 | 130 |
| PT-08-011 | 606252 | 6277313 | 285 | 60 | 125 |
| PT-08-012 | 607932 | 6279973 | 285 | 60 | 135 |
| PT-08-013 | 607781 | 6279804 | 285 | 60 | 126 |
| PT-08-014 | 607354 | 6278988 | 285 | 60 | 130 |
| PT-08-015 | 607651 | 6279219 | 285 | 60 | 140 |
| PT-08-016 | 607580 | 6279239 | 285 | 60 | 120 |
| PT-08-017 | 606637 | 6277789 | 285 | 60 | 119 |
| PT-08-018 | 607197 | 6278877 | 285 | 60 | 125 |
| PT-08-019DDH | 606339 | 6276258 | 285 | 60 | 188.1 |
| PT-08-020 | 607110 | 6278745 | 285 | 60 | 150 |
| PT-08-021 | 607045 | 6278291 | 285 | 60 | 130 |
| PT-08-022DDH | 606618 | 6276802 | 285 | 60 | 101.1 |
| PT-08-023DDH | 606552 | 6278115 | 285 | 60 | 137.8 |
| PT-08-024 | 605570 | 6278471 | 105 | 60 | 125 |
| PT-08-025DDH | 606823 | 6277679 | 285 | 60 | 125.1 |
| PT-08-026 | 607070 | 6277147 | 285 | 60 | 108 |
| PT-08-027 | 608522 | 6281987 | 285 | 60 | 125 |
| PT-08-028DDH | 608118 | 6282509 | 105 | 60 | 173.1 |
| PT-08-029 | 608621 | 6282166 | 285 | 60 | 135 |
| PT-08-030DDH | 608849 | 6283118 | 285 | 60 | 199.8 |
| PT-08-031 | 608674 | 6282357 | 285 | 60 | 150 |
| PT-08-032 | 608774 | 6282442 | 285 | 60 | 135 |
| PT-08-033 | 608668 | 6282149 | 285 | 60 | 60 |
| PT-08-034 | 608645 | 6282160 | 285 | 60 | 159 |
| PT-08-035 | 608550 | 6282190 | 105 | 70 | 150 |
| PT-08-036 | 608646 | 6282263 | 285 | 65 | 203 |
| PT-08-037 | 608694 | 6282249 | 285 | 65 | 219 |
| PT-08-038 | 608826 | 6283017 | 285 | 60 | 159 |
| PT-08-039 | 608596 | 6282069 | 285 | 65 | 200 |
| PT-08-040 | 608902 | 6283205 | 285 | 60 | 150 |
| PT-08-041 | 608997 | 6283568 | 285 | 60 | 150 |
Results of this first pass drill program will be used in conjunction with a recently acquired ground magnetic survey to better define target areas which may contain thicker and higher-grade mineralized zones. A second round of drilling is expected to take place before the end of the year to test the central tenement as well as the targets defined above.
More information on UME's exploration activities at Presidente Terra, Nueva Australia and Arenal Deep can be found on the Exploration section of our website at www.uruguayminerals.com
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, and Mr. George Schroer Vice President Exploration and a Certified Professional Geologist. Mr. Sadek and Mr. Schroer are the Qualified Persons 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. Mr. Schroer has a Masters 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.
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 UME, 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. UME 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.
ENDS
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
About Uruguay Mineral Exploration Inc.
Uruguay Mineral Exploration Inc. (UME) is a gold production and exploration company that identifies and develops mineral opportunities in South America. UME is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. UME operates San Gregorio, the only producing gold mine in Uruguay, and is the leading mineral exploration company in Uruguay with an exploration portfolio of gold, diamonds and base metal prospects, including copper, nickel, lead, and zinc.
Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and RBC Capital Markets is its Nominated Adviser and Broker. More information can be found at www.uruguayminerals.com
For further information, please contact:
Uruguay Mineral Exploration Inc
Tony Shearer, Chairman: +44 (0)20 7602 1570; tonyshearer@btinternet.com
David Fowler, CEO: + 598 2 6016354; urumin@ume.com.uy
Investor Relations
Susan Borinelli, Breakstone Group: +1 646-330-5907; sborinelli@breakstone-group.com
RBC Capital Markets
Andrew Smith: +44 (0) 20 7029 7882; andrew.smith@rbccm.com
Sarah Wharry: +44 (0)20 7653 4667; sarah.wharry@rbccm.com