Orosur Mining Regulatory News (OMI)

5 Mar 2007 16:15

URUGUAY MINERAL EXPLORATION INC. Uruguay Mineral Exploration Inc. (the "Company") (TSX:UME) (LSE:UGY) confirmsthat, in line with disclosed forecasts, it has produced 27,921 ounces of goldfor the quarter ended February 28, 2007 making a total of 67,155 ounces for thenine months ended 28th February 2007. Ore processed for the quarter was 331,058tonnes at a grade of 2.79 g/t at a 94 % recovery. The Company is also pleased to announce that it has received final environmentalapprovals to commence the diversion of the Corrales stream as well as miningapprovals for the expansion of the Arenal open pit. Easements covering the landon which the diversion will occur are expected to be granted this week, allowingconstruction to commence. The second diamond drill hole at Lascano has been stopped at a depth of 700meters due to poor ground conditions. From observation of the core for thesecond drill hole it is evident that over 600 meters of alternating mafic lavaflows and mafic intrusive material were intersected, with the formerpredominating. The rocks encountered exhibit various degrees of iron oxidemetasomatic alteration locally and some weak pyretic mineralization aroundfaults. These observations are encouraging in as much as such iron metasomaticalteration can accompany copper/gold metalization. Petragraphic analysis andassays 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 drillholes (making a total of six holes) that have now been planned to explain morefully the structural setting causing the anomaly. Drilling of the threeadditional holes is expected to start in April 2007 and to be completed in June2007. Tony Shearer, Chairman, said "We are on track to produce 95,000 ounces of goldfor the year to 31st May 2007. The approval of the Corrales stream diversiondemonstrates the continued commitment of the Uruguayan authorities to developingthe mining industry. We are very pleased with the core that we have seen fromthe first two drill holes at Lascano, as is evident from our decision to extendthe drilling program. Each new drill hole is providing important information toallow us to advance our interpretation of the geological setting. A full reviewof these and our other exploration activities will be included with the 3rdquarter results which will be released in mid April." Qualified Persons Statement The information presented in this press release has been reviewed and verifiedby Mr George Schroer Vice President Exploration and a Certified ProfessionalGeologist. Mr Schroer is the Qualified Person for the purposes of the AIMGuidance Note on Mining, Oil and Gas Companies dated March 2006. Mr Schroer hasa Bachelor of Science in Geology from Colorado State University and is a memberof SEG and AIPG. He has over 20 years of international experience inexploration. ENDS The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this news release. Editors note: Uruguay Mineral Exploration Inc. is a gold producer andexploration company focussed on identifying and developing mineral opportunitiesin Uruguay. UME is a fully integrated mining company, possessing the skillsnecessary to explore and develop its discoveries. The Company operates the onlyproducing gold mine in Uruguay (San Gregorio), and is also the leading mineralexploration company in Uruguay having assembled an exploration portfolio basedon gold, base metals (copper, nickel, lead, zinc) and diamond prospects. Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) andCollins Stewart Europe Limited is its Nominated Adviser and Broker. For further information, please contact Uruguay Mineral Exploration IncTony Shearer, Chairman +44 20 7602-1570; tonyshearer@btinternet.comDavid Fowler, CEO +598 2 6016354 urumin@adinet.com.uy Shared Value LtdEmily Bruning +44 20 7321 5027; ebruning@sharedvalue.net Collins Stewart Europe LimitedChris Rollason +44 20 7523 8308; crollason@collins-stewart.com Copyright Business Wire 2007