Last checked at 7 Apr 2009 09:45
Independent NI 43-101 Resource Estimate for Arenal Deeps
3,164,000 tonnes at 2.21 g/t (224,000 oz contained gold)
Uruguay Mineral Exploration Inc. "UME" or "the Company" [SYMBOLS: UME (TSXV), UGY (AIM)], a South American focused gold production and exploration company, announced today the initial NI 43-101 compliant Arenal Deeps resource estimated by Golder Associates S.A. ("Golder"). A 3,164,000 tonne Measured and Indicated Resource below the designed limit of the open pit has been estimated at 2.21 g/t using a gold cut-off of 1.5 g/t. The open pit is expected to be completed to design by April 15, 2009.
David Fowler, Chief Executive Officer commented: "The definition of an initial underground resource at Arenal is an important next step in extending the mine life at the San Gregorio operation which has already produced in excess of 900,000 ounces of gold. We expect to release Golder's underground mining pre-feasibility study in June 2009, with an expected bankable feasibility study commencing thereafter. The objective is to generate a contribution to production within two years and to extend the mine life to beyond five years."
Mineral Resource Estimate*†
| Cut off | Resource | Tonnes | Au | Measured + Indicated | |||||||||
| Au g/t | Category | (dry metric) | g/t | Tonnes | Au g/t | Contained Au Oz | |||||||
| 0.5 | Measured | 991,000 | 1.32 | 9,126,000 | 1.39 | 408,000 | |||||||
| Indicated | 8,135,000 | 1.40 | |||||||||||
| Inferred | 484,000 | 1.33 | |||||||||||
| 1.0 | Measured | 616,000 | 1.65 | 5,780,000 | 1.77 | 328,000 | |||||||
| Indicated | 5,164,000 | 1.78 | |||||||||||
| Inferred | 254,000 | 1.84 | |||||||||||
| 1.5 | Measured | 308,000 | 2.07 | 3,164,000 | 2.21 | 224,000 | |||||||
| Indicated | 2,856,000 | 2.22 | |||||||||||
| Inferred | 152,000 | 2.27 | |||||||||||
| 2.0 | Measured | 130,000 | 2.54 | 1,557,000 | 2.70 | 135,000 | |||||||
| Indicated | 1,427,000 | 2.71 | |||||||||||
| Inferred | 75,000 | 2.79 | |||||||||||
| 2.5 | Measured | 49,000 | 3.09 | 790,000 | 3.16 | 80,000 | |||||||
| Indicated | 741,000 | 3.16 | |||||||||||
| Inferred | 40,000 | 3.27 | |||||||||||
* Totals have been rounded † 359 drill holes were used in an estimation process incorporating ordinary kriging for a high grade domain and inverse distance weighting for a low grade domain
An independent Technical Report shall be lodged with SEDAR in accordance with NI 43-101 regulations.
The pre-feasibility study to be released in June 2009 will provide preliminary estimates of mining recoveries, operating cost and capital.
In April 2009 UME plans to commence a 4,500 meter drill campaign to further define and increase this resource. A 15,000 meter infill drill program is planned pursuant to a positive prefeasibility study. Total cost of completing this work is estimated at $US 3 million and is expected to be funded from operating cash flow.
Following completion of a bankable feasibility study mine plans will be updated to reflect underground mining with the objective of contributing to production within two years and extending mine life to beyond five years. Once the economics of underground mining are understood and equipment is available additional exploration targets at San Gregorio, Ombu, the Vetas and other areas will be tested to incrementally add resources.
Images of the resource can be found at the following link: http://www.uruguayminerals.com/explorations/isla_cristalina_belt/san_gregorio/
The resource estimate herein was prepared by Dr Marcelo Godoy, MAusIMM an independent qualified person employed by Golder Associates S.A. Dr Marcelo Godoy, a Qualified Person as defined by NI 43-101, has reviewed and approved this press release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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.
For further information, please contact:
Uruguay Mineral Exploration IncTony Shearer, Chairman: +44 (0)20 7602 1570; tonyshearer@btinternet.comDavid Fowler, CEO: + 598 2 6016354; urumin@ume.com.uy
Investor Relations in North AmericaSusan Borinelli, Breakstone Group: +1 646-330-5907; sborinelli@breakstone-group.com
RBC Capital MarketsSarah Wharry: +44 (0)20 7653 4667; sarah.wharry@rbccm.com
Copyright Business Wire 2009