Orosur Mining Regulatory News (OMI)

13 Jun 2007 07:00

OPERATIONS UPDATE -- Production for 2006 Financial Year exceeds target -- Petrographic work at Lascano confirms hydrothermal alteration Production Uruguay Minerals Exploration Inc ("UME") confirms that it has produced 96,420ounces of gold for the financial year to May 31, 2007, exceeding its target of95,000 ounces. Ore processed for the year was 1,312,999 tonnes at a grade of2.45 g/t and the recovery averaged 93.3%. The diversion of the Arroyo Corrales is progressing as expected with thediversion 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 coreshave demonstrated potassic alteration and anomalous mineralization within thesignificant geophysical anomaly. This is an important development in that nomineralization is evident in the surface exposure. Three stratigraphic drill holes have been completed to date and drilling of afourth hole is in progress and nearing completion. Petrographic studies andgeochemical analyses have been completed for the first two holes. Potassicalteration has been confirmed in both these holes but is much stronger in holeLASDDH-02 which contains associated sulphides. In LASDDH-02, which was drilled in the centre of one of the geophysicalanomalies, rocks are predominately mafic in composition and consist of quartzmonzonite to gabbro intruded into a pile of amygdaloidal basaltic lava flows.Alteration of these units varies with the most intense alteration occurringbetween 200 and 375 metres. (Mineralization and alteration occur in all rocktypes with similar intensities.) The alteration can be defined by moderate tostrong potassic alteration with associated quartz-chalcedony veins andreplacement silicification. Mineralization associated with this alteration ischaracterized by moderate to abundant magnetite and hematite veinlets andreplacements (iron oxide metasomatism) along with trace to 2% sulfides. Sulfidemineralization is characterized by pyrite and or chalcopyrite. Visible goldmineralization has been identified in one sample hosted in chalcedony veins. Theintercept between 201 and 327 metres was geochemically anomalous and averaged168 ppm Cu with a higher grade intercept between 295 and 303 metres averaging543 ppm Cu. The highest individual value was 0.1 % Cu. No significant goldvalues were reported. The alteration and mineralization assemblage encountered to date hassimilarities to iron oxide, copper, gold and porphyry copper mineralizedsystems. In hole LASDDH-01, which was drilled on the rim of the anomaly some 12 km fromLASDDH2, the intrusive units at the top of the drill hole include pyroxenebearing granite, quartz-monzonite and quartz-feldspar porphyry. These rocks areunderlain by basalt lava flows which exhibit weak biotite, chalcedony andcarbonate alteration. The fourth hole, LASDDH-04, is in progress and is intended to investigate thenature of host rocks just outside the geophysical anomaly. David Fowler, Chief Executive of Uruguay Mineral Exploration commented: "I ampleased to confirm, as indicated at the third quarter results in April, that wehave made up the shortfall in production from the first half of the year andended the year with total production of 96,420 ounces, exceeding our target of95,000 ounces. Drilling results from Lascano have been encouraging withgeochemical analysis and petrographic studies enhancing the overall potential ofthe project." A full update of exploration activities will be included with the full year'sresults that will be published mid August. 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 the country (San Gregorio), and is also the leadingmineral exploration company in Uruguay having assembled an exploration portfoliobased on gold, base metals (copper, nickel, lead, zinc) and diamond prospects. Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) andCollins Stewart Limited is the Nominated Adviser and broker. For further information, please contact : Uruguay Mineral Exploration Inc Tony Shearer, Chairman +44 20 7602-1570; tonyshearer@btinternet.com David Fowler, CEO +59 82 601 6354; urumin@ume.com.uy Shared Value Ltd Emily Bruning +44 20 7321 5027; ebruning@sharedvalue.net Collins Stewart Ltd Chris Rollason +44 20 7523 8308; crollason@collins-stewart.com Copyright Business Wire 2007