Orosur Mining Regulatory News (OMI)

19 Mar 2007 07:00

Uruguay Mineral Exploration Inc. ("UME" or "the Company") today announces thatit has signed an agreement with SouthernEra Diamonds Inc. ("SouthernEra") (TSX:SDM) to purchase its Uruguayan diamond exploration database. Under the terms ofthe agreement, SouthernEra will receive a cash payment of US$20,000 and anadditional 0.8% royalty on any net diamond sales from any diamond depositdiscovered by the Company in Uruguay. A further 0.2% royalty will be paid to Mr.N.R Baker, who has an interest in the database. The database, which relates to exploration completed by SouthernEra and jointventure partners in Uruguay between 1993 and 2001, includes airborne geophysicalsurvey data, heavy mineral results from reconnaissance and follow-up streamsample programmes, electron microprobe analysis of selected kimberlite indicatorminerals, and results of a diamond drill programme. The geophysical data includes 3,275 line kilometres of airborne magnetic andelectromagnetic data from surveys of four areas of northern Uruguay, all ofwhich were completed during 1994 at a line spacing of 200 metres. UME intends toprocess and interpret this aeromagnetic data for kimberlite pipe-like targets. David Fowler, Chief Executive of Uruguay Mineral Exploration, commented: "Thedatabase we have purchased comprises more than 500 sample points, and more than800 electron microprobe analyses. During the current quarter, we willincorporate this database, together with the processed geophysical data, intoour diamond exploration programme. We expect this to reduce the need forsampling in some areas and accelerate our exploration programme for the CincoRios project. During February 2007, we carried out a 50 metre line-spaced groundmagnetic survey for a total of 200 line kilometers at Cinco Rios and identifiedtargets, some of which have reported pyrope garnet and chrome spinel, that willbe trenched during the current quarter. These recent results and the purchase ofthe database support our plan to continue to build value in the project prior toa farm out or initial public offering." Qualified Person Statement The information presented in this press release has been reviewed and verifiedby Mr Martin Jackson, Exploration Manager Diamonds. Mr Jackson is the QualifiedPerson for the purposes of the AIM Guidance Note for Mining, Oil and GasCompanies dated March 2006. Mr Jackson is a member of the Australasian Instituteof Mining and Metallurgy (AusIMM) and SEG. He has 20 years of internationalexperience in diamond exploration. Forward Looking Statements All statements, other than statements of historical fact, contained orincorporated by reference in this news release, including any information as tothe future financial or operating performance of the Company, constitute"forward-looking statements" within the meaning of certain securities laws,including the "safe harbour" provisions of the Securities Act (Ontario) and theUnited States Private Securities Litigation Reform Act of 1995 and are based onexpectations estimates and projections as of the date of this news release.There can be no assurance that such statements will prove to be accurate, suchstatements are subject to significant risks and uncertainties, and actualresults and future events could differ materially from those anticipated in suchstatements. Forward-looking statements include, without limitation success ofexploration activities; permitting time lines; the failure of plant; equipmentor processes to operate as anticipated; accidents; labour disputes; requirementsfor additional capital title disputes or claims and limitations on insurancecoverage. The Company disclaims any intention or obligation to update or reviseany forward looking statements whether as a result of new information, futureevents and such forward-looking statements, except to the extent required byapplicable law. 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 focused 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. \* TUruguay Mineral Exploration IncTony Shearer, Chairman 44 20 7602-1570tonyshearer@btinternet.comorDavid Fowler, CEO 598 2 6016354urumin@adinet.com.uyorShared Value LtdEmily Bruning +44 20 7321 5027ebruning@sharedvalue.netorCollins Stewart Europe LimitedChris Rollason +44 20 7523 8308crollason@collins-stewart.com\* T Copyright Business Wire 2007