Orosur Mining Regulatory News (OMI)

17 Jul 2008 07:00

Uruguay Mineral Exploration Inc (UME) (TSX VENTURE:UME) (LSE:UGY) today reportson the results of exploration activities during the quarter ended 31 May 2008. David Fowler, Chief Executive Officer commented: "We have made good progress inthe fourth quarter towards achieving our exploration objectives; results overallhave been encouraging. "Near the mine, we have had better results in the deep drilling program atArenal and have identified a likely zone of higher grade mineralization. We havealso intercepted a second mineralized zone 100 meters below the existing shearthat hosts the Arenal gold deposit. Exploration work along strike east of Arenalmay also have discovered a continuation of the San Gregorio/Arenal thrust. "Drilling during the quarter also identified high grade vein mineralization atthe Polvorin prospect, near the mine, and at the Castrillon prospect in theWestern Cristalina Belt, 10 kilometres away from the mine. "We are very encouraged with the initial results of our drilling program atPresidente Terra, in the Don Feliciano Belt in southern Uruguay. Twelve of theplanned 51 drill holes have been completed, with 50% of the holes hittingintercepts of +1 g/t Au." "We have resumed drilling at Lascano with hydrothermal alteration and weakmineralization, similar to LASDDH-002, being found in the two holes completed todate. "In our third quarter report issued on April 9, 2008, we noted that we did notanticipate a significant restatement of resources and reserves for the fiscalyear 2007/08. We will however issue a press release early in August 2008 withour base case three-year mine plan and strategies to improve this plan. Thisrelease will reflect results of exploration and development work completed inthe 2007/08 fiscal year. Our intention is to then provide a full update ofresources and reserves in March 2009 when we have completed drilling andmodeling on Arenal Deeps and on other targets," closed Mr. Fowler. A summary of the results from our exploration report is presented below. Formore information on UME's exploration activities for the fourth quarter,including relevant maps, please refer to the Exploration Report for the Quarterended May 31, 2008 which can be found on our website at www.uruguayminerals.com Exploration Strategy UME's exploration activity during the fourth quarter of the 2008 fiscal year hasbeen directed towards three main objectives. The first is finding high graderesources near the San Gregorio operation in the Isla Cristalina Belt to beblended with lower grade bulk resources. Secondly, finding one or morestand-alone ore bodies in the Isla Cristalina, Don Feliciano or Florida belts toenable either the development of a second gold operation or transportation tothe San Gregorio plant. The third objective is to make a significant discoveryat Lascano. Progress has been made on all three fronts as detailed below. Summary of Exploration Results Isla Cristalina Belt: San Gregorio Near Mine Exploration Program During the year the Company completed an initial assessment of the depthpotential of the existing deposits at San Gregorio and Arenal. As of May 31,2008 12 holes had been drilled at Arenal and six holes at San Gregorio. At Arenal, the initial drilling tested for mineralization at depth south andsoutheast of the existing pit. This program indicated that higher grademineralization trended down plunge and drilling during the fourth quarterfocused on this area. The best result was reported in hole ALD086 with 10.45meters at 4.46 g/t, including 1.05 meters at 28.94 g/t from 317.4 meters. Thisdrill hole also intercepted a second mineralized zone of 17.2 meters at 1.5 g/tfrom 431 meters. Two holes; ALDD085 and ALDD082, were deepened in June to testthe lower zone and the latter hole encountered 5.8 meters at 4.05 g/t from 509.5meters. Drilling in the first quarter of fiscal 2008/09 will further explore thedeep mineralization and its potential for underground exploitation. At San Gregorio, two holes were completed in the Rieles area. These results werereported in the previous quarter. Additional infill drilling up dip is plannedin the first half of fiscal 2008/09 after an initial assessment of Arenal hasbeen completed. Drilling on the Polvorin intersected vein-like mineralization. The best resultswere hole PORC028 with 1.0 meter at 25.80 g/t, from a drill depth of 11 metersand hole PODD001 with 3.2 meters at 8.11 g/t, from a drill depth of 24.1 meters.Further drilling and modeling will be completed to define the resource formining. Generative exploration work was initiated at Los Castillos which lies alongstrike to the east of the Arenal deposit. Initial geological mapping andexploration sampling have identified a number of anomalous zones and a possibleextension of the San Gregorio/Arenal structure. Work will continue in this areato define targets for drilling in fiscal 2008/09. Other targets to be evaluatedover the next two quarters in this sector are the potentially high grade veinsat Esperanza and Peru. Isla Cristalina Belt: Zapucay District Exploration Program Exploration drilling during the quarter focused on a number of prospectsincluding the structural corridor between Zapucay and Argentinita, areas aroundthe Zapucay deposit and the Zaballa, Tito Lopez, Laureles, Lavadero, Lilo andTortoni prospects. Drilling around the Zapucay deposit extensions was completed to augment theremnant resource around the old mine site, and a resource is being developedfrom this recent drilling and historic data. Drilling to date south of Zapucay and on trend with Argentinita, has indicatedthat both deposits are located within the same structural zone. We obtainedaccess to the property that lies between the two deposits and this is expectedto be drilled in the first half of fiscal 2008/09. This area is bounded by someof the better intercepts at Zapucay and Argentinita. The Laureles, Lavadero, Lilo and Tortoni prospects were drill tested during thequarter with limited success and no further work is planned on these prospectsat this time. Drilling at a number of other prospects, including Tito Lopez and Zaballa, isexpected to commence in the first half of fiscal 2008/09, once explorationpermits are granted. Isla Cristalina Belt: Regional Exploration Program The focus of regional work in the Isla Cristalina Belt is transitioning fromprospecting to drilling specific targets, including Veta Rodrigo, HarleyHernandez, Nueva Australia, Vaca Muerta, Vichadero, Curtume, Cerro Chato andCerrillada. At Castrillon, definition drilling was completed over a strike length ofapproximately 300 meters, confirming defined historical mineralization. Bestresults were hole CTRC055 with 5 meters at 9.97 g/t and hole CTRC055 with 6meters at 5.37 g/t, from drill depths of 54.0 and 82.0 meters respectively.Engineering has commenced to develop this project to feed the San Gregorioplant. A first round of exploration drilling was completed on the southern half of VetaRodrigo encountering anomalous mineralization. Best results were holes VRR003with 4 meters at 2.42 g/t from 73.0 meters, VRRC008 with 7 meters at 2.39 g/tfrom 38.0 meters and VRRC010 with 2 meters at 62.35 g/t from 40.0 meters. Thenorthern portion of the vein will be drilled once access is obtained. Deep drilling at Harley Hernandez and Nueva Australia is expected to take placein the first half of fiscal 2008/09. These two prospects are believed to be thestructural offset of the western extension of the main San Gregorio structure. Drill exploration permits were received for Curtume, and drilling will commencein the first half of fiscal 2008/09, while Vaca Muerta will be drilled oncepermits are received. Surface exploration over a 14 square km area near Vichadero has been completedand has defined two gold soil anomalous areas. Drilling is expected to commencein the second quarter of fiscal 2008/09 after targets are defined and permitsreceived. The Cerro Chato and Cerrillada targets, 20 kilometers to the west of Vichadero,have reported encouraging anomalous surface samples over the quarter and areplanned to be developed over the next six months. Southern Uruguay Exploration Program Drilling commenced at Presidente Terra and 12 of the 51 planned holes of the6,400 meter first pass drill program were completed by the end of May. Resultsto-date are very encouraging with anomalous mineralization encountered in themajority of the targets tested. Assays for the first nine holes have beenreceived and intercepts of plus 1g/t Au have been reported in six holes. Thebest result was in hole PT-08-006 with 4.0 meters at 5.02 g/t, including 1.0meter at 17.52 g/t from a drill depth of 40.0 meters. The drilling program willcontinue over the next six months. Presidente Terra is located near a regional north-west shear structure withinthe Don Feliciano Belt. Anomalous mineralization extends for 10 kilometres alongstrike and is found along a contact between granite and metasediments which isbelieved to be sheared. Mineralization also occurs in metasediments and inquartz veining within the granites. Drilling of previously defined targets at the Crucera/Casupa district, locatedat the eastern end of the Florida Belt, has slowed as the Company continues toawait access and exploration permits. Mapping and sampling, however, continuedduring the quarter and have led to the discovery of additional veins that arebeing developed into drill targets. Geophysics and soil sampling will be used todefine drill targets on these new veins with drilling to follow when permits areobtained. At Nueva Helvecia, a five-hole drill program is underway to test the remainingtargets and will be completed by the end of July. Regional exploration programs continue in the Florida, Don Feliciano and ArroyoGrande belts. Preliminary indications from the first pass exploration in theArroyo Grande Belt, as well as the Don Feliciano Belt are encouraging. Propertyevaluation is ongoing in the Florida Belt near Chamizo, Mahoma and Colla. Lascano Project Exploration Program A second round of drilling of 13 holes for 8,000 meters of diamond drillingcommenced in April 2008. Two drill holes were completed during the quarter inthe central anomaly near drill hole LASDDH-002. They showed similar hydrothermalalteration and weak sulfide mineralization. Assay results for these holes arepending. Drilling will continue in July 2008 to complete the remaining eleven planneddrill holes. Land access agreements and exploration permits have been receivedfor the first five holes. Exploration permits have been filed for five of theremaining eight holes and land access agreements are being negotiated. Theobjective of the drill program is to discover a major Iron oxide-copper/gold orporphyry copper deposit. Exploration Outlook During the current and coming quarters, the Company's exploration activity willcontinue to be focused on adding high grade resources near the mine, definingstand alone resources further afield and discovery at Lascano. Fourth Quarter 2007/08 Exploration Report Conference Call The management of UME will hold a conference call to discuss the explorationprogress for the fourth quarter of fiscal year 2007/08 ended May 31, 2008 at10:00 Toronto time, 15:00 UK time on Thursday, July 17 2008. The conference callcan be accessed by dialing +1 718 354 1362 (Canada and US) or +44 (0)20 71380838 (UK) and giving passcode 2416190. All participants will be required toregister with the operator. A simultaneous webcast of the call will be available at www.uruguayminerals.com.You will need to have Windows Media Player installed on your computer and youwill also be required to complete a registration page in order to log on to thewebcast. A slide presentation is available for download from the investor relationssection of UME's corporate website athttp://www.uruguayminerals.com/investors/presentations/. A replay of the call will be available until midnight (UK time) on July 24 2008.The replay is accessible by dialing +1 718 354 1112 (Canada & US) or +44 (0)207806 1970 (UK) and entering passcode 2416190#. Qualified Person's Statement The technical information presented in this press release has been reviewed andverified by Mr. John Sadek, Vice President Operations and a Mining Engineer, andMr. George Schroer Vice President Exploration and a Certified ProfessionalGeologist. Mr. Sadek and Mr. Schroer are the Qualified Persons for the purposesof 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 andis a member of the AusIMM and SME. He has over 20 years of internationalexperience in mining. Mr. Schroer has a Masters of Science in Geology fromColorado State University and is a member of SEG and AIPG. He has over 20 yearsof international experience in 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 UME, 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. UME disclaims any intention or obligation to update or revise anyforward looking statements whether as a result of new information, future eventsand such forward-looking statements, except to the extent required by applicablelaw. ENDS The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this news release. About Uruguay Mineral Exploration Inc. Uruguay Mineral Exploration Inc. (UME) is a gold production and explorationcompany that identifies and develops mineral opportunities in South America. UMEis a fully integrated mining company, possessing the skills necessary to exploreand develop its discoveries. UME operates San Gregorio, the only producing goldmine in Uruguay, and is the leading mineral exploration company in Uruguay withan exploration portfolio of gold, diamonds and base metal prospects, includingcopper, nickel, lead, and zinc. Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) andRBC Capital Markets is its Nominated Adviser and Broker. More information can befound at www.uruguayminerals.com For further information, please contact: \* TUruguay Mineral Exploration IncTony Shearer, Chairman: +44 (0)20 7602 1570; tonyshearer@btinternet.comDavid Fowler, CEO: + 598 2 6016354; urumin@ume.com.uy Investor/Media RelationsEmily Bruning, Shared Value Ltd: +44 (0) 20 7321 5027; ebruning@sharedvalue.net Investor Relations in North AmericaSusan Borinelli, Breakstone Group: +1 646-330-5907; sborinelli@breakstone- group.com RBC Capital MarketsAndrew Smith: +44 (0) 20 7029 7882; andrew.smith@rbccm.comSarah Wharry: +44 (0)20 7653 4667; sarah.wharry@rbccm.com\* T Copyright Business Wire 2008