Last checked at 9 Mar 2009 07:00
Uruguay Mineral Exploration Inc. (TSX VENTURE:UME) (LSE:UGY):
Production and Cash position
Uruguay Mineral Exploration Inc. ("UME" or "the Company"), a gold production and exploration company, announced today that its production for the quarter ended February 28, 2009 was 19,371 ounces, 22% above the previous quarter, and in line with expectations. Aggregate production for the first nine months of fiscal 2009 was 51,647 ounces. UME confirms its stated production forecast for the 2009 fiscal year of 72,000 to 75,000 ounces.
The Company's cash position has improved due to improved production, staff reductions, cost savings and other initiatives implemented since the end of calendar 2008. UME's cash balance at the end of February was US$ 8.1 million, compared to US$ 6.4 million at the end of November 2008. The Company maintains its objective of achieving a cash position at 31 May 2009 of between $US 8 million to 10 million. This position is expected to be achieved after funding exploration expenditure of approximately US$ 10 million for the 2009 financial year.
Arenal Deeps
UME expects to publish the results of an independent NI 43-101 compliant resource estimate for Arenal Deeps in its third quarter report to be released mid April 2009. The pre-feasibility study for Arenal Deeps is expected to be completed by the end of May 2009. Should this study define an economic resource, prefeasibility work and in-fill drilling is anticipated to commence immediately thereafter with a view to begin development during 2010. This would extend the mine life and increase production rates from 2011.
Potential Offer for the Company
On Feb 25, 2009 UME made an announcement about a potential offer for its entire issued and to be issued share capital. After exploring this potential offer in detail and in consultation with key shareholders, UME's Board of Directors rejected the potential offer as it significantly undervalues the Company. UME is actively considering acquisition and merger opportunities for further growth of the Company.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news 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.
| Uruguay Mineral Exploration Inc |
| Tony Shearer, Chairman: +44 (0)20 7602 1570 |
| tonyshearer@btinternet.com |
| or |
| David Fowler, CEO: + 598 2 6016354 |
| urumin@ume.com.uy |
| or |
| Investor Relations in North America |
| Susan Borinelli, Breakstone Group: +1 646-330-5907 |
| sborinelli@breakstone-group.com |
| or |
| RBC Capital Markets |
| Sarah Wharry: +44 (0)20 7653 4667 |
| sarah.wharry@rbccm.com |
Copyright Business Wire 2009