Orosur Mining Regulatory News (OMI)

13 Jun 2007 07:00

Production £ Uruguay Minerals Exploration Inc (TSX VENTURE:UME)(LSE:UGY)("UME")confirms that it has produced 96,420 ounces of gold for the financialyear to May 31, 2007, exceeding its target of 95,000 ounces. Oreprocessed for the year was 1,312,999 tonnes at a grade of 2.45 g/t andthe recovery averaged 93.3%. £ The diversion of the Arroyo Corrales is progressing as expectedwith the diversion canal expected to be completed before the end ofthis month and, dependent on rainfall events, to be operational by theend of July 2007. £ Update on Lascano Exploration Programme £ At Lascano, petrographic studies and geochemical analysis ofdiamond drill cores have demonstrated potassic alteration andanomalous mineralization within the significant geophysical anomaly.This is an important development in that no mineralization is evidentin the surface exposure. £ Three stratigraphic drill holes have been completed to date anddrilling of a fourth hole is in progress and nearing completion.Petrographic studies and geochemical analyses have been completed forthe first two holes. Potassic alteration has been confirmed in boththese holes but is much stronger in hole LASDDH-02 which containsassociated sulphides. £ In LASDDH-02, which was drilled in the centre of one of thegeophysical anomalies, rocks are predominately mafic in compositionand consist of quartz monzonite to gabbro intruded into a pile ofamygdaloidal basaltic lava flows. Alteration of these units varieswith the most intense alteration occurring between 200 and 375 metres.(Mineralization and alteration occur in all rock types with similarintensities.) The alteration can be defined by moderate to strongpotassic alteration with associated quartz-chalcedony veins andreplacement silicification. Mineralization associated with thisalteration is characterized by moderate to abundant magnetite andhematite veinlets and replacements (iron oxide metasomatism) alongwith trace to 2% sulfides. Sulfide mineralization is characterized bypyrite and or chalcopyrite. Visible gold mineralization has beenidentified in one sample hosted in chalcedony veins. The interceptbetween 201 and 327 metres was geochemically anomalous and averaged168 ppm Cu with a higher grade intercept between 295 and 303 metresaveraging 543 ppm Cu. The highest individual value was 0.1 % Cu. Nosignificant gold values were reported. £ The alteration and mineralization assemblage encountered to datehas similarities to iron oxide, copper, gold and porphyry coppermineralized systems. £ In hole LASDDH-01, which was drilled on the rim of the anomalysome 12 km from LASDDH2, the intrusive units at the top of the drillhole include pyroxene bearing granite, quartz-monzonite andquartz-feldspar porphyry. These rocks are underlain by basalt lavaflows which exhibit weak biotite, chalcedony and carbonate alteration. £ The fourth hole, LASDDH-04, is in progress and is intended toinvestigate the nature of host rocks just outside the geophysicalanomaly. £ David Fowler, Chief Executive of Uruguay Mineral Explorationcommented: "I am pleased to confirm, as indicated at the third quarterresults in April, that we have made up the shortfall in productionfrom the first half of the year and ended the year with totalproduction of 96,420 ounces, exceeding our target of 95,000 ounces.Drilling results from Lascano have been encouraging with geochemicalanalysis and petrographic studies enhancing the overall potential ofthe project." £ A full update of exploration activities will be included with thefull year's results that will be published mid August. £ Qualified Persons Statement £ The information presented in this press release has been reviewedand verified by Mr George Schroer Vice President Exploration and aCertified Professional Geologist. Mr Schroer is the Qualified Personfor the purposes of the AIM Guidance Note on Mining, Oil and GasCompanies dated March 2006. Mr Schroer has a Bachelor of Science inGeology from Colorado State University and is a member of SEG andAIPG. He has over 20 years of international experience in exploration. £ ENDS £ The TSX Venture Exchange has not reviewed and does not acceptresponsibility for the adequacy or accuracy of this news release. £ Editors' note: Uruguay Mineral Exploration Inc. is a gold producerand exploration company focussed on identifying and developing mineralopportunities in Uruguay. UME is a fully integrated mining company,possessing the skills necessary to explore and develop itsdiscoveries. The Company operates the only producing gold mine in thecountry (San Gregorio), and is also the leading mineral explorationcompany in Uruguay having assembled an exploration portfolio based ongold, base metals (copper, nickel, lead, zinc) and diamond prospects. £ Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) andLondon (AIM) and Collins Stewart Limited is the Nominated Adviser andbroker. Copyright Business Wire 2007