Lascano Contract

15 Jun 2005 11:07

Uruguay Mineral Exploration Inc15 June 2005 URUGUAY MINERAL EXPLORATION INC. MEDIA RELEASE 15th June, 2005 SYMBOLS: UME (TSXV), UGY (AIM) UME Signs to Fly Lascano Anomaly Uruguay Minerals Exploration Inc ("UME") has entered into an agreement with BellGeospace Inc ("Bell") to fly a combined gravity/magnetics survey over theLascano geophysical anomaly in eastern Uruguay. The survey, which will cover anarea of 75 km x 20 km, will cost approximately US$1.2 m and is expected to startin September 2005. The Lascano geophysical anomaly is a continental-scale gravity feature, whichhas an associated, offset magnetic signature on it's north western flank. Dueto the large size of the anomaly, UME considers that the most effective way toresolve it into manageably sized, drillable "targets" is to use Bell'sstate-of-the-art Air-FTG(c) technology. There is virtually no surface expression of the underlying basement rocks, andhence little is known about the cause of either the gravity or magneticanomalies. Due to the thick cover (approximately 40 metres of alluvialmaterial), limited previous exploration work has been undertaken, withgeochemical surveys of little use, and worthwhile detailed geophysical surveysyet to be undertaken. An image and further information can be found atwww.uruguayminerals.com/localidades/lascano.htm. UME drilled one hole on the Lascano target in 2003, which revealed that theunderlying sequence comprises andesites and picritic basalts. This hole wasdrilled on a magnetic feature and did not test the gravity target. The objective of the current survey is to provide high-resolution magnetic andgravity data that can be drill-tested in a cost-and time-effective manner.Follow-up testing is planned for early in the 2006/7 fiscal year. ENDS The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this 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.In the first half of 2003, the Company discovered the Arenal deposit, currentlythe largest known gold resource in Uruguay. It is quoted in Canada (TSXV) andLondon (AIM) and Panmure Gordon & Co. is the nominated adviser. For further information, please contact Uruguay Mineral Exploration Inc.Tony Shearer, Chairman + 44 20 7523 5914; tony@tonyshearer.comChris Clark, President +59 82 601 6354; c.clark@ume.com.uyPJ Lewis + 44 7950 003 138; pjlewis@tiscali.co.uk Panmure Gordon & Co.Mathew Robinson +44 207 459 3600Jonathan Retter +44 207 459 3600 This information is provided by RNS The company news service from the London Stock Exchange