Quarterly Production Figures

14 Jun 2005 15:40

Uruguay Mineral Exploration Inc14 June 2005 URUGUAY MINERAL EXPLORATION INC. MEDIA RELEASE 14th June, 2005 SYMBOLS: UME (TSXV), UGY (AIM) UME Announces Record Quarter Gold Production Uruguay Minerals Exploration Inc ("UME") today released production figures forthe quarter and year ended 31 May, 2005. The May month production figure of8,876 ounces was not only the best monthly production ever recorded by the SanGregorio Plant, but was the second consecutive month where the annualizedmonthly production exceeded an annualized 100,000 ounce production rate. The quarterly production of 24,839 ounces bettered the previous historic record(Q4/99) for the San Gregorio Plant by 5,512 ounces, and was 5,943 ounces morethan the figure for the last quarter of 18,896 ounces. Total production for the year was 75,021 ounces, a consequence of thesignificant improvement in head grade, which has risen steadily from 1.65 g/t Auin Q1 to 2.65 g/t Au, reflecting the development of the new Arenal pit, which isnow producing most of the plant feed. A small amount of Zapucay and stockpilematerial is also being processed for operational reasons. Production for the year by quarter is summarized below. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Aug 2004 Nov 2004 Feb 2005 May 2005 2004/05 Ore Processed (Tonnes) 304,551 307,993 275,849 306,238 1,194,631 Grade (g/t Au) 1.65 1.70 2.24 2.65 2.06 Recovery (%) 95.1 94.5 95.2 95.2 95.0 Gold produced (ounces) 15,352 15,934 18,896 24,839 75,021 The Company is budgeting production of 100,000 ounces of gold for the 2005/6financial 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 Durlacher Limited 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 & CoMathew 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