Uruguay Mineral Exploration - Drilling Update

13 Aug 2008 07:05

Uruguay Mineral Exploration Inc. ("UME" or "the Company") (TSX VENTURE:UME)(LSE:UGY), a gold production and exploration company, announced today that sincethe last exploration report released on July 17, 2008 three infill holes havebeen drilled in the down plunge projection of the Arenal orebody. A third drillhole has been completed at Lascano. In addition, exploration permits have beenobtained for several other prospects. David Fowler, UME Chief Executive Officer, commented: "We are encouraged by theresults of the drill holes down plunge at Arenal, which were not included in ourcurrent four-year mine plan. Drilling over the last four months has defined azone of higher grade mineralization in the down plunge projection of the Arenalorebody. Based on scoping studies completed during 2008, we believe this zonehas the potential to be mined using underground mining methods. We plan to drillan additional hole to try to extend this zone further. Following that, we willcommence modeling to establish the viability of mining this zone. The results ofthis work should be released in our half year report in January 2009." The holes drilled at Arenal are shown below. \* T ----------------------------------------------------------- Hole Intercept Depth----------------------------------------------------------- ALDD087 13.4m at 1.33 g/t 293.8----------------------------------------------------------- ALDD087 6.05m at 2.14 g/t 311.2----------------------------------------------------------- ALDD088 14.25m at 1.44 g/t 316.8----------------------------------------------------------- ALDD088 8.00m at 2.80 g/t 332.5----------------------------------------------------------- ALDD088 5.70m at 3.92 g/t 343.6----------------------------------------------------------- ALDD089 18.05m at 2.10 g/t 243.0----------------------------------------------------------- ALDD089 3.00m at 1.22 g/t 270.6----------------------------------------------------------- ALDD089 17.70m at 2.49 g/t 285.2-----------------------------------------------------------\* T One additional drill hole is planned in the down plunge area to complete theprogram. A full update of all drilling on the Presidente Terra prospect is expected to bereleased in the first week of September 2008. The third hole on the Lascano program has been completed to a depth of 850meters. Sampling of selected intercepts will be done after detailed logging.Assay results are expected in six weeks. Results from Hole One of the campaignhave been received and no significant mineralization has been reported. Thefourth hole in the program has commenced. In addition, two holes have been completed at Nueva Australia with nosignificant results. Over the past month, exploration permits have been received for Madre Con Hijos,Vaca Muerta and Zaballa. An exploration permit has also been received for RiveraDiamonds and three drill sites at the Lascano project as well as a permit todrill in prospecting for the Vichadero prospect. Qualified Persons' 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 \* TFor further information, please contact: Uruguay 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