Uruguay Mineral Exploration Inc: Operations Update

2 Aug 2007 07:00

Uruguay Mineral Exploration Inc (TSX VENTURE:UME) (LSE:UGY): £ The Diversion of the Arroyo Corrales was completed in July. Thediversion canal has been completed to the original specification andwater is flowing as anticipated. The permanent northern floodprotection dyke is 60% complete and already affording adequateprotection against moderate flood conditions and it will be completedby 17 August, 2007. Construction of the southern flood protection dykehas commenced and is expected to be completed by the end of August.Temporary dykes have allowed the old water course to be dewatered andpit development to commence. Re-vegetation of the banks of thediversion canal has commenced and is progressing as planned. The firstore from the expansion has been mined and processed. £ Lower grade material was mined in June and July while the riverdiversion was being completed. As a result, production for the firstquarter 2007/8 is forecast to be 21,000 ounces. Production willrecover in the following quarter in line with higher grades and isexpected to be 95,000 ounces for the year to 31 May, 2008. £ Qualified Person's Statement £ The information presented in this press release has been reviewedand verified by Mr John Sadek, Vice President Operations. Mr Sadek isthe Qualified Person for the purposes of the AIM Guidance Note onMining, Oil and Gas Companies dated March 2006. He has a Bachelor ofEngineering (Mining) from the University of Sydney and is a member ofthe AusIMM and SME. He has over 20 years of international experiencein mining. £ Forward Looking Statements £ All statements, other than statements of historical fact,contained or incorporated by reference in this news release, includingany information as to the future financial or operating performance ofthe Company, constitute "forward-looking statements" within themeaning of certain securities laws, including the "safe harbour"provisions of the Securities Act (Ontario) and the United StatesPrivate Securities Litigation Reform Act of 1995 and are based onexpectations estimates and projections as of the date of this newsrelease. There can be no assurance that such statements will prove tobe accurate, such statements are subject to significant risks anduncertainties, and actual results and future events could differmaterially from those anticipated in such statements. Forward-lookingstatements include, without limitation success of explorationactivities; permitting time lines; the failure of plant; equipment orprocesses to operate as anticipated; accidents; labour disputes;requirements for additional capital title disputes or claims andlimitations on insurance coverage. The Company disclaims any intentionor obligation to update or revise any forward looking statementswhether as a result of new information, future events and suchforward-looking statements, except to the extent required byapplicable law. £ 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 focused 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 inUruguay (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 Europe Limited is its NominatedAdviser and Broker. Copyright Business Wire 2007