UME expects to produce 95,000 ounces for the Full Year
LONDON, September 12 /CNW/ - Uruguay Mineral Exploration Inc ("UME")
advises that production in the first quarter ended 31 August 2007 was 18,464
ounces, lower than the target of 21,000 ounces announced on 2 August 2007.
Profits and cash flow for the quarter will be lower than management
expectations which were based on 21,000 ounces of gold production. Cash cost
per ounce will be higher due to the lower production levels.
Production in the first quarter was below the target as the grade of ore
mined in the first benches directly under the Arroyo Corrales was lower than
estimated. More tonnes were encountered at lower grade with more overall
ounces mined from the area than estimated. Ore was fed to the plant as
presented and the additional ounces will be produced in future periods.
The first benches directly beneath the Arroyo Corrales were classified as
Indicated Resources as they could not be fully drilled due to access
restrictions. These results have no implications for the remainder of the
Arenal resource estimates.
By the end of the month mining had advanced to deeper levels where grades
were in line with reserve estimates. UME expects to achieve its stated target
of 95,000 ounces of production for the full year.
Qualified Person's Statement
The technical information presented in this press release has been
reviewed and verified by Mr John Sadek, Vice President Operations and a Mining
Engineer. Mr. Sadek is the Qualified Person for the purposes of 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 and is a
member of the AusIMM and SME. He has over 20 years of international experience
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
Editors note: Uruguay Mineral Exploration Inc. is a gold producer and
exploration company focused on identifying and developing mineral
opportunities in Uruguay. UME is a fully integrated mining company, possessing
the skills necessary to explore and develop its discoveries. The Company
operates the only producing gold mine in Uruguay (San Gregorio), and is also
the leading mineral exploration company in Uruguay having assembled an
exploration portfolio based on gold, base metals (copper, nickel, lead, zinc)
and diamond prospects.
Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London
(AIM) and RBC Capital Markets is its Nominated Adviser and Broker.
For further information:
For further information: Uruguay Mineral Exploration Inc Tony Shearer,
Chairman: +44 20 7602-1570 firstname.lastname@example.org David Fowler, CEO: 598 2
6016354 email@example.com or Investor/Media Relations Emily Bruning, Shared
Value Ltd: +44 (0) 20 7321 5027 firstname.lastname@example.org or RBC Capital
Markets Andrew Smith: +44 (0) 20 7029 7882 email@example.com Sarah
Wharry: +44 (0) 20 7653 4667 firstname.lastname@example.org Martin Eales: +44 (0) 20
7029 7881 email@example.com