Exploration Drilling Update (Uruguay Mineral Exp)

Date : 09/12/2008 @ 9:30AM
Source : UK Regulatory (RNS and others)
Stock : Uruguay Mineral Exp (UGY)
Quote : 21.5  0.0 (0.00%) @ 2:59AM
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Exploration Drilling Update (Uruguay Mineral Exp)

    RNS Number : 3544D
  Uruguay Mineral Exploration Inc
  12 September 2008
   

    




    September 12, 2008    SYMBOLS: UME (TSXV), UGY (AIM)


    Uruguay Mineral Exploration Inc

    Exploration Drilling Update 

    Uruguay Mineral Exploration Inc ("UME" or the "Company"), a South American gold production
and exploration company, today reported
encouraging exploration drill results for Arenal Deep and Nueva Australia, near the San
Gregorio mine, and for Presidente Terra in Southern
Uruguay.  

    David Fowler, Chief Executive Officer, commented: "We continue to see encouraging results
from the drill campaign near the mine and have
drilled significant intercepts at both Arenal and Nueva Australia. At Arenal Deep, best
results in hole ADDL090 of 19.25 m @ 4.68 g/t Au
indicate that we are encountering widths and grades that have the potential to support an
underground operation. We are currently drilling
offsets to the intercepts in Arenal Deep to further assess the potential and this programme
should be completed by November 2008. We also
drilled three holes at Nueva Australia to test mineralization at depth. Best results, 4.65 m @
8.57 g/t Au in hole NADD003, indicate that
thicker and higher-grade mineralization exists and has the potential to host a significant
gold resource. Three offset drill holes are
planned to be completed to test the extent of mineralization by December.  

    "Our first pass drill program at Presidente Terra was a broad spaced program of 51 holes
over 6.6 km focusing on gold bearing vein/shear
sets in granitic host rocks. A further 2 km remains to be tested during the 2008 calendar year
as part of the first pass program. Results of
this initial program demonstrate that gold mineralisation is continuous. Follow up exploration
during the rest of 2008 will use these
results to target higher-grade areas and bulk targets," closed Mr. Fowler.

    Near Mine
    Near the San Gregorio mine, the deep drill campaign continues to deliver significant
intercepts from Arenal Deep and Nueva Australia.
Location and details of drill holes reported from Arenal Deep and Nueva Australia are
presented below.

 Hole ID  East      North    RL   Azimuth  Inclination  Depth (m)
 ALDD090  530532.5  6505096  126  15       -80          396.65
 ALDD091  530516    6504832  140  350      -65          644.35
 NADD001  527021    6508149  182  15       -65          272.2
 NADD002  526461    6508475  156  30       -60          239.1
 NADD003  526177    6508092  156  32       -63          493.7
    ------
    Drill hole details and collar locations for Arenal and Nueva Australia holes.

    At Arenal Deep, of the two additional core holes completed, significant intercepts have
been reported from hole ALDD090 and are
presented below.

 Hole       From     Intercept and Grade
 ALDD090    247.7 m  19.25 m @ 4.68 g/t Au
 including  247.7 m  2.75 m @ 3.45 g/t Au
            252.0 m  4.1 m @ 5.08 g/t Au
            258.0 m  5.3 m @ 4.32 g/t Au
            265.5 m  1.5 m @ 20.51 g/t Au
 ALDD090    269.7 m  21.75 m @ 2.34 g/t Au
 ALDD090    293.1 m  1.75 m @ 2.48 g/t Au
    ------
    Drill result composites of >0.5g/t, includes intervals of 1.0mt of <0.5 g/t. Drill hole
thickness reported, approximate true thickness.

    The intercepts in this hole are the best reported to date from the deep drill program and
represent consistent grades above 2.5 g/t. The
intercept is located over 60 meters from the nearest intercept in hole ALDD089. Drilling
continues in the area with results pending for an
additional two holes with a third in progress. The drilling is designed to test for
mineralization up plunge to the northwest.

    At Nueva Australia, three core holes were completed on a broad space drill pattern to test
for mineralization at depth. One of the three
holes completed, NADD003, intercepted significant mineralization. Results are presented
below.

 Hole       From      Intercept and Grade
 NADD003    420.3 m   3.35 m @ 0.94 g/t Au
 NADD003    445.9 m   4.65 m @ 8.57 g/t Au
 Including  445.9 m   2.00 m @ 16.83 g/t Au
    ------
    Drill result composites of >0.5g/t. Drill hole thickness reported, approximate true
thickness.

    The drill hole collar is located south of the surface exposure of the Nueva Australia
structure. The intercept is more than 400 meters
down dip from the nearest drill hole intercept.   This intercept indicates that thicker
higher-grade mineralization exists within the Nueva
Australia structure, and that the structure has the potential to host a significant gold
resource.  Three offset drill holes are planned to
test the extent of the mineralization along strike and up dip.  These holes should be
completed by December 2008.

    Dom Feliciano Belt
    At Presidente Terra, drilling commenced in April of 2008 and has tested two of the three
exploration tenements, the southern and the
northern tenements, which cover an area of 12 square kilometres. Exploration permits have now
been received to drill the central area. A
total of 45 reverse circulation  drill holes  and 6 core drill holes have been completed for a
total of 7,457 meters. The drilling
concentrated on gold bearing vein/shear sets in granitic host rock and to date have tested a
combined 6.6 km of strike length of the vein
system.  

    Results are encouraging with over 45% of the drill holes reporting 2 meter or greater
intercepts of more than 1.0 g/t Au. Over 70% of
the drill holes intercepted the structural target and reported anomalous mineralization
greater than 0.5 g/t. Results are pending on all six
core holes as well as the last four reverse circulation drill holes.

    Significant results are presented below. 

 Hole ID      From    Intercept and Grade     Hole ID    From     Intercept and Grade
 PT-08-001    36.0 m  4.0 m @ 1.31 g/t Au     PT-08-027  17.0 m   4.0 m @ 2.88 g/t Au
 PT-08-002    31.0 m  5.0 m @ 1.60 g/t Au     PT-08-029  36.0 m   3.0 m @ 11.0 g/t Au 
 PT-08-005    73.0 m  2.0 m @ 3.11 g/t Au     PT-08-031  10.0 m   4.0 m @ 3.48 g/t Au
 PT-08-006    40.0 m  4.0 m @ 5.02 g/t Au                23.0 m   5.0 m @ 1.07 g/t Au
   including  43.0 m  1.0 m @ 17.52 g/t Au    PT-08-032  86.0 m   2.0 m @ 1.76 g/t Au
 PT-08-007    29.0 m  5.0 m @ 0.66 g/t Au     PT-08-036  11.0 m   3.0 m @ 0.82 g/t Au
              42.0 m  4.0 m @ 1.82 g/t Au     PT-08-037  89.0 m   2.0 m @ 1.62 g/t Au
              48.0 m  2.0 m @ 0.67 g/t Au     PT-08-040  72.0 m   2.0 m @ 1.60 g/t Au
              60.0 m  2.0 m @ 2.15 g/t Au                45.0 m   2.0 m @ 4.60 g/t Au
 PT-08-015    54.0 m  2.0 m @ 2.39 g/t Au     PT-08-041  31.0 m   2.0 m @ 5.10 g/t Au
 PT-08-021    46.0 m  2.0 m @ 2.79 g/t Au     PT-08-044  145.0 m  2.0 m @ 3.47 g/t Au
 PT-08-026    23.0 m  2.0 m @ 6.60 g/t Au     PT-08-045  24.0 m   3.0 m @ 1.04 g/t Au
    Drill result composites of >0.5g/t, may include 1.0 mt intervals of <0.5 g/t Au.  

    The vein shear system generally trends N15-18E and dips 60 to 70 degrees to the SE.
Drilling has been directed to the NW at -60 to -65
degrees. Location and details of all drill holes are presented below. 

 Drilled Hole ID  Easting   Northing  Az   Dip  Depth
 PT-08-001        607334   6276196    285  60   128
 PT-08-002        607358   6276294    285  60   120
 PT-08-003        607384   6276391    285  60   125
 PT-08-004        607307   6276403    285  60   125
 PT-08-005        607449   6276526    285  60   133
 PT-08-006        606212   6276049    285  60   141
 PT-08-007        606617   6276799    285  60   125
 PT-08-008        605995   6276709    285  60   125
 PT-08-009        606228   6277110    285  60   146
 PT-08-010        606252   6277210    285  60   130
 PT-08-011        606252   6277313    285  60   125
 PT-08-012        607932   6279973    285  60   135
 PT-08-013        607781   6279804    285  60   126
 PT-08-014        607354   6278988    285  60   130
 PT-08-015        607651   6279219    285  60   140
 PT-08-016        607580   6279239    285  60   120
 PT-08-017        606637   6277789    285  60   119
 PT-08-018        607197   6278877    285  60   125
 PT-08-019DDH     606339   6276258    285  60   188.1
 PT-08-020        607110   6278745    285  60   150
 PT-08-021        607045   6278291    285  60   130
 PT-08-022DDH     606618   6276802    285  60   101.1
 PT-08-023DDH     606552   6278115    285  60   137.8
 PT-08-024        605570   6278471    105  60   125
 PT-08-025DDH     606823   6277679    285  60   125.1
 PT-08-026        607070   6277147    285  60   108
 PT-08-027        608522   6281987    285  60   125
 PT-08-028DDH     608118   6282509    105  60   173.1
 PT-08-029        608621   6282166    285  60   135
 PT-08-030DDH     608849   6283118    285  60   199.8
 PT-08-031        608674   6282357    285  60   150
 PT-08-032        608774   6282442    285  60   135
 PT-08-033        608668   6282149    285  60   60
 PT-08-034        608645   6282160    285  60   159
 PT-08-035        608550   6282190    105  70   150
 PT-08-036        608646   6282263    285  65   203
 PT-08-037        608694   6282249    285  65   219
 PT-08-038        608826   6283017    285  60   159
 PT-08-039        608596   6282069    285  65   200
 PT-08-040        608902   6283205    285  60   150
 PT-08-041        608997   6283568    285  60   150

    Results of this first pass drill program will be used in conjunction with a recently
acquired ground magnetic survey to better define
target areas which may contain thicker and higher-grade mineralized zones. A second round of
drilling is expected to take place before the
end of the year to test the central tenement as well as the targets defined above.  

    More information on UME's exploration activities at Presidente Terra, Nueva Australia and
Arenal Deep can be found on the Exploration
section of our website at www.uruguayminerals.com 

    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, and Mr. George Schroer Vice President Exploration and a Certified
Professional Geologist. Mr. Sadek and Mr. Schroer
are the Qualified Persons 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 in mining. Mr. Schroer has a Masters of Science in Geology from Colorado State
University and is a member of SEG and AIPG. He has
over 20 years of international experience in exploration. 

    Forward Looking Statements 
    All statements, other than statements of historical fact, contained or incorporated by
reference in this news release, including any
information as to the 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 the United States Private Securities
Litigation Reform Act of 1995 and are based on expectations estimates and projections as of
the date of this news release. There can be no
assurance that such statements will prove to be accurate, such statements are subject to
significant risks and uncertainties, and actual
results and future events could differ materially from those anticipated in such statements.
Forward-looking statements include, without
limitation success of exploration activities; permitting time lines; the failure of plant;
equipment or processes to operate as anticipated;
accidents; labour disputes; requirements for additional capital title disputes or claims and
limitations on insurance coverage. UME disclaims any intention or obligation to update or
revise any
forward looking statements whether as a result of new information, future events and such
forward-looking statements, except to the extent
required by applicable law. 

    ENDS
    The TSX Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.

    About Uruguay Mineral Exploration Inc. 
    Uruguay Mineral Exploration Inc. (UME) is a gold production and exploration company that
identifies and develops mineral opportunities
in South America. UME is a fully integrated mining company, possessing the skills necessary to
explore and develop its discoveries. UME
operates San Gregorio, the only producing gold mine in Uruguay, and is the leading mineral
exploration company in Uruguay with an
exploration portfolio of gold, diamonds and base metal prospects, including copper, nickel,
lead, and zinc. 
    Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) and RBC
Capital Markets is its Nominated Adviser and
Broker. More information can be found at www.uruguayminerals.com 

    For further information, please contact: 
        
    Uruguay Mineral Exploration Inc
    Tony Shearer, Chairman: +44 (0)20 7602 1570; tonyshearer@btinternet.com
    David Fowler, CEO: + 598 2 6016354; urumin@ume.com.uy

    Investor Relations 
    Susan Borinelli, Breakstone Group: +1 646-330-5907; sborinelli@breakstone-group.com

    RBC Capital Markets
    Andrew Smith: +44 (0) 20 7029 7882; andrew.smith@rbccm.com 
    Sarah Wharry: +44 (0)20 7653 4667; sarah.wharry@rbccm.com

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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