UGL Enterprises Ltd.

UGL Enterprises Ltd.

November 08, 2005 13:32 ET

UGL Enterprises Ltd.: Drilling Begins on Argalant High-Grade Gold-Copper Prospect, Western Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2005) - UGL Enterprises Ltd. (TSX VENTURE:UGS) announces that drilling has commenced on its 2,090 hectare optioned Argalant property (see UGL Enterprises October 6, 2005 press release) located approximately 900 km due west of Mongolia's capital Ulaanbaatar in the province of Zavkhan. The program will consist of several diamond drill holes, totaling no less than 1200 metres and is designed to test the property's high-grade Ovoot and Gozgor prospects. The UGL and driller's camps are winterized and there is a guaranteed year-round source of water from a major river located 9 km. south of the drilling area, ensuring that the drill program can be extended into the winter months if early results are positive.

UGL's drilling program will be testing the down dip extensions of the known high-grade copper and gold showings (up to 10% copper and 191 grams per ton gold) and also test several geochemical and geophysical (mag and IP) anomalies. The first diamond drill hole was collared on November 3 (Hole ARDH-2005-1) and is testing the area of Chinese pits on the Ovoot copper zone.

The geological model for the Argalant mineralization remains somewhat subjective at this stage; however it contains skarn mineralization related to a possible porphyry intrusive, with peripheral (tourmaline-bearing) highly auriferous quartz-carbonate veining and stockworks.

Argalant is bordered on all sides by QGX Gold's 5,500 square kilometer licensed area covering most of the geological belt. The geological setting of this area has been interpreted as being analogous to Canada's Abitibi greenstone belt (QGX press release Sept. 7, 2005). QGX's (TSX VENTURE:QGX) Golden Hills 3.3 million ounces gold equivalent discovery (see QGX Gold September 7, 2005 press release or for further information) is located approximately 45 kilometers northwest of the Argalant property.

UGL drill targets were selected based on geological mapping, rock grab (275 samples) and soil (534 samples) sample results, and geophysics (Induced Polarization and ground magnetics). The program is intended to be the first phase of a larger program that may include additional induced Polarization surveys and diamond drilling.

The two prospects on Argalant being tested by the current drill program are the Ovoot and Gozgor prospects which are summarized as follows:

The Ovoot Prospect

The Ovoot prospect consists of multiple high grade copper/gold occurrences consisting of fractures with malachite-azurite staining in andesite, skarnised gabbro and quartz sulphide veins up to 4 meters wide with significant values of copper and gold. Numerous historical pits are present tracing the mineralization along a northwest strike. Assay results from surface samples on Ovoot have ranged from 0.77 to 11.0 grams gold per ton and from 1.81% to 10.32% copper (Planet Exploration Press Release February 12, 2004).

The Gozgor Prospect

The Gozgor prospect is located approximately 1000 metres to the northwest of the Ovoot prospect. The Gozgor prospect consists of several structurally controlled, northeast trending, gold and copper-mineralized quartz veins that have been identified in several outcrops over a strike length of at least 1,800 meters, beyond which is deep sandy overburden. The quartz veins, locally up to 1.5 meters wide, are observed within a number of granite outcrops that are separated by large areas of sandy overburden.

A number of grab samples of sulphide-bearing quartz have been collected from the Gozgor quartz vein. The results of the grab sampling along a 720 metre section returned values of 5.0 to 191.0 grams gold per ton. (Planet Exploration Press Release July 22, 2004) These samples are all grab samples and may not accurately reflect the average grade of the quartz vein system.

A third prospect is the Tsohiot gossan zone discovered in the extreme southwest part of the property during the last few days of the 2004 program conducted by Planet Exploration. The Tsohiot prospect is about 2000 meters south of the Gozgor Prospect. An IP survey was conducted over the Tsohiot prospect in 2004 but it has not been covered by geochemistry. UGL geologists are currently examining this area more closely and UGL may decide to drill hole the target during the current phase of drilling.

J. Garry Clark, P. Geo, a director of UGL, is the Qualified Person for the Argalant property under NI 43-101.


UGL Enterprises Ltd. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol "UGS". UGL has 18 uranium properties and 9 gold and copper exploration projects located throughout Mongolia. UGL has a strategic alliance with Mega Uranium Ltd. to jointly develop its uranium assets, and with Mine Info Ltd., a leading Mongolian exploration service company. UGL has a full time office in Mongolia's capital, Ulaanbaatar

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The companies do not assume the obligation to update any forward-looking statement.

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

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