SOURCE: Uruguay Mineral Exploration Inc.

June 15, 2005 05:20 ET

UME Signs to Fly Lascano Anomaly

CALGARY, AB -- (MARKET WIRE) -- June 15, 2005 -- Uruguay Minerals Exploration Inc (TSX-V: UME) (AIM: UGY) has entered into an agreement with Bell Geospace Inc ("Bell") to fly a combined gravity/magnetics survey over the Lascano geophysical anomaly in eastern Uruguay. The survey, which will cover an area of 75 km x 20 km, will cost approximately US$1.2 m and is expected to start in September 2005.

The Lascano geophysical anomaly is a continental-scale gravity feature, which has an associated, offset magnetic signature on its northwestern flank. Due to the large size of the anomaly, UME considers that the most effective way to resolve it into manageably sized, drillable "targets" is to use Bell's state-of-the-art Air-FTG© technology.

There is virtually no surface expression of the underlying basement rocks, and hence little is known about the cause of either the gravity or magnetic anomalies. Due to the thick cover (approximately 40 metres of alluvial material), limited previous exploration work has been undertaken, with geochemical surveys of little use, and worthwhile detailed geophysical surveys yet to be undertaken. An image and further information can be found at www.uruguayminerals.com/localidades/lascano.htm.

UME drilled one hole on the Lascano target in 2003, which revealed that the underlying sequence comprises andesites and picritic basalts. This hole was drilled on a magnetic feature and did not test the gravity target.

The objective of the current survey is to provide high-resolution magnetic and gravity data that can be drill-tested in a cost- and time-effective manner. Follow-up testing is planned for early in the 2006/7 fiscal year.

ENDS

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this 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 the country (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. In the first half of 2003, the Company discovered the Arenal deposit, currently the largest known gold resource in Uruguay. It is quoted in Canada (TSXV) and London (AIM) and Panmure Gordon & Co. is the nominated adviser.

Contact Information

  • For further information, please contact

    Uruguay Mineral Exploration Inc.
    Tony Shearer
    Chairman
    + 44 20 7523 5914
    Email Contact

    Chris Clark
    President
    +59 82 601 6354
    Email Contact

    PJ Lewis
    + 44 7950 003 138
    Email Contact

    Panmure Gordon & Co.
    Mathew Robinson
    +44 207 459 3600
    Jonathan Retter
    +44 207 459 3600