SOURCE: Uruguay Mineral Exploration Inc

September 12, 2008 11:42 ET

Uruguay Mineral Exploration Inc. Exploration Drilling Update

MONTEVIDEO, URUGUAY and LONDON--(Marketwire - September 12, 2008) - Uruguay Mineral Exploration Inc. (TSX-V: UME), (AIM: UGY) ("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

Contact Information

  • For further information, please contact:

    Uruguay Mineral Exploration Inc
    Tony Shearer
    Chairman
    +44 (0)20 7602 1570
    Email Contact

    David Fowler
    CEO
    + 598 2 6016354
    Email Contact

    Investor Relations
    Susan Borinelli
    Breakstone Group
    +1 646-330-5907
    Email Contact

    RBC Capital Markets
    Andrew Smith
    +44 (0) 20 7029 7882
    Email Contact

    Sarah Wharry
    +44 (0)20 7653 4667
    Email Contact