Uruguay Mineral Exploration Inc. Announces Q2 Gold Production and
Reorganisation
Uruguay Mineral Exploration Inc
Uruguay Mineral Exploration Inc (“UME or the “Company”) (TSX
VENTURE:UME) (LSE:UGY), the gold production and exploration company,
announced today that it has produced 13,580 ounces of gold for the
quarter ended November 30, 2009. Ore processed for the quarter was
362,416 tonnes at a gold grade of 1.25 g/t with recovery averaging 93.5%.
Production was approximately 10% below expectations due to non
realisation of high grade ore at San Gregorio East and exceptionally
high precipitation during November 2009 of more than 600 mm of rainfall,
equivalent to one half of the average annual rainfall for the region. It
is estimated that high rainfall levels caused a deferral of
approximately 900 ounces of production. Unseasonably high rainfall has
continued in December and impacted production in the early part of the
month.
Updated production guidance will be provided in the Company’s second
quarter results announcement due mid January.
The Company’s cash position at the end of the quarter was $US 9.4
million with net working capital (current assets less current
liabilities) of $US 20.2 million.
The Company also announces that John Sadek, Vice President Operations
has resigned.
With the underground development at Arenal, the planned transaction with
Fortune Valley and the plans to further grow the business, the Company
intends to restructure its operations management to meet these
objectives. Recruitment of a Chief Operating Officer to be responsible
for exploration and operations and a San Gregorio General Manager with
strong underground experience is well underway and appointments are
expected to be made in the new year.
David Fowler, the Company's CEO, said today "On behalf of the Board and
I would like to thank John for his commitment to the development of UME
and wish him well for the future."
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 the
Company, 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.
The Company 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts 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 Latin America. 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 Matrix Corporate Capital LLP is its Nominated Adviser and
Broker.
For further information, please contact:
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Matrix Corporate Capital LLP
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Louis Castro
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+44 20 3206 7209
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Tim Graham
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+44 20 3206 7206
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