Uruguay Mineral Exploration Increased Gold Production

MONTEVIDEO, URUGUAY - Uruguay Mineral Exploration Inc. reported results for the third quarter of fiscal 2009 ended February 28, 2009.
David Fowler, Chief Executive Officer commented: "This quarter showed a significant improvement over the prior quarter. We produced 19,371 ounces of gold at an average cash cost of $US 547 per ounce. Production was in line with our expectation, and represented a 22 percent increase over the previous quarter. Average cash costs fell by 33 percent during the same period reflecting the increase in head grade, the initial success of the company-wide cost reduction program implemented during the quarter and the decline in the price of oil and other consumables."
Fowler continued: "On the exploration front, we have received the result of an independent resource estimate for Arenal Deeps, which indicates a measured and indicated resource of 3.16 million tones at 2.2 g/t Au using a 1.5 g/t cut off. We expect to release the results of an underground pre-feasibility study in June 2009 with potential production levels, capital investment and operating costs. Infill and extension drilling and feasibility studies are anticipated to follow."
"Despite good surface anomalies in the Rincon district along strike to the east of the Arenal mine, to date drilling has not returned significant results to identify a new bulk open pit resource. Additional targets are however being defined in the Rincon district and will be tested in coming quarters. First pass drilling was completed over the Peru/Esperanza trend during the quarter to test for higher grade open pit vein resources. Two high priority targets have been defined for further definition in coming quarters. Best results were six meters at 5.4 g/t au from 37 meters in MCRC010 and three meters at 8.26 g/t au in PRRC042."
The company’s address is Montevideo, C.P.11,500, Uruguay, 598 2 601 6354, fax: 598 2 600 6232, email: [email protected].