22nd Aug 2008 15:57
August 22, 2008 SYMBOLS: UME (TSXV), UGY (AIM) Uruguay Mineral Exploration Hedges 70% of its Gold Production for the Last Nine-Months of Fiscal 2009 Uruguay Mineral Exploration Inc ("UME" or "the Company") today announced that ithas hedged 45,000 ounces of the 63,000 ounces of production anticipated for thenine-month period ending May 31, 2009. The forward price is $US 796.25 perounce. The objective of this hedging is to provide greater certainty that cashfrom operations is available to drill all priority gold exploration targets. Commenting on the move, David Fowler, CEO, said: "We have taken the decision tohedge approximately 70% of our production over the next 9 months in light of thecurrent markets for Junior exploration and production companies and the recentvolatility in the gold price. Increasing certainty of cash flow allows us tofocus on our major objective of delivering value through our explorationprograms." "We continue to believe that exploration expenditure represents the best use ofcash resources. Given our existing operations, any discovery near the mine orhigh-grade discoveries in the south have the potential to significantly improveour production profile and cash flow with minimal capital expenditure, thereforeadding significant value for shareholders." "Whilst we acknowledge that our share price, like many companies within thesector, has fallen to levels where we believe that it is significantlyundervalued, maintaining cash balances and continuing to focus on explorationand acquisition will provide the greatest medium term benefit for allshareholders." "Our exploration team has worked hard to get us in a position where we canrealize significant value through discovery and they have generated qualitytargets near our San Gregorio operations and in southern Uruguay. In 2009 weexpect to drill these targets including Arenal Deeps, Los Castillos, PresidenteTerra, Casupa and Arroyo Grande." He concluded: "We remain confident in the potential of our exploration programfor fiscal 2009. Over the past 2 years we have generated good quality targetsnear our San Gregorio operations and in southern Uruguay. Fiscal 2009 is theyear where we plan to test the majority of these targets." Mr. Fowler concluded. The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this news release. Editors' note: Uruguay Mineral Exploration Inc. is a gold producer andexploration company focused on identifying and developing mineral opportunitiesin Uruguay. UME is a fully integrated mining company, possessing the skillsnecessary to explore and develop its discoveries. The Company operates the onlyproducing gold mine in Uruguay (San Gregorio), and is also the leading mineralexploration company in Uruguay having assembled an exploration portfolio basedon gold, base metals (copper, nickel, lead, zinc) and diamond prospects. Uruguay Mineral Exploration Inc. is quoted in Canada (TSXV) and London (AIM) andRBC Capital Markets is its Nominated Adviser and Broker. For further information, please contact: \* TUruguay Mineral Exploration IncTony Shearer, Chairman: +44 (0)20 7602 1570; [email protected] Fowler, CEO: + 598 2 6016354; [email protected] Investor RelationsSusan Borinelli, Breakstone Group: +1 646-330-5907; [email protected] RBC Capital MarketsAndrew Smith: +44 (0) 20 7029 7882; [email protected] Wharry: +44 (0)20 7653 4667; [email protected]\* T Copyright Business Wire 2008Related Shares:
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