Uruguay Mineral Exploration (UME-V, UGY-L) has come out with an initial resource estimate for mineralization found underneath its Arenal Deeps open pit which is part of the San Gregorio mining operation, 450 km north of Montevideo, Uruguay.
Measured and indicated resources total 3.2 million tonnes grading 2.21 grams gold per tonne for 224,000 oz. gold.
Another 152,000 tonnes grading 2.27 grams gold per tonne are under the inferred category.
The goal is to extend the mine life by five years by going underground. Uruguay Mineral hopes to do this within two years time.
The company is working on a prefeasibility study that it hopes to have finished by June.
This month the company will start a 4,500-metre drill program to further define and increase this resource and a 15,000-metre infill drill program if the prefeasibility study is positive.
There are three major deposits at the San Gregorio operation – Arenal, San Gregorio and Santa Teresa — which have produced more than 800,000 oz. gold all together.
There is also potential to mine beneath the San Gregorio pit.
Uruguay Mineral produced about 90,000 oz. gold in 2008 from 1.2 million tonnes grading 2.45 grams gold per tonne with a 93% recovery rate.
The company has been operating San Gregorio since October 2003. As of last June, the project had reserves of 5.6 million tonnes grading 5.6 million tonnes grading 1.35 grams gold per tonne for about 245,000 oz. gold.
There were also measured and indicated resources of 19.7 million tonnes grading 1.22 grams gold per tonne, for 773,600 oz. gold.
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