Uruguay Mineral (SEE LSE:OMI) Share Discussion Threads

[stevea171] 17/11/2009 08:09

Exploration. Looks like David F. is serious about getting costs down to a cash cost of c.$715/oz for annualised production of 60,000oz with the announcement yesterday of the departure of the Exploration VP. Exploration staff will have been reduced as part of the 20% overall reduction in staff so the next logical step was to make a further saving of perhaps $90k/year for the exploration manager. This is partly balanced by the recruitment of a new mining engineer for Arenal Deeps.

It seems exploration and development has now been concentrated near to the mill, particularly the Arenal Deeps, with drilling continuing there to January to define the deposit being proved up and that is expected can be mined economically from underground to supplement the ore from the open pits.

Arenal Deeps: "Mine Development Associates from Reno, Nevada has been contracted to complete the resource estimation. Once the drill program is completed in January of 2010, an updated 43-101 resource estimate is expected to be published in March 2010 which will enable the completion of a feasibility study in June 2010.

The Company has recently engaged an experienced expatriate Mining Engineer to coordinate all underground engineering studies and provide increased support for existing technical services. A primary responsibility of that role will be the development of mine designs and production scheduling from conceptual status through to feasibility level. AMEC consultants has been engaged to oversee the geomechanical studies of Arenal Deeps and to provide appropriate parameters for underground mine design. Local hydrogeological experts are being engaged to perform surface and underground water flow modeling. In-house metallurgical testing has commenced using the laboratory facilities located at the Minera San Gregorio operation."

One of the company rigs may then be released for movement to Chile to start drilling at Pantanillo to commence proving up an industry standard compliant resource from approx. February, or a rig may be sourced that is already in Chile.

"A planned exploration and development program targeting the definition of a NI43-101 compliant mineral resource would commence within three months with the objective of creating a second production asset for the group"

The rig may later drill at Anillo some of the four priority targets that have been established there. It seems that the plan going forward is that development and exploration drilling in Chile will take the place of much of the regional exploration drilling in Uruguay that has not been particularly successful to date and has been halted.

With the welcome rise in the gold price the economics of mining the low grade deposit at Pantanillo become more favourable and a lower cut off grade can be contemplated giving the possibility of extraction of close to 3 million oz on historic figures.

[robson1974] 16/11/2009 20:51

you are reading too much into it

[adam] 16/11/2009 20:42

George Schroer resigns.

Yet, the company says it "plans to operate with a more streamlined exploration management team"

It seems a contradiction. Either he resigned or they decided his services were no longer required.

Perhaps I am reading too much into this. The company is moving more towards proving up areas discovered rather than greenfield exploration and might find having Linqvist on-board is sufficient. (As an aside I note that he is linked to Al-Fayed through Gallant Minerals)

It was mentioned at the AGM that George was a board member previously but not seeking re-election.

[robson1974] 16/11/2009 15:22

gold on another run higher 1132 now

[robson1974] 16/11/2009 14:29

nice to see UGY/UME are streamlining their management

[robson1974] 16/11/2009 14:28

thanks, it is very amusing

not a gold bug myself but during the great depression the dow/gold relationship was 1:1 at one point and generally about 1:2 which would certainly support gold currently being around 5000 to 10000 but goodness me what would all the indian peasants do during their wedding season at those prices ! i guess there was no indian peasants or weddings going on in the 1930's

(sorry heartily sick of naive/thick people with no clue constantly referring to indian wedding season when talking about gold)

[robson1974] 16/11/2009 13:46

i have said elsewhere with regard to all the people prognosticating about the direction or target for gold how can anyone know or have any idea when it has broken out chartwise (and thus blue sky above) and with the next few decades likely to be characterised by India and China competing over world resources

[radarlove] 16/11/2009 13:26

robson,

I am presuming EK means he closed his long position at $1095, expecting $1100 to be a major resistance level.

You don't get it right everytime. :o)

[themoneymonster2] 16/11/2009 13:19

FRR news expected this week

[brando69] 16/11/2009 13:15

for the avoidance of doubt, what is your current position on FRR and NXS, cawky. pair of right old hounds it would appear. life in the old dogs yet?

[simon cawkwell] 16/11/2009 13:01

robson1974,

For the avoidance of doubt, I have never shorted gold. And I am not starting now.

Simon Cawkwell

[robson1974] 16/11/2009 12:15

has looked good for a while, might just have to wait for the deal to close but at least it gives plenty of time to load up

by the way Simon Cawkwell admits he may have made an error shorting gold seeing as it is moving $10-20 dollars up per day at the moment and is backstopped by India at $1045 he may be right... for once ;-)

[rivaldo] 16/11/2009 11:28

Looking good for a breakout?

[stevea171] 16/11/2009 08:15

As Rivaldo says the T1ps gold fund has been buying UGY. The fund only started up in August so all the UGY holding must have been bought in the past few months.

SF t1ps Smaller Companies Gold Fund.
Latest update of the Portfolio, as at 13/11 has UGY in the top 10 holdings.

Fund size: £3.5 million.
Uruguay Minerals: 3.2%
Value of UGY holding: £112,300

Top 10 Holdings

Stock Name Fund %
Golden Prospect Precious Metals 4.24
Norseman Gold 4.02
Metals Exploration 3.69
Kryso Resources 3.68
First Majestic Silver 3.5
Iamgold Corp 3.38
Lihir Gold Ld 3.37
Vatukoula Gold Mines 3.27
Uruguay Mineral Exploration 3.21
Pan African Resources 3.14

[robson1974] 16/11/2009 07:53

Gold going nuts above $1130 now should help

[thx1138] 16/11/2009 00:11

Thought it was odd when I read on here that you'd made that call. Gold will I believe, and as I stated several months ago, start the new year around the $1200 mark and move towards $1600 towards the year end.

Still, we all make mistakes.

[simon cawkwell] 15/11/2009 23:33

Gentlemen,

I have made a total horlicks in selling my December gold at $1095. I greatly regret it. But I have hoovered up Fortune Valley (FVX) and yet more UGY/UME. So I'll get it back and more.

Simon Cawkwell

[angel of the north] 15/11/2009 11:19

Didn't E.K. buy a chunk of these for his daughter as a medium/long term investment?

[corrientes] 15/11/2009 11:17

Nice to hear that.

[rivaldo] 15/11/2009 07:22

The t1ps.com Gold Fund have just sent out their November newsletter.

UGY is their ninth largest holding at 3.21% of the Fund, i.e about £110,000 or so. EK's confidence in UGY is therefore reflected here (NGL, which I also hold, is their second largest holding at 4.02%).

[malcolmmm] 14/11/2009 23:08

on the contrary EK thinks these are a raging buy, his call on gold is for a temporary dip

[corrientes] 14/11/2009 18:07

If EK is effectively saying that UGY is a sell,by virtue of his call on gold, then since he has been a raging bull of the stock until now. and has been continually proved wrong,it is very likely this stock will now rise substantially and he can maintain his track record with this stock anyway.LOL.

[maximoney1] 14/11/2009 13:38

Yes interesting Wimbled and puts a very enhanced perspective on the 'ounces in ground' being bought up just now, especially over a five year time frame. Doors being opened in Chile could also be seen as a major play in years to come as they go about trebling production.

[wimbled] 14/11/2009 10:51

Interesting and bullish commentary on gold. Key note on mining stock. Looks like mining prices lag behind rising gold price and then takeoff.

Anyway I liked it!