Uruguay Mineral (SEE LSE:OMI) Share Discussion Threads

[hoveite] 16/12/2009 14:57

P3dr036 - I learnt it by looking at SEDAR - www.sedar.com

It's an official website which hosts documents released by Canadian public companies.

If you search for documents released by Fortune Valley and look at the documents dated 4th December you'll find information about the deal including the date of the meeting - the "Management information circular - English" has full details of the agreement between UGY and FVX.

[adam] 16/12/2009 14:54

www.sedar.com

voting/closing probably will be done on same day 29th.

[p3dr036] 16/12/2009 14:42

hoveite - many thanks.

29-12-09 doesn't leave much time for the formalities to be concluded, as the deal deadline is 31-12-09, as I understand it. But then there have been a number of earlier deadlines moved so it will not be the first time that the process has gone over time.

I have spent some considerable time on both the UGY & Fortune websites. The Fortune website is way out of date - the "latest" news there is from October!! The UGY one is not too much better.

Neither had the information you have given. May I ask where you learnt that from, please?

regards
P3

[hoveite] 16/12/2009 14:28

P3dr036 - Fortune are voting on 29th December.

[p3dr036] 16/12/2009 14:24

Apologies if I have missed this, but have Fortune's shareholders voted on the takeover by UGY yet? I understood that Fortune were to have had a meeting "around 11th December".

Did the meeting happen?
Do we know the outcome yet?

Thanks
P3

[stevea171] 16/12/2009 09:29

Atlantic. Thanks, you're probably right.

UGY are moving in the right direction and moving as fast as they can. The approval of the merger by Fortune Valley in 2 weeks time will emphasise the change in direction that is well needed. The market will notice in due course ... !

[stevea171] 16/12/2009 09:22

Uruguay Minerals says high grade drill results at Arenal Deeps gold project prove up projections
Tuesday, December 15, 2009

Uruguay Minerals Exploration (UME; AIM: UGY, TSX-V: UME) reported high grade results from the ongoing Arenal Deeps resource definition drilling programme, confirming the projections outlined in the initial resource model, and paving the way for the company to push ahead with its development ambitions.

UME's production for the quarter to 30 November at the nearby San Gregorio East operation totalled 13,580 oz (ounces) of gold with 362,416 tonnes of ore processed at a gold grade of 1.25 g/t (grammes per tonne) with recovery averaging 93.5%. The gold production was 10% below expectations, largely as a result of exceptionally heavy rainfall and lower grades at San Gregorio East.

Meanwhile, drilling results from Arenal Deeps continued to impress, and included intersections of 15.75m (metres) grading 2.36g/t gold, 14.35m at 3.04 g/t gold, 14.80m at 4.05 g/t gold and 14.5m at 4.33g/t gold. UME said the intercepts proved up the predictions in the initial resource model and improved continuity of the higher grade shoots, which is expected to have a positive impact on the resource modeling and final resource estimate. The drilling programme at Arenal is progressing ahead of schedule as more than 20,000 RC (reverse circulation) and diamond drill metres have been completed with the final resource estimate expected by March 2010. The feasibility study for the project is expected in June 2010.

The company's cash position at the end of the quarter was US$9.4 million with net working capital of US$20.2 million.

Following the lower than expected quarterly production, the company expects to rework its production guidance and provide it in its second quarter results due mid January. UME will also seek a General Manager for San Gregorio as well as a new Chief Operation Officer (COO) following the resignation of the current COO John Sadek.

"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," the company said in the statement.

The San Gregorio gold operation, located within the Isla Cristalina Belt, comprises a number of open pit mines and a processing plant. The mineralized system covers a 7 kilometre shear zone with three major deposits identified to date, Arenal, San Gregorio and Santa Teresa, which have collectively produced more than 800,000 oz of gold.

The Arenal Deeps deposit is the down dip extension of the Arenal deposit where 385,000 contained oz of gold were mined by open pit over the past five years and is located in the Minas Corrales mining district 2.5 kilometers east southeast of UME's San Gregorio plant.

[atlantic1953] 16/12/2009 09:19

Stevie your posts are good but thus far the market remains unconvinced.I Don't think the market will give them the benefit of the doubt until they actually deliver!

[stevea171] 15/12/2009 21:28

Arenal Deeps drilling is a month ahead of schedule, finishing in December (was to be January). Latest results confirm good grades likely to give an economic deposit. All the other dates could potentially move in by a month including ultimately mining and first ore to the mill from the underground development.

John Sadek has gone probably for his failure to deliver the production oz promised over an extended period. Maybe someone new can get production over 60k oz which is the minimum required.

[stevea171] 15/12/2009 21:16

Production below par as expected but UGY probably reversed the recent run of quarterly losses and made a small profit for the quarter due to the higher gold price.

09/10 Year:

Q1 actuals:
Production: 13,173 oz
Sale price: Av $912
Revenue gold: $12,014,000
Silver credit: $484,000
Total revenue: $12,498,000

Q1 result: loss ($2.2 million)

Q2 actual & estimates:
Production: 13,580 oz giving 26,753 oz for H1 (full year estimate 60,000)
Sale prices: Sept $1000, Oct $1050, Nov $1100, av $1050
Revenue gold: $14,260,000
Silver credit: $500,000
Total revenue: $14,760,000 (increase of $2.26 million cf Q1)

Cash balance: $9.4 million (Q1: $8.1 million)

Estimated Result Q2: Small profit of c. $0.1 million, based on implied charges/costs Q1. To be announced January.

[stevea171] 15/12/2009 20:56

RNS. 15/12/09
Drilling Report

Uruguay Mineral Exploration Inc

Uruguay Mineral Exploration Inc. Announces Additional Significant Drill Results for Arenal Deeps Including: 15.75m @ 2.36g/t Au, 14.35m at 3.04 g/t Au, 14.80m at 4.05 g/t Au and 14.5m @ 4.33g/t Au

Uruguay Mineral Exploration Inc is pleased to announce results from the ongoing Arenal Deeps resource definition drilling program. The Arenal Deeps deposit is the down dip extension of the Arenal deposit where 385,000 contained ounces of gold were mined by open pit over the past five years and is located in the Minas Corrales mining district 2.5 kilometers east southeast of UME's San Gregorio plant.

The drilling program is currently ahead of schedule which will enable UME to deliver the final resource estimate by March 2010. More than 20,000 RC and diamond drill meters have been completed during this recent drill program.

Significant results reported here are related to infill drill holes internal to the deposit and thinner intervals with lower grades are defining the edges or limits of the deposit as expected. Importantly, the intercepts are proving up what the initial resource model predicted and in most cases improving continuity of the higher grade shoots which is expected to have a positive impact on the resource modeling and final resource estimate.

Concurrently, geotechnical and metallurgical work has advanced according to schedule.

Significant intersections from recent drilling include:

HOLE ID Au intercept 1g/t1g/t FROM
ALDD122 2.50m @ 7.95g/t 295.85
ALDD123 7.00m @ 1.40g/t 256.80
ALDD125 4.10m @ 3.09g/t 275.10
ALDD127 2.99m @ 2.83g/t 357.21
ALDD127 3.71m @ 2.14g/t 373.60
ALDD127 15.75m @ 2.36g/t 389.05
ALDD128 1.01m @ 8.40g/t 292.45
ALDD128 6.45m @ 2.89g/t 296.95
ALDD128 14.35m @ 3.04g/t 310.60
ALDD129 6.35m @ 2.46g/t 223.85
ALDD129 14.80m @ 4.05g/t 235.20
ALDD130 4.95m @ 1.50g/t 366.60
ALDD130 4.00m @ 2.50g/t 387.90
ALDD131 6.35m @ 1.55g/t 337.45
ALDD132 14.50m @ 4.33g/t 446.90
ALDD132 3.85m @ 5.41g/t 472.25
ALDD132 3.75m @ 2.44g/t 483.35
ALDD134 1.60m @ 4.93g/t 302.20
ALDD135 3.00m @ 2.40g/t 399.30
ALDD135 7.00m @ 1.55g/t 408.70

Intercepts are drill widths (approximate true thickness) and may include up to 3m of internal dilution by lower grade (less than 1g/t) material.

Drill holes ALDD123, 125, 128 and 129 were drilled internal to the deposit and all proved up anticipated thicknesses and grades except in drill hole ALDD129 where the grades were better than anticipated.

Drill holes ALDD122, 124, 126, 134 and 135 were drilled along the western and eastern edges of the deposit and returned grades that would be expected at the edges of the deposit as mineralization pinches out.

Drill holes ALDD127, 130, 131 and 132 were drilled down dip on their respective drill sections. ALDD127, 130 and 132 intersected anticipated grades but significantly improved definition of deposit geometry in this deeper zone. ALDD131 intersected what the model predicted.

David Fowler, Chief Executive Officer commented: In April 2009 UME presented the results of an independent NI 43-101 compliant resource study on the Arenal Deeps deposit completed by Golder and Associates. The Arenal Deeps definition drilling is successfully extending mineralization at the edges of the deposit and confirming continuity of higher grade shoots in areas that were previously poorly defined.

We are happy with the progress the team has made and now expect to be finished drilling in December. This will keep UME on schedule to publish an updated NI 43-101 compliant resource estimate by March 2010 and complete the feasibility study by June 2010, concluded Mr. Fowler.

[stevea171] 15/12/2009 20:51

RNS. 15/12/09
Uruguay Mineral Exploration Inc. Announces Q2 Gold Production and Reorganisation

Uruguay Mineral Exploration Inc 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."

[dogberry202000] 15/12/2009 16:55

I think I need to raise my buying price from 14 to 16p.

[sharpshare] 15/12/2009 14:07

The technical report dated 14 Nov 2009 now available on Sedar shows potential 6.67million oz gold resource estimate for Fortune Valley Pantanillo soon to be controlled by Uruguay Minerals. (418mt at 0.496 g/t on pg 35)

[wallywoo] 15/12/2009 09:55

don't forget adam, they are doing that while:

1) Paying for the exploration work at Arenal Deep's underground deposit and other smaller exploration in Uraguay (spent $10.10M in 2009 and planned $4.7M in this year)

2) Paying for the merger costs with Fortune Valley and $250,000 loan to them to take up an exploration option in Chile.

[adam] 15/12/2009 09:33

10% below expectations implies expecting to mine 1,500 oz more for 15k in total.

They state 900oz lost due to rainfall but do not state the reason for the loss of the other 600oz other than to say "non realisation of high grade ore at San Gregorio East"

Current market cap is $25m. Net working capital is $20.5m with $9.5m of that cash.

Quite a feat for a producing gold company with a growing resource base.

[skidaddle] 15/12/2009 09:26

The management dead wood is gradually being cut out though. About time too!

[drago] 15/12/2009 09:23

hey soul
you'll feel right at home here

"The company though certainly does have a serious PR issue. It keeps saying what it will achieve and then disappoints - really silly "

[wallywoo] 15/12/2009 09:11

kibes that is complete rubbish from their latest accounts:

"UME's gold production profile of at least 190,000 ounces over the four years to May 31, 2013 from open pit operations at the San Gregorio mine in Uruguay with the potential to significantly improve this profile and reduce cash costs with the development of the Arenal Deeps underground deposit."

The company though certainly does have a serious PR issue. It keeps saying what it will achieve and then disappoints - really silly - much better to lower those figures and then over achieve. It has now got to the stage where the market doubts most of what mgt say.

It does not distract away from the fact that this is way undervalued and should at some point move up strongly.

[skidaddle] 15/12/2009 08:59

I think they have 3 years of ore reserves but expect to extend that by double? with the new reserves. The gearing should be excellent as they also expect to increase efficiency going forward.

[soulsauce] 15/12/2009 08:56

Ok kibes thanks.

[kibes] 15/12/2009 08:56

soulsauce - they may be producing 60k oz/ year but their last results did not show a profit. And they are running out of ore.

[soulsauce] 15/12/2009 08:55

Thanks Skidaddle.

Is the Mkt Cap figure right - 16.5M? Yet producing 60k oz? If so compared to many other goldies that is very cheap.

[skidaddle] 15/12/2009 08:52

Don't buy any soul. You'll only be moaning about them in the New Year lol.

I hold quite a few of these as I think I may have mentioned to you a while back.

I think the delay in takeover/merger is holding this back at the moment.

The price also seems to move up and down depending on the gold price. Even though break even is around $700 per ounce.