UGS.V
UGL Begins 2006 Drilling Campaign at Ulaan Ovoo Coal Project; Encouraging Assay Results from UGL's and Planet Exploration's Argalant Gold and Copper Drill Program
Wednesday April 19, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 19, 2006) - UGL Enterprises Ltd. (TSX VENTURE:UGS - News) announced today that its 2006 drilling campaign at its Ulaan Ovoo Coal Project, northern Mongolia, has begun. The program will continue to delineate southern extensions of coal seams which Behre Dolbear (USA) of Denver, Colorado calculated have a defined reportable coal resource of 136.4 million tonnes of low-ash, low-sulphur, high quality, hard bituminous coal with an average thermal content of 12,600 BTU (Kcal/ks). See the February 27, 2006 press release for details. The coal resource is contained primarily in a single coal seam averaging 53.9 metres beginning from surface. A low stripping ratio is anticipated. The pre-feasibility study commissioned to Behre Dolbear (USA), announced March 20, 2006, remains on schedule for completion by the end of April, 2006 and will outline specifics as to anticipated production/transportation costs, economics of scale, projected mine life, annual production etc. The Ulaan Ovoo Coal Project has extensive camp and mining equipment in place and has been granted a fully transferable 55 year mining license with a 45 year extension option by the Mongolian Government.
UGL contemplates drilling extensively on the Ulaan Ovoo coalfields in 2006 beginning with a 10 hole program which will verify seam thicknesses and quality in the original discovery area as well as explore an extensive area south of a northwest-southeast trending fault on the southern edge of the main deposit. The area south of the fault has to date been explored by only a single drill hole which successfully intersected what appears to be an extension of the main coal seam. Drilling in the area directly south of the fault may significantly increase Ulaan Ovoo's existing 136.4 million tonne coal resource.
Coal from Ulaan Ovoo shows the potential for Coke and semi-Coke as well as raw feedstock for synthetic fuel oil production. Core from the current drill program will be tested for all possibilities.
Mr. Ranjeet Sundher, President of UGL Enterprises, stated that:
"We are excited to begin the 2006 Ulaan Ovoo drill program which will test a number of highly prospective geological targets selected by UGL's coal geological team in conjunction with Behre Dolbear (USA). We hope to broaden the success, size and quality of what is already an exceptional, well located, high quality coal project."
UGL also announces successful results from its Argalant diamond drill program carried out with Planet Exploration Ltd. (TSX VENTURE:PXI - News), and originally announced November 8, 2005. The program targeted the Gozgor high grade gold quartz vein (1 hole) and the Ovoot copper zone (2 holes). A total of 3 holes totaling 1200 metres were completed before winter conditions froze all the water sources.
Diamond drill holes ARDH-2005-01 and 03 targeted the Ovoot copper rich zone. Hole 01 intersected 0.696 grams gold per ton and 1.75% copper from 87.70 - 90.40 metres (2.7 metres) and 0.70 grams gold per ton and 0.844% copper from 183.0 - 186.0 metres (3.0 metres). Hole 03 intersected 0.477% copper from 23.7 - 76.7 metres (53 metres) with 2.259% copper from 51.0 - 55.0 metres. Hole 03 was stopped at 76.7 metres due to freezing of the water sources and ended in anomalous copper mineralization.
Diamond drill hole ARDH-2005-02 targeted the high grade Gozgor gold showing. The assay results of the drilling included 0.778 grams gold per ton over 1.95 metres.
Further exploration is planned for the summer of 2006. The work will comprise further surface stripping and sampling of the Gozgor and Ovoot followed by additional diamond drilling.
The Qualified Person responsible for summarizing the technical material respecting the Argalant program, was Gary Clark, P.Geo, a director of UGL, who oversaw the program. Mel Klohn L.P.Geo, a director of the Company and a Senior Consulting Geologist with 40 years industry experience is the Qualified Person in respect of the Ulaan Ovoo Coal project.
ABOUT UGL: UGL Enterprises Ltd. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol "UGS". In addition to the newly acquired Chandgana Tal Coal Project, UGL has an option to purchase 100% of the 136.4 million tonne high-volatile bituminous Ulaan Ovoo Coal Project in addition to 14 uranium properties and several gold and copper exploration projects located throughout Mongolia. UGL has a strategic alliance with Mega Uranium Ltd. to jointly develop its uranium assets, and with Mine Info Ltd., a leading Mongolian exploration service company. UGL has a full time office in Mongolia's capital, Ulaanbaatar.
Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The companies do not assume the obligation to update any forward-looking statement.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Paul McKenzie
UGL Enterprises Ltd.
Director
(604) 642-COAL (2625)
info@uglenterprises.com
www.uglenterprises.com
Nick Fuller
Fuller Fletcher & Associates Ltd. of London, UK
European Investor Inquiries
+44 (0) 20 7256 5204
Samantha Fletcher
Fuller Fletcher & Associates Ltd. of London, UK
European Investor Inquiries
+44 (0) 20 7256 5204
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Source: UGL Enterprises Ltd.
