La Mancha Resources Inc.

La Mancha Resources Inc.

March 02, 2010 11:15 ET

VMS Project Drives La Mancha's Resources Higher in 2009

PARIS, FRANCE--(Marketwire - March 2, 2010) - La Mancha Resources Inc. (TSX:LMA) - All amounts are expressed in CAD dollars, unless otherwise indicated.


-- Measured and Indicated resources of 1.85 million oz of gold (as at
December 31, 2009)
-- Proven and Probable reserves of 766,200 oz of gold (as at December 31,
-- VMS project generates an Inferred resource of 829,000 oz of gold and
230,400 tonnes of copper for La Mancha
-- 2010 exploration budget of $12.8 million

La Mancha Resources Inc. (TSX:LMA) (hereinafter "La Mancha" or the "Company") is pleased to report that at year-end 2009, the Company's Measured and Indicated resources ("M&I resources") increased to 1.85 million ounces of gold, as the Company was able to delineate more ounces than it mined during the year. Proven and Probable reserves ("P&P reserves") increased by more than 14,200 ounces of gold to 766,200 ounces at the end of 2009. The most spectacular year-over-year change was in inferred resources, which, boosted mainly by the VMS discovery, surged to over 1.4 million ounces of gold and 230,400 tonnes of copper. A full description of La Mancha's mineral reserves and resources is provided in the table at the end of this press release.

Dominique Delorme, President and CEO of La Mancha, noted: "In 2009, La Mancha's exploration efforts were successful on two fronts as we managed to increase the reserve base of our producing assets while defining an exciting growth prospect for the Company: the VMS project. The fact that we were able to increase our gold reserves by more than 14,000 ounces of gold despite the 94,000 ounces produced this year is the result of exploration programs initiated in 2008, and a clear demonstration of the value created for our shareholders. However, the 2009 accomplishment that is undoubtedly redefining La Mancha's future remains the discovery of the significant VMS resource at our Hassai mine. When we translate its copper content into gold equivalent, this new inferred resource alone represents the equivalent of more than 2,179,000 new ounces of gold to La Mancha's credit(1), thus significantly increasing the Company's global resource base.

To maintain its pace, La Mancha has approved an exploration budget of $12.8 million for 2010. This budget does not include any allowance for the VMS project, whose needs will be defined by the scoping study to be released in the second quarter of 2010.

(1) Using a long-term gold price of US $750/oz, a long term copper price of US $2/lb and assuming a gold recovery and smelter return of 100%

The table below provides a breakdown of this year's main exploration targets:

Budget (in C$ millions)
Country Property Target ---------------------------
Capitalized Expensed Total
Hassai gold SBR & quartz resource
--------------------------------------- 0.4 1.1 1.5
Sudan Other VMS Grass-roots
Hassai VMS To be defined by
scoping study results
Frog's Leg mine Resource delineation 1.9 0
Australia ----------------------------------------------------------- 5.1
Park Dam, Grass-roots exploration 0 3.2
Kintore, Morley
Ity mine Resource definition 0.6 0.6
Bondoukou Second exploration
prospect campaign
Cote --------------------------------------- 4.7
d'Ivoire Fetekro prospect Explore the potential 0 3.6
at depth
Sissedougou Grass-root exploration
Argentina La Ortiguita Better assess the 0 1.5 1.5
La Mancha's Exploration Budget 2.8 10.0 12.8


La Mancha's two main Australian properties should account for up to 60% of the Company's 2010 production. Due to the country's greater weighting within La Mancha as a whole, Australian exploration objectives and budgets for 2010 have also been augmented.

Frog's Leg Mine

The Frog's Leg mine was the main contributor to La Mancha's 2009 reserve increase. The new Frog's Leg mine plan, released in July 2009, allowed the conversion of a significant portion of the resources added in 2008 to the reserve category. In total, Frog's Leg boosted its reserves by 131,259 ounces of gold in 2009 (66,942 attributable to La Mancha), adding another year to the mine's life and allowing for an increase in the mine's average annual gold production going forward.

In 2010, exploration at Frog's Leg will test the continuity of the deposit at depth, with a total of 38,500 metres of drilling carried out from five drilling stations located approximately 330 metres below surface. Figure 1 in the appendix shows the existing resource envelope and the areas that will be tested over the course of 2010, using a 40X40-metre drill grid. The drilling area will cover a strike length of over 1,100 metres and 170 metres vertically. This ambitious program was triggered by the information gained from the last resource model and the result obtained from a 733-metre deep exploration hole drilled in June 2008, which suggested that the Frog's Leg ore body might extend at depth.

Exploration on Other Tenements

In 2009, a comprehensive, thorough review of Kalgoorlie-area tenements owned by La Mancha allowed the most promising targets to be selected. These include the wholly-owned Kintore prospect, which lies close to the Kunanalling shear zone and presents all the favourable geological features and some interesting shallow historical drill results; it is a promising target for shallow, easily-accessible resources and is presently being drilled. Closer to Frog's Leg, the Park Dam North tenement (La Mancha 51%, Barrick 49%) presents a geological setting very similar to that of Kanowna Belle (4 million oz mined by Barrick).

Other targets, like the Morley prospect (La Mancha 51%, Barrick 49%) on the Zulieka Shear Zone and on the same trend as Barrick's Bullant underground mine, are promising and are scheduled for drilling in the second part of the year. In total, approximately 46,000 metres of RAB drilling, 10,700 metres of RC drilling and 4,300 metres of diamond drilling will be done on La Mancha's Australian properties over the course of 2010.


Ity Mine

More than 15,000 metres of resource development drilling were completed at the Ity mine over the course of 2009, testing mainly the high potential zones previously identified across the Cavaly River, which crosses the Ity mine property. Drill results are expected within the next two months. As at December 31, 2009, the Ity mine P&P reserves stood at 352,659 ounces of gold (161,870 ounces attributable to La Mancha), which, on the basis of the mine's current production rate, represents a mine life of at least six years. However, management is confident that the 263,400 ounces of M&I resource added in 2008 thanks to the extension of the Ity ore body and the discovery of a new ore body, coupled with the drilling conducted on site this year, should allow the mine to add to its current mine life.

A 2010 drilling budget of $2.61 million ($1.2 million attributable to La Mancha) has been allocated for ongoing exploration on the Ity mine property. The main objectives include additional delineation of the most interesting target identified in 2009.

Bondoukou Prospect

In the first quarter of 2010, La Mancha launched its second exploration campaign on its 100%-owned Bondoukou property, motivated by excellent results from the first round of drilling in 2009 on one of six main anomalies identified on the prospect. This larger drilling campaign, which includes 4,000 metres of RC and 1,350 metres of diamond drilling, is being conducted with the goal of 1) confirming the good results reported in 2009; and 2) estimating the potential of a second anomaly, where large geochemical soil anomalies associated with promising geological features and good geophysical prints have been reported.

The Bondoukou property, located only 20 km from the Ghanaian border, lies along one of six northeast-southwest trending volcanic belts in the Birimian system, which straddles Ghana and Cote d'Ivoire. This prolific area hosts more than 20 known gold deposits, including Ghana's largest gold mines, such as Newmont's Ahafo mine, AngloGold Ashanti's Obuasi mine and Gold Fields' Tarkwa mine, which together have over 60 million ounces of reserves.

Fetekro Prospect

This 65%-owned prospect is located in the center of Cote d'Ivoire in the heart of Birimian Shield. It is known to have some shallow inferred resources that have been quite well delineated. A short drilling campaign will be conducted to explore the potential at depth, which was not tested by earlier drilling campaigns conducted by the previous owners in the early 2000s. The prospect has some good historical results in a favourable geological setting. Around 1,000 metres of RC drilling and diamond drilling are planned.

Sissedougou Prospect

This prospect in the northern part of Cote d'Ivoire stretches along a belt that hosts a number of known deposits, like Rangold's Tongon project. The geological setting is very similar to that of the Birimian Shield. Some historical intersections have been reported on an anomalous structure. A geophysical survey on some trenches in late 2009 and early 2010 confirmed the potential of this area, and a small, 1,000-metre drilling campaign is scheduled for the second quarter of 2010 to better outline the favourable structure. La Mancha is sole owner of this tenement.


Hassai Gold:

Exploration at the Hassai mine in 2009 yielded significant results on two fronts. First, an additional 2.2 million tonnes of tailings containing 120,600 ounces of gold (48,250 ounces attributable to La Mancha) were added to the mine's M&I resources. Added to the tailings qualified in 2008, this means that the Hassai tailings now contain an M&I resource of 6.5 million tonnes at an average grade of 1.94 g/t Au, representing 407,616 ounces of gold (163,046 ounces attributable to La Mancha), and an Inferred resource of 1.17 million tonnes at an average grade of 2.11 g/t Au, representing 80,052 ounces (32,020 ounces attributable to La Mancha). Furthermore, the last 2.07 million tonnes of tailings in the active heaps represent an additional potential that will be drilled once the leaching process is complete.

The Hassai quartz deposit was the other main contributor to the growth in the mine's M&I resource in 2009, thanks to the successful definition drilling program conducted in 2009. Between the end of 2008 and 2009, the gold content of the quartz deposit at Hassai increased by 79% to 469,300 ounces of gold (187,720 ounces attributable to La Mancha).

Excluding the VMS, Hassai's M&I gold resources now exceed 1.3 million ounces of gold (520,000 ounces attributable to La Mancha), which constitutes a solid basis for the CIP/CIL feasibility study now underway and scheduled for completion later this year.

Additional work will be done on the quartz deposit in 2010, with the objective of upgrading a portion of the 225,000 ounces of gold in the inferred category to the M&I category.

Hassai VMS:

The other source of exploration success in 2009 was the Hassai VMS exploration program. Drilling on Hassa and Hadal Awatib was very successful, outlining more than 2 million ounces of gold and 570,000 tonnes of copper (overall resources) and demonstrating considerable potential for increasing the resource on these targets.

A scoping study is presently underway under the supervision of AMEC Minproc, and should be released early in the second quarter.

Subject to the study results, a $15 million drilling program is planned to upgrade these resources from the inferred to the indicated category and to estimate the potential of the four other VMS targets not yet drilled in the Hassai area.


In the first quarter of 2010, La Mancha launched a 3,000-metre RC drilling campaign on the La Ortiguita property to better assess the targets identified by geophysical and geochemical surveys conducted between 2007 and 2009. The La Ortiguita property is located on the El Indio trend, in proximity to Barrick's giant Pascua-Lama and Veladero deposits. La Mancha is the operator and will own 75% of the prospect by July 15, 2011.


La Mancha intends to publish its 2009 year-end financial results on March 29, 2010.

Management of La Mancha will be available for meetings at PDAC, from March 7-10, and its booth will be located at #2551. Management will also present at the Gold Africa Group in room 802AB on Monday March 8 at 3:40 pm.


La Mancha Resources Inc. is an international gold producer based in Canada with operations, development projects and exploration activities in Africa, Australia and Argentina. La Mancha's shares trade on the Toronto (TSX) under the symbol "LMA". For more information on the Company, visit its website at


For all La Mancha investor relations needs, investors are asked to visit the La Mancha IR Hub at where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors can email all questions and correspondence to, where they can also ask to be added to the investor email list to receive all future press releases and updates in real time.

Caution Concerning Forward-Looking Statements

This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, future exploration activities, development and construction of a CIL/CIP plant in Hassa and its impact on the resources of the property; statements regarding the exploration targets and timetables, exploration budget, the geological potential of our properties, more specifically the VMS potential in Sudan; statements regarding the number of metres to be drilled on each property and timing at which the drilling results will be made available; statements regarding the ability of this program to increase the resources and reserves of our properties. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, exploration risks, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licences, risks of delays in construction and production and other risks referred to in La Mancha's 2008 Annual Information Form filed with the Securities Commissions, as well as the Toronto Stock Exchange.

La Mancha Resources share December 31st 2009
Cu Au
GOLD OPERATIONS Tonnes % (T) (g/t) (ozs)
Hassai Mine (40%) resources shown inclusive of reserves
Proven Reserves 0 - - -
Probable Reserves 1 014 800 5,03 164 140
Subtotal 1 014 800 5,03 164 140
Measured Resource 1 484 400 1,91 91 094
Indicated Resources 3 636 400 3,82 446 332
Total Measured and
Indicated 5 120 800 3,27 537 426
Inferred Resources 1 786 800 3,02 173 821
Ity Mine (45.9%) resources shown inclusive of reserves
Proven Reserves 834 690 5,55 148 844
Probable Reserves 59 373 6,82 13 027
Subtotal 894 063 5,63 161 870
Measured Resource 1 507 356 4,26 206 412
Indicated Resources 1 190 187 2,54 97 170
Total Measured and
Indicated 2 697 543 3,50 303 583
Inferred Resources 3 449 385 1,60 177 725
Frog's Leg (51%) resources shown inclusive of reserves
Proven Reserves 162 915 6,51 34 102
Probable Reserves 2 053 909 5,00 330 128
Subtotal 2 216 825 5,11 364 230
Measured Resource 262 650 7,55 63 750
Total Measured and
Indicated 2 070 090 6,72 447 270
Inferred Resources 655 860 5,21 109 905
White Foil (100%) resources shown inclusive of reserves
Proven Reserves
Probable Reserves 980 454 2,41 76 031
Subtotal 980 454 2,41 76 031
Measured Resource
Indicated Resources 7 538 000 2,19 531 000
Total Measured and
Indicated 7 538 000 2,19 531 000
Inferred Resources 471 000 1,58 24 000
VMS (40%) (4)
Indicated resources 1 159 200 1,27 14 720 0,93 34 680
Total Measured and
Indicated 1 159 200 1,27 14 720 0,93 34 680
Inferred 19 392 000 1,19 230 400 1,33 831 200
Fetekro (65%) resources shown inclusive of reserves

Inferred Resources 2 388 104 2,43 186 574
TOTAL GOLD resources shown inclusive of reserves
Proven and Probable
Reserves 5 106 142 4,67 766 271
Measured and indicated
Resources 18 585 633 3,10 1 853 959
Inferred Resources 28 143 149 1,66 1 503 225
TOTAL CU resources shown inclusive of reserves
Measured and indicated
Resources 1 159 200 1,27 14 720
Inferred Resources 19 392 000 1,19 230 400

1. Reported mineral reserves have been calculated in accordance with
definitions and guidelines adopted by the Canadian Institute of Mining,
Metallurgy and Petroleum. Unlike proven and probable mineral reserves,
mineral resources (of all categories) do not have demonstrated economic
2. In mining operations, measured and indicated resources are considered
uneconomic at the price used for reserves calculations.
3. All calculations dated at 31/12/2009 except Fetekro dated 31/12/2006
4. The VMS resources was calculated with a cut-off grade of 0,8% eq Cu


Mineral reserves and resources have been estimated by La Mancha's technical personnel for each property in accordance with definitions and guidelines adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM " Standards on Mineral Resources and Reserves "). There are numerous uncertainties inherent in estimating proven and probable mineral reserves, including many factors beyond the Company's control. Reserve estimation is a subjective process, and the accuracy of any reserve estimate is a function of the quality of available data and engineering and of geological interpretation and judgment. Results from drilling, testing and production, as well as material changes in metal prices subsequent to the date of an estimate, may justify revision of such estimates.

La Mancha qualified persons(1) responsible for the mineral reserve and resource calculations for each mine or project are as follows:

Name Title

Hassai Bosc, Remi Independent Geologist, Arethuse Geology Sdn Bhd
Plyley, Bill Chief operating officer, La Mancha Resources

Ity Camus, Yann Consultant Geologist, Systemes Geostat
International Inc.(Geostat)
Plyley, Bill Chief operating officer, La Mancha Resources

Frog's Leg Eddie, Trevor Chief Geologist, La Mancha Resources Australia
Plyley, Bill Chief operating officer, La Mancha Resources

White Foil Plyley, Bill Chief operating officer, La Mancha Resources

Fetekro Eddie, Trevor Chief Geologist, La Mancha Resources Australia

VMS Bosc, Remi Independent Geologist, Arethuse Geology Sdn Bhd

1. Qualified person : an individual who is an engineer or geoscientist with
at least five years of experience in mineral exploration, mine
development or operation, mineral project assessment, or any combination
of these, has experience relevant to the subject matter of the mineral
project and the technical reports, and is a member in good standing of a
professional association.

Metallurgical Recovery and Cut-off Grade

In calculating mineral reserves, cut-off grades are established using long-term gold price and foreign exchange assumptions, the average metallurgical recovery rates and estimated production costs over the life of the related operation. For an underground operation, a cut-off grade is calculated for each mining method, as production costs vary from one method to another. For a surface operation, production costs are determined for each block included in the relevant operation.

The following table indicates the cut-off grade calculations and the average metallurgical recoveries at La Mancha's gold mining operations of the proven and probable mineral reserves.

Mine Average Metallurgical Cut-off Grades Gold Price Used
Recovery (Gold %) (g Au / t) (US$ / oz)
- Hassai Mine 66 to 86 (1) 0.8 to 1.5 (1) 650
- Ity Mine 80 2.0 650
- Frog's Leg 94.9 3.0 675
- White Foil 91 1.2 810
(1) Varies depending on ore type

To view Figure 1, please visit the following link:

Contact Information

  • La Mancha Resources Inc.
    Martin Amyot
    Vice President Corporate Development
    Nicole Blanchard
    Investor Relations