SOURCE: La Mancha Resources

June 27, 2011 11:47 ET

Hassai Mine's Third Quarter Production Impacted

All Amounts Are Expressed in CA Dollars, Unless Otherwise Indicated. Unaudited

PARIS--(Marketwire - Jun 27, 2011) - La Mancha Resources Inc. (TSX: LMA) (FRANKFURT: LMA) (hereinafter "La Mancha" or the "Company") reports that a fire partially damaged two electrowinning cells at its Hassaï mine, in Northeast Sudan, over the weekend. Although the site is continuing its normal mining and crushing activities, gold production will be partially impacted over the next few weeks until the two electrowinning cells have been replaced. The Hassaï mine's production for the second quarter should therefore be minimally impacted by the incident.

Dominique Delorme, president and CEO of La Mancha, noted: "We are glad that no one was injured in the incident. Moreover, the quick reaction time of our team on the ground should minimize the impact of the fire on the annual production. Hassaï's expected gold production for 2011 therefore remains unchanged."

The replacement cost of the cells is estimated at $250,000. The first cell should be fully operational by July 10th, assuring 60% of the normal production rate from that date. We expect that the second cell should be replaced by early August, which should allow for the back log in production for July to be fully absorbed by the end of October.

La Mancha's consolidated production remains in line with its 2011 guidance of 115,000 to 135,000 attributable ounces of gold. The Hassaï mine represents approximately 20% of the Company's total expected gold production for 2011. Hassaï's production is expected to range between 60,000 and 70,000 ounces of gold (24,000 to 28,000 ounces attributable to La Mancha) in 2011.

ABOUT LA MANCHA RESOURCES INC.:
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 Stock Exchange (TSX) under the symbol "LMA". For more information, visit the Company's website at www.lamancha.ca.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's future commercial production. 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, mining industry risks, exploration risks, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licenses, risks of delays in construction and production and other risks referred to in La Mancha's 2010 Annual Information Form filed with the Securities Commissions, as well as the Toronto Stock Exchange.

Contact Information

  • For additional information, please contact:
    La Mancha Resources Inc.
    Martin Amyot
    Vice President Corporate Development
    Tel: (514) 987-5115 ext 25
    Email: Email Contact


    Nicole Blanchard
    Investor Relations
    (514) 961-0229
    Email Contact