La Mancha Resources Inc.

La Mancha Resources Inc.

February 17, 2009 16:54 ET

La Mancha Plans to Increase Production to Up to 100,000 oz of Gold in 2009

MONTREAL, QUEBEC--(Marketwire - Feb. 17, 2009) - All amounts are expressed in US dollars, unless otherwise indicated.


- 2009 production target of 85,000-100,000 ounces

- Frog's Leg mine in Australia expected to produce at full capacity in 2009

- Continued strong production at the African mines

- Significant upside at the White Foil project

La Mancha Resources Inc. (TSX:LMA) (hereinafter "La Mancha" or the "Company") is pleased to announce that it expects to produce between 85,000 and 100,000 ounces of gold in 2009, for an increase of up to 40% over last year, at an average cash cost of US$497/oz.

The breakdown of production is as follows:

Attributable Production (in oz) 2007A 2008A 2009E
Australian mines
Frog's Leg - 15,375 37,000 - 42,000
White Foil - 1,910 TBD
African mines
Hassai 34,760 29,270 25,000 - 30,000
Ity 19,140 24,995 23,000 - 28,000
Total 53,900 71,550 85,000 - 100,000

As shown in the table above, the bulk of the production increase is expected to come from the newly-producing Frog's Leg mine in Australia, which commenced production in May 2008. Improved performance at the Ity mine in Cote d'Ivoire is also expected to help increase La Mancha's attributable production, while gold production at the Hassai mine in Sudan is expected to remain stable as the transition from siliceous-baritic rock (SBR) to quartz ore continues.

Michel Cuilhe, President and CEO of La Mancha, noted: "Since we acquired these assets in 2006, growth has been a primary focus. In 2008, we increased production by 33% over the previous year (2007), and we will continue on that growth path in 2009, with a production increase of up to 40%. With production now diversified across three countries, we have become a gold producer well-positioned to take advantage of the immense African growth potential while relying on a solid Australian mining history."


The Frog's Leg mine in Australia is expected to generate between 37,000 and 42,000 ounces of gold for La Mancha in 2009, at a cash cost of US$450 per ounce, compared to 15,375 ounces generated in 2008. Frog's Leg is expected to operate at full production capacity throughout 2009, in the wake of the mining momentum gained towards the end of 2008 in terms of increased underground tonnage mined per month and improved ore grade. As mentioned in our recent year-end press release, the Frog's Leg mine recorded a strong performance of 7,025 ounces of gold content (3,583 ounces attributable to La Mancha) mined during the month of December 2008.

The Hassai mine in Sudan is expected to produce between 62,500 and 75,000 ounces of gold in 2009 (25,000 and 30,000 ounces attributable to La Mancha) at a cash cost of US$673 per ounce, compared to 73,175 ounces of gold produced in 2008 (29,270 ounces attributable to La Mancha). During 2009, gold production will be supported by the efficiency of the recently-enhanced quartz line as the transition from the siliceous-baritic rock (SBR) to quartz ore continues.

"The quartz ore represents a huge potential for cash generation at the Hassaï mine, as approximately 756,340 tonnes at an average grade of 4.02 g Au/t (for 97,660 contained ounces) was stockpiled beside the mill at year-end. Having this high-grade ore already stockpiled near the mill means that we can limit cash outflow to production and thus generate significant cash flow," added Mr. Cuilhe.

The Ity mine in Cote d'Ivoire is expected to produce between 50,110 and 61,000 ounces of gold in 2009 (23,000 ounces and 28,000 ounces attributable to La Mancha) at a cash cost of US$379 per ounce, compared to 54,460 ounces of gold produced in 2008 (24,995 ounces attributable to La Mancha). The production increase for 2009 will be generated by the higher gold grades from the Mount Ity pit, which was inaugurated in mid-2008.

Following the recently-published positive feasibility study for the White Foil project in Australia, management has commenced discussions with nearby milling facilities to secure a milling agreement so as to rapidly put the project into production. As no milling agreement has been signed to date, management has conservatively excluded any White Foil production from its 2009 production forecast. However, management believes that the possibility remains for the White Foil project to start contributing to La Mancha's global production before year end. Based on the feasibility study, White Foil is expected to yield 69,160 ounces of gold production over a 27-month period.


Investor Relations Calendar

La Mancha will be participating at the BMO Capital Markets 2009 Global Metals & Mining Conference, at the Westin Diplomat Resort and Spa in Florida, on February 22-25, 2009.

La Mancha will be exhibiting at the PDAC 2009 - Prospectors & Developers Association of Canada, at the Metro Toronto Convention Centre, South Building, on March 1-4, 2009.


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


This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, future commercial production and more specifically its capacity to produce between 85,000 and 100,000 ounces of gold in 2009, statements regarding the development and construction of a mine and production targets and timetables; statements regarding the progression of Frog's Leg and its capacity to eventually reach the objectives set in its feasibility study; statements regarding the future production level of its quartz line in Sudan and its future potential to generate important cash flows for the mine. 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 licenses, risks of delays in construction and production and other risks referred to in La Mancha's 2007 Annual Information Form filed with the Securities Commissions, as well as the Toronto Stock Exchange.

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