La Mancha Resources Inc.
TSX : LMA

La Mancha Resources Inc.

April 14, 2009 08:34 ET

La Mancha's Conceptual VMS Deposit for its Hassa Property Increases to 60 million tonnes

MONTREAL, QUEBEC--(Marketwire - April 14, 2009) -

HIGHLIGHTS:

- Drill results from the second VMS target (Hadal Awatib) confirm the presence of several lenses of massive sulphides

- Hadal Awatib conceptual grades of 1.1 - 1.3 g/t Au and 0.6-0.8% Cu with conceptual deposit of at least 40 million tonnes

- Supergene zone exploration results from the Hadal Awatib pit floor are pending

BEST INTERSECTIONS INCLUDE:

- 64.4m at 1.63 g/t Au, 0.45% Cu and 12.21 g/t Ag from 323.4m

- 60.7m at 1.81 g/t Au and 0.43% Cu and 12.29 g/t Ag from 242.3m

La Mancha Resources Inc. (TSX: LMA, hereinafter "La Mancha" or "the Company") is pleased to report that preliminary drill results for the second of six targets where volcanogenic massive sulphides (VMS) have been identified at its Hassai property suggest the presence of a second conceptual deposit of 40 million tonnes of VMS at 1.1 - 1.3 g/t Au and 0.6 - 0.8% Cu. This potential deposit is in addition to the 20 million tonnes deposit identified in July 2008, for a total potential to date of 60 million tonnes at 1.15 - 1.35 g/t Au and 0.9 - 1.3% Cu.

Michel Cuilhe, President and CEO of La Mancha, commented: "With a potential resource of 60 million tonnes of VMS within a 7.5km radius, we have already exceeded our objective in terms of size of the project with the first two of six identified targets. Our next objectives are now to provide a preliminary resource and then to complete a preliminary economic assessment to demonstrate the value of this project. We aim to deliver on these two objectives by the end of the third quarter of 2009, at which point we trust that our Hassai VMS program will start to represent a significant value for our shareholders."

As with the first target reported in December 2008, estimation of the second target's conceptual tonnage and grade is based on the manual polygonal method using parallel cross-sections spaced at 100m. The following table summarizes the scope of the information collected so far:



--------------------------------------------------------------------------
Target #1 Target #2 Hassai property
Table 1 (Hassai pit) (Hadal (first 2 of 6
Awatib pit - targets)
eastern part)
--------------------------------------------------------------------------
Number of drill holes
completed (current +
historical) 19 8
Estimated length of the
structure (m) 1,000 greater than
500
Number of VMS lens (es)
intersected 1 at least 2
folded and
faulted
Average width of the
lenses (m) 14-17 up to 130 -
70 in average
Maximum depth
intersected(i) 350 300
--------------------------------------------------------------------------
Metals intersected (and
grade)(i)(i) Au 1.3-1.5 g/t A u 1.1-1.3 Au 1.15 -1.35 g/t
g/t
Cu 1.5-2% Cu 0.6-0.8% Cu 0.9-1.3%
Ag insignificant Ag 5-7g/t Ag 3-5g/t
Zn insignificant Zn 0.5-0.7% Zn 0.3-0.7%
--------------------------------------------------------------------------
Conceptual tonnage
estimate (t) 20,000,000 40,000,000 greater than
60,000,000
--------------------------------------------------------------------------

(i) below pit
(ii) not including enriched supergene zone


As shown in Figure 1 in the appendix, this second target called Hadal Awatib (target #2) is located at 13km from the Hassai pit (target #1) and lies underneath three main pits, one of which is still being mined for gold. Results to date for the Hadal Awatib VMS target indicate that the conceptual VMS deposit that lies at the bottom of the three pits appears to be faulted and folded, with a strike length of at least 1 km and a significant width. As shown in Figure 2 of the appendix, drill hole "HAE D 252" intersected 191 m of VMS, with an estimated true width of 130-150m based on core observation. Preliminary results also suggest that the structure runs at least 400m below ground level (300m below the floor of the pit) and remains open at depth. Moreover, metallogenic and analytical results indicate that there are at least two types of lenses: one containing Au, Cu and Zn and another containing Au and Ag. More information on the drilling results is provided in Table 3 of the appendix.

The peculiar nature of the structure and the significance of the preliminary drill results suggest a conceptual deposit of 40 million tonnes of VMS at 1.1 - 1.3 g/t Au and 0.6 - 0.8% Cu. It is important to note, however, that a significant portion of the VMS deposit is yet to be included in the deposit size estimate. As shown in Figure 3, the conceptual deposit of 40 million tonnes of VMS represents solely Zone B, which is the central, and thickest, of the set of lenses that extends over 500m. The previously-stated preliminary deposit calculation excludes the eastern part of the pit (Zone C), where the VMS appears to be less wide and rich, and the western part of the pit (Zone A), which has been drilled at a tighter grid from the floor of the pit to estimate the likelihood of enrichment. These two subsequent zones represent an interesting upside and could be included in the next conceptual deposit estimate once further studies have been conducted.

Jean-Jacques Kachrillo, Vice President, Exploration of La Mancha, stated: "Now that we have a conceptual deposit size for the second target, Hadal Awatib, we intend to focus on the upper part of its VMS lenses. We expect to identify an enriched zone at the top of the Hadal Awatib structure, as was the case for the Hassai structure, where gold and copper values intersected were significantly higher at the top of the VMS lenses. We are currently awaiting the results for the holes drilled from the bottom of the Hadal Awatib pit."

In light of the enriched supergene zone found on top of the VMS structure of the first target, as announced in December 2008, La Mancha launched a similar drilling campaign on the second target in the western part of the pit (Zone A). During the campaign, 44 holes totalling 4,160 meters were drilled at a tightened grid of 40x20 from the floor of the existing Hadal Awatib pit. Results are currently being compiled and should be made public towards the end of the second quarter of 2009.

The Hassai and Hadal Awatib conceptual estimates of potential tonnes and grade to date have insufficient exploration to define a mineral resource compliant with National Instrument 43-101. It is uncertain whether further exploration will result in the target deposit being delineated as a mineral resource. The estimate used the current geological interpretation of the lens with the intersections of copper and gold mineralization from the 12 new holes drilled to date and 7 previously-drilled holes at the Hassai pit and 8 new holes drilled to date and 7 previously-drilled holes at the Hadal Awatib pit. The estimate excludes copper and gold values outside the interpreted zones and all lead zinc and silver values, and does not take into account possible enrichment from the upper part of the lenses, mainly below the west pit of Hadal Awatib. The estimate also excludes dilution and recovery.

NEXT STEPS

The VMS exploration program will continue to progress as planned, with results disclosed as they become available. The following table outlines the VMS program's expected news flow along with the expected news release dates.



--------------------------------------------------------------------------
VMS Program Expected News Flow Expected
Release Date
--------------------------------------------------------------------------
Target 1 First NI 43-101 compliant resource
(Hassai pit) calculation for the deposit Q 2

Metallurgical tests Early Q3

Target 2 Supergene drill results for the western part of
(Hadal the pit, "Zone A" (44 holes totalling 4,160
Awatib meters have been drilled) End of Q2
pits)
First NI 43-101 compliant resource calculation
for the enriched zone Q3

Target 1
and 2 Scoping study End of Q3


CORPORATE DEVELOPMENT

La Mancha is pleased to announce that AGORACOM services have been retained to add to La Mancha's investor relations program by adding their internet platform as an additional communication channel between the Company and the investment community. Starting today, a La Mancha IR Hub at http://www.agoracom.com/IR/lamancha is available, where interested parties can post questions and receive answers from the Company in addition to browse through various sources of information on the Company and its projects.

TECHNICAL NOTE

The technical information in this news release was prepared under the supervision of Jean-Jacques Kachrillo, the Qualified Person under NI 43-101. Mr. Kachrillo is Vice President, Exploration and a full time employee of La Mancha Resources. He has sufficient experience in the style of mineralization and type of deposit to qualify as a Qualified Person as defined in "National Instruments 43-101, Standards of Disclosure for Mineral Projects". Based on his information, Mr. Kachrillo has consented to the content of this press release in the form and context in which it appears. Mr. Kachrillo has read National Instrument 43-101 and has ensured that this press release has been written in compliance with that instrument.

The analysis of these recent samples meet with all of La Mancha established Analytical Quality Assurance Program put in place to control and assure the analytical quality of assays in its gold exploration. Namely, this program includes the systematic addition of blank samples, pulp duplicates and internal material references ("standards") to each batch of samples sent for analysis.. Blank samples are used to check for possible contamination in laboratory, duplicates allow the overall precision to be quantified while standards determine the analytical accuracy. All samples are half HQ or NQ diamond drill core sampled on a one metre basis. Samples were assayed at Intertek laboratory in Indonesia, which is ISO 17025 qualified, using respectively for gold fire assays on 30g samples followed by AAS and for base metals triple acidic digestion followed by AAS. The average true widths are more than 70% of the intersection length. In addition, the results from the seven previously-drilled holes have not been verified using La Mancha's Analytical Quality Assurance program.

ABOUT THE HASSAI MINE

The Hassai mine is located in the Red Sea Hills desert of northeastern Sudan, some 450 km from Khartoum. Inaugurated in 1992, it is Sudan's first and only gold mine in production. Twelve pits have been mined over the years, generating a cumulative production of more than 2 million ounces of gold. La Mancha owns 40% of the mine through a subsidiary and is the mine manager. The Hassai mine's exploration budget is expected to total $4.9 million in 2009 ($2 million attributable to La Mancha), distributed among several gold targets (quartz, SBR and tailings) and VMS targets. The Hadal Awatib pit is located at 13km from the Hassai camp and comprises three main pits (see schematic map in the appendix) where around 1.1 million ounces have been mined since the creation of AMC, a La Mancha subsidiary, in 1992.

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.

ABOUT AGORACOM:

For all La Mancha investor relations needs, investors are asked to visit the La Mancha IR Hub at http://www.agoracom.com/IR/lamancha where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to lma@agoracom.com where they can also request addition to the investor e-mail 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 statements regarding the quantity of mineralization in place and its grade in Au and in Cu, the mineable character of the drill results, mining exploration risks, calculation and evolution of mineral resources, potential for additional resources, market price of gold, future work programs and objectives associated therewith, drill targets and anticipated results, interpretation of work results, development plans and anticipated timetables, in particular as regards the economic and technical potential for a mining and milling operation. 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. The Hassai conceptual estimate of potential tonnes and grade to date has insufficient exploration to define a mineral resource compliant with National Instrument 43-101. It is uncertain whether further exploration will result in the target deposit being delineated as a mineral resource. 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, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves and other risks referred to in La Mancha's 2007 Annual Information Form filed with the Securities Commissions and the Toronto Stock Exchange.

Table 3



--------------------------------------------------------------------------
HOLE Number From (m) To (m) Width (m) Au (g/t) Cu (%) Zn (%) Ag (g/t)
--------------------------------------------------------------------------
HAE D251 113.0 138.0 25.0 0.54 1.14 0.79 2.84
HAE D251 145.0 163.9 18.9 1.03 0.89 1.63 7.89
HAE D251 203.0 221.5 18.5 1.59 1.47 0.52 8.44
HAE D251 260.5 285.0 24.5 1.28 0.20 1.56 17.29
HAE D251 303.0 306.0 3.0 1.58 0.14 1.78 26.00
HAE D251 321.0 341.0 20.0 1.19 1.06 2.11 17.85
--------------------------------------------------------------------------
Total 109.9 1.11 0.90 1.33 11.24
--------------------------------------------------------------------------
HAE D252 147.6 163.1 15.5 1.29 0.85 1.92 11.20
HAE D252 171.5 196.0 24.5 1.24 0.83 1.08 5.20
HAE D252 203.0 229.3 26.3 1.00 0.85 1.14 3.42
HAE D252 242.3 303.0 60.7 1.81 0.43 0.21 12.29
HAE D252 323.4 387.8 64.4 1.63 0.45 0.22 12.21
--------------------------------------------------------------------------
Total 191.4 1.52 0.51 0.59 10.05
--------------------------------------------------------------------------
HAE D253 179.1 199.0 19.9 0.36 1.41 0.35 0.00
HAE D253 214.0 234.0 20.0 1.07 1.93 0.56 8.90
--------------------------------------------------------------------------
Total 39.9 0.72 1.67 0.45 4.46
--------------------------------------------------------------------------
HAE D254 174.9 189.0 14.1 0.68 2.28 1.52 5.57

HAE D255 168.9 171.9 3.0 0.68 0.33 0.37 7.90

HAE D256 135.0 153.0 18.0 1.14 0.24 1.55 12.28

HAE D257 180.0 194.0 14.0 0.29 2.66 0.66 1.71
HAE D257 221.7 232.4 10.8 1.68 0.67 0.67 12.73
--------------------------------------------------------------------------
Total 24.8 0.89 1.79 0.66 6.50
--------------------------------------------------------------------------

HAE D258 178.7 202.0 23.4 1.05 0.59 2.07 9.48
HAE D258 206.4 211.7 5.3 1.29 3.03 0.14 9.02
HAE D258 224.5 245.5 21.0 2.20 0.41 0.25 12.32
--------------------------------------------------------------------------
Total 49.7 1.56 0.77 1.09 10.63
--------------------------------------------------------------------------


The figures and the photos are availabe at the following address: http://media3.marketwire.com/docs/hadaa.pdf

Contact Information

  • La Mancha Resources Inc.
    Martin Amyot,
    Vice President Corporate Development
    514-987-5115
    info@lamancha.ca