SOURCE: La Mancha Resources

May 09, 2011 10:35 ET

La Mancha's Ity Mine Resumes Operation

PARIS--(Marketwire - May 9, 2011) -

HIGHLIGHTS

  • The mine is intact, fully operational, and resumed operations today
  • 2011 revised Ity production guidance: 15,000 to 17,000 ounces of gold (attributable to La Mancha)
  • Exploration program expected to gradually resume over the course of the second quarter

La Mancha Resources Inc. (TSX: LMA) (hereinafter "La Mancha" or the "Company") is pleased to report that, due to the improved political situation in Côte d'Ivoire, operating activities at its Ity mine successfully resumed today while its exploration activities in the country are expected to gradually recommence in the coming months.

Dominique Delorme, President and CEO of La Mancha, noted that: "We expect the downtime seen at the beginning of the year to be offset by the Ity's upgraded processing facility and its resulting improved production capacity. This year's production should therefore be in line with last's year production. Our decision to resume operations in Côte d'Ivoire reflects the country's improved political situation and its associated impact on the safety of our employees. Despite recent events, we still believe in Côte d'Ivoire's long-term outlook and its ability to continue to aggressively develop its mining industry."

The precautionary measures taken at Ity to safeguard the plant and the mining assets proved effective as the equipment remained intact and fully operational. As such, gold production at Ity is expected to quickly reach its 2011 expected run-rate of 4,350 ounces of gold per month (2,000 ounces attributable to La Mancha) by the end of May.

The mine's new leach pads, commissioned in the second half of 2010, should allow Ity to increase its annual production rate and thereby compensate for the months of production lost at the beginning of the year. La Mancha is now expecting the mine to produce 32,700 to 37,000 ounces of gold in 2011 (15,000 to 17,000 ounces attributable to La Mancha), in line with its 2010 production level. The mine has already produced approximately 4,830 ounces of gold (2,218 ounces attributable to La Mancha) for this year, during the time it was in operation from mid-January until operations were last suspended on February 24, 2011.

Despite the recent production interruptions at the Ity mine, La Mancha's consolidated production remains in line with its 2011 guidance of 115,000 to 135,000 attributable ounces of gold. La Mancha expects approximately 13% of its 2011 consolidated gold production to come from the Ity mine.

ABOUT THE ITY MINE
La Mancha owns a 45.9% interest in the Ity mine, located in the Zouan Hounien region, in western Côte d'Ivoire. The mine has produced more than 800,000 ounces of gold since its commissioning in 1991. Recent political events forced the mine to suspend its activities from December 17, 2010 until mid-January 2011 and from February 24, until May 9, 2011.

ABOUT LA MANCHA'S 2011 CÔTE D'IVOIRE EXPLORATION PROGRAM
La Mancha has one of the largest exploration holdings in Côte d'Ivoire, adding up to 1% of the country's area. An exploration budget of up to $2.8 million attributable to La Mancha is planned for the remainder of the year for the Fetekro, Bondoukou and Sissedougou properties.

ABOUT LA MANCHA RESOURCES INC:
La Mancha Resources Inc. is an international gold producer 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 on the Company, visit its website at http://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 and exploration activities. 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 the geopolitical tensions currently observed in Côte d'Ivoire, 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

    Nicole Blanchard
    Investor Relations
    Tel: (514) 987-5115 ext 26
    Email: info@lamancha.ca