La Mancha Resources Inc.

La Mancha Resources Inc.

June 19, 2008 10:03 ET

La Mancha's White Foil Resource Grows Significantly

HIGHLIGHTS: - White Foil's Measured and Indicated resources increase by 33% - Feasibility study is underway - Exploration resumes on the Park Dam North tenement

MONTREAL, QUEBEC--(Marketwire - June 19, 2008) -

All amounts are expressed in CA dollars, unless otherwise indicated. Unaudited.

La Mancha Resources Inc. ((TSX:LMA), hereinafter "La Mancha" or "the Company") is pleased to report that the Measured and Indicated resources at its 100%-owned White Foil project have grown by 33% to 531,000 ounces of contained gold, based on a 1.2g Au/t cut-off grade. The details of this new resource estimate are as follow:

1.2 g/t Cut-off Tonnes Grade (g/t Au) Ounces
Measured - - -
Indicated 7,538,000 2.2 531,000
Total Measured &
Indicated 7,538,000 2.2 531,000
Inferred 471,000 1.6 24,000

This new resource estimate is the result of the drilling campaign that took place from June 2007 to March 2008 with the aim of updating the mine plan in light of current market conditions. The White Foil mine, located 2.5km from La Mancha's Frog's Leg mine, was in production from August 2002 to August 2003, when production stopped due to water infiltration problems. Upon the acquisition of the mine, in September 2006, La Mancha undertook to dewater the pit in order to allow for the exploration work that led to today's resource update.

Michel Cuilhe, CEO and President of La Mancha, noted: "Now that Frog's Leg has started production, White Foil represents the next step towards developing our Kalgoorlie assets into a world class mining complex. The high conversion rate of White Foil's Inferred resource to the Indicated category bodes well for a new, significantly-upgraded, multi-year mine plan."

La Mancha has initiated a feasibility study on the construction of a mill on the White Foil property, thus considerably lowering the milling costs of the project. The new Indicated Resource of 7.5 million tonnes at 2.2 grams gold per tonne was based on a 1.2 gAu/t cutoff grade. Lowering the cut-off grade will be among the alternatives tested in the feasibility study.

Michel Cuilhe added: "Current information on White Foil suggests that it responds very well to lower cut-off grades, adding substantial resources. Moreover, the construction of a mill on the White Foil grounds would benefit our Frog's Leg mine, whose ore is currently being toll-treated. We are eagerly expecting the results of this feasibility study during the first half of 2009."

Resource definition drilling at White Foil commenced in June 2007, from the pit edge. Following completion of the dewatering, drilling was conducted from the pit floor to test parts of the resource that could not be drilled from sites at the pit edge. The primary aim of the program was to convert 160,000oz Au of Inferred resource reported in November 2002 to Indicated status. This drilling was not done previously because of the cost of drilling diamond holes from surface and because of access issues during the initial phase of open pit mining.

A budget of $2.75 million was allocated to the resource definition program in 2007-08. In total, 73 holes were drilled for 12,484m of drilling that comprised both diamond and RC holes. Drilling confirmed the continuity of the mineralization and successfully converted the majority of the Inferred resource to Indicated status. It also provided valuable geological information that will assist the future mining operation and exploration.


Gold mineralization is primarily hosted by a granophyric unit within the gabbroic Kopai Sill. The granophyre is brittle relative to other units within the gabbro and surrounding sediments. The granophyre was preferentially fractured during deformation and folding of the sill, causing dilation and creating a conduit for gold-bearing hydrothermal fluids. Gold is associated with a crosscutting network of quartz veins and fractures within the altered granophyre. Visible gold occurs in some veins.

The drilling program returned significant intersections from holes that obliquely traversed the centre of the resource directly below the current pit. For example:

MWDD018: 174m @ 2.06 g/t Au from 31m Incl. 8m @ 11.83 g/t Au from 192m
MWRC713D: 61m @ 2.85 g/t Au from 0m Incl. 9m @ 5.45 g/t Au from 7m
MWDD006 : 37m @ 3.83 g/t Au from 212m Incl. 12m @ 8.18 g/t Au from 224m

The recent drilling campaign has provided invaluable information now being used to design extensional drilling around White Foil. White Foil remains open along strike and at depth.


The recent start of production of the Frog's Leg mine, this resource development update at White Foil and the related feasibility work regarding the construction of a mill are part of La Mancha's strategy to develop a pre-eminent mining complex on its Kalgoorlie properties. Figure 1, shows La Mancha's interests around the Frog's Leg mine. In the upcoming months, La Mancha intends to start exploring the ground adjacent to the Frog's Leg mine on the Park Dam North tenements that it owns with Barrick gold (LMA 51%, Barrick 49%). Exploration is also planned along the trend extending south from White Foil to the Kopai South prospect where a small resource has been outlined previously.

The Park Dam North project covers the interpreted extension of the shear zone that hosts the Frog's Leg resource and is considered highly prospective. Following new geological mapping, geochemical sampling, and a detailed data review, targets have been selected and drilling is in progress. Park Dam North also covers several other mineralized trends extending south from the multi-million ounce Kundana mine camp. One such trend extends from the Kurrawang open pit 2km north of the project boundary. A shallow Aircore hole drilled across the Kurrawang trend on the Park Dam North project intersected 5m @ 3.42g/t Au from 16m. Follow up drilling is planned.


The independent Qualified Persons (QPs) for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects for the feasibility study are:

Elizabeth Haren BSc (Geol), MAusIMM (CP), carried out geostatistical work for the Resource Estimate. Elizabeth is a full time employee of Haren Consulting working for CSA Global which was engaged by La Mancha Resources Australia Pty Ltd.

Martin Bennett Bsc. Hons. (Geol.), MSc. (ODG), MAIG, Exploration Manager of La Mancha Resources Australia, supervised the drilling program and was responsible for the quality control and verification of the drill hole data used by La Mancha Resources Australia in making the resource estimates.

Trevor Eddie Bsc.(Geol) MAusIMM, Chief Geologist, La Mancha Resources Australia, conducted the resource estimation that included building the wireframes and block model, supervision of the geostatistical analysis and the resource classification.

The resource definition drilling program was conducted to industry best practice standards. Samples utilized for the resource update comprise half NQ2 diamond drill core and reverse circulation drill cuttings sampled on a one-metre basis. No niche sampling took place. Samples were assayed at either Genalysis Laboratories in Perth, using a 400g LeachWell cyanide leach, followed by solvent extraction and flame AAS or SGS Laboratory in Perth using a Fire Assay followed by solvent extraction and flame AAS.

The laboratory utilized a series of sample blanks, standards and check assays. In addition, La Mancha Australia routinely conducts check assaying programs utilizing alternative laboratories.

The White Foil resource model was created using the Multiple Indicator Krigging method. The 73 new drill holes allowed for a complete review of the geostatistical and variography information as well as a re-interpretation of mineralisation below the previously known resource. The drill data also allowed greater confidence in the extent of the ore body at depth. The previous resource estimation was conducted using the Multiple Indicator Krigged method. Comparisons made between the old and the new resource models, using the already mined area of the White Foil pit, showed a direct correlation in the two resources in ore, tonnes, and ore grade.

During the current resource estimation, a re-classification of the model was adopted. Measured figures are now defined as those that lie within the current mined pit shell; Indicated boundaries were based on average Cartesian distances of drill data less than 30m; anything farther than 30m or closer than 65m has been classified as Inferred. The previous resource statement had Measured figures below the current mined pit shell. This is not the case for the present resource estimate.

The updated resource review and estimation conforms to the requirements of NI43-101 and the CIM Best Practices for Estimation of Mineral Resources. There are numerous uncertainties inherent in estimating mineral reserves, including many factors beyond the Company's control. Resource estimation is a subjective process, and the accuracy of any resource estimate is a function of the quality of available data and engineering and 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. To the best of La Mancha's knowledge, at the time of estimation there were no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues that would materially impact on the eventual extraction of the mineral resources.

Mr Eddie, Mr Bennett and Ms Haren have read the National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101"). By reason of their education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, they are "qualified person" for the purposes of NI 43-101. Mr Eddie, Mr Bennett and Ms Haren consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.


The White Foil advanced project is located 20 kilometres directly west of the city of Kalgoorlie-Boulder, in the Eastern Goldfields region of Western Australia, and represents the southern part of the six million ounce endowed Kundana gold field. La Mancha holds a 100% stake in the White Foil mine, which was in production from 2002 to 2003. The White Foil open-pit produced 120,000 ounces of gold before operations were stopped due to excessive inflow of saline water into the pit. The process of pumping the excess water contained in the pit started in the fall of 2006 and was completed in September 2007.


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


This press release contains certain "forward-looking statements", including, but not limited to the statements regarding the quantity of mineralization in place, the mineable character of the drilling results, mining exploration risks, calculation and evolution of mineral resources, potential for resources additions, market price of gold, future gold production targets and objectives associated therewith, drilling targets and anticipated results, interpretation of work results, development plans in particular the optimization potential of the current pit design and development of the area into a world class mining complex. 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, 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 2006 Annual Information Form filed with the Securities Commissions, and the Toronto Stock Exchange.

Figure 1. is available at the following address:

Contact Information

  • La Mancha
    Martin Amyot
    Vice President Corporate Development