La Mancha Resources Inc.
TSX : LMA

La Mancha Resources Inc.

July 29, 2009 09:21 ET

New Longhole Drilling Doubles the Length of La Mancha's Hassai Pit VMS Lens to 700 Meters

MONTREAL, QUEBEC--(Marketwire - July 29, 2009) - La Mancha Resources Inc. (TSX:LMA)

HIGHLIGHTS:

- A 700-meter longhole recently completed at the Hassai pit suggests that the volcanogenic massive sulphide (VMS) lens under the pit is twice as long as initially thought.

- 36 meters of massive and strongly disseminated sulphides were intersected from 626 m with visible signs of chalcopyrite.

- La Mancha confirms that the initial 43-101 resource estimate for the VMS should be completed and released by the end of August 2009.

La Mancha Resources Inc. (TSX:LMA, hereinafter "La Mancha" or "the Company") is pleased to report that a longhole drilled from the southern edge of the Hassai pit at its Hassai property in Northeast Sudan has intersected 36 meters (apparent width, corresponding to a true width of about 20 meters) of massive and strongly disseminated sulphides at 600 meters down dip from the existing pit. This news is material to the rapid unfolding of La Mancha's VMS project in Sudan as a) it suggests that the previously-discovered VMS lens, which starts at the bottom of Hassai pit, might be at least twice as long as originally established in December 2008 (up to 700 meters) (see Figure 1 for details, available at the following address: http://media3.marketwire.com/docs/mancha_fig1.pdf), and b) the drill intersection seems to contain visible signs of chalcopyrite, often associated with a high copper content. Laboratory assay results should be available in 6 to 8 weeks.

Michel Cuilhe, President and CEO of La Mancha, stated: "Our April 2009 size estimate of 60 million tonnes for the Hassai VMS conceptual deposits may need to be revised upward significantly if the assay results for this hole confirm that the lens extends over a length of 700 meters rather than our initial approximation of 350 meters. We are delighted by this hole, as it makes an already promising project look even better."

Although the results of this recent hole will not be included in the preliminary 43-101 resource estimate to be issued by the end of August 2009, the Company remains confident that the initial resource will meet the previously-stated 60 million tonne forecast.

NEXT STEPS

As mentioned above, the calculation of the Hassai pit resource is well advanced and the Company expects to release the results by the end of August. The 43-101 resource estimate for the second VMS target on the property, Hadal Awatib, should follow soon after. Preliminary metallurgical test-work is also underway and should be available within the next few weeks. Management will use all these results in a scoping study assessing the Hassai property's VMS economic value. The Company expects this scoping study to be made public by the end of September 2009.

The Hassai property's VMS conceptual estimate 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.

TECHNICAL NOTE

The technical information in this news release was prepared under the supervision of Jean-Jacques Kachrillo and Martin Bennett (MAIG), who are both Qualified Persons under NI 43-101. Mr. Kachrillo is the 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. Mr. Bennett is the Exploration Manager for the Company's Sudanese property and a full time employee of La Mancha Resources. He has sufficient experience which is relevant to the style of mineralization and type of deposit to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code of Exploration Results, Minerals Resources and Ore Reserves". Mr. Bennett 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 met 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. 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 the Intertek laboratory in Indonesia qualified ISO 17025 using respectively for gold fire assays on 30g sample followed by AAS and for base metals triple acidic digestion followed by AAS. The average true widths are more than 75% of the intersection length.

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.

La Mancha decided to initiate an exploration program entirely devoted to the VMS potential of its 40%-owned Hassai mine in December 2007 on the basis of historical results of drilling by BRGM in the 1980s and 1990s. The objective of the first phase of the program was to test the potential of two of the six most prospective VMS lenses identified at the bottom of the previously-mined pits, i.e., Hassai and Hadal Awatib.

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 the VMS and the presence of strongly disseminated sulphides in the longhole reported, the materiality of this mentioned new longhole result for La Mancha and the project and what this suggests with respect to the length of the VMS lens below the Hassai pit as well as its potential to enhance the project economics, the apparent presence of chalcopyrite in the drill intersection, the mineable character of the drill results, mining exploration risks, calculation and evolution of mineral resources, market price of gold, future work programs and objectives associated therewith, anticipated results, interpretation of work results, development plans and anticipated timetables, in particular the confirmation of the presence of a 60 M tonnes VMS conceptual deposit. 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 if 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 2008 Annual Information Form filed with the Securities Commissions and the Toronto Stock Exchange.

Contact Information

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