La Mancha Resources inc.: Frog's Leg Results Exceed Expectations
All amounts are expressed in CA dollars
SOME OF THE BEST INTERSECTIONS:
- 13m @ 11.36 g Au/t
- 16m @ 9.8 g Au/t
- 3m @ 31.94 g Au/t
- 9m @ 10.94 g Au/t
MONTREAL, QUEBEC--May 16, 2007 - La Mancha Resources inc. (TSX: LMA) (thereafter "La Mancha" or the "Company") is pleased to announce results of new diamond drill holes completed at the Frog's Leg advanced project that the Company co-own with Dioro Exploration NL (ASX:DIO, thereafter "Dioro"), near Kalgoorlie in Western Australia. These results, listed in the attached Schedule A are from drill holes completed between January 2007 and March 2007.
Started in June 2006, this drill program intends to improve the resource base in support of the finalization of a feasibility study for an underground mine at Frog's Leg. To date, the updated resource calculations released in February and completed on the basis of the holes completed as of September 2006 has already allowed a 35% increase in measured and indicated resources.
The drill program for 2007 comprises a forecast 20,000m of drilling at a cost of $4.4 million ($2.2 million attributable to La Mancha). This year's program is designed with the primary objective of improving the conversion of the inferred resources of the Mist and Fog envelope into the measured and indicated categories. Two diamond drill rigs have been devoted to that effect and the 7,800 meters drilled from January to March 2007 have rendered results above expectation.
As shown on the long section presented in Schedule B, several broad zones of high-grade mineralization have been intersected in the lower portion of the Mist and Fog orebodies. In particular MEDD102 intersected 13m @ 11.36 g/t Au and MEDD104 intersected 16m @ 9.80 g/t Au. Recent drilling has improved delineation of a shallow plunging high-grade zone of mineralization that remains open to the north. Additional drilling is planned to test this position.
Michel Cuilhe, President and CEO of La Mancha noted: "Although at an early development stage, the Frog's Leg underground mine project already benefit from a robust stature to which our current drilling program is adding new potential. We are confident that the drill results completed and analyzed since the last resource update released in February will have a positive impact on the size and profitability of this project."
It is expected that the remaining 12,200 meters of drilling left of the 2007 program should be completed by the end of September 2007. In the meantime, a new resources calculation incorporating data from all holes completed since October 2006 should be completed and released before the end of June. New drill results should be made public as they come available.
Schedule C lists all drill holes completed between October 2006 and the present that were not included in the December 2006 resource estimate. Some of these holes, denoted with a double asterisk, have not been reported previously. MEDD078 intersected 5m @ 16.73g/t Au and is particularly significant because it was drilled in a zone previously considered to be poorly mineralised between the Mist and Rocket resources. MEDD099-100 intersected good widths of mineralisation below the indicated resource at Rocket suggesting a coherent zone of mineralisation in this area.
La Mancha Resources operates and owns 51% of the Frog's Leg mine through its interests in the Mungari East joint venture with Dioro. The Frog's Leg open-pit commenced production in 2004. Operations were conducted according to the mining plan until the end of 2005, at which point surface ore extraction was finalized. Further drilling campaigns conducted since then have focused on improving the viability of an underground operation.
Mine development will continue at Frog's Leg, in parallel to the drilling program. The mine management team is preparing an update on the previous positive Feasibility Studies, and is purchasing mine equipment. The updated feasibility study and the beginning of the mine portal development are scheduled to start during the third quarter of 2007.
TECHNICAL NOTE
The technical information contained in this news release was prepared under the supervision of Martin Bennett (MAIG), who is the Qualified Person under NI 43-101. Mr. Bennett is a full time employee of La Mancha Resources. He has sufficient experience which is relevant to the style of mineralisation 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 consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
All samples are half NQ2 diamond drill core sampled on a one-metre basis. Samples were assayed at Genalysis Laboratories in Perth, using a 400g LeachWell cyanide leach, followed by solvent extraction and flame AAS. The average true widths are just over one-half of the intersection length. The locations of the intersection points are shown in the accompanying long section.
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 in Argentina.
La Mancha Resources operates and owns 51% of the Frog's Leg mine through its interests in the Mungari East joint venture with Dioro. The Frog's Leg open-pit commenced production in 2004. Operations were conducted according to the mining plan until the end of 2005, at which point surface ore extraction was finalized. Further drilling campaigns conducted since then have focused on improving the viability of an underground operation.
La Mancha's shares trade on the Toronto (TSX) under the symbol "LMA". For more information on the company, you may visit the web at www.lamancha.ca.
FORWARD LOOKING STATEMENT
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 work programs and objectives associated therewith, drilling targets and anticipated results, interpretation of work results, development plans and anticipated timetables, in particular as regards feasibility study completion and mine development, and 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. 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.
Schedule A (see Schedule A at http://www.ccnmatthews.com/docs/lma_AnnexeA.pdf)
Drill holes completed between January and March 2007
Schedule B (see Schedule B at http://www.ccnmatthews.com/docs/lma_ScheduleB.pdf)
Schedule C (see Schedule C at http://www.ccnmatthews.com/docs/lma_ScheduleC.pdf)
Drill holes completed from October 2006 to present
CONTACT INFORMATION
La Mancha Resources inc.
Martin Amyot,
Vice President Corporate Development
514-987-5115
info@lamancha.ca
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