La Mancha Resources

Published : September 12th, 2011

HASSA=C3=8F VMS DRILLING UPDATE: INTERSECTS 3.30M @ 94 g/t GOLD AND 225 g/t SILVER AND 10 M @ 13 % C

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LA MANCHA'S HASSA� VMS DRILLING UPDATE: INTERSECTS 3.30 M @ 94 g/t GOLD AND 225 g/t SILVER AND 10 M @ 13 % COPPER


Please find attached the most recent La Mancha Resources press release.   

..................

 

Veuillez trouver ci-joint le plus r�cent communiqu� de presse de La Mancha Resources.

 

LA MANCHA'S HASSA� VMS DRILLING UPDATE

MISE � JOUR CONCERNANT LES FORAGES DE LA MANCHA

 

 

NEWS RELEASE

 

Paris, September 12, 2011

 

LA MANCHA'S HASSA� VMS DRILLING UPDATE:
INTERSECTS 3..30 M @ 94 g/t GOLD AND 225 g/t SILVER AND 10 M @ 13 % COPPER

 

HIGHLIGHTS:

  • 100,000-metre drilling program on schedule, with 70,000 metres completed
  • Infill drill results suggests that a significant portion of the original inferred resource could be converted to M&I by year-end
  • Extension drill results also confirm the continuity below the current resource envelopes of the first two targets, further suggesting that their size could increase
  • First drilling campaign on Hadayamet, the third target, confirms its VMS potential
  • An updated VMS resource estimate is scheduled to be released in early 2012

 

La Mancha Resources Inc. (TSX: LMA, hereinafter "La Mancha" or "the Company") is pleased to report that, in line with the schedule, over 70,000 metres have already been drilled on its Volcanogenic Massive Sulphide ("VMS") project in Sudan. The remaining 30,000 metres of the program will be completed before year-end, as originally planned.

 

Dominique Delorme, President and CEO of La Mancha, noted that: "The Preliminary Economic Assessment released in September 2010 highlighted how sensitive the economics of the VMS project were to the size of the deposit. In that respect, today's drill results are important as they confirm the potential for significantly increasing the size of the resource in terms of tonnage and metals in situ.  It is also worth noting that, in addition to the three VMS structures currently identified below the Hadal Awatib East, Hadayamet and Hassa� South pits, more potential could also exist below at least five other pits on site where massive sulphides have already been visually identified."

 

DETAILED HIGHLIGHTS:

Hadal Awatib East Pit

Best intersections include:

  • 10 m @ 0.94 g/t Au, 13.38% Cu, 0.44% Zn and 19.50 g/t Ag (HAE 348)
  • 218 m @ 1..4 g/t Au, 0.55% Cu, 0.44% Zn and 9.40 g/t Ag (HAE 334)
  • 8 m @ 0.91 g/t Au, 10.95 % Cu, and 18.5 g/t Ag (HAE 345)
  • 11 m @ 1.65 g/t Au, 6.39% Cu, 0.35% Zn and 18.80 g/t Ag (HAE 346)

Jean-Jacques Kachrillo, La Mancha's Vice President of Exploration, noted that: "The results obtained at Hadal Awatib East are very exciting, as they show a thickening of the VMS lens to more than 150 metres in true width.. Furthermore, a well-defined zone of strong copper enrichment has been intersected in several holes drilled under the pit. We see this as a very positive development, as this size of lens could justify the development of much larger pit than envisaged in the PEA, thus increasing resource conversion and decreasing operating costs."

 

Hadayamet Pit

Best intersections include:

  • 3.30 m @ 94.00 g/t Au and 225.00 g/t Ag (HDY 218)
  • 98 m @ 1.75 g/t Au, 1.11% Cu, 2.18% Zn and 25 g/t Ag (HDY 219)

"This first drilling campaign confirms the significant VMS potential at Hadayamet. Results show impressive intersections with high gold, silver, copper and zinc values. However, this target appears to have a different geology than the other two, showing higher silver content. The presence of the high-grade gold and silver intersections appears to be associated with lead in the stringer zone," Mr. Kachrillo added. 

 

Hassa� South Pit

Best intersections include:

  • 84 m @ 1.76 g/t Au, 2.00% Cu and 0.31% Zn (HASS 359)
  • 38 m @ 2.04g/t Au, 1.96% Cu and 0.86% Zn (HASS 330)

"A significant and unexpected zone of thickening that reaches an estimated true width of approximately 40 metres has been delineated in the central part of the deposit. Gold and copper grades are higher than those intersected in the previous drilling campaign. Once again, these findings are encouraging, as they suggest strong potential for increasing the size of the resource, as well as gold and copper grades," said Mr. Kachrillo. 

 

ABOUT THE EXPLORATION CAMPAIGN

The drilling program initiated immediately after the publication of the 2010 Preliminary Economic Assessment ("PEA") results was aimed at continuing to delineate the first two targets, the Hassa� South and Hadal Awatib East pits, and testing the VMS potential at Hadayamet, another pit on the property. The PEA released in September 2010 studied the VMS potential below two of the 16 pits mined on the Hassa� property over the last 20 years (see map, Figure 1).

 

The full list of drill results received since the last VMS drill results reported in February 2011 is shown in Table 1 in the Appendix. Over 70,000 metres have been drilled at the Hassa� mine since the VMS PEA was released in September 2010. Management is confident that the results for the remaining 30,000 metres of drilling will be received before year-end, in line with the initial objective.

 

TECHNICAL INFORMATION

HADAL AWATIB EAST PIT

Drilling has been underway at Hadal Awatib East (see long section, Figure 2) since the beginning of the year, and results are now available for 27 drill holes.. The drilling has returned several long intervals of massive sulphides, up to 218 metres core length (~150 m true width) (see cross-section, Figure 3) in the area beneath where mining is currently taking place and extending at least 500 metres along strike and up to 250 metres vertically beneath the floor of the open pit. There are multiple massive sulphide intersections in this area, and drilling is ongoing to delineate these lenses and the degree of structural thickening and repetition. These results are very promising, as they suggest a thickening of the lens in the central part of the deposit to a width three times greater than what was assumed in the PEA, a very positive scenario for an ore body that the PEA anticipated would be mined by open pit methods.

 

It has also been noted that several of these lenses contain zones enriched in copper. These zones are easily identifiable by the abundance of chalcopyrite that typically occurs at the margins of individual lenses.  They are normally 3 to 5 metres wide with grades of 4.00% Cu, but can reach more than 10 metres  wide and contain more than 12.00% Cu (see cross-section, Figure 4). They are currently interpreted to be zones of primary enrichment. Drilling is underway to evaluate the strike and down-dip extension of these potentially large zones. Any continuity of these zones will be important for the next resource estimate and could have a positive impact on the overall copper grade of the resource.

 

Drilling in the eastern sector of Hadal Awatib East has revealed a less complex orebody comprising up to two sub-parallel lenses of VMS that dip steeply to the south. However, the degree of continuity westward from the AB area towards the Hadal Awatib North and West pits is less well defined and will be tested by further drilling during the final quarter of 2011. The results from the Hadal Awatib East area are very promising as they confirm the extension of the current resource envelope both along strike and at depth.

 

HADAYAMET PIT:

As mentioned earlier, the 2,054 metres  drilled below Hadayamet in 2011 represented the first holes drilled under this pit. Not only did this drilling confirm the VMS potential of this new target, it also suggested that the Hadayamet VMS geology is different from that of the other two targets assessed to date. The mineralisation appears to dip steeply southwards around the tip of a rhyolitic dome.  It is bounded to the west by a large fault and becomes thinner and sub-vertical to the east. The results of the initial 9-hole drilling program outlined encouraging intersections of massive sulphides with promising Au, Zn and Cu grades. Drill hole HDY 219, drilled beneath the western portion of the deposit, intersected 98 metres (60 metres estimated true width) at 1.75 g/t Au, 1.11% Cu, 2.18% Zn and 25 g/t Ag.

 

A high-grade stringer zone in the interpreted rhyolitic footwall containing elevated values of Au and Ag in association with Pb could also be of considerable potential significance.  Drill hole HDY 218 (see cross-section, Figure 5) returned 14.70g/t Au,  37.00 g/t Ag, 0.58% Cu and 0.40% Zn. This drill hole returned maximum values of 103.00 g/t and Ag values of 418.00 g/t over 1 metre. Gold and silver grades of that nature have never been intersected before on the property therefore a more detailed assessment of the possible significance of these higher grade zones will be undertaken. Further drilling is planned at Hadayamet before the end of the year, especially at depth, as the VTEM survey indicates that the Hadayamet anomaly continues at depth.

 

HASSA� SOUTH PIT:

At Hassa� South, drilling has outlined a significant, previously-unrecognized zone of thickening (up to 40 metres instead of the normal 15-20 metres) in the central part of the VMS lens, between sections 2150 and 2550.  The thickening occurs over 400 metres of strike length and extends down dip over an interval of 200 metres (see long section, Figure 6), in the dipping plane of the ore body, from approximately 225 metres vertically beneath the base of the current open pit. In the previous drill campaign, only one drill hole (HASS 222) intersected a thicker zone of massive sulphides. Furthermore, the grades obtained from new drill intersections in this area are significantly higher than the average Hassa� South grades (approximately 1.80-2.00 g/t Au and 1.80-2.00% Cu instead of 1.50 g/t Au and 1.50% Cu).

 

As was the case for the Hadal Awatib East target, several of the holes drilled tested the continuity of the deposit, with very positive results. A series of 10 holes drilled to test the extension of the orebody at depth between sections 1950 and 2650 showed continuity in thickness and grade. Similarly, a series of 12 holes were drilled on two lines (1700 and 1800) to the west to test the continuity in this direction. Once again, the findings are encouraging, suggesting strong potential for increasing the size of the resource, as well as gold and copper grades.

 

NEXT STEPS

As of August 31, 2011, 71,042 metres  had been drilled at Hassa� since the program began in the fall of 2009, including 42,923 metres  of Diamond drilling. There are still seven drill rigs in operation on site, and management expects an additional 32,958 metres of drilling to be completed before the program ends in November 2011, for a total of 104,000 metres. Some of the remaining drilling will focus on a fourth target, Hadal Awatib West, one of the other pits at the bottom of which massive sulphides have been identified. 

 

A few weeks will be required before all the assay results have been received. An updated VMS resource is scheduled to be released in early 2012.

 

TECHNICAL NOTE

The technical information in this news release was prepared by Dan Hamer under the supervision of Jean-Jacques Kachrillo. Mr. Hamer is the Exploration Manager at AMC and a full time employee of La Mancha Resources.  Mr. Kachrillo is Vice President, Exploration, and a full time employee of La Mancha Resources. Messrs. Hamer and Kachrillo both have sufficient experience in the style of mineralization and type of deposit to act as Qualified Persons 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 and standards determine the analytical accuracy. The Diamond drill 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. RC samples are 5m composites from pre-collar drilling and are assayed using the same Intertek procedures.

 

ABOUT THE HASSA� MINE

The Hassa� mine is located in the Red Sea Hills desert of north eastern Sudan, some 450km from Khartoum. Inaugurated in 1992, it is Sudan's first and only producing gold mine. Sixteen  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. A PEA discussing the development of the Hassa� mine was released in September 2010, presenting a two-stage project involving a) the construction of a CIL plant to recover the gold from the tailings accumulated on site over the first 20 years of operation of the mine, and b) a flotation plant allowing the treatment of the VMS ore discovered below some of the mined-out pits on the property. A subsequent feasibility study confirmed the economic viability of the first stage, and construction is set to begin in 2012.

 

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, visit the Company's website at www.lamancha.ca.

 

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. 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 2010 Annual Information Form filed with the Securities Commissions and the Toronto Stock Exchange. 

 

For additional information, please contact:

La Mancha

 

Martin Amyot

Nicole Blanchard

Vice President Corporate Development

Investor Relations

Tel: (514) 987-5115 ext 25

(514) 961-0229

Email: info@lamancha.ca

nblanchard@lamancha.ca



LA MANCHA�S HASSA� VMS DRILLING UPDATE
MISE � JOUR CONCERNANT LES FORAGES DE LA MANCHA






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Data and Statistics for these countries : Argentina | Australia | Indonesia | Sudan | All
Gold and Silver Prices for these countries : Argentina | Australia | Indonesia | Sudan | All

La Mancha Resources

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CODE : LMA.TO
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La Mancha Res. is a gold producing company based in Canada.

La Mancha Res. holds various exploration projects in Argentina and in Australia.

Its main assets in production are WHITE FOIL, ITY, HASSAÏ and FROG'S LAKE in Australia, its main asset in development is FETEKRO in Australia and its main exploration properties are LA ORTIGUITA, BONDOUKOU, HUALILAN and ARIAB in Argentina and HASSAI VMS and PARK DAM in Australia.

La Mancha Res. is listed in Canada and in United States of America. Its market capitalisation is CA$ 499.5 millions as of today (US$ 500.2 millions, € 391.6 millions).

Its stock quote reached its lowest recent point on October 31, 2008 at CA$ 0.04, and its highest recent level on March 09, 2012 at CA$ 4.03.

La Mancha Res. has 142 716 000 shares outstanding.

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