La Mancha Obtains a First Gold Pour From New Australian Frog's Leg Mine
HIGHLIGHTS:
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First gold pour from the Frog's Leg mine in Australia
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Start of production is two months ahead of schedule
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3000 meters of declines development completed to date
MONTREAL, QUEBEC -- May 13, 2008 - La Mancha Resources Inc. (TSX: LMA) (hereinafter "La Mancha" or the "Company") and its Australian joint venture partner Dioro Exploration NL, are pleased to report that the first gold from ore mined underground at its Frog's Leg project near Kalgoorlie in Western Australia was poured earlier today. This start of gold production at the Frog's Leg mine is taking place more than two months ahead of the schedule that was announced by La Mancha in August 2007 when the decision to proceed with the development of the mine was taken.
In addition to the gold pour there have been other significant developments at the Frog's Leg mine:
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The Rocket and Mist declines have reached a lenght of 3000 metres of development in total. In addition to the declines, development is now taking place on three horizontal mining levels. Wherever the mineralization has been exposed to date, orebody widths and grades are in accordance with what was predicted by the resource model.
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The increase in the number of available mining faces enables the pace of development to be accelerated. In order to achieve this increase in productivity:
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A third jumbo drill has been commissioned to increase underground development rates;
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A second underground truck is increasing haulage capacity;
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Power-line infrastructure and connection to mains power is nearing completion.
The Frog's Leg mine is forecast to produce an average of 83,000 oz of gold per annum from its underground operations over the next seven years, based on reserves of 3.65 million tonnes at 5.29 g/t Au.
This reserve and related mining plan do not take into account additional resources calculated in the March 2008 upgrade. The March resource estimates added 267,000 (37% increase) to the measured and indicated category increasing the total measured and indicated resources to 990,000 oz.
ABOUT THE FROG'S LEG MINE:
The Frog's Leg advanced project is located 25km west of Kalgoorlie, in the eastern goldfields region of Western Australia, and represents the southern part of the six million ounce endowed Kundana gold field. It was first operated as an open-pit from 2004 to 2005. Operations were conducted according to the mining plan until the end of 2005, at which point all the surface ore had been mined. Since then, additional drilling has indicated the viability of an underground operation. La Mancha owns 51% of Frog's Leg and acts as its developer and operator. The remaining 49% interest in the project is owned by Dioro Exploration NL (ASX:DIO). La Mancha's share of the ore produced at the Frog's Leg mine is processed at the Jubilee mill owned by Dioro.
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's shares trade on the Toronto (TSX) under the symbol "LMA". For more information on the company, 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, the statements regarding the Company's strategic plans, future commercial production, development, construction and production targets and timetables, development plans; statements regarding the assumptions underlying the conversion of Frog's Leg's resources into proven and probable reserves and their impact on the mining plan. 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 materiall
y 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, exploration risks, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licences, risks of delays in construction and production and other risks referred to in La Mancha's 2006 Annual Information Form filed with the Securities Commissions, as well as the Toronto Stock Exchange.
CONTACT INFORMATION:
La Mancha Resources Inc.
Martin Amyot
Vice President Corporate Development
514-987-5115
info@lamancha.ca
www.lamancha.ca
Renmark Financial Communications Inc
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JOHN BOIDMAN : JBOIDMAN@RENMARKFINANCIAL.COM
CHRISTOPHER WELLS : CWELLS@RENMARKFINANCIAL.COM
TEL. : (514) 939-3989
FAX : (514) 939-3717
WWW.RENMARKFINANCIAL.COM
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La Mancha Resources
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PRODUCER |
CODE : LMA.TO |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
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. |