La Mancha Resources

Published : February 17th, 2009

Plans to Increase Production to up to 100,000 oz of Gold in 2009

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LA MANCHA PLANS TO INCREASE PRODUCTION TO
UP TO 100,000 OZ OF GOLD IN 2009

HIGHLIGHTS

� 2009 production target of 85,000-100,000 ounces
� Frog�s Leg mine in Australia expected to produce at full capacity in 2009
� Continued strong production at the African mines
� Significant upside at the White Foil project

Montreal, February 17, 2009, La Mancha Resources Inc. (TSX: LMA, hereinafter �La Mancha� or the �Company�) is pleased to announce that it expects to produce between 85,000 and 100,000 ounces of gold in 2009, for an increase of up to 40% over last year, at an average cash cost of US$497/oz.   

The breakdown of production is as follows:

Attributable Production (in oz)

2007A

2008A

2009E

 Australian mines

 

 

 

   Frog�s Leg

-

15,375

37,000 - 42,000

   White Foil

-

1,910

TBD

African mines

 

 

 

   Hassa�

34,760

29,270

25,000 - 30,000

   Ity

19,140

24,995

23,000 � 28,000

Total

53,900

71,550

85,000-100,000

As shown in the table above, the bulk of the production increase is expected to come from the newly-producing Frog�s Leg mine in Australia, which commenced production in May 2008. Improved performance at the Ity mine in C�te d�Ivoire is also expected to help increase La Mancha�s attributable production, while gold production at the Hassa� mine in Sudan is expected to remain stable as the transition from siliceous-baritic rock (SBR) to quartz ore continues.

Michel Cuilh�, President and CEO of La Mancha, noted: �Since we acquired these assets in 2006, growth has been a primary focus. In 2008, we increased production by 33% over the previous year (2007), and we will continue on that growth path in 2009, with a production increase of up to 40%. With production now diversified across three countries, we have become a gold producer well-positioned to take advantage of the immense African growth potential while relying on a solid Australian mining history.�  

OPERATIONS
The Frog�s Leg mine in Australia is expected to generate between 37,000 and 42,000 ounces of gold for La Mancha in 2009, at a cash cost of US$450 per ounce, compared to 15,375 ounces generated in 2008. Frog�s Leg is expected to operate at full production capacity throughout 2009, in the wake of the mining momentum gained towards the end of 2008 in terms of increased underground tonnage mined per month and improved ore grade. As mentioned in our recent year-end press release, the Frog�s Leg mine recorded a strong performance of 7,025 ounces of gold content (3,583 ounces attributable to La Mancha) mined during the month of December 2008.  

The Hassa� mine in Sudan is expected to produce between 62,500 and 75,000 ounces of gold in 2009 (25,000 and 30,000 ounces attributable to La Mancha) at a cash cost of US$673 per ounce, compared to 73,175 ounces of gold produced in 2008 (29,270 ounces attributable to La Mancha). During 2009, gold production will be supported by the efficiency of the recently-enhanced quartz line as the transition from the siliceous-baritic rock (SBR) to quartz ore continues.

�The quartz ore represents a huge potential for cash generation at the Hassa? mine, as  approximately 756,340 tonnes at an average grade of 4.02 g Au/t (for 97,660 contained ounces) was stockpiled beside the mill at year-end. Having this high-grade ore already stockpiled near the mill means that we can limit cash outflow to production and thus generate significant cash flow," added Mr. Cuilh�.

The Ity mine in C�te d�Ivoire is expected to produce between 50,110 and 61,000 ounces of gold in 2009 (23,000 ounces and 28,000 ounces attributable to La Mancha) at a cash cost of US$379 per ounce, compared to 54,460 ounces of gold produced in 2008 (24,995 ounces attributable to La Mancha). The production increase for 2009 will be generated by the higher gold grades from the Mount Ity pit, which was inaugurated in mid-2008.

Following the recently-published positive feasibility study for the White Foil project in Australia, management has commenced discussions with nearby milling facilities to secure a milling agreement so as to rapidly put the project into production. As no milling agreement has been signed to date, management has conservatively excluded any White Foil production from its 2009 production forecast. However, management believes that the possibility remains for the White Foil project to start contributing to La Mancha�s global production before year end. Based on the feasibility study, White Foil is expected to yield 69,160 ounces of gold production over a 27-month period.

CORPORATE EVENTS
Investor Relations Calendar
La Mancha will be participating at the BMO Capital Markets 2009 Global Metals & Mining Conference, at the Westin Diplomat Resort and Spa in Florida, on February 22-25, 2009. 

La Mancha will be exhibiting at the PDAC 2009 - Prospectors & Developers Association of Canada, at the Metro Toronto Convention Centre, South Building, on March 1-4, 2009.

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 (TSX) under the symbol �LMA�. For more information on the Company, visit its website at http://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 and more specifically its capacity to produce between 85,000 and 100,000 ounces of gold in 2009, statements regarding the development and construction of a mine and production targets and timetables; statements regarding the progression of Frog�s Leg and its capacity to eventually reach the objectives set in its feasibility study; statements regarding the future production level of its quartz line in Sudan and its future potential to generate important cash flows for the mine. 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, 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 licenses, risks of delays in construction and production and other risks referred to in La Mancha�s 2007 Annual Information Form filed with the Securities Commissions, as well as the Toronto Stock Exchange.


For additional information, please contact:
La Mancha Resources Inc.
Martin Amyot,
Vice President Corporate Development
Tel: (514) 987-5115
E-mail: info@lamancha.ca

Renmark Financial Communications Inc.
John Boidman : jboidman@renmarkfinancial.com
Maurice Dagenais : mdagenais@renmarkfinancial.com
Montreal - Tel.: 514 939-3989 / Fax: 514 939-3717
Toronto - Tel.: 416 644-2020 / Fax: 416 644-2021
www.renmarkfinancial.com

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

La Mancha Resources

PRODUCER
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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Annual reports of La Mancha Resources
Annual Report
Nominations of La Mancha Resources
4/2/2012ANNOUNCES CHANGES TO ITS BOARD OF DIRECTORS
5/4/2011Appoints New COO and CFO
2/26/2007New Appointments to the Board of La Mancha
Financials of La Mancha Resources
3/28/2012POSTS RECORD NET EARNINGS OF $36.1 M AND RECORD OPERATING C...
8/8/2011POSTS RECORD NET EARNINGS FOR THE SECOND QUARTER
5/18/2011NET EARNINGS DOUBLE ON RECORD CASH FLOW FROM OPERATING ACTIV...
Project news of La Mancha Resources
2/11/2013Group implements its growth strategy in Australia: Gold prod...
11/13/2012ANNOUNCES COMPLETION OF COMPULSORY ACQUISITION BY WEATHER I...
3/27/2012MEASURED AND INDICATED RESOURCES MORE THAN DOUBLE TO 4.8 MI...
1/19/2012MEETS ITS 2011 GOLD PRODUCTION FORECAST
5/16/2011(Ity)POSITIVE FEASIBILITY STUDY FOR THE HASSA=C3=8F MINE: LA MANC...
5/9/2011(Ity)ITY MINE RESUMES OPERATION
3/29/2011(Frog's Lake)A Record Year for La Mancha in 2010 as Production Increases ...
2/24/2011(Ity)ITY Mine Update
8/23/2010(Fetekro)Intersects Grades of Up to 135 g/t Au at Its Fetekro Propert...
8/3/2010First Stages of Frog's Leg Drilling Extension Program Return...
7/29/2009(Hassaï)New Longhole Drilling Doubles the Length of La Mancha's Hass...
7/20/2009(Frog's Lake)Frog's Leg Mine to Boost its Average Annual Gold Production ...
5/26/2009(Hassaï)Confirms the Presence of a Second Enriched Zone at the Hassa...
2/17/2009(Frog's Lake)Plans to Increase Production to up to 100,000 oz of Gold in ...
1/22/2009(Frog's Lake)2008 Year End Production Increases 33% to 71,550 Ounces
1/7/2009(Hassaï)Hassai Mine Tailings Begin Adding to La Mancha's Gold Resour...
1/5/2009(Ity)Resource at La Mancha's Ity Mine Jumps 50% on Excellent Dril...
12/10/2008(Hassaï)Recent VMS Drilling Suggests the Presence of a Supergene Zon...
7/30/2008(Hassaï)Preliminary Drill Results at La Mancha's Hassai Mine Suggest...
8/8/2008(Frog's Lake)Posts its Highest Quarterly Gold Production to Date
5/13/2008(Frog's Lake)Obtains a First Gold Pour From New Australian Frog's Leg Min...
4/23/2008(Frog's Lake)Reports Wide High-Grade Intercepts 150 Meters Below Current ...
7/5/2007(Frog's Lake)Frog?s Leg?s Resource Nearly Doubles
Corporate news of La Mancha Resources
11/13/2012Offer Update
8/28/2012ACKNOWLEDGES WEATHER II TAKEOVER OFFER SUCCESSFUL AND DECLAR...
8/3/2012SECOND QUARTER GOLD PRODUCTION JUMPS 21% FROM THE PREVIOUS Q...
7/31/2012Offer Update - La Mancha TSX:LMA
7/20/2012Offer Document Posted - La Mancha TSX:LMA
7/13/2012REACHES DEFINITIVE AGREEMENT TO BE ACQUIRED BY WEATHER II AT...
6/21/2012DISCOVERS A SIGNIFICANT VMS LENS BELOW THE ODERU
6/15/2012(White Foil)WHITE FOIL PROPERTY SHOWS UNDERGROUND POTENTIAL WITH MINERA...
6/11/2012(Ity)New Drill Results at La Mancha's Ity Mine Indicate That Mine...
5/15/2012REPORTS Q1 NET EARNINGS OF $7.9 MILLION
4/9/2012ANNOUNCES CHANGES TO ITS BOARD OF DIRECTORS
3/22/2012Proven and Probable Reserves Grow by 36% at La Mancha's Frog...
3/14/2012ANNOUNCES AUCTION PROCESS
2/22/2012VMS Resource Increases to 81MT Indicated and 37MT Inferred
1/31/2012Discovers a Mineralized Structure Extending Over 800M at Sis...
9/12/2011HASSA=C3=8F VMS DRILLING UPDATE: INTERSECTS 3.30M @ 94 g/t G...
7/11/2011HIGHLIGHTS IMPORTANT STEP FORWARD FOR SUDAN
6/27/2011Hassai Mine's Third Quarter Production Impacted
6/17/2011(Ity)Clarification on CIL Feasibility Study
5/3/2011NOMME UN NOUVEAU CHEF DES OPERATIONS ET UN NOUVEAU CHEF DES ...
1/14/2011RECORD GOLD PRODUCTION IN 2010
7/22/2010Confirms the Discovery of a New Gold Mineralised Zone at its...
5/12/2010Continues to Generate Profits Into 2010
11/11/2009Reports Another Strong Quarter
8/7/2009Posts Record Quarterly Net Earnings As Gold Production Rises...
2/4/2009Takes Advantage of Strong Gold Prices
2/5/2008 to Spend $10.6 Million on Exploration in 2008
5/28/2007Completes the Renewal of the Ity Mine's Mining Permit
5/16/2007Frog's Leg Results Exceed Expectations
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