RESOURCE AT LA MANCHA�S ITY MINE JUMPS 50%
ON EXCELLENT DRILL RESULTS
All amounts are expressed in CA dollars, unless otherwise indicated.
HIGHLIGHTS:
- Ity mine�s measured and indicated resource increases to 786 500 ounces of gold
- The presence of economic mineralization at recently-explored targets is confirmed
- La Mancha reiterates its objective to increase its resources to 2 million ounces of gold by year end
Montreal, QC - January 5, 2009 - La Mancha Resources Inc. (TSX: LMA, hereinafter �La Mancha� or the �Company�), is pleased to announce that the Measured and Indicated (�M&I�) resource at its 45.9%-owned Ity gold mine in C�te d�Ivoire is up more than 50% from December 2007. The project�s measured and indicated resource now stands at 786 500 ounces of gold (361 000 oz attributable to La Mancha) compared to 523,100 ounces of gold at December 31, 2007 (240,100 oz attributable to La Mancha).
The following table shows the breakdown of La Mancha�s share of the Ity mine resource:
|
As at December 31, 2007* |
As at September 30, 2008** |
(Inclusive of reserves) |
Tonnes |
Grade
(g/t Au) |
Ounces |
Tonnes |
Grade
(g/t Au) |
Ounces |
Measured |
1,303,101 |
5.12 |
214,510 |
1,879,146 |
4,24 |
256,210 |
Indicated |
|
119,340 |
6.67 |
25,589 |
1,281,984 |
2,54 |
104,790 |
Total Measured & Indicated |
1,422,441 |
5.25 |
240,099 |
3,161,130 |
3,55 |
361,000 |
Inferred |
|
204,714 |
3.78 |
24,851 |
939,114 |
3,02 |
91,180 |
* At a cut-off-grade of 2g Au/t
** At a cut-off-grade of 1g Au/t, does not take in account the gold produced during the 4th quarter of 2008
It is important to note that had Ity�s 2007 resources been calculated using a 1g Au/t cut-off grade as this is the case this year, last year M&I resources would have totalled 645,000oz of gold (296,000 oz attributable to La Mancha). This suggests that more than 53% of today�s announced increase is in fact the result of the successful drilling campaign conducted on the property since the fall of 2007. A total of 11,800 m have been drilled at Ity since La Mancha re-started its exploration activities in Ivory Coast, for a cumulative cost of $2.15 million, which represents $15 per ounce of gold added to the mine resource.
�The 120,000 ounces of gold that La Mancha is adding today to its consolidated resources table is another major step towards the Company�s goal of a total M&I resource base of two million ounces by the end of 2008. With the resources added at the Frog�s Leg and White Foil properties, La Mancha has added 388,141 ounces of gold to its M&I resources, which represents nearly 30% of increase over the 1.3 million ounces of resources that it reported at the end of 2007. Moreover, the assessment of the Hassa� mine tailings, which are currently being finalized, should further add to the 2008�s discoveries. We are therefore fairly confident of reaching our two-million ounce target.�
NEXT STEPS
La Mancha�s mining team will work at including these new resources to the Company�s mining plan over the course of 2009. On the other hand, drilling resumed recently following the end of the rainy season and should continue until July 2009. At the moment, around 350 holes totalling 24 600 m are planned for 2009 to test areas on both sides of the Cavally river, where gold mineralization has been identified in the past. More details on La Mancha�s 2009 exploration objectives will be provided in early February 2009 in the annual exploration update.
TECHNICAL NOTE
The updated resource review and estimation comply with the requirements of National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101") and CIM Best Practices for Estimation of Mineral Resources. There are many uncertainties inherent in estimating mineral reserves, including many factors beyond the Company�s control. Resource estimation is a subjective process, and the accuracy of any resource estimate is a function of the quality of available data and engineering and geological interpretation and judgment. Results from drilling, testing and production, as well as material changes in metal prices subsequent to the date of an estimate, may justify revision of such estimates. To the best of La Mancha's knowledge, at the time of estimation, there were no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues that would materially impact on th e eventual extraction of the mineral resources.
The technical information contained in this news release was prepared by Yann Camus from SGS-Geostat under the supervision of Jean-Jacques Kachrillo, the Qualified Person under NI 43-101 for La Mancha. Mr. Camus is full time employee of SGS-Geostat and has already written in January 2008 the technical report of Ity Mine filed in February 2008. Mr. Kachrillo is Vice President Exploration and a full time employee of La Mancha Resources. Both have sufficient experience in the style of mineralization and type of deposit to qualify as a Qualified Person as defined in the 2005 Edition of "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 NI 43-101 and has ensured that this press release is written in compliance with it.
La Mancha has established an Analytical Quality Assurance Program 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 the laboratory, duplicates allow the overall precision to be quantified while standards determine the analytical accuracy. All samples are half HQ (laterite and saprolite) and NQ (fresh rock) diamond drill core or correctly split reverse circulation samples, sampled on a one-metre basis. Samples were assayed at Ity mine laboratories on site, using 50g LeachWell cyanide leach and 20 to 25g well leached attacks followed by solvent extraction and flame AAS.
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 C�te d�Ivoire, Sudan and Australia.
La Mancha Resources owns 45.9% of the Ity mine and is the mine operator. The Ity mine started production in 1991 and has produced 0.7 M oz to date from Flotouo-Zia pit. The ore is processed by heap leaching.
La Mancha's shares trade on the Toronto Stock Exchange (TSX) under the symbol "LMA". More information on the Company can be found on 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 statements regarding the quantity of mineralization in place, the mineable character of the drill results, mining exploration risks, calculation and evolution of mineral resources, potential for additional resources, the Company�s ability to reach consolidated measured and indicated resources of two million ounces of gold before the end of 2008, market price of gold, future work programs and associated objectives , drill targets and anticipated results, and interpretation of work results. 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 statem ents 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 2007 Annual Information Form filed with the Securities Commissions and the Toronto Stock Exchange.
For additional information, please contact:
La Mancha
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
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