First Half of Frog Leg's Delineation Program Adds 180,000 Ounces of Gold to the Mine's M&I Resources
PARIS -- (Marketwire) -- 11/22/10 -- La Mancha Resources Inc. (TSX: LMA)
RESOURCE INCREASE HIGHLIGHTS:
-- First half of the exploration program already adds 180,000 ounces of
gold (91,800 ounces attributable to La Mancha) to M&I resources,
substantially more than the 150,000 ounces targeted for the entire
program
-- Drill results suggest mineralization remains thick at depth while
resource remains open at the limit of current drilling
-- Management expects further resource growth on completion of the three
remaining drill platforms
HIGHLIGHTS OF PRELIMINARY DRILL RESULTS:
-- Preliminary results from second half of drilling campaign returns more
high-grade intercepts, including:
-- 13.5m @ 8.58 g/t Au with true thickness of 12.3m
-- 14.5m @ 7.00 g/t Au with true thickness of 12.1m
-- 16.0m @ 7.14 g/t Au with true thickness of 9.9m
-- 16.57m @ 6.31 g/t Au with true thickness of 9.7m
-- Results indicate that new zones are more highly prospective than those
previously drilled
La Mancha Resources Inc. (TSX: LMA) (hereinafter 'La Mancha' or 'the
Company') is pleased to report that the ongoing resource delineation
program at its 51%-owned Frog's Leg underground mine in Western Australia
has already significantly surpassed its objective, with more than half of
the drilling yet to be factored in. As of September 30, 2010, the Frog's
Leg Measured and Indicated resource amounted to 866,000 ounces of gold
(441,660 ounces attributable to La Mancha), of which 180,000 ounces (91,800
ounces attributable to La Mancha) are the direct result of the successful
exploration conducted below the first two drill stations installed at the
bottom of the mine. (See Figure 1 of appendix)
Dominique Delorme, President and CEO of La Mancha, noted: 'We are thrilled
with the Frog's Leg resource delineation program to date for the following
reasons. First, the objective for the entire program was to add 150,000
ounces of gold to the Frog's Leg resource. With only 45% of the drill
results modelled to date, we have already exceeded that objective. Second,
the drill results received from the second segment of the program continue
to return very interesting intercepts, suggesting that the Frog's Leg
resource will continue to grow in the mine's year-end resource report.
However, the most interesting potential identified to date by our resource
delineation program is the suggestion of the continued thickness of the
Frog's Leg mineralization and the presence of more high grades intercepts
at depth. Should they be confirmed, these two characteristics bode well for
the future of the Frog's Leg deposit as it suggests a continued resource
increase. All these reasons, reaffirm the robust nature of the Frog's Leg
deposit, making us even more confident of further extending the Frog's
Leg's mine life by developing the mine well beyond the current resource
envelope.'
The aforementioned extensive underground resource drilling program, aimed
at testing the continuity of the Frog's Leg deposit at depth, started in
early 2010. The program involves 35,000 metres of diamond drilling across
the entire 1,200-metre strike length of the deposit. Management anticipates
that this drilling has the potential to extend the mine depth by another
180 metres, and further development of the mine below the 600-metre level
looks probable. The resource extension drilling is being done from five
main drill platforms, as illustrated in Figure 1 of the appendix.
To date, drilling has been completed from the first four drill stations
installed at the bottom of the mine. The new resource statement is,
however, only based on the modeling of the drill results from the first two
drill stations, which corresponds to a total of 15,813 metres drilled,
representing a mere 45% of the total resource drilling program. As shown in
Table 1 of the appendix, the new resource statement includes the drill
results published on August 3 as well as the newly-obtained results.
As illustrated in Figure 1, the resource increase is a result of new
discovery and conversion of areas of Inferred material contained within the
April 2009 Resource Statement. To date, the exploration program has added
180,000 ounces (91,800 ounces attributable to La Mancha) to the Frog's Leg
Measured and Indicated resource, in addition to the 60,000 ounces (30,600
attributable to La Mancha) already identified in the December 31, 2009
resource statement.
The following table shows the new Frog's Leg project resource estimate on a
100% basis:
Table 1: Comparative Resource Statement
As of December 31, 2009 As of September 30, 2010
-------------------------- ------------------------
Grade Ounces Grade Ounces
Tonnes (g/t) (oz) Tonnes (g/t) (oz)
--------- ------ --------- --------- ------ -------
Resource Base
Already Defined Resource
Measured 492,000 7.6 121,000 1,002,000 8.2 265,000
Indicated 3,240,000 6.7 696,000 1,865,000 6.0 361,000
Total M&I 3,732,000 6.8 817,000 2,929,000 6.6 626,000
Inferred 143,000 7.1 32,500 94,000 5.6 17,000
--------- ------ --------- --------- ------ -------
Resource Extension
Measured 23,000 5.4 4,000 116,000 9.7 36,000
Indicated 304,000 5.7 56,000 1,119,000 5.7 204,000
Total M&I 327,000 5.7 60,000 1,235,000 6.0 240,000
Inferred 1,143,000 5.0 183,000 490,000 4.6 72,000
--------- ------ --------- --------- ------ -------
Total Resource
Measured 515,000 7.5 125,000 1,118,000 7.9 301,000
Indicated 3,544,000 6.6 752,000 2,984,000 5.9 565,000
Total M&I 4,059,000 6.7 877,000 4,164,000 6.5 866,000
Inferred 1,286,000 5.2 215,500 584,000 4.7 89,000
--------- ------ --------- --------- ------ -------
Reported resource figures were calculated using an Au cutoff grade of
3.0 g/t, consistent with the resource estimates reported in the
December 2009 End of Year Statement.
The project's Measured and Indicated resource now stands at 866,000 ounces
of gold (441,660 oz attributable to La Mancha) after nearly three years of
sustained mining activity.
Based on the historical conversion of resources to reserves, it is
anticipated that this interim resource increase will result in a one-year
extension of the current mine life. In 2010, more areas of ore development
have opened up with dual parallel drives, while the number of stoping
fronts has increased and a crown pillar has been established for mine
stability.
Results to date indicate that there is potential well beyond the current
resource as the extensions and growth areas display geology and grade
consistent with what is seen in previous orebody modelling. Figure 2 of the
appendix indicates a 10-m wide (true thickness) intercept some 200 metres
below the current mine plan, indicating an increase in true width at the
lowest point of drill information. This is more than the current average
thickness seen in the Mist-Rocket Lode. This result demonstrates the robust
nature of the Frog's Leg deposit and the potential for further development
of the mine below the 600-metre level. Drilling to further assess this
potential is planned in 2011.
The impact of the resource extension on mining method will be fully
evaluated during the reserve modelling process once the next resource
update is complete.
PRELIMINARY DRILL RESULTS FOR THE SECOND PORTION OF THE CAMPAIGN
As previously mentioned, the drilling program continued from the remaining
three drill stations at the bottom of the mine. Drilling at stations 3 and
4 started in July and was completed in early November, with 15,000 metres
drilled. A further 5,000 metres is planned and will be drilled on the fifth
extension zone before the end of the year.
The preliminary drill intercepts reported today come from only 15% of the
drill core from stations 3 and 4. These results are shown in Table 1 of the
appendix. The intercepts are characteristic of the widths and grades
already seen around the current Indicated boundary.
Jean-Jacques Kachrillo, VP Exploration of La Mancha, noted that: 'It is
important to highlight the significance of these initial drill results as
it confirms our belief that the zones currently being drilled are more
highly prospective than the areas drilled previously. The drill holes
reported here have returned significant grade intersections, confirming the
continuity of the mineralization. Furthermore, drill results suggest that
the mineralization remains thick at depth, under drill stations 3 and 4,
as suggested from the results at the end of this press release. We are
particularly excited about the three drill results received from station 4,
as they all show grades above 6.3 g/t Au over a length of at least 14
metres, with impressive true thicknesses of 9.7 to 12.1 metres. This
continuity of the mineralization and its continued thickness bodes well, as
it indicates that the Frog's Leg deposit could continue to significantly
grow. '
NEXT STEPS
All resource extension drilling from the remaining fifth drill station is
on track to be completed by year-end. Resource modeling for the last three
stations is scheduled for completion in early 2011 and should be included
in the year-end resource update. A new reserve and life-of-mine plan will
be developed following completion of the new resource statement in 2011.
In light of the program's recent exploration success, five deep exploration
holes are budgeted for 2011, targeting mine extensions identified in the
resource model from the 2010 extension drilling program.
ABOUT LA MANCHA AND FROG'S LEG
La Mancha 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, please visit
its website at http://www.lamancha.ca.
QUALITY CONTROL
The updated resource review and estimation conform to the requirements of
NI 43-101 and CIM Best Practices for Estimation of Mineral Resources. There
are numerous 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 the eventual
extraction of the mineral resources.
The drilling program was carried out by, and under the supervision of,
Trevor Eddie B.Sc. (Geol.) MAusIMM, Geology Manager of La Mancha Australia.
The program was conducted in accordance with industry best practice
standards.
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
and internal material references ('standards') to each batch of samples
sent for analysis. Blank samples are used to check for possible
contamination in laboratory, while standards determine the analytical
accuracy. All samples are half NQ diamond drill core sampled based on
geological intervals.. Samples utilized for the resource update comprise
half NQ2 diamond drill core. Samples were assayed at SGS Australia,
Kalgoorlie, using a 50 g fire assay, followed by solvent extraction and
flame AAS.
The Frog's Leg geological re-interpretation was completed by La Mancha
Australia staff under the supervision of Trevor Eddie, and the block model,
including the building of the wireframes for the model, resource estimation
and classification was undertaken Trevor Eddie B.Sc. (Geol.) MAusIMM,
Geology Manager, also of La Mancha Australia. Mr. Eddie has sufficient
experience in the resources calculation, 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. Eddie has consented to the
content of this press release in the form and context in which it appears.
He has read National Instrument 43-101 of the Canadian Securities
Administrators ('NI 43-101') and has ensured that this press release has
been written in compliance with the Instrument.
FORWARD-LOOKING STATEMENTS
This press release contains certain 'forward-looking statements',
including, but not limited to, the statements regarding the quantity of
mineralization in place, particularly in numbers of ounces of gold, the
mineable character of the drill results, mining exploration risks,
estimation and evolution of mineral resources, potential for resources
additions (in particular the possibility of converting a portion of the
resources into proven and probable reserves), statements regarding
extending mine life and at-depth mining, future work programs and
objectives associated therewith, drilling targets and anticipated results,
statements regarding the prospective level of the three remaining drill
stations, interpretation of work results and anticipated timetables.
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 2009 Annual Information Form filed
with the Securities Commissions of all provinces in Canada, as well as the
Toronto Stock Exchange.
The complete press release can be downloaded from the following link:
https://irdirect.companynewsgroup.com/documents/PJ/CO/2010/171715_88_GKBN_11-22-September-2010-Resource-Update-Vf.pdf
For additional information, please contact:
La Mancha
Martin Amyot
Vice President Corporate Development
Tel: (514) 987-5115, Ext. 25
Tel: 33 (0)1 47 96 48 94
Email: info@lamancha.ca
Nicole Blanchard
Investor Relations
Tel: (514) 987-5115 Ext. 26
Email: nblanchard@lamancha.ca