PARIS -- (Marketwire) -- 06/15/12 --La Mancha Resources Inc. (TSX: LMA)
- White Foil preliminary drill results indicate that mineralization extends to at least 600 metres below surface (current resource extends to 250 metres below surface)
- White Foil results suggest that resource could be significantly increased, new resource estimate expected by end of 2012
- Ongoing 10,000-metre drilling program at White Foil expected to be completed by end of July 2012
- White Foil results indicate potential for significant cutback to existing open pit and deeper mining by bulk underground methods
- Frog's Leg deep drill results return low-grade intercepts 100-250 metres below current resource envelope
WHITE FOIL BEST INTERSECTIONS INCLUDE:
- 7 m @ 12.8 g/t from 323 m including 1 m @ 77.43 g/t from 327 m
- 109 m @ 1.5 g/t from 555 m including 1 m @ 18.11 g/t from 641 m
- 50 m @ 2.53 g/t from 492 m including 1 m @ 18.52 g/t from 495 m
- 20 m @ 2.36 g/t from 254 m including 1 m @ 19.46 g/t from 257 m
- 23 m @ 3.28 g/t from 343 m including 1 m @ 40.94 g/t from 353 m
- 57 m @ 1.31 g/t from 580 m including 1 m @ 24.75 g/t from 580 m
Dominique Delorme, President and CEO of La Mancha, stated that: "We are thrilled with these initial White Foil drill results as they demonstrate that the mineralization continues to a depth of 600m, which is more than 350m deeper than the current resource boundary. Furthermore, since these results suggest good continuity of the mineralization and this wide orebody stretches over more than 1km, there appears to be a potential for a large cutback of the open pit and later extraction using bulk underground mining methods. Along with the ongoing feasibility study for a processing facility on-site and the expansion of the White Foil open pit, these new drill results show the potential to extend the project life beyond what is defined by the existing resource and current toll milling arrangement."
La Mancha Resources Inc. (TSX: LMA) (hereinafter "La Mancha" or "the Company") is pleased to report positive drill results for the ongoing exploration program at its wholly-owned White Foil mine in Australia. Results suggest that the mineralization extends more than 350 metres below the current resource envelope.
The White Foil drilling program being conducted from the bottom of the pit floor and from surface is progressing on schedule, with approximately 70% of the 10,000-metre drilling program completed as of 31 May 2012. The drill results received to date for 5 of 20 holes drilled are shown in Table 1 of the appendix.(1)
White Foil delivered significant intercepts for all drill hole results received to date. As shown in Figure 1 of the appendix, the mineralization appears to be highly continuous, with a grade of 1.5 g/t Au intercepted over 109 m in drill hole MWDD026. Furthermore, there also appears to be pockets of higher-grade mineralization. For example, drill hole MWDD028 intercepted 12.8 g/t Au over 7 m, which included 1 m at 77.4 g/t Au.
The geology at White Foil is distinct from that of other deposits in the goldfields, consisting of a stockwork of quartz veins rather than the typical shear-hosted deposit. The gold is hosted within a quartz gabbro portion of a layered mafic intrusive. The quartz gabbro has been tectonically thickened at White Foil and the brittle nature of the unit has resulted in quartz stockwork.
As shown in Figures 1 and 2, the quartz gabbro is 100m wide and over 250m long in the central part of the deposit. Furthermore, the current resource averages over 2,000 ounces per vertical metre. The continuity of the deposit and the wide nature of the orebody suggest potential for bulk underground mining methods.
A deep drilling program was completed at Frog's Leg in the first quarter of 2012 to test the potential up to 1,000 metres below surface, and all results have now been received. Holes were spaced approximately 200 m apart over a strike length of over 1 km. Full results for the six-hole, 7,000-metres drilling program are shown in Table 2 of the appendix. Results returned short intercepts at grades lower than that of the current resource. The drill results add to the geological and geotechnical understanding of the area. Future resource delineation drilling is expected to be focused on the area immediately below the existing resource. It is worth noting that the 2010 program, conducted from drill stations located 250 to 350 metres below surface, established that the resource remained open at depth below the current resource envelope.
The White Foil drilling program is expected to be completed by the end of July 2012 and full results released by the end of August 2012. Following the drilling program, a new resource estimate is expected to be completed towards the end of 2012. As outlined above, drill results indicate potential for increasing the scale of any pit cutback, as well as for later development using bulk underground mining methods.
A feasibility study is underway for an on-site processing facility which should enable the expansion of the White Foil open pit to extract the current resources. Once the resource is updated to include these new drill results, a scoping study is expected to be done on mining of the new resource by open pit and possibly underground methods.
The 2012 resource delineation drilling program at Frog's Leg resumed in April 2012. The initial portion of the program, with drilling conducted from 300-350 metres below surface, will focus on the area immediately below the current production areas. The latter portion, with drilling conducted from 450 metres below surface, will focus on the inferred resource material and the area immediately below the existing resource, 600 metres to 750 metres below surface. In 2010, a similar underground resource drilling program outlined a total of 348,000 Measured and Indicated ounces of gold (177,480 ounces attributable to La Mancha).(2)
This press release was reviewed and prepared under the supervision of James Potter, Exploration Manager of La Mancha Resources Australia. By reason of his education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, Mr. Potter is a "qualified person" for the purposes of NI 43-101. Mr. Potter has read National Instrument 43-101 and has ensured that this press release has been written in compliance with that instrument. Mr. Potter has read and approved the contents of this news release, and has consented to publish the press release in the form and context in which it appears.
James Potter B.Sc. (Earth Science), Hons. MAIG, MAusIMM, Exploration Manager of La Mancha Resources Australia, supervised the drilling program and the geostatistical analysis of the drill data, was responsible for quality control and verification of the drill hole data used by La Mancha Resources Australia in calculating the resource estimates.
The analysis of these recent samples met with all aspects of the Analytical Quality Assurance Program put in place by La Mancha 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, and standards determine the analytical accuracy. Samples are half NQ diamond drill core sampled on a one-metre basis at White Foil or a 1m RC 12.5% riffle split. At Frog's Leg, the samples are half NQ diamond drill core sampled to geological contacts between 0.4m and 1.2m. Samples were assayed for gold by fire assay on a 50g sample followed by AAS solvent extraction, at Genalysis Mineral Laboratories in Perth.
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 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, the mineable character of the drill results, mining exploration risks, calculation and evolution of mineral resources, the economic viability, the future value of La Mancha's exploration properties, 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. 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 2011 Annual Information Form filed with the Securities Commissions and the Toronto Stock Exchange.
(1) See tables and pictures in attachment: LA MANCHA'S WHITE FOIL PROPERTY SHOWS UNDERGROUND POTENTIAL: http://hugin.info/145163/R/1619929/517443.pdf
(2) Measured and Indicated resources of 1.75 MT at 6.2 g/t Au for 348,000 ounces (177,480 attributable to LMA)
For additional information, please contact:
Vice President Corporate Development
Tel: (514) 987-5115, Ext. 25
Tel: (514) 987-5115 Ext. 26