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LA MANCHA RESOURCES INC - LMA:TSX
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La Mancha Reports Wide High-Grade Intercepts 150 Meters Below Current Resource at Frog's Leg
BEST INTERSECTIONS INCLUDE:
MONTREAL, QUEBEC, Apr 22, 2008 (MARKET WIRE via COMTEX News Network) --
All amounts are expressed in CA dollars, unless otherwise indicated.
La Mancha Resources Inc. (TSX: LMA)("La Mancha" or the "Company") and its joint venture partner Dioro Exploration NL are pleased to announce a high-grade intersection at the Frog's Leg gold project in Australia, giving the deposit exciting scope for extension. The intersection is 150m below the currently defined Indicated resource at Rocket and confirms the extension of the south-plunging high-grade shoot.
Several high-grade zones were intersected in one of the last holes drilled as part of the 2007 diamond drilling program, the best results being 33m @ 3.64g/t Au from 615m, including 6m @ 11.19g/t Au from 615m and 2m @ 25.06g/t Au from 615m, as shown in Table 1 of the appendix. As shown in Figure 1, the intersection is significant because it is located 500m below surface and 150m below previous drilling, and below the new March 2008 resource envelope at Rocket. The wide, high-grade intersection confirms the south-erly plunging high-grade shoot shown by geological modeling incorporating the 2007 drilling, seen in Figure 2 of the appendix.
The full drill results are provided in Table 1 of the Appendix.
The above-mentioned high-grade intercepts, which were not included in the resource upgrade reported on April 1st, 2008, indicate that the Frog's Leg resource may continue to grow as extensional drilling proceeds. Potential remains to extend the resource at depth and in particular along strike to the south.
Michel Cuilhe, Chairman and CEO of La Mancha, noted: "In light of the growth potential identified during the last part of the 2007 diamond drilling program, we are confident that the Frog's Leg resource base can grow to 1.4 million ounces by early 2009."
Next Steps
Diamond drilling to test below the Tinker lode is planned for the second quarter of 2008. The lower part of Tinker is within the newly-identified south-plunging shoot confirmed by the above-mentioned high-grade intersections. Results from Tinker should be available in August.
The underground mine has been producing for the past two months, with the ore being transported to a custom-milling facility. Frog's Leg is expected to begin contributing to La Mancha's production by June 2008. As indicated in the feasibility study, La Mancha expects Frog's Leg to contribute 43,970 ounces of gold (22,400 ounces attributable to La Mancha) at a cash cost of US$667 per ounce during the last six months of 2008.
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