* working capital of $0.12 per share with no LT debt
* multiple light oil well drilling locations in Viewfield, SK
* carried interests with no drilling costs
* natural gas at Pembina – 10-12 additional locations identified
sold most of my LMA.to today. La Mancha is an exceptional company but I did some research into Sudan. The country is split into a Muslim north and Christian south. Additionally the oil revs are in the South. The Darfur region is to the West. The country is under a negotiated truce where the fighting stopped and 1/2 the oil revs went to the government in the north. The South has little governmental structure and has been using it's oil revs mainly to buy arms. Unfortunately this means there are few basic services.
The truce calls for national elections in 4/10 and a national referendum on whether the South will secede in 2011.
I expect turmoil ahead and after elections. I doubt the government in the North will abide by any negative election or referendum results. They will seek to keep the oil revs.
La Mancha is relying on the Hassai mine in Sudan to carry it to the next level. The mine appears to be legit and a large copper/gold prospect. However I expect significant turmoil in Sudan over the next two years that will cause operational problems as well as financing problems for LMA. I kept some share because I like the company so much but have taken most off the table for safety. Been a nice run from .57 for me. Time to find the next one. Bobwins
Bobwins
Posted: Thu Dec 3 12:14:39 2009
Big pop in La Mancha today. +.32 to C$2.21
LMA is my biggest gold position. Shares took off to above C$2 in October and I thought I had missed the peak.
Catalyst appears to be positive brokers recommend from Canaccord. They put a speculative price target of C$3.70 if gold reaches $1300.
Did a nice job of reviewing the company, including pros and cos.
Bobwins
Posted: Wed Nov 4 7:50:37 2009
LMA.to +.05 to C$1.85 La Mancha continues to prove up VMS target beneath their existing Hassai mine. Operating for many years, there are many open pits with exhausted oxide ore supplies. But La Mancha is proving that there are large resources under the pits at relatively shallow depths that have significant value. Now that they have exceeded two million oz of gold resource, they will move to a scoping study by end of Q1 2010.
La Mancha Resources Inc.: Second Hassai Mine VMS Target Boosts Project's 43-101 Inferred Resource to Over Two Million Ounces of Gold
PARIS, FRANCE--(Marketwire - Nov. 4, 2009) - La Mancha Resources Inc. (TSX:LMA) - All amounts are expressed in CA dollars, unless otherwise indicated.
HIGHLIGHTS (Hadal Awatib):
- 1,089,500 ounces of gold in inferred resources (435,800 attributable to La Mancha)
- 132,640 ounces of gold in indicated resources (53,050 attributable to La Mancha)
- 279,000 tonnes of copper in inferred resources (111,600 tonnes attributable to La Mancha) and 36,800 tonnes of copper in indicated resources (14,720 tonnes attributable to La Mancha)
- A large part of the resource appears accessible by open pit mining method
- 54,000 ounces of additional gold resources in the oxide zone
HIGHLIGHTS (VMS - cumulative)
- More than 2 million ounces of gold (over 800,000 attributable to La Mancha)
- More than 575,000 tonnes of copper (over 230,000 attributable to La Mancha)
- Resource remains open at depth and/or along strike
- La Mancha reaffirms its goal of growing its consolidated M&I resources to 4 million ounces of gold within the next few years
La Mancha Resources Inc. (TSX:LMA, hereinafter "La Mancha" or the "Company") is pleased to announce the 43-101 compliant resource estimate for the second VMS target (Hadal Awatib pit) on its Hassai property in Northeast Sudan. The resource for the first VMS target at Hassai was reported on September 10, 2009. The cumulative inferred resource for the VMS project at Hassai now exceeds 2 million ounces of gold and 575,000 tonnes of copper. The gold equivalent of the cumulative copper resource represents 3,369,500 ounces of gold (1,347,800 ounces attributable to La Mancha) using a long-term gold price of US $750/oz and a long term copper price of US $2/lb.
A summary of the cumulative VMS resource estimate is presented below. More details on the resource are presented in Table 1 at the end of this press release.
[pre]
---------------------------------------------------------------------------
43-101 resource Ore Au Total Au Au attribu- Cu% Total Cu attribu-
as of November (t) (g/t) (in oz) table to Cu (t) table to
3, 2009 LMA (in oz) LMA (in t)
---------------------------------------------------------------------------
Hassaï pit
(target #1)
Supergene
inferred
resource 1,530,000 2.29 112,000 44,800 2.75 42,000 16,800
Primary
zone
inferred
resource 18,620,000 1.49 894,000 357,600 1.37 255,000 102,000
---------------------------------------------------------------------------
Subtotal
inferred
resource 20,150,000 1.55 1,006,000 402,400 1.48 297,000 118,800
---------------------------------------------------------------------------
Hadal Awatib
(target #2)
Indicated
resource 2,898,000 0.93 86,700 34,680 1.27 36,800 14,720
---------------------------------------------------------------------------
Inferred
resource 28,330,000 1.18 1,072,000 428,800 0.99 279,000 111,600
---------------------------------------------------------------------------
Total
(target 1
& 2)
---------------------------------------------------------------------------
Indicated
resource
(i) 2,898,000 0.93 86,700 34,680 1.27 36,800 14,720
Inferred
resource
(i) 48,480,000 1.33 2,078,000 831,200 1.23 576,000 230,400
---------------------------------------------------------------------------[/pre]
(i) Indicated resource is not included into the inferred resource
Reported resource figures were calculated using a cutoff grade of 0.8% Cu Eq, a long time copper price of $4,409/t ($2/lb), and a long term gold price of US$750/oz. This resource estimate is based on the result of the 109 holes drilled (18,602 meters) from the bottom and the surface of the Hassai and Hadal Awatib pit at the Hassai property in Northeast Sudan.
Dominique Delorme, President and CEO of La Mancha commented: "When the decision was made to start the VMS program, we set ourselves the objective of first demonstrating the size of the deposit and its high gold and copper content. With an inferred VMS resource of more than 2 million ounces of gold and 575,000 tonnes of copper now on the property, we feel that we have met this objective. The second step for us is to demonstrate the economic value of this resource, and to do so we are committed to delivering a scoping study by the end of the 1st quarter of 2010. La Mancha's technical team is currently working in association with several industry experts to determine the best technical approach for converting this resource into tangible value for La Mancha's shareholders."
The Hassai mine, located 450 km northwest of the Bisha property in Erithrea, has been producing gold since 1992. Twelve pits have been mined over that period, for a total production of more than 2.1 million ounces of gold to date. In February 2008, a decision was made to test VMS potential of the ground beneath the existing pits. Two of the six pits showing the highest VMS potential were selected for the first phase of drilling: Hassai and Hadal Awatib. The inferred resource identified beneath the Hassai pit was discussed in a previous press release dated September 10, 2009.
THE HADAL AWATIB RESOURCE (Target #2)
As shown in Figure 1 at the end of this press release, the Hadal Awatib pit comprises three sections: the AB and CD pits and the "link" between them. Management estimates that approximately 35% of the Hadal Awatib resource is located under the 200-meter wide "AB" pit, 50% under the link and the remaining 15% under "CD" pit.
As shown in Figures 2a and 2b at the end of this press release, the resource contained below the AB pit floor extends to between 100 to 350 meters below the pit floor. Figure 2b suggests that, despite the presence of enriched envelopes, the VMS structure below the AB pit does not show the presence of a clearly-defined supergene zone as it was the case below the Hassai South pit (Target #1). However, the mineralization presents an enriched zone consisting of feeder zones at the intrados of the folded lenses and some supergene enrichment; the cross-section in Figure 2b shows the position of this enriched material below the pit AB. The proximity of the resource to surface suggests that it could be open-pit minable. This enriched material represents a calculated minimum of 3.4 MT at 2.5% Cu consisting either of the feeder zone or supergene enrichment
The section identified as the link corresponds to the walls between the AB pit and the CD pit. It is currently being mined for its high gold grade oxidized material (an average of 9.0 g Au/t). The several parallel lenses shown in Figures 3a and 3b are the direct conclusion of drill hole #252 reported in our press release dated April 14, 2009, which intersected over 190 m of sulphides, corresponding to an estimated true width of 130-150 m.
The resource identified under the CD pit presents significant enriched Cu and Au domains toward the eastern end of the pit, as shown in Figures 4a and 4b the appendix; two lenses have been identified. In addition to being open at depth, the VMS structure appears to extend toward the north.
The resource also contains 210,100 tonnes of Zn (84,000 tonnes attributable to La Mancha). Zinc is not always coincident with the copper-gold ore envelope, and its distribution needs to be further studied; the average grade of the Zn ore envelope is less than 1%. More details on Zn content is presented in the table at the end of this press release.
It is important to note that the Hadal Awatib resource presented above does not include the potential of the Hadal Awatib West pit, which has not yet been drilled but shows the same visual signs of VMS at its bottom. Figure 5 shows the portion of the Hadal Awatib structure that has been tested to date. Moreover, the current preliminary Hadal Awatib resource remains open in several directions, particularly to the west of the AB pit, to the north of the CD pit and at depth in general. Most of the holes only tested the first 200 meters below the pits, with only one hole reaching the level -300 below the link. (Please see press releases dated April 14, 2009 and May 26, 2009 for more details on the drilling done to date.)
It is interesting to note that, in addition to the VMS resource shown on page one (sulphides), the recent drilling campaign has also resulted in the addition of a high-grade oxide gold resource. This resource, shown in the table below, is mainly located immediately below the floor of AB pit.[pre]
-------------------------------------------------------------------------
43-101 resource Ore Au Total Au Au attributable Cu Cu
as of November (t) (g/t) (oz) to LMA (oz) (%) (t)
3, 2009
-------------------------------------------------------------------------
Indicated
Resource 159,150 8.98 45,936 18,374 - -
Inferred
Resource 65,500 8.32 17,500 7,000 - -
-------------------------------------------------------------------------[/pre]
The Hassai mine has produced more than 2.1 million ounces of gold to date, and is expected to produce 62,500 to 75,000 ounces of gold in 2009 (25,000 to 30,000 ounces attributable to La Mancha). While the first 15 years of mining focused on the more-easily-minable oxidized portion of the deposit, the VMS structure is visible at the bottom of six of the mined-out pits.
NEXT STEPS
A preliminary metallurgical study is being conducted by SGS Lakefield and should be completed soon. The Company plans to publish the results of a scoping study summarizing all the technical and economical aspects of the project as early in the first quarter of 2010.
DRILLING CAMPAIGN UPDATE
La Mancha has received the results for nine additional drill holes, including the Hassai long hole referred to in a press release dated July 28, 2009. The drill results are provided in Table 2, appended to this press release. All eight holes drilled in Hadal Awatib were included in today's resource estimate. Hole 320 is particularly worthy of note, returning 7m at 9.58% Cu at 142 m and a maximum of 18.4% Cu (over 1 m from 142m), demonstrating the high grade of the feeder zone.
Jean-Jacques Kachrillo, La Mancha's Vice President of Exploration, commented: "Identifying in several places of Hadal Awatib these feeder zones with their high visible content in chalcopyrite and then their high copper grade is very encouraging for the future of the project, above all a significant part of Hadal Awatib complex remains little explored."
TECHNICAL NOTE
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 resource, 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 technical information contained in this news release was prepared by Remi Bosc, who is a Member of the European Federation of Geologists and an independent consultant, Jean-Jacques Kachrillo, who is Vice President Exploration and a full time employee of La Mancha Resources, and Martin Bennett, who is the Exploration Manager for the Company's Sudanese property and a full-time employee of La Mancha Resources. The three have sufficient experience in the resources calculation, the style of mineralization and type of deposit to qualify as a Qualified Persons as defined in the 2005 Edition of "National Instruments 43-101, Standards of Disclosure for Mineral Projects". Based on their information, Mr. Bosc, Mr. Kachrillo and Mr. Bennett have consented to the content of this press release in the form and context in which it appears. They have read the National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101") and have ensured that this press release has been written in compliance with the Instrument.
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 laboratory, duplicates allow the overall precision to be quantified while standards determine the analytical accuracy. All samples are half HQ or NQ diamond drill core sampled on a one metre basis. Samples were assayed at the Intertek Laboratory in Indonesia, which is ISO 17025 qualified, using respectively for gold fire assays on 30g sample followed by AAS and for base metals triple acidic digestion followed by AAS.
For the calculations, the following assumptions were used:
1) The sulphide cutoff was Cu Eq 0.8%, and the oxide cut-off was 1.0 g/t.
2) The sulphide block model was filtered at a 2% cut-off to individualize statistically high-grade Cu values.
3) Values were rounded to two or three significant figures to reflect the relative estimation precision of each resource classification.
ABOUT THE HASSAI MINE
The Hassai mine is located in the Red Sea Hills desert of northeastern Sudan, some 450 km from Khartoum. Inaugurated in 1992, it is Sudan's first and only gold mine in production. Twelve pits have been mined over the years, generating a cumulative production of more than 2.1 million ounces of gold. La Mancha owns 40% of the mine through a subsidiary and is the mine operator. The Hassai exploration licenses effectively encompass the entire geological district that extends over 24,000 square kilometres. The Hassai mine exploration budget is expected to reach $6.44 million in 2009 ($2.57 million attributable to La Mancha), distributed among several gold targets (quartz, SBR and tailings) and VMS targets.
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.
Bobwins
Posted: Tue Oct 13 6:58:54 2009
LMA.to/Lachf.pk +.18 to C$1.91.
no news but La Mancha continues to make new 52wkhis.
My biggest gold position doing nicely. The potential of the VMS project in Sudan is being priced into LMA.
Bobwins
Posted: Fri Sep 11 8:42:01 2009
LMA.to has had a tremendous move over the past couple of days.
Up .25 to 1.45. Catalyst was the report on the first of six targets that added 1 million equivalent oz of gold. With 5 more targets to report, this could send La Mancha's reserves thru the roof. Company goal was to reach 4 million oz of reserves by 2011. Of course the report yesterday was a resource estimate so LMA must do a lot of successful closer drilling to upgrade the resource to reserves.
Still looks like a candidate for further appreciation.
Profitable, growing with big upside and no dilution while you wait.
LMA has 1 million oz of inferred gold equivalent resource in the first of six targets at it's Hassai Gold mine in Sudan. LMA has 40% of the project. A report on the second of six mined out open pits is due in October. Hassai has been mined for many years but LMA is convinced that there is a huge VMS gold/copper resource under the shallow open pits.
La Mancha is using profitable gold mining at it's three operating gold mines to finance this big exploration project. Should provide BIG upside without the normal dilution that most junior gold stockholders have to endure.
La Mancha is the former sub of Areva. Areva still owns a big block of stock and has offered a line of credit to help LMA fund it's operations. The line is unused currently. LMA inherited over 30 gold properties that Areva had amassed while looking worldwide for uranium.
This relatively small gold producer has big upside, good pedigree, good portfolio of prospects and is profitable and undervalued.
another pothole
Posted: Wed Aug 12 10:52:33 2009
Eric Sprott has named La Mancha as one of the gold juniors he likes. See the full report at www.sprott.com. Upper right hand side of page. Click on 'Gold'.
Bobwins
Posted: Fri Aug 7 10:31:25 2009
Excellent Q2 report today. +.09 to C$1.09
eps .042 and cashflow .05. Very cheap on a fwd basis. More production coming. White Foil is 4th mine. It's ready and they are negotiating with nearby mills for a toll milling contract. Sound confident they can get it done and started by late 09 or early 2010. Will cause another nice jump in production. Guiding to hit high end of guidance for 2009 of 100K oz with declining cash costs. Bobwins
La Mancha Posts Record Quarterly Net Earnings as Gold Production Rises 47%
All amounts are in CA dollars, unless otherwise indicated. Unaudited
Press Release
Source: La Mancha Resources Inc.
On Friday August 7, 2009, 1:06 pm EDT
Buzz up! 0
Print
MONTREAL, QUEBEC--(Marketwire - Aug. 7, 2009) - La Mancha Resources Inc. (TSX:LMA - News)
SECOND QUARTER HIGHLIGHTS
- Net earnings of $6.1 million
- Cash flow from operating activities of $6.6 million
- Corporate debt decreases to $12.2 million while cash and short term investments grow to $18.4 million
- Record quarterly gold production of 27,755 ounces at an average cash cost of US $484 per ounce
- Gold production up 47% and cash costs per ounce down 21% year over year
- Company reaffirms its 2009 gold production target of 100,000 ounces
- Michel Cuilhe to step down as CEO and Chairman of the Company
La Mancha Resources Inc. (TSX:LMA - News; hereinafter "La Mancha" or the "Company") is pleased to report that its second quarter production totalled 27,755 ounces of gold at an average cash cost of US $484 per ounce, compared to 18,915 ounces of gold at an average cash cost of US $612 per ounce for the same quarter last year. This represents a 47% increase in production which is mainly due to the start-up of the Australian Frog's Leg mine, with the African mines continuing to operate in line with expectations.
Consolidated cash costs per ounce for the second quarter of 2009 were down 21% from the same quarter of 2008, at US $484 per ounce. This decrease reflects improved cash costs per ounce at both African mines and the positive influence of the lower cash costs at the Frog's Leg mine.
Bobwins
Posted: Wed Jul 29 6:52:19 2009
Good news on drilling the VMS target at Hassai. La Mancha is steadily increasing gold production from three small deposits to fund development work on this much larger VMS target. There will be an updated mineral resource estimate in a month and then an initial report on a second VMS target at Hassai in Sudan. La Mancha mgmt has been very careful to minimize dilution while developing the VMS prospect.
Jul 29, 2009 09:21 ET
New Longhole Drilling Doubles the Length of La Mancha's Hassai Pit VMS Lens to 700 Meters
MONTREAL, QUEBEC--(Marketwire - July 29, 2009) - La Mancha Resources Inc. (TSX:LMA)
HIGHLIGHTS:
- A 700-meter longhole recently completed at the Hassai pit suggests that the volcanogenic massive sulphide (VMS) lens under the pit is twice as long as initially thought.
- 36 meters of massive and strongly disseminated sulphides were intersected from 626 m with visible signs of chalcopyrite.
- La Mancha confirms that the initial 43-101 resource estimate for the VMS should be completed and released by the end of August 2009.
La Mancha Resources Inc. (TSX:LMA, hereinafter "La Mancha" or "the Company") is pleased to report that a longhole drilled from the southern edge of the Hassai pit at its Hassai property in Northeast Sudan has intersected 36 meters (apparent width, corresponding to a true width of about 20 meters) of massive and strongly disseminated sulphides at 600 meters down dip from the existing pit. This news is material to the rapid unfolding of La Mancha's VMS project in Sudan as a) it suggests that the previously-discovered VMS lens, which starts at the bottom of Hassai pit, might be at least twice as long as originally established in December 2008 (up to 700 meters) (see Figure 1 for details, available at the following address: http://media3.marketwire.com/docs/mancha_fig1.pdf), and b) the drill intersection seems to contain visible signs of chalcopyrite, often associated with a high copper content. Laboratory assay results should be available in 6 to 8 weeks.
Michel Cuilhe, President and CEO of La Mancha, stated: "Our April 2009 size estimate of 60 million tonnes for the Hassai VMS conceptual deposits may need to be revised upward significantly if the assay results for this hole confirm that the lens extends over a length of 700 meters rather than our initial approximation of 350 meters. We are delighted by this hole, as it makes an already promising project look even better."
Although the results of this recent hole will not be included in the preliminary 43-101 resource estimate to be issued by the end of August 2009, the Company remains confident that the initial resource will meet the previously-stated 60 million tonne forecast.
NEXT STEPS
As mentioned above, the calculation of the Hassai pit resource is well advanced and the Company expects to release the results by the end of August. The 43-101 resource estimate for the second VMS target on the property, Hadal Awatib, should follow soon after. Preliminary metallurgical test-work is also underway and should be available within the next few weeks. Management will use all these results in a scoping study assessing the Hassai property's VMS economic value. The Company expects this scoping study to be made public by the end of September 2009.
The Hassai property's VMS conceptual estimate of potential tonnes and grade to date have insufficient exploration to define a mineral resource compliant with National Instrument 43-101. It is uncertain whether further exploration will result in the target deposit being delineated as a mineral resource. The estimate used the current geological interpretation of the lens with the intersections of copper and gold mineralization from the 12 new holes drilled to date and 7 previously-drilled holes at the Hassai pit and 8 new holes drilled to date and 7 previously-drilled holes at the Hadal Awatib pit. The estimate excludes copper and gold values outside the interpreted zones and all lead, zinc and silver values, and does not take into account possible enrichment from the upper part of the lenses, mainly below the west pit of Hadal Awatib. The estimate also excludes dilution and recovery.
Bobwins
Posted: Mon Jul 13 14:57:51 2009
LMA.to has been retracing after soaring over $1 after Q1 results of .025eps and .0775 cashflow.
Dropped sharply at the open to .73 after closing at .81 Friday. I bought a few at .765. Stock is selling for a little over 2X cashflow.
Bobwins
Bobwins
Posted: Thu May 28 21:15:22 2009
Huge move in La Mancha again today. +.12 to C$1.03
Very cheap, profitable gold producer.
3 mines, .024eps Q1 .077 cashflow
Selling for 10X fwd eps and less than 4 X fwd cashflow.
Bobwins
Posted: Tue May 26 8:29:45 2009
This article from 11/08 explains the potential of Hassai and why the market is excited by today's PR.
LMA.to +.03 to C$.80 La Mancha continues to climb. The long term growth of the company is at the 40% owned Hassai deposit in Sudan. The company believes there is a huge VMS deposit under the current open pits. Today's PR certainly seems to support that theory.
Best of all, the ore sounds like it is accessible thru open pit methods meaning a quick timeline to production.
LMA.to +.14 to C$.65 Nice pop on good earnings report.
At .025eps, fwd p/e is now at 6.5. Still very cheap for a profitable gold miner. Cashflow of .0775 puts fwd price to cashflow at just over 2. LMA has good reserves approaching 2 million oz of gold and their goal is 4 million by 2011.
This is a nice little gold producer with significant upside potential. Areva, the huge French nuclear company spun off all their gold prospects to La Mancha in 2007. They have a huge remaining portfolio of prospects to explore. Areva is still the majority shareholder and has given La Mancha financing to finish their Frog Leg mine.
This is not your average junior with some land and some grab samples. This is a producing miner with 3 mines and a fourth ready to go. The ownership by Areva is a big plus, providing financing and the probability that La Mancha is going to survive any downturn in commodity pricing.
Bobwins
Bobwins
Posted: Fri May 8 6:20:38 2009
LMA.to C$.51 should move higher today with gold up and these strong numbers.
eps .025
cashflow .0775
Selling for fwd p/e of 5 and less than 2X fwd cashflow.
Still very cheap. Bobwins
La Mancha's Profits Surge as Australian Mine Turns Cash Flow Positive and Profitable
On Friday May 8, 2009, 8:35 am EDT
Buzz up! Print
MONTREAL, QUEBEC--(Marketwire - May 8, 2009) - All amounts are expressed in CA dollars, unless otherwise indicated. Unaudited
HIGHLIGHTS
- Cash flow from operating activities of $11.0 million
- Revenues of $24.7 million
- Net earnings of $3.5 million
- Cash and short term investments of $20.1 million
- 18,515 ounces of gold produced at an average cash cost of US $451 per ounce
- The Company elects to re-locate its corporate office to Paris while maintaining active investors' relation in Canada
La Mancha Resources Inc. (TSX:LMA - News; hereinafter "La Mancha" or the "Company") produced 18,515 ounces of gold at an average cash cost of US $451 per ounce during the first quarter of 2009 compared to 16,260 ounces of gold at an average cash cost of US $534 per ounce in the same quarter last year. The increase in production is due to the start of production at the Australian Frog's Leg mine and an improved performance at the Ity mine in Africa, which together more than compensated for lower production from the Hassai mine and the gold recovered from the broken ore inventory at the White Foil pit in the first quarter of 2008.
Consolidated cash costs per ounce for the first quarter of 2009 were down 16% from the corresponding quarter of 2008 to US $451 per ounce. This decrease reflects the improved cash costs per ounce at the Ity mine and the commercial production from the Frog's Leg mine, which more than compensated for the slightly higher Hassai mine cash cost per ounce.
La Mancha's first quarter revenues totalled $24.7 million, due mainly to its stronger production and favourable changes in exchange rates. As shown in the following table, the Company's key financial indicators have strongly improved over the past twelve months. This first quarter of 2009 marks a milestone for La Mancha, with the Australian operation starting to contribute to the Company's operating cash flow capacity as the mine turned cash flow positive and profitable in the first quarter of 2009.
Table 1 below highlights the remarkable turnaround and consistent profitability for the last two consecutive quarters, starting in October 2008.
[pre]
Table 1
-------------------------------------------------------------------------
Three-month Three-month Three-month Three-month
period ended period ended period ended period ended
June 30, Sept. 30, Dec. 31, March 31,
2008 2008 2008 2009
-------------------------------------------------------------------------
Revenues 13,132 12,151 14,935 24,660
-------------------------------------------------------------------------
Operating margin (1,741) (423) 1,293 6,229
-------------------------------------------------------------------------
Operating cash flow (1,756) 1,821 2,213 11,013
-------------------------------------------------------------------------
Net earnings (2,580) (1,638) 1,188 3,477
-------------------------------------------------------------------------
[/pre]
Michel Cuilhe, President and CEO of La Mancha, stated: "We are glad to report that all the pieces of the puzzle are finally falling into place for La Mancha. The combination of the improved performance from our African mines and the successful ramp-up of Frog's Leg, our new Australian mine, have allowed us to significantly increase our operating margin as our cash costs decreased. Consolidated cash costs of US $451 per ounce for the first quarter are 12% lower than the 2008 cash cost per ounce and 9% lower than the US $497 cash cost per ounce forecast for 2009. Moreover, it is important to note that we are on track to achieve our 2009 production target of 85,000 to 100,000 ounces, as our three producing mines achieved their first quarter targets. La Mancha is therefore well positioned to fast-track to the next level."
La Mancha's cash flows from operating activities rose to $11.0 million during the first quarter of 2009, up more than five-fold from the last quarter of 2008. Due to its improved ability to generate cash, the Company had increased cash and short-term investments to $20.1 million as of March 31, 2009.
"In light of La Mancha's newly-established cash flow generation capacity, we now seek new growth opportunities. In the meantime, cash on hand will be used to reduce the Company's indebtedness" added Mr. Cuilhe.
Given the $5.4 million improvement in its mine operating margin over last year, La Mancha recorded net earnings of $3.5 million during the first quarter of 2009, as each mine posted positive results. This compares to net loss of $2.4 million a year earlier. This performance was achieved despite a $0.5 million charge associated with the write-down of its commercial paper holdings, which was considered a "non-cash" item charge by nature.
In order to increase the efficiency of corporate support to its operations, the Company has elected to move its corporate office to Paris. The move, which will significantly improve the management's proximity to the mine sites, is expected to further streamline La Mancha's organisational and operational efficiencies. The Company intends to maintain active investors' relation in Canada.
OPERATIONS
The Frog's Leg mine, having achieved commercial production on January 1, 2009, generated 6,115 ounces of gold net to La Mancha at an average cash cost of US $386 per ounce in the first quarter of 2009. This represents a 12% increase compared to 5,469 ounces of gold generated in the fourth quarter of 2008.
As shown in Table 2, the Frog's Leg mine continued to gain pace with a steady increase in underground tonnage mined per quarter. It should be noted that 55,197 tonnes were mined in March, representing a new monthly record.
[pre]
Table 2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Data provided for 100% Three-month Three-month Three-month
of the mine period ended period ended period ended
Sept. 30, Dec. 31, March 31,
2008 2008 2009
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Underground ore mined (t) 75,154 116,861 142,834
-------------------------------------------------------------------------
Apparent grade mined (g Au/t) 3.86 4.46 4.23
-------------------------------------------------------------------------
Apparent gold content of ore
mined (oz) 9,325 16,753 19,403
-------------------------------------------------------------------------
-------------------------------------------------------------------------
[/pre]
It is also important to outline that during the first quarter of 2009, as underground ore extraction ramped up, La Mancha's share of underground ore mined amounted to 72,840 tonnes while only 38,595 tonnes were milled, in line with the processing schedule of the toll-milling agreement. Therefore, production is expected to significantly increase in the next quarter as La Mancha had stockpiled 77,175 tonnes of high grade ore by the end of the quarter. In line with expectations, the most recent 30-day milling campaign, which began at the Greenfields Mill on April 1st, had treated a total of 60,391 tonnes of high grade ore as of April 30th. An additional toll milling campaign of around 28,000 tonnes was negotiated and commenced on May 4th at Dioro's Jubilee Mill.
Management awaits the new Frog's Leg mining plan, scheduled for completion at the end of the second quarter of 2009, which is expected to increase the mine's future production, in line with the published resources increase published in March, 2008.
The Hassai mine production totalled 16,220 ounces of gold (6,485 ounces attributable to La Mancha) at an average cash cost of US $568 per ounce for the first quarter of 2009. This compares to 23,150 ounces of gold (9,260 ounces attributable to La Mancha) produced in the first quarter of 2008 at a cash cost of US $538 per ounce. The decrease in gold output was essentially due to a lower tonnage milled and lower gold recovery rates. The addition of two new water wells during the quarter should improve leaching kinetics in the next quarter, thus helping to increase recovery rates.
The transition from siliceous-baritic rock (SBR) to quartz ore continued successfully during the first quarter as quartz mill throughput increased 58% over the previous quarter, corresponding to a 71% increase over the corresponding quarter of 2008. This record quarterly quartz ore mill throughput was achieved despite a nine-day maintenance shutdown in March. Management will keep building on this improved performance to gradually increase the rate of the quartz line to its design capacity of 2,000 tonnes per day. It is worth noting that the quartz ore mill throughput exceeded the 2,000 tonnes per day mark for 25 days in the first quarter of 2009.
The following table shows the improvement in tonnage milled through the quartz ore line over the past 12 months:
[pre]
Table 3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Data provided Three-month Three-month Three-month Three-month
for 100% period ended period ended period ended period ended
of the mine June 30, Sept. 30, Dec. 31, March 31,
2008 2008 2008 2009
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Quartz ore
milled (t) 63,715 68,960 109,072 119,458
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Apparent grade
milled (g Au/t) 5.06 5.11 4.98 4.83
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Apparent gold
content of ore
milled (oz) 10,361 11,338 17,471 18,538
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-------------------------------------------------------------------------
[/pre]
The higher gold grades and favourable fluctuations in currency exchange rates did not sufficiently offset the diseconomies of scale factor, the lower tonnage milled and a lower recovery rate. Cash costs per ounce during the first quarter of 2009 increased 6% over the corresponding period of 2008.
The Ity mine produced a total of 12,885 ounces of gold (5,915 ounces attributable to La Mancha) at an average cash cost of US $388 per ounce during the first quarter of 2009, compared to 11,080 ounces of gold the previous year (5,090 ounces attributable to La Mancha) at an average cash cost of US $527 per ounce. This 16% increase in production at Ity was essentially the result of higher heap recovery rates due to the lower sulphide content currently mined in the new Mount Ity pit.
In the first quarter of 2009, the cash cost decreased 26% compared to the same period of 2008 due to higher gold recovery rates and favourable fluctuations in currency exchange rates, which together compensated for slightly higher mining costs.
DEVELOPMENT PROJECT
On February 17, 2009, La Mancha announced its intention to put the first phase of the Australian White Foil project into production, which is expected to yield 69,160 ounces of gold production over a 27-month period. As the first phase of the project is already fully permitted and requires minimal development, White Foil is expected to start production as soon as a satisfactory milling agreement is signed. Over the last few months, discussions have been progressing well with four different mill operators.
VMS EXPLORATION PROGRAM
On April 14, 2009, La Mancha reported that preliminary drill results for the second of six targets where volcanogenic massive sulphides (VMS) have been identified at its African Hassai property indicated the presence of a second conceptual deposit of 40 million tonnes of VMS at 1.1 - 1.3 g/t Au and 0.6 - 0.8% Cu. This potential deposit adds to the 20 million tonne deposit identified in July 2008, for a total potential to date of 60 million tonnes at 1.15 - 1.35 g/t Au and 0.9 - 1.3% Cu.
As with the first target reported in December 2008, estimates of the second target's conceptual tonnage and grade is based on the manual polygonal method using parallel cross-sections spaced at 100m. The following table summarizes the scope of the information collected so far:
(ii) not including enriched supergene zone
[/pre]
As was mentioned on April 14, the VMS exploration program will continue to progress as planned, with results disclosed as they become available. The following table outlines the VMS program's expected news flow along with expected news release dates.
[pre]
Table 5
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Expected
Release
VMS Program Expected News Flow Date
-------------------------------------------------------------------------
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Target 1 First NI 43-101 compliant resource calculation
(Hassai pit) for the deposit Q2
Metallurgical tests Early Q3
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Target 2 Supergene drill results for the western part
(Hadal Awatib of the pit, "Zone A" (44 holes totalling End of
pits) 4,160 meters have been drilled) Q2
First NI 43-101 compliant resource calculation
for the enriched zone Q3
-------------------------------------------------------------------------
End of
Target 1 and 2 Scoping study Q3
-------------------------------------------------------------------------
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[/pre]
CORPORATE EVENTS
La Mancha will be present at the New York Hard Assets Investment Conference in New York, to be held on May 11 and 12, 2009, at the New York Marriott Marquis Time Square. Members of Management will be present at Booth 802.
La Mancha will also present at the NYSSA Conference in New York, to be held on June 2 and 3, 2009, at the New York Society of Security Analysts, 1177 Avenue of the Americas.
In addition, La Mancha will also be hosting Company presentation seminars in the following locations:
Toronto May 19, 2009, 12:00 pm, at the Suite, 1 King street West
Laval May 20, 2009, 12:00 pm, at the Hilton Laval, 2225 des
Laurentides Highway
Ste-Foy May 21, 2009, 12:00 pm, at Au petit coin Breton, Place de
la Cite, 2600 Laurier Blvd
Longueuil May 26, 2009, 12:00 pm, at Sandman Hotel, 999 de Serigny
Street
Sherbrooke May 28, 2009, 12:00 pm, at Restaurant DaToni,
15 Belvedere Street North
These presentation seminars are open to the public and La Mancha invites all investors to attend. For event details and reservations, please contact Mr. John Boidman from Renmark at (514) 939-3989 or at jboidman@renmarkfinancial.com.
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/.
Bobwins
Posted: Tue Apr 14 8:39:56 2009
LMA.to This is the near term exploration upside to La Mancha. They think this is a very large VMS deposit. This would be expensive to develop but could represent a big enough target to attract a bigger partner. Bobwins
La Mancha's Conceptual VMS Deposit for its Hassa Property Increases to 60 million tonnes
Tuesday April 14, 2009, 8:34 am EDT
Buzz up! Print
MONTREAL, QUEBEC--(Marketwire - April 14, 2009) -
HIGHLIGHTS:
- Drill results from the second VMS target (Hadal Awatib) confirm the presence of several lenses of massive sulphides
- Hadal Awatib conceptual grades of 1.1 - 1.3 g/t Au and 0.6-0.8% Cu with conceptual deposit of at least 40 million tonnes
- Supergene zone exploration results from the Hadal Awatib pit floor are pending
BEST INTERSECTIONS INCLUDE:
- 64.4m at 1.63 g/t Au, 0.45% Cu and 12.21 g/t Ag from 323.4m
- 60.7m at 1.81 g/t Au and 0.43% Cu and 12.29 g/t Ag from 242.3m
La Mancha Resources Inc. (TSX: LMA, hereinafter "La Mancha" or "the Company") is pleased to report that preliminary drill results for the second of six targets where volcanogenic massive sulphides (VMS) have been identified at its Hassai property suggest the presence of a second conceptual deposit of 40 million tonnes of VMS at 1.1 - 1.3 g/t Au and 0.6 - 0.8% Cu. This potential deposit is in addition to the 20 million tonnes deposit identified in July 2008, for a total potential to date of 60 million tonnes at 1.15 - 1.35 g/t Au and 0.9 - 1.3% Cu.
Michel Cuilhe, President and CEO of La Mancha, commented: "With a potential resource of 60 million tonnes of VMS within a 7.5km radius, we have already exceeded our objective in terms of size of the project with the first two of six identified targets. Our next objectives are now to provide a preliminary resource and then to complete a preliminary economic assessment to demonstrate the value of this project. We aim to deliver on these two objectives by the end of the third quarter of 2009, at which point we trust that our Hassai VMS program will start to represent a significant value for our shareholders."
As with the first target reported in December 2008, estimation of the second target's conceptual tonnage and grade is based on the manual polygonal method using parallel cross-sections spaced at 100m. The following table summarizes the scope of the information collected so far:
[pre]
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Target #1 Target #2 Hassai property
Table 1 (Hassai pit) (Hadal (first 2 of 6
Awatib pit - targets)
eastern part)
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Number of drill holes
completed (current +
historical) 19 8
Estimated length of the
structure (m) 1,000 greater than
500
Number of VMS lens (es)
intersected 1 at least 2
folded and
faulted
Average width of the
lenses (m) 14-17 up to 130 -
70 in average
Maximum depth
intersected(i) 350 300
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Metals intersected (and
grade)(i)(i) Au 1.3-1.5 g/t A u 1.1-1.3 Au 1.15 -1.35 g/t
g/t
Cu 1.5-2% Cu 0.6-0.8% Cu 0.9-1.3%
Ag insignificant Ag 5-7g/t Ag 3-5g/t
Zn insignificant Zn 0.5-0.7% Zn 0.3-0.7%
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Conceptual tonnage
estimate (t) 20,000,000 40,000,000 greater than
60,000,000
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[/pre]
(i) below pit
(ii) not including enriched supergene zone
As shown in Figure 1 in the appendix, this second target called Hadal Awatib (target #2) is located at 13km from the Hassai pit (target #1) and lies underneath three main pits, one of which is still being mined for gold. Results to date for the Hadal Awatib VMS target indicate that the conceptual VMS deposit that lies at the bottom of the three pits appears to be faulted and folded, with a strike length of at least 1 km and a significant width. As shown in Figure 2 of the appendix, drill hole "HAE D 252" intersected 191 m of VMS, with an estimated true width of 130-150m based on core observation. Preliminary results also suggest that the structure runs at least 400m below ground level (300m below the floor of the pit) and remains open at depth. Moreover, metallogenic and analytical results indicate that there are at least two types of lenses: one containing Au, Cu and Zn and another containing Au and Ag. More information on the drilling results is provided in Table 3 of the appendix.
The peculiar nature of the structure and the significance of the preliminary drill results suggest a conceptual deposit of 40 million tonnes of VMS at 1.1 - 1.3 g/t Au and 0.6 - 0.8% Cu. It is important to note, however, that a significant portion of the VMS deposit is yet to be included in the deposit size estimate. As shown in Figure 3, the conceptual deposit of 40 million tonnes of VMS represents solely Zone B, which is the central, and thickest, of the set of lenses that extends over 500m. The previously-stated preliminary deposit calculation excludes the eastern part of the pit (Zone C), where the VMS appears to be less wide and rich, and the western part of the pit (Zone A), which has been drilled at a tighter grid from the floor of the pit to estimate the likelihood of enrichment. These two subsequent zones represent an interesting upside and could be included in the next conceptual deposit estimate once further studies have been conducted.
Jean-Jacques Kachrillo, Vice President, Exploration of La Mancha, stated: "Now that we have a conceptual deposit size for the second target, Hadal Awatib, we intend to focus on the upper part of its VMS lenses. We expect to identify an enriched zone at the top of the Hadal Awatib structure, as was the case for the Hassai structure, where gold and copper values intersected were significantly higher at the top of the VMS lenses. We are currently awaiting the results for the holes drilled from the bottom of the Hadal Awatib pit."
In light of the enriched supergene zone found on top of the VMS structure of the first target, as announced in December 2008, La Mancha launched a similar drilling campaign on the second target in the western part of the pit (Zone A). During the campaign, 44 holes totalling 4,160 meters were drilled at a tightened grid of 40x20 from the floor of the existing Hadal Awatib pit. Results are currently being compiled and should be made public towards the end of the second quarter of 2009.
The Hassai and Hadal Awatib conceptual estimates of potential tonnes and grade to date have insufficient exploration to define a mineral resource compliant with National Instrument 43-101. It is uncertain whether further exploration will result in the target deposit being delineated as a mineral resource. The estimate used the current geological interpretation of the lens with the intersections of copper and gold mineralization from the 12 new holes drilled to date and 7 previously-drilled holes at the Hassai pit and 8 new holes drilled to date and 7 previously-drilled holes at the Hadal Awatib pit. The estimate excludes copper and gold values outside the interpreted zones and all lead zinc and silver values, and does not take into account possible enrichment from the upper part of the lenses, mainly below the west pit of Hadal Awatib. The estimate also excludes dilution and recovery.
NEXT STEPS
The VMS exploration program will continue to progress as planned, with results disclosed as they become available. The following table outlines the VMS program's expected news flow along with the expected news release dates.
--------------------------------------------------------------------------
VMS Program Expected News Flow Expected
Release Date
--------------------------------------------------------------------------
Target 1 First NI 43-101 compliant resource
(Hassai pit) calculation for the deposit Q 2
Metallurgical tests Early Q3
Target 2 Supergene drill results for the western part of
(Hadal the pit, "Zone A" (44 holes totalling 4,160
Awatib meters have been drilled) End of Q2
pits)
First NI 43-101 compliant resource calculation
for the enriched zone Q3
Target 1
and 2 Scoping study End of Q3
CORPORATE DEVELOPMENT
La Mancha is pleased to announce that AGORACOM services have been retained to add to La Mancha's investor relations program by adding their internet platform as an additional communication channel between the Company and the investment community. Starting today, a La Mancha IR Hub at http://www.agoracom.com/IR/lamancha is available, where interested parties can post questions and receive answers from the Company in addition to browse through various sources of information on the Company and its projects.
TECHNICAL NOTE
The technical information in this news release was prepared under the supervision of Jean-Jacques Kachrillo, the Qualified Person under NI 43-101. Mr. Kachrillo is Vice President, Exploration and a full time employee of La Mancha Resources. He has sufficient experience in the style of mineralization and type of deposit to qualify as a Qualified Person as defined in "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 National Instrument 43-101 and has ensured that this press release has been written in compliance with that instrument.
The analysis of these recent samples meet with all of La Mancha established Analytical Quality Assurance Program put in place to control and assure the analytical quality of assays in its gold exploration. Namely, 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 laboratory, duplicates allow the overall precision to be quantified while standards determine the analytical accuracy. All samples are half HQ or NQ diamond drill core sampled on a one metre basis. Samples were assayed at Intertek laboratory in Indonesia, which is ISO 17025 qualified, using respectively for gold fire assays on 30g samples followed by AAS and for base metals triple acidic digestion followed by AAS. The average true widths are more than 70% of the intersection length. In addition, the results from the seven previously-drilled holes have not been verified using La Mancha's Analytical Quality Assurance program.
ABOUT THE HASSAI MINE
The Hassai mine is located in the Red Sea Hills desert of northeastern Sudan, some 450 km from Khartoum. Inaugurated in 1992, it is Sudan's first and only gold mine in production. Twelve pits have been mined over the years, generating a cumulative production of more than 2 million ounces of gold. La Mancha owns 40% of the mine through a subsidiary and is the mine manager. The Hassai mine's exploration budget is expected to total $4.9 million in 2009 ($2 million attributable to La Mancha), distributed among several gold targets (quartz, SBR and tailings) and VMS targets. The Hadal Awatib pit is located at 13km from the Hassai camp and comprises three main pits (see schematic map in the appendix) where around 1.1 million ounces have been mined since the creation of AMC, a La Mancha subsidiary, in 1992.
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.
Bobwins
Posted: Fri Mar 27 20:07:01 2009
La Mancha posted 2008 results. They had a profitable Q4 that bodes well for 2009. La Mancha has three mines and is working on opening a 4th mine by early 2010.
La Mancha got the gold prospects that were spun out of AREVA in 2006. They have 3 operating gold mines in Australia, Ivory Coast and Sudan. Total gold production for LMA was 71,550 oz in 2008. Company is guiding for 85 to 100,000oz in 2009 at a cash cost of $497, ramping up to 150,000 oz by 2011. They are preparing a fourth mine to open in early 2010.
La Mancha has been aggressively drilling to increase reserves and resources. A recent update put total reserves and resources at 2.4million oz with a goal of 4 million oz by 2011.
95,000 oz X $900 gold less costs of $497 = $38million projected for 2009.
