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La Mancha Obtains a First Gold Pour From New Australian Frogs Leg Mine



La Mancha Obtains a First Gold Pour From New Australian Frogs Leg Mine

Marketwire

 
 
La Mancha Resources Inc.
TSX:LMA
  
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May 13, 2008
La Mancha Obtains a First Gold Pour From New Australian Frogs Leg Mine

HIGHLIGHTS:

- First gold pour from the Frogs Leg mine in Australia

- Start of production is two months ahead of schedule

- 3000 meters of declines development completed to date

MONTREAL, QUEBEC--(Marketwire - May 13, 2008) - La Mancha Resources Inc.

(TSX:LMA)(hereinafter "La Mancha" or the "Company") and its Australian joint venture partner Dioro Exploration NL, are pleased to report that the first gold from ore mined underground at its Frogs Leg project near Kalgoorlie in Western Australia was poured earlier today.

This start of gold production at the Frogs Leg mine is taking place more than two months ahead of the schedule that was announced by La Mancha in August 2007 when the decision to proceed with the development of the mine was taken.

In addition to the gold pour there have been other significant developments at the Frogs Leg mine:


- The Rocket and Mist declines have reached a lenght of 3000 metres
of development in total.

In addition to the declines,
development is now taking place on three horizontal mining
levels.

Wherever the mineralization has been exposed to date,
orebody widths and grades are in accordance with what was
predicted by the resource model.

- The increase in the number of available mining faces enables the
pace of development to be accelerated.

In order to achieve this
increase in productivity:
- A third jumbo drill has been commissioned to increase
underground development rates;
- A second underground truck is increasing haulage capacity;
- Power-line infrastructure and connection to mains power is
nearing completion.
 
The Frogs Leg mine is forecast to produce an average of 83,000 oz of gold per annum from its underground operations over the next seven years, based on reserves of 3.65 million tonnes at 5.29 g/t Au.

This reserve and related mining plan do not take into account additional resources calculated in the March 2008 upgrade.

The March resource estimates added 267,000 (37% increase) to the measured and indicated category increasing the total measured and indicated resources to 990,000 oz.

ABOUT THE FROGS LEG MINE:

The Frogs Leg advanced project is located 25km west of Kalgoorlie, in the eastern goldfields region of Western Australia, and represents the southern part of the six million ounce endowed Kundana gold field.

It was first operated as an open-pit from 2004 to 2005.

Operations were conducted according to the mining plan until the end of 2005, at which point all the surface ore had been mined.

Since then, additional drilling has indicated the viability of an underground operation.

La Mancha owns 51% of Frogs Leg and acts as its developer and operator.

The remaining 49% interest in the project is owned by Dioro Exploration NL (ASX:DIO).

La Manchas share of the ore produced at the Frogs Leg mine is processed at the Jubilee mill owned by Dioro.

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 in Argentina.

La Manchas shares trade on the Toronto (TSX) under the symbol "LMA".

For more information on the company, visit the Companys website at www.lamancha.ca

Caution Concerning Forward-Looking Statements

This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Companys strategic plans, future commercial production, development, construction and production targets and timetables, development plans; statements regarding the assumptions underlying the conversion of Frogs Legs resources into proven and probable reserves and their impact on the mining plan.

Forward-looking statements express, as at the date of this press release, the Companys 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, exploration risks, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licences, risks of delays in construction and production and other risks referred to in La Manchas 2006 Annual Information Form filed with the Securities Commissions, as well as the Toronto Stock Exchange.

CONTACT INFORMATION:

La Mancha Resources Inc.
Martin Amyot
Vice President Corporate Development
514-987-5115

www.lamancha.ca

 

INDUSTRY: Manufacturing and Production - Mining and Metals

 

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