Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
PARIS–(Marketwire – Jan 31, 2012) – La Mancha Resources Inc.(TSX:LMA)
Côte d’Ivoire exploration results confirm potential of two properties:
Grades of more than 30 g/t Au intercepted on both properties:
La Mancha Resources Inc. (TSX: LMA) (hereinafter “La Mancha” or “the Company”) is pleased to report that its wholly-owned properties in Côte d’Ivoire have returned very promising drill results. All the drill results are shown in Tables 1 and 2 of the appendix.
Dominique Delorme, President and CEO of La Mancha, stated: “The Ity mine, and more recently the Tongon mine, have already confirmed Côte d’Ivoire’s gold potential. The success of our exploration programs over the last few months can only add to the rising profile of this country within the gold community. Although our 2011 drilling program has confirmed the prospectivity of both of our two wholly-owned projects, Sissedougou and Bondoukou, the regularity, high grades and widths of the intercepts obtained over a strike length of more than 800 metres on the Sissedougou license places it in a class of its own. Moreover, Sissedougou’s proximity to Rangold’s multi-million-ounce Tongon gold deposit adds to the importance of the results released today. Sissedougou really has the potential to develop into a significant resource.”
Sissedougou Property
As shown in Figure 1, the Sissedougou property is located 50 km south of the city of Boundiali, at the contact of the shear zone hosting the Tongon mine and the shear zone hosting the Sissingue advanced project and the Syama mine. The 3,378 metres drilled to date commenced in 2010 and were completed in the fall of 2011. This drilling was focused on the ZA-5 area of the permit.
Figure 2 illustrates that the fence lines drilled in the ZA-5 area include some interesting holes, suggesting the presence of a mineralized trend extending over more than 800 metres. This trend starts to the south with fence line 100N, where a 2-m interval grading 6.24 g/t Au was intersected, and stretches north over an 800-metre distance to profile 900N, where a 1-metre interval grading 7.52 g/t Au was intersected. The potential for the continuity of this trend to the north towards the ZA-6 area remains to be tested.
The best results of the Sissedougou campaign came from fence lines 500N and 700N in the central part of the ZA-5 area, where gold values were intersected over widths of up to 34 metres. The host rock is a set of interbedded metaconglomerates and meta-greywackes that contain a significant percentage of sulphides (mainly pyrite). The mineralisation appears to occur primarily in quartz veins, with numerous spots of what appears to be visible gold frequently identified (see Figure 3). These are polyphase veins that may represent a stockwerk, which would suggest potential for large volumes. This is illustrated by holes DD-06 and DD-09, which intersected 34.6 m @ 2.08 g/t Au and 23 m @ 2.14 g/t Au, respectively. True width corresponds to approximately 60-70% of reported width.
Bondoukou Property
La Mancha initiated exploration on the Bondoukou property in November 2008, with very little work having been done previously. The first exploration program returned very positive results, identifying six main anomalies on the property (ZA 1 to ZA 6) through stream sediment and large-scale geochemical soil surveying. A follow-up program was conducted in 2010 on ZA 3 (see press release dated August 23, 2010. In 2011, drilling focused on the ZA 6 anomaly, known as Songori.
As shown in Table 2, this year’s drilling program on Bondoukou continued to return interesting results, with grades as high as 37.00 g/t Au.
NEXT STEPS
At Sissedougou, more drilling and some trenching is planned for 2012. Drilling will start soon, and some results are expected by the end of the second quarter of 2012. The budget for the program is currently $800,000 but could be increased depending on the results obtained. A minimum of 2,600 metres of drilling is planned. The objective of this next phase is to better assess the volume of the mineralization identified this year and to study the extensions in order to build a critical mass for the project. We expect this 2012 campaign to generate Sissedougou’s first 43-101 resource.
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 met 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. 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 PQ diamond drill core sampled on a one metre basis. Samples were assayed firstly at ALS laboratory in Bamako and in 2011 at the Veritas laboratory in Abidjan using for gold fire assays on a 30g sample followed by AAS.
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 of Sissedougou and Bondoukou, 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 2010 Annual Information Form filed with the Securities Commissions and the Toronto Stock Exchange.
See table in attachment.
LA MANCHA DISCOVERS A MINERALIZED STRUCTURE AT SISSEDOUGOU: http://hugin.info/145163/R/1581426/493932.pdf
