Gold Production set to Increase by up to 48%

 

MONTREAL, QB - La Mancha Resources Inc. reported that its consolidated gold production for 2009 reached a record 94,570 ounces, compared to 71,550 ounces of gold for 2008, in line with its production guidance. This 32% increase is due to the steady production ramp-up at the Australian Frog's Leg mine, which more than compensated for lower African production.

Continuing on its accelerated growth path, La Mancha expects to increase consolidated production by up to 48% in 2010. Total production is expected to be in the range of 120,000 to 140,000 attributable ounces at an estimated average cash cost of US$ 539/oz.

La Mancha's Australian assets should continue to fuel the Company's growth in 2010 the Frog's Leg mine is expected to continue to ramp up in light of its recently upgraded mining plan and increased toll-milling availability, and the White Foil advanced project is set to start operation in March 2010. At the Ity mine in Cote d'Ivoire, gold production is expected to remain stable, with strong performance offsetting the one-month production halt needed to replace the heap leaching pads. At the Hassai mine in Northeast Sudan, gold production is expected to increase in light of improved efficiencies with the quartz line.

Dominique Delorme, President and CEO of La Mancha, stated: "La Mancha's growth rate is a success story in itself. When compared to the gold production achieved in 2007, La Mancha's first full year of operation as a producer, the production of up to 140,000 ounces of gold expected in 2010 marks a 150% increase. In less than four years, La Mancha will have transformed itself from an operator of two mines with an African focus, to a diversified producer operating four mines and deriving more than 60% of its production from Australia. Moreover, the Company's VMS project in Sudan and the high prospectivity of its exploration grounds in Cote D'Ivoire and Australia suggest strong future growth potential."

During the fourth quarter ended December 31, 2009, La Mancha produced 23,683 attributable ounces of gold. This compares to production of 20,985 attributable ounces of gold for the corresponding period of 2008.

The company’s address is 2001, rue University, bureau 400, Montreal, QB H3A 2A6, 514-987-5115, fax: 514-987-5119.