Frog's Leg Mine To Boost Annual Gold Production

 

MONTREAL - La Mancha Resources Inc. reported that the Frog's Leg Proven and Probable reserves (thereafter "P&P reserves") are up by 37% from the 2007 definitive Feasibility study in light of an upgraded mine design incorporating the significant resource increase of May 2008. With the upgraded mine plan, gold output for the mine is expected to average 113,388 ounces of gold per annum (57,828 ounces attributable to La Mancha), from 2010 onwards, representing a 29% increase over the December 2007 feasibility study average annual gold production estimate, and the mine life is extended by 1.2 years.

The project's P&P reserves now stand at 789,504 ounces of gold (402,647 oz attributable to La Mancha), up 45% from the December 31st, 2008, estimate of 582,918 ounces of gold (297,288 oz attributable to La Mancha).

Michel Cuilhe, President and CEO of La Mancha, stated "Having surpassed the ore production and profitability targets set in the original feasibility study, Frog's Leg continues to exceed expectations with an increased mine life and production profile that should now average 113,388 ounces of gold per year starting in 2010, 29% more than originally expected. The mine continues to show strong growth opportunities for the future, as it remains open to the south and at depth. Moreover, the solidity of the Frog's Leg mine should now enable La Mancha to accelerate the growth of its Australian presence through the development of the nearby White Foil and Park Dam projects."

The companys address is 2001, rue University, bureau 400, Montreal, Quebec  H3A 2A6, 514-987-5115, fax: 514-987-5119.