La Mancha Resources Inc. - Frog's Leg resources update



    TSX - LMA

    MONTREAL, March 19 /CNW/ -

    
    All amounts in CA$ unless otherwise indicated

                         FROG'S LEG RE

SOURCES UPDATE - Frog's Leg total resources increase of more than 70% to 770,000 oz - Frog's Leg average grade increase of 17% to 8.35 g/t Au - Approximately 20,000 meters of additional diamond drilling to be completed by August 2007 - Completion of feasibility study expected by June 2007 La Mancha Resources Inc. (TSX:LMA, thereafter "La Mancha" or the "Company") announces that total resources at its Frog's Leg advanced gold project, co-owned with Dioro Exploration NL (ASX:DIO, thereafter "Dioro"), has increased by more than 70% as of end of December, 2006 to reach 770,000 oz. This increase in resources is essentially due to the results obtained from the first phase of the drilling program completed in September 2006, part of which has been disclosed in October and December. New resources estimates have been calculated using a cut off grade of 3.5 g/t Au. Mr. Michel Cuilhé, Chairman and CEO of La Mancha commented: "This new resources update increases the potential for underground mining at Frog's Leg. We are therefore fast-tracking the completion of the feasibility study to move this project forward". New resources estimates are as follows: December 31st 2006, Resources update Volume Tonnes Grade Gold Category '000 m3 '000 t gAu/t Measured 175.1 494.3 9.04 144,000 Indicated 321.6 906.8 7.73 225,000 ------------------------------------------------------------------------ Total Measured & Indicated 496.7 1,401.1 8.19 369,000 ------------------------------------------------------------------------ Inferred 520.8 1,468.5 8.50 402,000 ------------------------------------------------------------------------ Total Resource 1,017.5 2,869.6 8.35 771,000 Total Attributable Resource 393,000 ------------------------------------------------------------------------ Measured and Indicated Underground Resources at the Frog's Leg Gold Mine have increased 35% for 96,000 ounces of gold compared to the resource reported in May, 2006. This increase reflects both conversion of inferred resources to the indicated category due to infill drilling and discovery of extensions to the mineralised zone. The M&I resource grade has increased 18% to 8.19gAu/t, primarily due to geological remodelling of the Rocket lode. The major increase in resource has been in the Inferred category as drilling has identified extensions along strike and at depth. Inferred resources metal content increased 129% to 401,000 ounces. Drilling has commenced at Frog's Leg with the aim of converting a significant amount of the inferred resource to the indicated category. Due to the success of the 2006 drilling program, a further phase of drilling is now underway. A minimum of $4.6M will be invested by the Joint Venture to further delineate the property during 2007. More than 6,400 additional meters have been drilled on the property since September and we expect that approximately 20,000 meters more will be completed before the end of the year. This phase of drilling intends to convert Inferred resources to the Indicated category and to further extend the known mineral zone along strike and at depth. The $ 2.1 million that has been invested in the first phase of the current drilling program have facilitated an increase in resources by 323,000 ounces (including Inferred) at an average cost of $6.50 per ounce, approximately USD 5.55 per ounce. La Mancha Resources operates and owns 51% of the Frog's Leg mine through its interests in the Mungari East joint venture with Dioro. The Frog's Leg open-pit commenced production in 2004. Operations were conducted according to the mining plan until the end of 2005, at which point surface ore extraction was finalized. Further drilling campaigns conducted since then have focused on improving the viability of an underground operation. Mine development continues at Frog's Leg, in parallel to the drilling program. The mine management team is preparing an update on the previous positive Feasibility Studies, and is purchasing mine equipment. The updated feasibility study is expected by the end of June 2007 and development of the mine portal is scheduled to begin in the third quarter of 2007. QUALITY CONTROL The drilling program was carried out by, and under the supervision of, employees of La Mancha Resources Australia Pty Ltd. The program was conducted to industry best practice standards. Samples utilised for the resource update comprise half NQ2 sized diamond drill core. Core was sampled at one meter intervals. No niche sampling took place. All samples were analysed by Genalysis Laboratory Service Pty Ltd, Perth (Western Australia). Samples were assayed using a 400g LeachWell cyanide leach, followed by solvent extraction and flame AAS. The recovered tail pulps for the initial leach samples were then assayed using fire assay and flame AAS if the initial result was (greater than)3g/t Au. The two assays were then added together to give a better representation of total gold grade. The laboratory utilised a series of sample blanks, standards and check assays. In addition, La Mancha Resources Australia routinely conducts check assaying programs utilizing alternative laboratories. An update of the Frog's Leg geological model was completed by La Mancha Resources Australia staff. This was then forwarded to SRK Consulting (a group of independent mining industry consultants), who constructed the wire frames of the model, undertook all geostatistics and produced the block model and resource estimate. The work was undertaken under the supervision of Bruce Sommerville, Senior Consultant, - Resource Evaluation. Mr Daniel Guibal, Corporate Consultant (Geostatistics & Resources), SRK Consulting, FAusIMM has reviewed the Dec. 31, 2006 Geological Model and Resource Estimate shown above and in his opinion the geological model and resource estimate conform to the requirements of NI43-101 and CIM Best Practice Guidelines for Estimation of Mineral Resources. ABOUT LA MANCHA RE

SOURCES 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 Mancha's shares trade on the Toronto (TSX) under the symbol "LMA". For more information on the company, you may visit the web at www.lamancharesources.com FORWARD LOOKING STATEMENT: This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the quantity of mineralization in place, particularly in numbers of ounces of gold the mineable character of the drilling results, mining exploration risks, estimation and evolution of mineral resources, potential for resources additions (in particular the possibility to convert a portion of the inferred resources into measured and indicated resources), future work programs and objectives associated therewith, drilling targets and anticipated results, interpretation of work results, and anticipated timetables, in particular as regards to feasibility study work and development of the mine portal, and the economic and technical potential for an underground mining 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 2006 Management Information Circular filed with the Securities Commissions of all provinces in Canada, as well as the Toronto Stock Exchange. %SEDAR: 00013309E

For further information:

For further information: La Mancha Resources Inc., Martin Amyot, Vice
President Corporate Development, Tel: (514) 987-5115, E-mail:
info@lamancharesources.com

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LA MANCHA RESOURCES INC.

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