I can tell you now that the announcement for Friday morning will be almost a double in the gold estimation of the frogs leg deposit. This stock will break out.
LaMancha posted this announcment at 9am Canadian time this morning - LMA Owns 51% of Frogs leg... DIO owns 49% of Frogs leg.
Enjoy.
HIGHLIGHTS: · Measured and indicated resource increase by 95% to 723,000 ounces of gold · Drilling continues at Frog's Leg · Updated feasibility study expected for September 2007 · Preliminary stages of portal development to be inaugurated tomorrow
MONTREAL, QUEBEC--(CCNMatthews - July 5, 2007) - All amounts are expressed in CA dollars, unless otherwise indicated.
La Mancha Resources inc. (TSX:LMA) (thereafter "La Mancha" or the "Company") is pleased to announce that the Measured and Indicated ("M&I") resource at its Frog's Leg gold project has increased by more than 95% compared to the resource estimated as of December 31, 2006. As of June 25 2007, Frog's Leg M&I resource is 723,000 ounces of gold (368,700 oz attributable to La Mancha), compared to 369,000 ounces of gold (188,000 oz ounces attributable to La Mancha) as of December 31, 2006.
Michel Cuilhe, Chairman and CEO of La Mancha commented: "Frog's Leg is moving from being a very good project to a great mine. We are very excited with the results of the resource update. We are confident that this sharp increase in resource will have a significant impact on the profitability of the project. While we are beginning to develop the mine, we are continuing to get very encouraging results from our exploration program."
As of June 30th 2007
Tonnes Grade Ounces
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Measured 972,000 7.1 222,000
Indicated 2,249,000 6.9 501,000
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Total Measured & Indicated 3,221,000 7.0 723,000
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Inferred 1,136,000 5.7 209,000
This increase can essentially be attributed to two factors: A) the conversion of inferred resource to the M&I category due to the infill drilling that has taken place since October 2006 and B) the complete re-evaluation and interpretation of the Frog's Leg ore bodies during this same period.
This M&I resource primarily reflects the success of the continued drilling of the Frog's Leg deposits since October, with the conversion of the large Inferred areas of the Fog and Mist ore bodies to the Indicated status. This drilling alone converted an additional 210,000oz in the northern extents of the Frog's Leg Deposit. The drilling program comprised 20 holes designed to give optimum coverage within previously sparsely drilled areas at the northern end of the Fog and Mist ore bodies.
In addition, a complete review of the geological information from all previous drilling has led to a new interpretation and modeling of the resource. The primary outcome of this systematic approach is the extension and widening of the three main ore bodies, "Mist" "Rocket" and "Fog", as shown on the attached long section presented in appendix I. The new modeling approach, in contrast to the previous reported resource, now shows a decrease in the average grade and a large increase in the tonnage. The primary reason is that the modeled lodes reflect what will actually be extracted during mining. These lodes reflect the true geological mineralisation styles occurring at Frog's Leg.
This updated resource calculation incorporates the results of all new holes completed between October 2006 and May 2007 that have not been included in the December 2006 calculation. Reported resource figures have been calculated using an Au cut off grade of 3.5g/t, thus being consistent with the resource estimates reported in the previous resource update of December 2006.
NEXT STEPS
Significant results have been obtained since the beginning of the drilling program in October 2006 and drilling is now scheduled to continue for the remainder of the year. The program for 2007 comprises 20,000m of diamond drilling at a forecasted cost of $4.4 million (of which $2.2 million is attributable to La Mancha). At the end of June, 24 holes had been completed, totaling 10,500m at a cost of $2.4M. The drilling targets for the remainder of the year will be the Rocket orebody and the area between Rocket and Mist. New drill results will be released as they come available.
The Frog's Leg Feasibility Study is now expected to be completed in September, 2007. This slight delay in producing the feasibility study can be explained by the impact the updated resource calculation has on the mine design. While feasibility reviews based on the December 2006 Resource calculation have indicated positive results, it was recognized that the new resource update could significantly improve the already good results. Feasibility work on the December 2006 Resource calculation was halted and is now being completed on the basis of the new resource.
Despite the delay in finalizing the updated feasibility study, the previously completed positive pre-feasibility study and the significant increase in resource observed since then have justified the preliminary stages of portal development, which will be inaugurated tomorrow. The preliminary development work to be completed between now and September will not be impacted by the revised mine design. Such steps are being undertaken to avoid any delays in resuming mining operations. As such, reopening of Frog's Leg is still scheduled for the first half of 2008.