Overview
La Mancha began drilling on the two most promising VMS targets in late 2007 with the intention of confirming and quantifying their potential.
To date, we have delineated an Inferred VMS resource of 51.4MT (20.6MT attributable to La Mancha) at 1.31 g/t Au and 1.23% Cu on the Hassaï property. This Inferred resource is contained in the VMS lenses under the first two of six visually-identified VMS targets, the Hassaï South and Hadal Awatib pits. Following the publication of a positive preliminary economic assessment (PEA) in September 2010, we began a 12-month, 100,000-metre drilling program to upgrade the Inferred resource to the Measured and Indicated category, increase the current resource at the first two targets, and test the potential of the VMS structure identified at the third target.
The PEA defined two phases of development:1) an upgrade of the current heap leach operation with a Carbon-in-Leach (CIL) plant, followed by 2) a further upgrade to add a flotation unit that will enable the processing of copper-gold VMS ore as of 2015.
In May 2011, La Mancha released the results of a definitive feasibility study (DFS) that confirmed the solid financials of Phase 1 of the project on a stand-alone basis, and we are moving forward toward construction of a CIL plant starting in the fall of 2011.
Long-Term Potential
Internal modelling shows that the project's economic value responds very favourably to future resource growth. The fact that several other VMS structures have been identified at the bottom of some of the pits mined in the past on the Hassaï property, and the high level of geological understanding of these structures gained over the last 20 years of mine operation, provide a strong assurance that substantial potential remains to grow the size of the resource with minimal geological risk, and therefore significantly improve the project economics.
An aggressive $18 million exploration program has been designed to tap this potential. A total of 100,000 meters of drilling is presently underway on the project, scheduled for completion in October 2011.
Attributable Resources and reserves
VMS Resources
| Tonnes | Cu (%) | Cu (t) | Au (g/t) | Au (oz) |
|---|
Indicated
|
1,159,200
|
1.27
|
14,720
|
0.93
|
34,680 |
Meas.& Ind.
|
1,159,200 |
1.27
|
14,720 |
0.93 |
34,680 |
| Inferred |
19,392,000 |
1.19
|
230,400
|
1.33
|
831,200
|
The VMS resources were calculated with a cut-off grade of 0.8% eq Cu