La Mancha Resources Inc LACHF

One of Canaccords top picks

[Charlie_Chan]

Canaccords "Morning Coffee" has a nice writeup on LMA . 

La Mancha Resources* (LMA : TSX : $2.15), Net Change: 0.05, % Change: 2.38%, Volume: 102,382

On your watch list? Last Thursday, La Mancha reported initial metallurgical results for the Hassai VMS project in Sudan. The company indicated that flotation returned recoveries of 73% for gold and 87% for copper in the supergene material and 38% for gold and 85% for copper in the primary material. These gold and copper recoveries are in line with Canaccord Adams Mining Analyst Nicholas Campbell’s current assumptions; however, he believes the potential to improve the gold recovery to 92% in the supergene and 75% in the primary material by treating the flotation tails is promising. It remains to be seen what the incremental operating costs would be in order to achieve these improved recoveries. Nevertheless, the potential could significantly enhance the economics of the Hassai VMS project. He expects to see a preliminary economic assessment (PEA) delivered on the Hassai VMS project in June 2010. Mancha is a junior gold producer under the stewardship of Dominique Delorme. It holds 45.9% of the Ity gold mine (Côte d’Ivoire), 51% of the Frog’s Leg gold mine (Australia), 40% of the Hassai gold mine (Sudan) and 100% of the White Foil project (Australia). Its share of annual gold production is ~100,000 ozs of Au, growing to ~130,000 ozs of Au by 2011. The stock is one of Cambell’s top picks based on: 1) Attractive valuation; 2) Hassai VMS potential: La Mancha discovered six VMS zones beneath open pits at the gold mine; and 3) Organic growth opportunities. In addition to the PEA for the Hassai VMS project, the upcoming catalysts: include Q1/10 financial results and exploration results.