La Mancha Resources Inc LACHF

Very positive

[RedHorizon]

The news release from earlier today is far more positive than it first appears.  Here's why:

"...For the second quarter,we expect the combined impact of increased mill capacity, increasedore production at Frog's Leg, and the recent start of production atWhite Foil to boost our gold production from Australia alone to over31,000 ounces..."

If we then add the production from Hassaii and Ity for Q1 to the 31000 forecast for Australia, LMA is implying that they will produce in the neighborhood of 43,000 ounces for the 2nd quarter.

"...Hassai mine production totalled 17,748 ounces of gold (7,099 ouncesattributable to La Mancha)"

"...The Ity mine produced a total of 10,380 ounces of gold (4,766 ouncesattributable to La Mancha)"

So:  31,000+7099+4766 = 42,865 ounces for Q2.  That's about 170,000 ounces per year at that rate.  Now my bet is that there are some factors which will serve to reduce this number since it is far above the annual forecast of 140,000.  However, I am now VERY comfortable with the target of 140,000.  They seem to be getting things done in Australia quite expeditiously.

The stock has failed to move recently due to fears regarding the new mining tax in Australia.  All of the Australian miners have been affected by that.  LMA going sideways is apparently not due to any weakness at the company.

GLTA