December 17, 2010 / 5:05 PM / 7 years ago

UPDATE 1-La Mancha shuts Ivory Coast mine on regional tensions

* Backs 2010 production outlook

* Says it is a cautionary shut down

Dec 17 (Reuters) - La Mancha Resources Inc LMA.TO said it temporarily suspended operations at its Ity mine in Ivory Coast due to tensions in the west African country but backed its 2010 production target.

The company said it has shut operations in the mine as a caution after agitations increased in the Zouan Hounien region in the last 24 hours.

La Mancha backed its 2010 production outlook of 120,000 to 130,000 ounces of gold, saying it only produces 15 percent in Ivory Coast, while most of its gold comes from Australia.

The situation in the region has calmed down and all the gold poured over the recent weeks was safely transported off the mine site, the company said.

La Mancha has exploration work at its properties in central and eastern parts of the country. In Ivory Coast, it holds a stake in project Fetekro and owns the Sissedougou and Bondoukou projects.

The stock, which has lost 3 percent since the company said it will continue to mine in Ivory Coast despite tensions earlier in December, were trading down 2 percent at C$2.15 on Friday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by S. John Tilak) (; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:

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