UPDATE 2-La Mancha sees higher gold production in 2012

* Sees 2012 production of up to 130,000 ounces of gold

* Sees 2012 average cash costs of $659/ounce of gold (Adds details, cash costs)

Jan 19 (Reuters) - Canada's La Mancha Resources Inc forecast higher gold production targets for this year helped mainly by increase in output from its Ity Mine in the Ivory Coast.

The company forecast 2012 gold production of up to 130,000 ounces of gold compared with 121,446 ounces in 2011.

It expects average cash costs of $659 per ounce of gold in the current year.

La Mancha, which operates in Africa and Australia, expects gold production to be 65-83 percent higher at its Ity mine in Ivory Coast as it completes the ramp-up of milling operations there in the first quarter.

La Mancha now expects to produce 27,900 to 31,000 attributable ounces of gold from the Ity mine this year, compared with 16,860 attributable ounces produced in 2011. (Reporting by Maneesha Tiwari in Bangalore; Editing by Don Sebastian and Gopakumar Warrier)