Brazil Exploration Update
Lara Exploration Limited. (“Lara”) (TSX VENTURE: LRA) is pleased to report that Falconbridge Brasil Limitada. (“Falconbridge”) has completed its first year earn-in commitment on Lara’s Conceição de Araguaia Project in Northern Brazil. Falconbridge has further informed Lara that it intends to continue into year two of the joint venture, for which it must invest a minimum of US$480,000 in exploration expenditures by June 2007, to maintain its option.
Initial drilling of the Vila Oito nickel laterite target on the North Block has been completed (see Lara NR May 15th, 2006) with one further intercept made in drillhole FPB-06-10 which returned 4.3 metres grading 1.35% nickel. The remaining holes FPB-06-12 to FPB-06-19 testing separate geophysical targets on the same property have returned values of less than 1% nickel.
Exploration on the larger South Block has returned highly anomalous nickel and copper values at surface, with up to 6,540 parts per million (“ppm”) nickel and 779 ppm copper from analyses of weathered ultramafic rocks. Follow-up soil sampling has returned values of up to 662 ppm nickel from an anomaly extending for some 10 kilometers, interpreted as being related to underlying intrusive-hosted nickel-copper sulphide mineralization. Falconbridge is now undertaking detailed 1:5,000 scale geological mapping of this target area while flying an airborne electromagnetic survey over both the North and South Blocks of the property using a helicopter-borne VTEM system.
Lara’s Generative Program – Pará State
Lara has registered on a 100%-basis an additional 260,000 hectares of exploration claims over extensions of the ground in joint venture with Falconbridge (South Block) and other more conceptual targets generated from remote sensing in the same district. A reconnaissance team has been in the field reviewing this ground since April and we expect to be able to reduce our land position and focus on specific targets as this work progresses.
During the months of May and June, Lara has mobilized field teams to start work on its Campos Verdes and Colorado gold projects, located in Goiás and Rondônia States respectively. These projects are host to high-grade greenstone-type gold occurrences which have been checked and confirmed during reconnaissance work by Lara and will now be subject to more systematic surface mapping, soil sampling, trenching and channel sampling.
Richard Graham P.Geol., is a Qualified Person as defined by National Instrument 43-101, and is responsible for the preparation of the technical information in this release.
Lara is a well-funded junior exploration company with fourteen (copper-gold-nickel) projects in Brazil and one copper project in Peru. Lara on trades on the TSX Venture Exchange under the symbol “LRA”. All dollars are in Canadian currency unless otherwise stated.
Some statements in this report contain forward-looking information. These statements address future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.
On behalf of the Board, Miles Thompson, President & CEO
For further information on Lara Exploration please contact: Miles Thompson or Kim Casswell, Corporate Secretary at +1 604 669 8777.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.