Lara Updates Activities
Lara Exploration Ltd. (“Lara Exploration”) (TSX VENTURE: LRA, TSX VENTURE: LRA.WT) is pleased to provide an update of its exploration activities in Brazil and Peru.
At the 180 square kilometer Campos Verdes project, which covers part of the Santa Terezinha greenstone belt in Goiás State, Central Brazil and includes two historic small scale gold workings known locally as “garimpos”, reconnaissance sampling at the João Neves garimpo has returned values of up to 49.7 grams gold per tonne from grab samples of vein material, while channel sampling yielded 5.9 grams gold per tonne over 5.8 metres (including a higher grade section running 8.5 grams gold per tonne over 2.8 metres) within a 55.1 metre long trench at the northeast end of the workings. The average uncut grade of all the samples collected along the trench is 0.8 gram gold per tonne.
At the Modesto garimpo, 26 surface channel samples collected over a 42 metre long section returned up to 1.03 grams gold per tonne and averaged 0.23 grams gold per tonne.
“Preliminary results received so far suggest that Campos Verdes may have potential for both high-grade shear/vein-hosted mineralization and more disseminated low-grade material,” says Lara Exploration’s President, Miles Thompson. “We’ve now started an environmental baseline study on the old workings ahead of more systematic exploration along the 12 kilometers of the prospective trend.” An independent technical report on the Campos Verdes project is expected to be filed under the Corporation’s profile on the SEDAR database at www.sedar.com within the next two weeks.
As of the end of March, Falconbridge Ltd. had completed 15 shallow drill holes comprising 522 metres of a planned 800 metre program on Lara’s 42,557 hectare Araguaia nickel project in Pará State. Falconbridge is funding the exploration as part of its agreement to earn a 70% interest in the project by making cash payments of US$110,000 and spending US$3.89 million on exploration on or before June 2009 (Press Release January 11, 2006). Assay results are expected over the next three to four weeks.
A Community Agreement has been signed and the required documentation for obtaining a drill permit for the Lara copper project in southwestern Peru was submitted to the Mines Department in Lima on March 6, 2006. Once approval is granted, it is expected that Solid Resources Ltd. (“Solid”) (TSX-V: SRW) will begin drill pad preparation for its planned drill program. Solid can earn an initial 55% interest in the Lara copper project by making staged cash payments totalling $500,000 and completing exploration expenditures of $2 million, including a minimum of 8,000 metres of drilling, over a three year period
The Lara property hosts an inferred mineral resource of 18.6 million tonnes grading 0.53% copper using a 0.2% copper cut-off. Within this inventory is higher-grade blocks estimated at 6.5 million tonnes grading 0.91% copper using a 0.5% cut-off and 4.8 million tonnes grading 1.04% copper using a 0.6% copper cut off. The resource remains open to the east and to the west.
Mineral resources that are not reserves do not have demonstrated economic viability. An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. A technical report, filed April 12, 2005, detailing the Lara property including the resource estimate is available for viewing on SEDAR.
A. Murray Sinclair has advised that he will step down as a director of Lara Exploration effective today. The Board wishes to thank Mr. Sinclair for his valued service over the past year.
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 Exploration is a well-funded junior exploration company with nine (copper-gold-nickel) projects in Brazil and one copper project in Peru. Lara Exploration trades on the TSX Venture Exchange under the symbol “LRA”, “LRA.WT”. All dollars are in Canadian currency unless otherwise stated.
Forward Looking Statement
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.
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For further information contact:
Lara Exploration Ltd.
Miles Thompson, President
Lara Exploration Ltd.
Kim Casswell, Corporate Secretary
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