Lara Acquires Tin Properties
Lara Exploration Ltd. (“Lara”) is pleased to announce that it has registered claims over two highly prospective tin exploration properties at Espigão in Rondônia State and Guariba in Mato Grosso State and has signed an option agreement to acquire the São Lourenço tin mine in Rondônia State, in NW Brazil.
Lara is building an exploration portfolio for tin and related metals in Brazil with the assistance of Jeremy H. Bates, a Mining Engineer with over 35 years experience covering most aspects of the tin exploration and mining business in Brazil. All the properties and options will be held in the name of a joint venture company (“BEML”) which will be owned 80%-owned by Lara and 20% by Mr. Bates.
The most advanced of the new properties, the São Lourenço tin mine, comprises seven mining licenses covering a total of 3,459 hectares over two prominent hills, Serra Isaac and Serra Irene, which are considered prospective for tin and related metals (lead, tungsten and rare earths). Tin has been mined from the flanks of these hills and the rivers that drain them and there are tin bearing veins and alteration zones (known as greissens) exposed on both hills. However, to date there has never been systematic exploration for a hard rock deposit. A Brazilian company, Mineração Oriente Novo SA, produced some 12,000 tonnes of tin metal (worth an estimated US$ 126 million at current tin prices) from the São Lourenço district between 1973 and 1988, before going into liquidation. Production has continued on a small-scale since then to keep the licenses in good standing and there is still basic road and camp infrastructure on the property. A project summary and maps will be posted to the Lara webpage in the coming days.
BEML entered into an option agreement to purchase the São Lourenço property on January 29, 2007 with Mineração Céu Azul Ltda. (which currently leases the mine), Companhia de Mineração São Lourenço Ltda. (titleholder of the mineral rights) and Companhia Industrial Amazonense (owner of preferential purchase rights of tin production). Under the terms of this agreement BEML will pay US$73,500 in staged lease payments over three years (US$12,500 paid on signing) while it evaluates the hard rock tin potential. BEML has up to three years from the date of signing to exercise its option to acquire the mineral rights by making a one-time payment of US$1 million. The São Lourenço mine lies within the frontier zone and will thus be subject to certain foreign ownership restrictions.
The Espigão property is a 7,150 hectare exploration claim near the town of Espigão do Oeste in the southern part of Rondônia State a few hours drive from Lara’s Colorado gold project. The property covers a prominent hill that has not been subject to systematic exploration for tin, but the streams that drain it to the west, east and northeast contain known tin placer deposits.
The Guariba property comprises a 10,000 hectare exploration claim, located along the Guariba River in northern Mato Grosso State, where tin mineralization was identified by a prospector.
Jeremy H. Bates, C.Eng. a member of the Institute of Mining, Metallurgy and Materials, is a Qualified Person as defined by National Instrument 43-101 and is responsible for the preparation of and has verified the technical information in this release. Mr. Bates is Lara’s joint venture partner in BEML.
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.
Lara is a well-funded junior exploration company with fourteen (copper-gold-nickel-tin) projects in Brazil and the Lara oxide copper deposit in Peru. Lara’s common shares trade on the TSX Venture Exchange under the symbol “LRA”.
For further information on Lara Exploration Ltd. please consult our webpage www.laraexploration.com or contact: Miles Thompson, President or Kim Casswell Corporate Secretary at (604) 669-8777.
he TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.