Lara Grants Option And Provides Gold Exploration Update, Brazil
Option Granted on Fortuna
Lara Exploration Ltd. (“Lara”) is pleased to report that it has signed an agreement to farm out its Fortuna project to HSAK Mineração Ltda (“HSAK”). Under the terms of the agreement HSAK will pay Lara approximately $20,000 ($10,000 paid on signing) and fund all further exploration through to a production decision, in exchange for an 80% interest in the property. Lara may then elect to fund its share of mine development or dilute to a 2% NSR royalty. HSAK’s minimum exploration commitments under the agreement include a program of surface geochemistry, geophysics, trenching and at least 1,600 metres of drilling to be completed before the expiry of the licenses.
The Fortuna project, located in Ceará State, NE Brazil, was acquired by Lara in 2005 because of the historical artisanal surface gold workings that extend for over a kilometre within a 20km belt of metamorphosed sediments and volcanics. Lara conducted reconnaissance work during 2006, encountering low-level anomalies in soils and channel sampling around the old workings and several additional areas of mineralization along the trend.
Lara’s on-going exploration work at Campos Verdes has defined additional mineralization in the João Neves trend, related to shallow north-dipping sheeted quartz veining that is late stage and cross-cuts the previously sampled quartz-mica-schists exposed in the main core of the old pit. Vertical channel sampling in the walls of the João Neves pit cut up to 2.25 metres at 11 grams per tonne gold (“g/tAu”). In a trench 400 metres to the northeast of the old pit, a wider (40-120 centimetre) vein returned values of 14.1 g/tAu over 0.55 metres and 8.87 g/tAu over 0.8 metres. Based on soil sampling this mineralization could extend for 300-400 metres along strike and is likely to continue down dip to the north. Further trenching and pitting is planned to better define the extent of this mineralization.
Drilling in the 1990’s along the north-south oriented Zé Goiano trend intercepted apparently discontinuous mineralization in sub-vertical quartz veins. Lara’s mapping and sampling work compiled with this historical data now shows that most of these veins are actually oriented northnorthwest to south-southeast oblique to the main trend and plunge gently to the north. Lara believes that there are multiple sub-parallel ore shoots that are more continuous and predictable than previously thought. Previous drilling targeted only the north-south direction and thus did not test the full extent of the gold mineralization, especially in the Zé Goiano pit area. Lara also channel-sampled high-grade zones around the Solinger pit that have not been drill tested.
Lara also undertook reconnaissance exploration in 2006 on its Santa Rita (Goiás State) and Arapoema (Tocantins State) properties, which have subsequently been abandoned. Work continues on the Niquelândia (Goiás State) property where anomalous values have been returned from soil and stream sediment sampling.
Michael Bennell, Lara’s Vice President Exploration, a member of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of and has verified the technical information in this release.
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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.