Lara To Form Tapajós Gold Joint Venture
Lara Exploration Ltd. (“Lara” or the “Company”) is pleased to announce the signing of a Letter of Intent to create a new joint venture to explore for intrusion-related gold and copper deposits in the Tapajós District of Pará State, northern Brazil. The initial property portfolio will include 44,800 hectares of exploration claims covering the Santa Felicidade, Santa Cecilia, Castelo, Colibri (Beija-Flor), Caic-1 and Caic-2 garimpeiro gold workings.
Under terms of a Letter of Intent signed on April 19, 2007 a new company, T’Gold Mineração Ltda (“T’Gold”), will be formed as a joint venture vehicle to acquire properties and explore in the Tapajós District. The ownership of T’Gold will be 50% Lara, which will contribute up to US$300,000 of seed capital in 2007 - 2008 and 50%-owned by Mr. Dirceu Frederico and Mr. Alain Lestra who are contributing the above-mentioned mineral rights. Mr. Frederico, a São Paulo based gold buyer, refiner and trader and Mr. Lestra, a Tapajós-based exploration geologist, have both spent much of their careers working in this district and have an excellent local network and infrastructure. T’Gold will pay a 1.5% NSR royalty to Mr. Frederico on any gold production from the Santa Felicidade, Santa Cecilia, Castelo and Colibri areas, but may buy back half of this (0.75%) for US$750,000. The agreement is subject to title due-diligence and the approval of the board of directors of the Company.
T’Gold will use the seed funds provided by Lara to conduct regional remote sensing and reconnaissance fieldwork over the known target areas. A more detailed program is proposed for the Santa Felicidade target, a sheared porphyry intrusive with quartz veining, disseminated sulphides and alluvial workings in many its surrounding drainages. Selected grab samples from the Company’s field review at Santa Felicidade returned up to 11 grams per tonne of gold from quartz vein material with pyrite. T’Gold will also have the exclusive right to incorporate another 60,700 hectares of mineral rights held by other individuals into the joint venture.
“The Tapajós is arguably the most prospective gold district in Brazil, with a large number of occurrences, multi-million ounce past production from alluvials and limited exploration” says Lara’s President Miles Thompson. “However, it is a very challenging district in which to work and the wealth generated from garimpeiro mining has made property acquisitions expensive, so we are very fortunate to have been invited to work with Mr. Frederico and Mr. Lestra”.
Michael Bennell, Lara’s Vice President Exploration and a member of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101, and is responsible for the preparation and verification of 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 website 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.