Lara Extends Canabrava Option With Votorantim Metais
October 27, 2010 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that it has agreed with Votorantim Metais Zinco S.A. (“Votorantim Metais”) to extend by one year, to May 16, 2012, the Votorantim Metais option to earn an initial 55% interest in the Company’s Canabrava VMS Project in Central Brazil. Votorantim Metais plans to execute a 1,500 metre diamond drill program on priority exploration targets in the second quarter of 2011.
Under the terms of the agreement Votorantim Metais can earn an initial 55% interest in the Canabrava VMS Project, by funding $2.5 million of exploration expenditures (approximately $750,000 spent to date) over a three year period (now ending May 16, 2012). It may then elect to increase its interest to 70% by delivering a Feasibility Study within a further two years. Finally, subject to agreement by Lara and a decision to construct a mine at Canabrava, Votorantim may raise its interest to 75% by funding Lara’s equity cost of the mine development, on terms substantially the same as those of the debt financing.
The Canabrava VMS (volcanogenic massive sulphide) Project is located over the Goiás-Tocantins State boundary in central Brazil and comprises 51,639 hectares of exploration claims and licenses, over strike extensions of the Palmeirópolis Deposits, which are a series of zinc, lead, copper and silver sulphide ore bodies discovered by the CPRM (Brazilian Geological Survey) in the 1970’s. Exploration work completed by Votorantim Metais during 2010 has comprised follow-up soil geochemistry on targets identified by the VTEM (helicopter-borne time domain electromagnetic) geophysical surveys carried out in 2008. This follow-up work has defined three priority targets with good electromagnetic conductors and anomalous copper and zinc values from the soil sampling that will be drill tested by the proposed 1,500 metre campaign.
Qualified Person: 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 Standards of Disclosure for Mineral Projects and is responsible for the preparation and verification of the technical information in this release.
Lara is an exploration company following the prospect generator business model, which aims to minimize shareholder dilution and financial risk by generating prospects and then exploring them in joint ventures funded by partners. The Company currently holds a diverse portfolio prospects and deposits in Brazil, Peru, Colombia and China. 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 – CEO, or Andre Gauthier – President, at +1 604-669-8777.
Julia Maxwell - +1 604-669-8777
Chris MacIntyre – +1 416 346-7660
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.