Lara Options Liberdade Copper Project To Codelco
October 21, 2010 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that it has signed an Agreement whereby Codelco do Brasil Minerac¸a~o Ltda., (“Codelco”) may earn up to a 75% interest in the Company’s Liberdade Copper Project, in the Caraja´s District of northern Brazil.
Under the terms of the Agreement, Codelco may earn an initial 51% interest in the Liberdade property by investing US$3 million in exploration over a four-year period, with a minimum expenditure of US$400,000 in year one, of which US$300,000 is a work commitment. Codelco may then elect to earn a further 24% interest in the property by sole-funding such additional exploration works as are necessary to define a minimum resource of at least 500,000 tons of copper equivalent, independently reported under National Instrument 43-101 guidelines.
The 6,969 hectare Liberdade property is located in the Municipality of Sa~o Felix do Xingu, Para´ State, at the western end of the Caraja´s District. Geology comprises Proterozoic-age volcano-sedimentary sequences of the Aquiri Group and related calc-alkaline intrusives, with evidence of iron-oxide-copper- gold (“IOCG”) alteration and mineralization seen in small-scale “garimpeiro” surface workings. Exploration work to date has comprised reconnaissance level mapping and sampling that has identified extensive alteration and anomalous copper values.
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.