Option Signed On The Lara And Tingo Este Copper Projects With Redzone Resources
(TSX Venture: LRA) - Lara Exploration Ltd. (“Lara” or “the Company”) is pleased to report that it has completed an Option Agreement (“the Agreement”) whereby Redzone Resources Ltd. (“Redzone”) may earn up to a 75% interest in the Company’s Lara Copper Porphyry and Tingo Este Copper Projects (“the Projects”) in Southern Peruvian Coastal Belt.
Redzone may earn an initial 55% interest in the Projects by spending US$2.5 million in exploration and issuing 850,000 common shares of Redzone to Lara over a three-year term. Redzone may then elect to earn an additional 20% interest in the Project by completing a bankable feasibility study and making a one-time cash payment to Lara of US$1.5 million on or before January 28, 2015. Lara retains a 1% net smelter royalty on all production from the Project. Redzone is Project operator. The minimum first year exploration expenditure is US$500,000.
The Lara Copper Porphyry
Porphyry style copper and molybdenum mineralization was originally discovered at Lara in the mid-1990s. Two porphyry centers known Lara and Socos have been delineated within a corridor of hydrothermal alteration extending over several kilometres. Preliminary metallurgical test work completed in the late 1990s indicates that the enriched zone of the Lara deposit is amenable to low cost solvent extraction and electro-winning (“SX/EW”) processing. In 2007, two holes drilled into the core of the Lara deposit returned 20 metres of 1.2% copper and 13.7 metres of 0.93% copper in the enriched zone, followed by 13.7 metres grading 0.33% copper and 220.4 metres grading 0.25% copper, respectively, in the sulphide zone. Both holes ended in mineralization. The Socos target has never been drill tested. Lara and Redzone believe there to be excellent potential for discovery of additional copper mineralization on the Lara property, particularly in the following areas:
- Supergene/Hypogene porphyry copper enrichment zones beneath the leached cap east, west and south of the known resource at Lara;
- Supergene porphyry copper enrichment zones beneath the gravel cover at Socos;
- Extensions to the known copper sulphide mineralization in the Lara and Socos areas; and
- Oxide copper mineralization within the entire Lara Porphyry System.
In total, 27 drill holes representing 3,290 metres have tested a roughly 500 metre by 500 metre portion of the Lara copper-molybdenum porphyry centre. In 2005, an estimated inferred mineral resource of 18.6 million tonnes grading 0.53% copper using a 0.2% copper cut-off and a simple polygonal resource model for the Lara deposit was documented in the independent National Instrument 43-101 technical report on the property entitled ‘Summary of Exploration, Metallurgy and Scoping Studies on the Lara Porphyry Copper Property and Proposed 2005 Exploration Program, Rio Viscus, Palpa, Peru’ authored by John Nebocat, P. Eng. dated February 9, 2004 and revised March 31, 2005. Within this inventory are higher-grade blocks estimated at 6.5 million tonnes grading 0.91% copper using a 0.5% cut-off and 4.8 million tonnes grading 1.04% copper using a 0.6% copper cut off. The technical report is available for viewing under the corporate profile of Lara Exploration Ltd. at www.sedar.com.
An updated NI 43-101 technical report is currently being prepared and Redzone plans to initiate the drill permit process within the next two weeks.
The Tingo Este Copper Project
The second property is the 3,700 hectare Tingo Este property also located in Coastal Peru, east of the city of Ica. Mapping and prospecting on the property has outlined a 1,000 by 800 metre area hosted by granodiorite and quartz monzonite of the Coastal Batholith which intruded Jurassic and Cretaceous sediments and volcanic. The early staged property has never been drill tested and surface values ranged from 0.012% to 0.9% copper.
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 the Technical Report and in this release.
Lara is a South America-focused prospect generator with a multi-commodity exploration portfolio 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 – Chairman & CEO, or Andre Gauthier- President, 604-669-8777.
Julia Maxwell - 604-669-8777
Chris MacIntyre – 416-640-1932
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this release.