Agreement Signed On The Picha Copper-Silver Project In Peru
April 11, 2011 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to announce that it has signed a Letter of Intent (the “Agreement”) whereby Network Exploration Ltd. (TSX Venture: NET, “Network”) may earn up to a 75% working interest in the Company’s Picha Copper-Silver Project (the “Project”) in southern Peru by making cash and share payments to Lara and funding exploration and Pre-Feasibility studies on the Project.
Network can earn an initial 55% working interest the Project (“Option 1”) by issuing 3.5 million units to Lara, with each unit comprising a common share in Network and a common share purchase warrant, with each warrant valid for 2 years and convertible into a Network share at a price of $0.10. Network will also make cash payments to Lara of US$200,000 over 12 months and complete US$3 million in exploration expenditures over 3 years. Upon completion of Option 1, Network may elect to earn an additional 20% interest in the Project (“Option 2”) by paying US$ 1 million in cash to Lara, funding US$ 5 million in exploration expenditures and completing a Pre-Feasibility Study within three years. This Agreement is subject to completion of a Definitive Agreement and approval of the transaction by the TSX Venture Exchange.
The 6,000 hectare Picha Copper-Silver Project is located within the prolific Tertiary Volcanic Arc of Southern Peru, host to various important epithermal gold-silver deposits and copper porphyry-skarn deposits. The Project is adjacent to the properties of Gold Fields Limited and Compañía de Minas Buenaventura S.A., that are host to the recent Chucapaca discovery, with reported mineral resources of 5.6 million gold equivalent ounces. Lara’s exploration work on the Picha Project in 2010, found widespread alteration, brecciation and vein stockworking, indicative of the presence of a porphyry system at depth, and outlined seven zones with anomalous copper and associated silver values (see Lara news release of September 21, 2010). Several of these mineral occurrences have been mined on a small scale in the past, from adits, shafts and small open pits, but to date Project has never been drill-tested.
Andre Gauthier, President of Lara, commented: “We have already begun a geophysical program at Picha and are very excited to be advancing with Network to drill test these highly prospective targets.”
Quality Control and Qualified Person: The Company follows industry standard quality assurance and quality control procedures for all its samples, under the supervision of Noel Díaz, General Manager Peru and André Gauthier, P. Eng., President of Lara Exploration Ltd., who is the Qualified Person and responsible for the content of this press release pursuant to NI 43-101.
About Lara: 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 Chris MacIntyre, VP Corporate Development, at +1 416 703 0010.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.