Drill Program Started At Canabrava In Central Brazil
May 24, 2011 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that its partner Votorantim Metais Zinco S.A. (“Votorantim”) has started a 1,500 metre diamond drill program on the Company’s Canabrava VMS Project in central Brazil. The program comprises 8 holes, testing four priority target areas, where airborne geophysics and more detailed surface work, have defined electromagnetic conductors with coincident copper and zinc anomalies values from soil sampling.
The Canabrava VMS (volcanogenic massive sulphide) Project is located over the Goiás-Tocantins State boundary in central Brazil and comprises 40,628 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.
Votorantim can earn an initial 55% interest in the project, by funding $2.5 million of exploration expenditures by 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, 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.
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.
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 and has signed agreements for eleven joint ventures, nine of which are expected to see drilling in 2011. 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.