Letter Of Intent Signed - Halston Exploration On The Condoroma And Coporaque Copper Projects In Peru
September 14, 2011 (TSX Venture: LRA) – Lara Exploration Ltd. (“Lara” or the “Company”) is pleased to announce that it has signed Letters of Intent (“the Condoroma Agreement” and “the Coporaque Agreement) with Perth-based, Halston Exploration Inc. (“Halston”), whereby Halston can earn up to a 75% interest in the Company’s Condoroma and Coporaque Copper Projects in the Cuzco Region of southern Peru, by making payments in cash and/or common shares to Lara of US$3.45 million, investing US$20.5 million in exploration and delivering Pre-Feasibility Studies within 7 years.
Under the terms of the Condoroma Agreement, Halston has an initial option to earn a 55% interest in the Condoroma Project by investing US$3.5 million in exploration (with a minimum of 3,500 metres of drilling) and paying Lara US$800,000 in cash and/or common shares. Once Halston has completed the first option, it can elect to earn an additional 20% interest by immediately paying Lara US$1,000,000 spending US$7,000,000 on exploration (minimum US$1.5 million per year) over a 3-year period and delivering a Pre-Feasibility Study to National Instrument 43-101 Standard.
The Condoroma Copper Project comprises 12 mining claims totaling 9,816 hectares adjacent to three old polymetallic mines (silver, lead, zinc, copper, gold). The property is located on the southeast extension of the Cu-Au skarn-porphyry belt that hosts the Bambas (>900Mt with over 1.0% Cu) and Tintaya copper deposits (>1Bt with over 1.0% Cu). The Company has delineated eight significant zones of porphyry copper style alteration and mineralization on the property.
Under the terms of the Corporaque Agreement, Halston has an initial option to earn a 55% interest in the Coporaque Project by investing US$3 million in exploration, paying Lara US$650,000 in cash and/or shares and completing a minimum of 2,500 metres of drilling within three years. Halston may then elect to earn an additional 20% interest by immediately paying Lara US$1 million, investing US$7 million in exploration over three years (minimum of US$1.5 million per year) and delivering a Pre-Feasibility study to National Instrument 43-101 Standards within 4 years.
The Coporaque Project covers 7,948 hectares within the Andahuaylas-Yauri, Cu-Au-Mo skarn-porphyry Belt, which host world-class porphyries and bonanza type precious and base-metal deposits. A first-pass geological evaluation was carried out on the property, confirmed indications of a porphyry Cu-Mo-(Au) deposit and also rich Au-Cu veins outside of the porphyry target.
Andre Gauthier, Lara’s President, a member of the Quebec Order of Engineers, 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 of 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 its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.