High Grade Tin Intercept At São Lourenço, Aguia Withdraws From Sergipe
May 2, 2012 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that its partner, Avenue Resources Ltd., (“Avenue”) has advised Lara that it has intercepted 4.10 metres grading 1.51% tin from drill hole TSLD-003 at the Sa~o Lourenc¸o Tin Project in northwest Brazil.
|Hole ID||UTM-E||UTM-N||Dip||Az||Hole (m)||From (m)||To (m)||Width (m)||Sn Grade (%)|
|TSLD-001||272698||8951075||-50||340||70.15||No significant results|
Lara understands that, to date, Avenue has completed 16 drill holes for 956 metres of a proposed 2,000 metre program, with samples from holes TSLD-004 to TSLD-016 in the laboratory. These results provide preliminary confirmation of Lara’s surface channel sampling across vein structures at surface on two adjacent hills, Irene and Isaac (which are partly exposed granite cupolas), with tin mineralization on the top and flanks comprising sheeted veins, parallel stringers and alteration. Further drilling is required to determine the true width of these tin mineralized zones.
Avenue can acquire 100% of Lara’s option rights to the project, for 3 million common shares (already issued to Lara), US$1 million in cash and shares in four annual payments of US$250,000, assuming responsibility for Lara’s remaining obligations under the option agreement and completing a minimum of 1,500 metres of diamond core drilling by November 2012. Lara will also receive a 1% net smelter return royalty on any production from the project.
Sergipe Potash Project
Aguia Resources Ltd. has provided notice to Lara that it will not be proceeding with its option to acquire an interest in the project as contemplated in its Letter of Intent signed on December 16, 2011.
Avenue has advised Lara that it analyzed samples for the drilling at Sao Lourenco at SGS Geosol Laboratorios Ltda., in Brazil. Lara understands that samples were analyzed for tin, niobium, tantalum and tungsten using the XRF fluorescence method, with selected samples also analyzed for silver, copper, lead, zinc and bismuth by Atomic Absorption (4 acid digest) and gold by fire assay (50 gram). Lara also understands that Avenue’s Quality Assurance Quality Control (“QAQC”) protocol comprised a ratio of 1:20 blank and duplicate samples, in addition to the laboratory’s own internal QAQC. Avenue has advised Lara that it plans to run umpire samples at a second laboratory at the end of the program.
Michael Bennell, Lara’s Vice President Exploration and a Fellow 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 has approved the technical information in this release. Lara is not aware of whether a Qualified Person has verified the assay results provided by Avenue.
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 primarily in Brazil and Peru where it has signed agreements for fifteen joint ventures. 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.