Lara Signs Option To Acquire The Planalto Copper Project In Northern Brazil
February 25, 2013(TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that it has signed an Option Agreement to acquire the Planalto Copper Project, in the Carajás District of northern Brazil. The project comprises three exploration licenses, totalling 4,726 hectares in area, that lie approximately 10 kilometres to the west of Vale S.A.’s Cristalino deposit. Under the terms of option to acquire the Planalto Copper Project, Lara has made a payment upon signing of US$25,000 and will fund exploration and make the following additional payments in order to complete the purchase of a 100% interest in the properties:
Option Payment Terms
Upon Signing the Definitive Agreement
Upon Completion of a Third-Party JV
12 months from Signing of the Definitive Agreement
12 months from the Completion of a Third-Party JV
24 months from the Completion of a Third-Party JV
Approval by the DNPM of Final Exploration Report
Net Smelter Return (“NSR”) Royalty *
* Lara has the right to acquire 50% the NSR for US$2 million
The geology of Planalto Copper Project comprises meta-volcano-sedimentary sequences and intrusives of early Proterozoic-age that are deeply weathered and have an extensive lateritic cover. Data provided by the vendors, includes reports of previous exploration work including soil sampling and two diamond drill holes. The Company does not have access to the drill cores or samples to confirm these historic results, but they are included here for information purposes in that they were the basis for the decision by the Company to enter into the option agreement. Lara plans to conduct its own work, making the staged purchase payments (tabled above) to the underlying owners, only if the results and the exploration potential of the property can be verified.
The historic surface sampling outlined two copper-in-soil anomalies with values in excess of 300 parts per million (“ppm”) copper, one of which is approximately 1.3 kilometres (“km”) by 0.9 km in size, the other 2.9 km by 0.3 km. The historical reporting also includes results of two drill holes executed approximately 100 metres (“m”) apart on the same East-West section on one of the copper-in-soil anomalies. Hole FD-73 has a reported intercept value of 188m of 0.4% copper, including 15m at 0.67%, 14m at 0.68% and 10m at 1.18% copper. Hole FD-74 has a reported intercept of 50m at 0.38% copper, including 21m at 0.6% copper.
Certain information and data in this news release concerning the Planalto Copper Project and past work done thereon and results there from is historical. The reliability of the historical data is unknown but is considered relevant by Company management. The historical data may not be compliant with National Instrument 43-101 and should not be relied upon. It is the Company’s intention to verify the historical data, however confirmation work may produce results that differ substantially from the historic results. There is a risk that current exploration and test work will not result in the Company replicating historical results.
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 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 primarily in Brazil and Peru, where it has signed agreements for fourteen Joint Ventures and three Strategic Alliances. 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.