Celesta Copper Mine

The Celesta Copper Project comprises multiple high-grade IOCG breccias being developed under an option and royalty agreement with Tessarema Resources Inc. (“Tessarema”), signed in 2013. Drilling has so far defined a resource of 2.14 million tonnes grading 4.2% copper and 0.66 parts per million (“ppm”) gold on the Osmar target (Please refer to the Company’s 43-101 Technical Report “Maravaia Copper-Gold Deposit, Carajás Mining District, Pará, Brazil” by João Batista G. Teixeira, dated September 28, 2016, and available on the Company’s website and Sedar).

On July 30, 2019 the Company entered into an Amended Joint Venture Agreement (“the JV Agreement”) with Tessarema to introduce a local partner North Extração de Minério Ltda. (“North”), to consolidate ownership of the processing plant and surface rights access agreements (held by North), the mineral rights (held by Lara) and all other rights held by Tessarema, into the new venture Celesta, with the objective to move the project into production as soon as possible. As part of a previously agreed life-of-mine concentrates Offtake Agreement, Ocean Partners UK Ltd. (“Ocean Partners”), agreed to extend its existing loan and lend Celesta another US$2.6m to fund upgrades to the plant, pre-stripping, mine infrastructure, and working capital.

Lara currently owns 5% of the shares of Celesta without the obligation to contribute to the start-up costs and continues to hold a 2% Net Smelter Returns Royalty on any production, with a new more detailed royalty agreement completed as a schedule of the JV Agreement.

Recent Project Milestones:
September 2015 - Final exploration report with resource statement submitted to the Brazilian Department of Mines
January, 2016 - National Instrument 43-101 Technical Report entitled “Celesta Copper-Gold Deposit, Carajás Mining District, Pará, Brazil”, prepared for Tessarema and Lara by João Batista G. Teixeira, Geologist, PhD, P.Geo. (see link below).
August 2016 - Installation License issued for the Processing Plant.
October 2016 – Pilot Mining License renewed.
October 2016 - Final Exploration Report approved.
November 2016 – Installation License issued for the Tailings Dam.
December 2016 – PAE Feasibility Study filed with the Brazilian Department of Mines.
May 2018 - Mining License Granted

Technical Report

NI 43-101 Technical Report

November 2019