Corina Gold Project
The Corina Property comprises sixteen licenses totaling 13,278 hectares, located in the districts of Juan Espinoza Medrano and Cotaruse, in the province of Antabamba, department of Apurimac, in southern Peru. The project is currently under option to Compañia Minera Ares S.A.C. (“Minera Ares”), a subsidiary of London-listed Hochschild Mining plc. Under the proposed terms, Ares has the option to acquire Corina from Lara for staged cash payments totaling US$4,150,000 (US$150,000 of which was paid on signing), carrying out up to US$2,000,000 in exploration in order to keep the Assignment and Option Agreement in good standing, and paying a 2% net smelter return royalty on any future production (see Company news releases of June 23, 2014 and July 29, 2014 for details).
The property is located in a belt of Tertiary-age volcanic rocks that hosts a number of epithermal gold deposits and is adjacent to the mineral rights and Pallancata, Selene and Immaculada mining operations of Minera Ares. The geology comprises Upper Jurassic - Lower Cretaceous age Yura Group shales, sandstones and limestones that are unconformably overlain by the dacitic tuffs and pyroclastic breccias and rhyolite domes of the Tertiary Tacaza Group. Low sulphidation epithermal alteration has been identified including argillic alteration, silicification and quartz-alunite in volcanic rocks associated with the doming.
Exploration work by the Company has identified a low-sulphidation epithermal vein system denominated Promesa, which has been mapped over 4.5 kilometres, with gold values from rock chip sampling reaching up to 6.7 grams per ton of gold. The vein structure cuts dacitic and rhyolitic pyroclastics of the Tacaza Group, which have been subjected to limited erosion. This suggests good preservation of the vein system and indicates exploration potential at depth.
The Promesa vein, in its central zone, runs between two rhyolite domes (Runtococha 1 and Quello) that are strongly altered (argillic and silicic) generating an extensive color anomaly in satellite imagery. The vein is oriented roughly E-W and dips N65°-80° to the N or S; the width varies between 0.2m and 1.5m. The mineralization is grey banded silica with fine disseminated pyrite, in parts with some galena and chalcopyrite, and locally occurs as a matrix with strongly silicified hydrothermal breccias that can extend to as much as 15m in thickness. Alteration and brecciation around the vein includes hyaline silica, opaline silica and white quartz.
Younger Quaternary sediments cover most of the Promesa vein system. 190 rock samples collected prior to the agreement with Minera Ares, included 32 with gold ranging from 0.3g/t to 9.4 g/t Au and silver values between 13g/t and 125g/t Ag. Sampling and mapping of the alteration halo around the vein also suggests potential for disseminated mineralization.
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 has approved this technical disclosure and verified the technical information in this summary.