Under the terms of the Agreement, Codelco may earn an initial 51% interest in the Curionópolis property
Suite 300-570 Granville Street T: 604.669.8777 www.laraexploration.com Vancouver BC, Canada F: 604.688.1157 [email protected] V6C 3P1 TSX-Venture: LRA
News Release
Lara Options Curionópolis Copper-Gold Project to Codelco
November 2, 2010 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that it has signed an Agreement whereby Codelco do Brasil Mineração Ltda., (“Codelco”) may earn up to a 75% interest in the Company’s Curionópolis Copper-Gold Project, in the Carajás District of northern Brazil.
Under the terms of the Agreement, Codelco may earn an initial 51% interest in the Curionópolis property by investing US$3.8 million in exploration over a four-year period, of which the first US$400,000 is committed, and by assuming responsibility for the remaining option payments due to the underlying owner of part of the property. Codelco may then elect to earn a further 9% interest (60% total) in the property by sole-funding such additional exploration works as are necessary to define a minimum resource of at least 500,000 tons of copper equivalent, independently reported under National Instrument 43-101 guidelines. Codelco may then elect to earn a further 15% interest (75% total) in the property by sole-funding such additional exploration and development works as are necessary to complete a Bankable Feasibility Study on the Project. The agreement is subject to a 90-day due-diligence period.
The Company’s 100%-owned Curionópolis Property covers 16,452 hectares and is located in the prolific Carajás District, approximately 10 kilometres south of the Serra Pelada gold project being developed by Colossus Minerals Ltd. The property includes the copper-gold rights to the 1,365 hectare area ceded to Vertical Mineração Ltda for iron ore mining (see Lara news release dated September 9, 2009 for details).
To date the Company’s field teams have outlined two extensive copper-gold targets (Osmar and Chico) at its Curionópolis property (see Lara news release dated July 14, 2010 for details). The mineralization identified at Curionópolis is IOCG-type (iron oxide copper gold), typical of the Carajás District. Gold and copper values are accompanied by anomalous arsenic, silver, bismuth, tungsten, molybdenum and uranium. Geology of the target areas are metamorphosed volcano-sedimentary sequences with widespread magnetite and actinolite veining, as well as, pervasive actinolite, albite and scapolite alteration that is also typical of IOCG systems.
Qualified Person: Michael Bennell, Lara’s Vice President Exploration and a member 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.
About Lara
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 prospects and deposits in Brazil, Peru, Colombia and China. 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: Miles Thompson – CEO, or Andre Gauthier – President, at +1 604-669-8777.
Investor Relations:
Julia Maxwell - +1 604-669-8777 Chris MacIntyre – +1 416 346-7660
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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