Lara Exploration Ltd.: Letter of Intent Signed with Avanco to Explore For Nickel Sulphides
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/28/10 -- Lara Exploration Ltd. (TSX VENTURE: LRA) ('Lara' or the 'Company') is pleased to report that it has signed a Letter of Intent ('LOI') whereby Avanco Resources Ltd. ('Avanco'), may fund nickel sulphide exploration in order to earn a 75% interest in the Company's Conceicao License Block (part of the Araguaia Nickel Project), in northern Brazil.
The Conceicao License Block includes seven exploration licenses, covering a total of 47,247 hectares, located to the northwest of the town of Conceicao de Araguaia in Para State. Geophysical data from airborne magnetic and electro-magnetic surveys and from field mapping show the property to cover a series of parallel NW-trending mafic intrusive bodies. Occurrences of nickel and copper sulphide-bearing gabbros and pyroxenites have been sampled, returning copper and nickel values in the order of several thousand parts per million and limited geochemical work indicates that these have low but still highly anomalous platinum and palladium values of a few hundred parts per billion.
Under the terms of the LOI, Avanco may earn a 75% interest in any of licenses comprising the Conceicao License Block by completing surface sampling and 1,500 metres of drilling within one year of renewal of the exploration licenses. They must then also complete sufficient exploration work to generate a JORC (Australasian Joint Ore Reserves Committee) compliant resource with sufficient drill data and metallurgical test work necessary for the Brazilian Department of Mines to approve the Final Exploration Report within 36 months. The LOI is subject to 60-day due-diligence period (successfully completed) and completion of a Definitive Agreement within 90 days.
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 the Araguaia Nickel Technical Report and 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'.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Lara Exploration Ltd.
Miles Thompson
CEO
+1 604-669-8777
Lara Exploration Ltd.
Andre Gauthier
President
+1 604-669-8777
Lara Exploration Ltd.
Julia Maxwell
Investor Relations
+1 604-669-8777
Lara Exploration Ltd.
Chris MacIntyre
Investor Relations
+1 416 346-7660
www.laraexploration.com