Lara Exploration Ltd.: Progress Report on the Curionopolis Iron Project in Brazil
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/06/11 -- Lara Exploration Ltd. (TSX VENTURE: LRA) ('Lara' or the 'Company') is pleased to report good progress by partner Vertical Mineracao Ltda ('Vertical') on the exploration and development of the Curionopolis Iron Project in Para State, northern Brazil. Pits, shallow drilling and trenching have outlined sufficient granular iron mineralization to justify the start of operations and work is currently underway on permitting for pilot mining and construction of the processing plant. Concurrently a 6,000 metre drilling program has been initiated to outline reserves in order to apply for a mining license.
Vertical has defined granular iron mineralization on four target areas: Escondida, Maravaia, Serra do Meio and ITM, excavating 197 pits, each of which has been channel sampled, with the 35-40 kilogram samples generated for granulometric and geochemical analysis. A further 36 shallow diamond core holes have been drilled at Serra Morena and Escondida, and 515 metres of trenches at Serra Morena, giving a roughly 50 metre by 50 metre grid coverage of the areas of interest for shallow granular mineralization. Vertical is currently completing permitting for a pilot-scale mining operation and has begun construction of a treatment and processing plant for this material. Subject to granting of the necessary permits, Vertical expects to begin production of granular iron mineralization in the second half of this year.
Vertical has also begun a more extensive evaluation of the iron mineralization throughout the property, with a view to submitting a complete resource statement to the Brazilian Department of Mines and applying for a Mining License later in the year. A 6,000 metre diamond drill program has been started on the Escondido target and will continue with testing of the Maravaia and Norte target areas on a roughly 100 by 100 metres grid. Diamond drilling during 2010 already outlined significant high-grade iron (greater than 60% iron) mineralization at Serra Morena (see Company news releases of May 10 and July 19, 2010).
Under the terms of the agreement with Vertical, Lara has ceded an area of 1,348.46 hectares of the Curionopolis Property in exchange for US$1.4 million in cash (US$100,000 paid to date) payable over two years from publication of the transfer that occurred on November 24, 2010, or within six months of the start of pilot mining. Vertical will also pay royalties to Lara of US$1.50/ton on sales of granular iron ore produced and US$0.75/ton on sales of fine-grained iron ore from the Project.
Quality Control
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 of prospects and deposits in Brazil, Peru, Colombia and China, with eight actively funded joint ventures expected to drill targets in 2011. 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.
Chris MacIntyre
VP Corporate Development
1 416 703-0010
info@laraexploration.com
www.laraexploration.com