Lara Exploration Ltd.: High-Grade Iron-Vanadium Project Acquisition in Northern Brazil
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/17/12 -- Lara Exploration Ltd. (TSX VENTURE: LRA) ("Lara" or the "Company") is pleased to report that it has acquired 19,240 hectares of claims and exploration licenses covering gabbroic intrusives that are host to direct shipping grade magnetite mineralization with significant vanadium content. The properties are located close to paved roads, 55 kilometres from the Miritituba Port on the Tapajos River, from where the iron ore could be barged to a ship terminal on the Amazon River.
The target comprises multiple sub-vertical and sub-parallel bodies of magnetite up to 50 metres thick and up to 150 metres long. The Company has completed a geophysical survey (Magnetic) over part of the target and collected a number of surface grab samples. The high average grades of the surface samples analyzed: 48% metallic iron (69% magnetite Fe2O3), 22% titanium dioxide (TiO2) and 0.45% vanadium, indicate potential for the mining of a direct shipping ore product.
The magnetite mineralization outcrops on the crest and flanks of ridges, suggesting that it would be amenable to open pit mining with relatively low strip ratios. The main zone of mineralization outlined to date lies within an area of grassland and patchy scrub used for cattle grazing, so project development by the Company would not be contributing in any material way to environmental degradation in the region.
The Company has agreed to pay R$100,000 (approximately $55,000) upon transfer of one of the license areas and pay a bonus of US$0.30/ton of measured reserves of iron ore. One license area is also subject to a US$0.45/ton royalty payment. The other areas are claims registered by Lara directly.
Quality Control
The Company follows industry standard quality assurance and quality control procedures for all its exploration under the supervision of 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 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 primarily in Brazil and Peru where it has signed agreements for fifteen joint ventures. 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.
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