Lara Exploration Ltd.: Agreement Extended and Field Teams Mobilized to the Grace Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/21/12 -- Lara Exploration Ltd. (TSX VENTURE: LRA) is pleased to report that it has agreed with partner, Malbex Resources Inc. ("Malbex"), to extend from August 10, 2012 to December 31, 2012 the time for Malbex to incur US$600,000 in exploration expenditures on the Company's Grace Project in the Ayacucho Region of southern Peru, as required by the option agreement signed on August 10, 2011.
Malbex and the Company have recently completed an agreement with one of the local communities to permit sampling and geophysics. Malbex is now conducting fieldwork to follow up on areas of epithermal alteration outlined by the Company and to identify other prospective areas on the property, with a program of detailed geological mapping and intensive rock, soil and stream sediment geochemical sampling.
The Company's 5,800 hectare Grace Project covers Tertiary-age volcaniclastics, cut by brecciated silica bodies and veins with wide quartz-alunite and granular silica halos, indicative of a well-preserved high-sulphidation epithermal system. An area of hydrothermal alteration extending approximately 6 kilometres in length by 1 to 1.5 kilometres in width, has been outlined to date, where Lara previously took rock chip samples that returned anomalous gold, silver, arsenic, mercury and antimony values.
Under the terms of the Option Agreement, Malbex can earn up to a 75% interest in the Grace Project by investing $11.5 million in exploration, paying $1.7 million in cash and common shares of Malbex to Lara and delivering a Pre-Feasibility Study as defined by National Instrument 43-101 within seven years (see Company news release of August 16, 2011 for details).
Quality Control
Andre Gauthier, Lara's President, a member of the Quebec Order of Engineers, 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 and two Strategic Alliances. 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