Lara Exploration Ltd.
TSX VENTURE : LRA

Lara Exploration Ltd.

September 08, 2009 07:30 ET

Lara Exploration Ltd.: Curionopolis Exploration License Granted and Iron-Ore Joint Venture Completed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2009) - Lara Exploration Ltd. ("Lara" or "the Company") (TSX VENTURE:LRA)is pleased to report that the Brazilian Department of Mines ("DNPM") has granted an Exploration License for its 8,569-hectare Curionopolis Property in the Carajas District of northern Brazil. The issue of this license triggers Lara's option to acquire a 100% interest in the Curionopolis Property from Redrock Exploration (BVI) Ltd., for US$630,000 in cash payments and US$2.7 million in exploration expenditures over a three year period, a 50% share in net iron-ore revenues and a 2% net smelter return royalty on other metals (see Lara news release of January 21, 2008 for details).

The Company has simultaneously completed an agreement whereby Vertical Mineracao Ltda. ("Vertical"), a special purpose company owned by a group of Brazilian iron producers, will acquire the iron ore targets on the property for cash payments, exploration work commitments and royalties. Under the terms of this agreement, Lara will cede approximately 1,500 hectares of the Curionopolis Property, covering a ridge of banded-massive iron formations, to Vertical in exchange for US$1.4 million in cash payable over two years, US$3.0 million in exploration expenditures over a three year period and a $3/tonne to $4/tonne royalty payment on any lump iron-ore production. Lara is entitled to 50% of the cash and royalty payments paid by Vertical and will be the operator during the exploration phase of the project. Lara also retains the rights to any discoveries of non-ferrous metals within the ceded area.

The remainder of the Curionopolis Property covers a series of IOCG-type (iron oxide copper gold) veins with artisanal workings, where grab samples taken by Lara during due-diligence returned grades as high as 8.4 grams per tonne ("g/t") gold and 31.5% copper. The Company plans to initiate a program of systematic exploration of these targets in the coming months.

"We are very happy to be moving forward with the Curionopolis Project, which we expect will generate us near-term cash and revenue from iron ore sales, in addition to several exciting new copper-gold exploration targets," commented Miles Thompson, President and CEO of Lara Exploration.

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 a well-funded prospect generator with a multi-commodity exploration portfolio focused on Brazil but with significant property holdings in Colombia and Peru. 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.

Contact Information

  • Lara Exploration Ltd.
    Miles Thompson
    President
    604-669-8777
    or
    Lara Exploration Ltd.
    Julia Maxwell
    Investor Relations
    604-669-8777
    604-688-1157 (FAX)
    or
    Lara Exploration Ltd.
    Chris MacIntyre
    Investor Relations
    416-640-1932
    info@laraexploration.com
    www.laraexploration.com