Lara Exploration Ltd.
TSX VENTURE : LRA

Lara Exploration Ltd.

August 12, 2008 07:30 ET

Lara Reports Results of Campos Verdes Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 12, 2008) - Lara Exploration ("Lara" or the "Company") (TSX VENTURE:LRA) is pleased to report results of the year-one program at the Campos Verdes Gold Project in central Brazil, which included regional soil geochemistry, ground geophysics and a 10-hole program of diamond drilling totalling 1,448.31 meters. This program was operated by Lara and funded by CCT Capital Ltd. (TSX VENTURE:CCW), under the terms of the Mineral Property Option Agreement, whereby CCT may earn a 70% interest in the Campos Verdes Property from Lara, by spending US$2 million on exploration by February 27, 2010.

The program focused on past artisanal gold workings on the Joao Neves structural zone in the northern part of the property. This northeast to southwest oriented structure has now been covered by soil geochemistry for more than 12 kilometers along its strike length. Regolith and geological mapping was also carried out along the trend and reconnaissance soil sample lines were completed across a number of other anomalies. Detailed ground geophysical work, including Induced Polarization, Resistivity and Magnetic surveys were completed on both the Joao Neves-Jeovah trend and at Modesto, another area of abandoned artisanal workings in the southern part of the property.

Diamond drilling tested the down-dip extensions of mineralization sampled in the abandoned Joao Neves open pit (978 meters in six drill holes) and the Jeovah soil and trench anomalies to the northeast of it (408 meters in three holes). A single 60 meter hole was also drilled at the Modesto target. The assay results for drill holes testing the Joao Neves and Jeovah targets have only indicated a few uneconomic narrow low-grade gold intervals with the best intersections of 0.98 meters at 4.54 grams per tonne ("g/t") gold at Joao Neves and 0.94 meters at 6.64 g/t gold at Jeovah. Gold intersections at better than 0.5 g/t gold from the program are given below:



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TARGET Drill hole From (m) To (m) Width (m) Grade (g/t)
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Joao Neves JNDH01 37.00 38.00 1.00 2.89
41.00 42.00 1.00 1.44
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JNDH02 No significant result
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JNDH03 No significant result
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JNDH04 115.00 116.00 1.50 1.23
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JNDH05 56.67 57.65 0.98 4.54
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JNDH06 No significant result
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Jeovah JEDH01 30.00 31.00 1.00 0.70
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JEDH02 8.12 9.06 0.94 6.64
23.35 23.88 0.53 1.59
29.17 30.17 1.00 0.57
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JEDH03 No significant result
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Modesto MODH01 No significant result
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The gold results for the holes drilled under the old Joao Neves pit are very disappointing considering that surface channel sampling encountered local bonanza gold grades up to 133 g/t gold in the walls of the old pit. Supergene enrichment of gold in iron oxides may be partly the cause. Although no significant economic gold mineralization was located by the drilling at Joao Neves and Jeovah targets there are significant, albeit lower order, soil geochemical anomalies present elsewhere in the Joao Neves regional soil grid that could lie over less well exposed, but better mineralized sections in the regional shear zone.

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.

All the drill cores were logged and sampled by Lara's geologists, with core samples submitted to the ACME and SGS-Geosol sample preparation laboratories in Goiania (Brazil) for preparation, with sample pulps then sent on to the ACME and SGS-Geosol laboratories in Santiago, (Chile) and Belo Horizonte, Brazil, repectively, for fire assay analysis. Blank samples and industrial standards were routinely inserted into each sample batch as part of the Lara QA-QC program and a selection of check samples of pulps retrieved from Acme were also submitted to SGS Geosol to cross check the Acme results. The coarse rejects for intervals logged with visible gold and a selection of samples with varying gold values were analysed by the metallic screen fire assay method at SGS-Geosol to determine if this style of mineralization has any serious nugget effect.

About Lara

Lara is a natural resource prospect generator, with multi-commodity exploration portfolio in Brazil and Peru. 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Lara Exploration Ltd.
    Miles Thompson
    President
    (604) 669-8777
    or
    Lara Exploration Ltd.
    Kim Casswell
    Corporate Secretary
    (604) 669-8777
    (604) 688-1157 (FAX)
    Website: www.laraexploration.com