Lara Exploration Ltd.

Lara Exploration Ltd.

April 11, 2012 07:00 ET

Lara Exploration Ltd.: New Claims and Positive Graphite Results From Caninde Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 11, 2012) - Lara Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) is pleased to report that it has had identified a further seven graphite occurrences on its wholly-owned Canindé Graphite Project, Ceará State, north-eastern Brazil. Additional mineral claims covering 3,289 hectares have been registered with the Brazilian Department of Mines, bringing the total project area to 15,615 hectares.

Initial geological reconnaissance in mid-2011 had identified a number of anomalous weathered bedrock outcrops with massive flake graphite bodies up to approximately 10 meters wide, associated with wider zones of lower-grade disseminated graphite flake occurrences along a twelve kilometre long, north-northwest trending zone within the property. Analytical results for surface grab rock chip samples from eight of these occurrences had indicated graphitic carbon contents as high as 32.48% (see Company news release of December 05, 2011).

Follow-up work since then has identified additional high grade flake graphite occurrences both within the original Canindé project and in extensions of the graphite trend to the north and southwest. The graphite-bearing trend is now known to extend for more than 16 kilometres in length and the new sampling has returned graphitic carbon contents for surface grab samples as high as 42.04% as shown in the following table:

Target Locality Sample Graphite Carbon %
Canindé 1 São Luis CAN-R-70 25.23
Canindé 4 Barra da Cancan CAN-R-30 0.90
Canindé 7 Cancan Central-Geraldão CAN-R-86 3.28
Canindé 7 Cancan Central-Geraldão CAN-R-87 13.34
Canindé 9 Barra da Cancan Southeast CAN-R-51 0.86
Canindé 10 Cancan Central East CAN-R-50 1.28
Canindé 11 Ipileira da Pedra South CAN-R-52 3.30
Canindé 12 Ipileira da Pedra CAN-R-53 2.67
Canindé 12 Ipileira da Pedra CAN-R-54 2.35
Canindé 12 Ipileira da Pedra CAN-R-55 2.77
Canindé 13 Pedra Preta CAN-R-60 40.47
Canindé 13 Pedra Preta CAN-R-61 36.54
Canindé 13 Pedra Preta CAN-R-62 42.04
Canindé 13 Pedra Preta CAN-R-63 1.28
Canindé 13 Pedra Preta CAN-R-64 26.58
Canindé 14 Mariana East CAN-R-80 0.81
Canindé 14 Mariana East CAN-R-81 1.69
Canindé 14 Mariana East CAN-R-82 23.77
Canindé 14 Marianba East CAN-R-83 16.59
Canindé 15 Bandeira East CAN-R-84 9.90
Canindé 15 Bandeira East CAN-R-85 11.04

The graphite occurrences are hosted within gently dipping schistose rocks and shear zones developed within a complex of felsic gneisses with local meta-sedimentary schist enclaves. The mineralized zones are conspicuously related to a system of sheeted pegmatite veins with individual veins from a few centimeters up to a meter or so in width.

Quality Control

Sample analyses were completed by AcmeLabs Analytical Laboratories (Vancouver) following preparation at the Acmelabs facility in Goiânia, Brazil. Measurement of graphitic carbon content was by the Leco analysis method on the acid leached residue following initial sample ignition to 600ºC. Industry standard quality assurance and quality control procedures have been adopted by Lara for the sampling campaigns, including the insertion of blank and duplicate samples into the batches. Acmelabs also inserted a number of standard and blank samples at the analytical stage in Vancouver and exercised special measures during the sample preparation stage in Goiânia.

Michael Bennell, Lara's Vice President Exploration and a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM), 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".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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