Lara Exploration Ltd.
TSX VENTURE : LRA

Lara Exploration Ltd.

October 21, 2010 07:00 ET

Lara Options Liberdade Copper Project to Codelco

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2010) - Lara Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) is pleased to report that it has signed an Agreement whereby Codelco do Brasil Mineração Ltda., ("Codelco") may earn up to a 75% interest in the Company's Liberdade Copper Project, in the Carajás District of northern Brazil.

Under the terms of the Agreement, Codelco may earn an initial 51% interest in the Liberdade property by investing US$3 million in exploration over a four-year period, with a minimum expenditure of US$400,000 in year one, of which US$300,000 is a work commitment. Codelco may then elect to earn a further 24% interest in the property by sole-funding such additional exploration works as are necessary to define a minimum resource of at least 500,000 tons of copper equivalent, independently reported under National Instrument 43-101 guidelines.

The 6,969 hectare Liberdade property is located in the Municipality of São Felix do Xingu, Pará State, at the western end of the Carajás District. Geology comprises Proterozoic-age volcano-sedimentary sequences of the Aquiri Group and related calc-alkaline intrusives, with evidence of iron-oxide-copper-gold ("IOCG") alteration and mineralization seen in small-scale "garimpeiro" surface workings. Exploration work to date has comprised reconnaissance level mapping and sampling that has identified extensive alteration and anomalous copper values.

Qualified Person: 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 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 prospects and deposits in Brazil, Peru, Colombia and China. 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
    CEO
    +1 604-669-8777
    or
    Lara Exploration Ltd.
    Andre Gauthier
    President
    +1 604-669-8777
    or
    Lara Exploration Ltd.
    Julia Maxwell
    Investor Relations
    +1 604-669-8777
    +1 604-688-1157 (FAX)
    or
    Lara Exploration Ltd.
    Chris MacIntyre
    Investor Relations
    +1 416 346-7660
    info@laraexploration.com
    www.laraexploration.com