Lara Exploration Ltd.
TSX VENTURE : LRA

Lara Exploration Ltd.

February 14, 2011 07:00 ET

Lara Reports Platinum and Palladium Values From Its Conceicao Nickel Project in Northern Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 14, 2011) - Lara Exploration Ltd. (TSX VENTURE:LRA) ("Lara" or the "Company") is pleased to report that its partner, Avanco Resources Ltd. ("Avanco"), has confirmed anomalous platinum and palladium values in surface sampling conducted during its due-diligence work on the Company's Conceição License Block (part of the Araguaia Nickel Project), in northern Brazil.

Sample Nickel % Copper % Gold g/t Platinum g/t Palladium g/t
AV-9775 0.20 <0.01 <0.005 0.008 0.012
AV-9776 0.36 0.29 0.055 0.251 0.18
AV-9778 1.95 17.54 1.62 4.17 12.19
AV-9782 0.45 0.29 0.054 0.276 0.127

The field reconnaissance and the limited surface sampling conducted by Avanco has indicated potential for the discovery of nickel-copper-PGM mineralization, with anomalous values reported from fresh pyroxenite rock samples and from one gossan sample (sample AV-9778). Mineralogical studies on the fresh rock samples have confirmed the presence of a base metal sulphide assemblage with pentlandite (a nickel mineral), chalcopyrite (a copper mineral) and pyrrhotite.

A soil geochemistry survey completed by Avanco over one historical geophysical target (VTEM-4 target) outlined two strong and coincident nickel-copper anomalies trending WNW for over 1,000m, with peak nickel and copper values of 1,843 parts per million ("ppm") and 1,391 ppm, respectively. Both anomalies are open along strike and the soil grid is being extended. Avanco has scheduled ground geophysics surveys to prioritize drill targets.

The Company has completed a Definitive Agreement, whereby Avanco may earn a 75% interest in any of the licenses comprising the Conceição License Block by completing surface sampling and 1,500 metres of drilling within one year of the renewal of the exploration licenses. They must then also complete sufficient exploration work within 36 months to generate a JORC (Australasian Joint Ore Reserves Committee) compliant resource with sufficient drill data and metallurgical test work necessary for the Brazilian Department of Mines to approve the Final Exploration Report.

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 of prospects and deposits in Brazil, Peru, Colombia and China, with eight actively funded joint ventures. 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
    +1 604-688-1157 (FAX)
    or
    Lara Exploration Ltd.
    Chris MacIntyre
    Investor Relations
    +1 416-346-7660 or +381 63 574 125
    info@laraexploration.com
    www.laraexploration.com