Lara Explorations Ltd.

November 02, 2005 17:00 ET

Solid Resources to Earn Interest in Lara's Peruvian Copper Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2005) - Lara Explorations Ltd. (TSX VENTURE:LRA) (the "Company") is pleased to report that a binding letter of intent has been signed allowing Solid Resources Ltd. (TSX VENTURE:SRW) the right to earn an initial 55% interest in the Lara copper project in southwestern Peru.

Under the agreement, Solid Resources must make staged cash payments totaling $500,000 and complete exploration expenditures of $2 million, including a minimum of 8,000 metres of drilling, over a three year period to earn its initial interest. The cash payments include $25,000 on signing (already paid) and up to an additional $175,000 in the first 12 months from signing.

Solid Resources can then elect to earn another 20% interest by producing a bankable feasibility study and paying to Lara $1.5 million within a two year period. A definitive option agreement is expected to be completed shortly and will be subject to the approval of the TSX Venture Exchange.

The Lara property hosts an inferred mineral resource of 18.6 million tonnes grading 0.53% copper using a 0.2% copper cut-off. Within this inventory is higher-grade blocks estimated at 6.5 million tonnes grading 0.91% copper using a 0.5% cut-off and 4.8 million tonnes grading 1.04% copper using a 0.6% copper cut off. The resource remains open to the east and to the west.

Preliminary metallurgical testwork yielded column leach results of 90.6% and 87.1% copper extract ions over 161 and 154 days, respectively. Therefore, indicating that the secondary copper sulphides are quite amenable to low cost SX/EW heap leach extraction methods.

"The near surface, copper oxide and secondary copper sulphide mineralization at Lara offers potential for a low strip SX-EW operation with both the secondary mineralization still open to the east and west and the primary mineralization open in all directions," comments Alan Matthews, Lara Explorations' President. "We are pleased to have Solid Resources on board to fully evaluate the current resource, as well as the prospects of delineating additional resources."

The drill permitting process for the Lara property will begin immediately.

Mineral resources that are not reserves do not have demonstrated economic viability. An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. A technical report, filed April 12, 2005, detailing the Lara property including the resource estimate is available for viewing on SEDAR.

Richard Graham P.Geol., is the Qualified Person, as defined by National Instrument 43-101, and responsible for the preparation of the technical information in this release.

Lara Exploration Ltd trades on the TSX Venture Exchange under the symbol "LRA". All dollars are in Canadian currency unless otherwise stated.

Forward-Looking Statement

Some statements in this report contain forward-looking information. These statements address future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

On behalf of the Board, Alan Matthews, President & CEO

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

Contact Information

  • Lara Explorations Ltd.
    Richard Graham
    (604) 689-1428