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Lara
Exploration Ltd. (TSX VENTURE:LRA) ("Lara" or the
"Company") is pleased to report that it has agreed with its partner
Vertical Mineração Ltda.,
("Vertical") that Vertical will pay Lara a royalty of US$0.75/ton
on sales of fine-grained iron ore from the Curionópolis
Project. This royalty is in addition to the US$1.50/ton (rising to
US$2.00/ton after 5 years) that Lara will receive from sales of granular iron
ore produced.
Under the
terms of the original agreement Lara has ceded an area of 1,348.46 hectares
of the Curionópolis Property to Vertical in
exchange for US$1.4 million in cash (US$100,000 paid to date) payable over
two years from publication of the transfer that occurred on November 24,
2010, or within six months of the start of trial mining and US$3 million in
exploration investments.
During
2010, Vertical completed 17 diamond drillholes on
the Serra Morena target and is currently completing
a program of bulk sampling from pits and trenches, at Serra Morena and two other targets, to define near-surface
granular iron ore resources. Diamond drilling is planned to recommence in the
first quarter to infill the 2010 drilling at Serra Morena
and test other target areas on the property. Vertical plans to complete
permitting and start trial mining in mid-2011 and to complete exploration and
resource calculations for the complete property by the end of the year.
"Given
that drill results from 2010 show the iron formations to be considerably more
extensive than first thought, we are very pleased to have also secured a
royalty on the finer material," commented Company CEO Miles Thompson,
"and we're also very encouraged by the steady progress being made with
the exploration and development work by Vertical."
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 in 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.
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