VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2012) - Lara Exploration Ltd. (TSX VENTURE:LRA), is pleased to report that it's partner, Network Exploration Ltd. ("Network"), has signed a Community Agreement with the authorities from the Fundición and Jesus Maria communities in Peru's Moquegua District, for the further exploration of the Company's Picha Copper-Silver Project. This agreement is a critical part of the permitting process required by Peru's Ministry of Energy and Mines for the planned diamond drilling work.
Andre Gauthier, President of Lara commented: "A good relationship with the local communities is a cornerstone of building a business in Peru now and we are grateful to our partner Network, our local teams and the people of the Fundición and Jesus Maria communities, for all their hard work to ensure that this very exciting project moves forward for the benefit of all stakeholders".
The Picha Project
The Picha Project is located within the Tertiary Volcanic Arc of Southern Peru, host to various epithermal gold-silver deposits and copper porphyry-skarn deposits. It is located adjacent to the properties of Gold Fields Limited and Compañía de Minas Buenaventura S.A., that are host to the recent Chucapaca discovery, with reported mineral resources of 7.6 million gold equivalent ounces.
Preliminary exploration work at Picha has mapped widespread alteration, brecciation and vein stockworking, indicative of the presence of a porphyry system nearby. Recent geochemistry programs covering over 50 square kilometers have outlined seven zones with anomalous copper and associated silver values, several of which have been mined on a small scale in the past. Induced polarization and magnetic surveys have outlined six chargeability anomalies, indicative of sulphide mineralization in a wider area of moderate chargeability and higher magnetic response interpreted as volcanic or intrusive rocks. Thirteen primary drill targets have been outlined from the combined geochemical and geophysical programs to date.
Network can earn an initial 55% interest in the Picha Project by paying Lara an aggregate of US$200,000 (of which $100,000 has been paid) 3,500,000 units (already issued), with each unit comprising of one common share of Network and one non-transferable common share purchase warrant. Each warrant will entitle Lara to purchase one common share of Network at a price of $0.10 until December 7, 2013. In addition, Network must incur aggregate expenditures on the Picha Project of US$3,000,000 by December 6, 2014. Network may acquire an additional 20% interest (for a total interest of 75%) by paying Lara US$1,000,000 within 30 days of acquiring its 55% interest, then incurring expenditures of US$5,000,000 and completing a Pre-Feasibility study on the Picha Project by January 6, 2018.
André Gauthier, P. Eng., President of Lara Exploration Ltd., who is the Qualified Person for Lara under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators has approved this press release and verified the data disclosed.
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. It currently holds a diverse portfolio of prospects and deposits primarily in Brazil and Peru where it has signed agreements for fifteen joint ventures and two strategic alliances. 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.