VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb 7, 2013) - Lara Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) has agreed to sell its remaining interest in the Conceição Nickel Sulphide Project, in northern Brazil to partner Avanco Resources Ltd. ("Avanco"). Under the terms of the new agreement, Avanco will acquire a 100% interest in the project for cash payments of $3 million and a 2% net smelter return royalty as follows:
|$500,000||Upon approval of Final Exploration Reports by the Brazilian Department of Mines|
|$2,000,000||Upon delivery of a Bankable Feasibility Study|
|2%||Net smelter return royalty payable on any production|
Under the terms of the original agreement, Avanco could earn a 75% interest in the project by completing 1,500 metres of drilling by November 2012 and then sufficient exploration work by January 10, 2014 to generate a JORC (Australasian Joint Ore Reserves Committee) compliant resource with sufficient drill data and metallurgical test work for the Brazilian Department of Mines to approve the Final Exploration Report. Avanco has completed the agreed drilling, testing various geochemical and geophysical targets outlined on the project. Results are encouraging, cutting mineralized intrusives in most holes. The best intercept reported to date from holes ECDD-011 cut 13.65 metres at 0.42% nickel. Results for all the holes received are summarized in the following table.
|Hole ID||From |
|Ni (%)||Cu (%)||Pd (%)|
|ECDD-005||No Significant Result|
|ECDD-007||No Significant Result|
Results are still pending for ECDD-012 to ECDD-019, which were shallower holes targeting lateritic nickel potential on the property.
Avanco follows industry standard quality assurance and quality control procedures for all its exploration. Michael Bennell, Lara''s Vice President Exploration and a Fellow 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.
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 primarily in Brazil and Peru, where it has signed agreements for fifteen Joint Ventures and three Strategic Alliances. Lara''s common shares trade on the TSX Venture Exchange under the symbol "LRA".