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Lara Exploration Ltd
Symbol LRA
Shares Issued 38,634,274
Close 2019-07-23 C$ 0.51
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Lara Exploration drills 206 m of 0.37% Cu at Planalto

2019-07-23 11:00 ET - News Release

Mr. Michael Bennell reports

FOLLOW-UP DRILLING RESULTS FROM THE PLANALTO COPPER PROJECT IN BRAZIL

Lara Exploration Ltd. has released drilling results from the Homestead target at its Planalto copper project, located in the Carajas mineral province of northern Brazil. Copper-gold mineralization is now recognized to underlie an area with dimensions of more than 350 metres north-south and 350 metres east-west and is open downdip to the west of the drill grid.

This recently completed 15-hole diamond drilling program at Homestead (holes 19-001 to 19-015, for a total of 2,773.55 metres) primarily comprising infill drilling of the shallower part of the target to fulfill a filing deadline with the National Agency of Mining (ANM). However, a number of the holes also tested north and south lateral extensions of the significant copper mineralization previously reported from the scout drill program of 2017 and 2018 (see company releases of April 24, 2018, and June 19, 2018, for details). A further three scout holes (holes 19-016 to 19-018, for a total of 309.25 metres) were drilled to test an anomalous copper-in-soil anomaly just to the south of the main Homestead target, known as the Silica Cap target and likewise returned promising zones of copper mineralization. Results of these 18 drill holes are summarized in the attached table.

Hole                     From        To    Width      Cu      Au     CuEq
                           (m)       (m)      (m)     (%)   (ppb)      (%)

19-001                   1.80    139.80   138.00    0.31      27     0.33
Including               22.25     30.15     7.90    0.41      20     0.42
And                     50.09     52.05     1.96    0.67      25     0.69
And                     62.00    111.95    49.95    0.46      46     0.49
And                    117.90    119.90     2.00    0.36      37     0.39
And                    121.85    131.80     9.95    0.53       6     0.53
19-002                   0.00    143.45   143.45    0.35      48     0.38
Including                2.60     21.10    18.50    0.43      18     0.44
And                     30.55     32.55     2.00    0.30      52     0.33
And                     35.50     37.50     2.00    0.37      59     0.41
And                     41.52     61.50    19.98    0.33      89     0.39
And                     69.50    103.45    33.95    0.67      82     0.72
And                    111.50    117.45     5.95    0.37      48     0.40
And                    133.50    135.50     2.00    0.33      17     0.34
19-003                   0.00    165.45   165.45    0.32      30     0.34
Including                2.67      5.13     2.46    0.46      32     0.48
And                     11.10     14.14     3.04    0.47      35     0.49
And                     25.15     33.20     8.05    0.33      22     0.34
And                     37.24     44.53     7.29    0.75      43     0.78
And                     51.47     57.48     6.01    0.40      40     0.42
And                     65.48     82.41    16.93    0.63      46     0.66
And                     88.46    102.53    14.07    0.40      85     0.46
And                    122.47    138.56    16.09    0.41      30     0.43
And                    146.57    148.58     2.01    0.30      25     0.31
19-004                   0.00     122.0   122.00    0.27      26     0.28
Including                2.00     16.00    14.00    0.53      24     0.54
And                     88.00     94.00     6.00    0.41      40     0.43
And                    104.00    118.00    14.00    0.52      51     0.55
19-005                   0.00     95.95    95.95    0.36      41     0.39
Including                5.25     29.50    24.25    0.42      31     0.44
And                     40.00     48.00     8.00    0.42      26     0.44
And                     58.00     80.00    22.00    0.57      76     0.62
19-006                   3.50    170.00   166.50    0.34      30     0.34
Including               10.20     22.00    11.80    0.53      16     0.54
And                     72.00    100.00    28.00    0.56      41     0.59
And                    106.00    110.00     4.00    0.59     221     0.60
And                    118.00    154.00    36.00    0.48      46     0.51
19-007                   0.00    104.00   104.00    0.28      53     0.31
Including                4.30     25.00    21.70    0.48      45     0.51
And                     74.00     96.00    22.00    0.43     106     0.50
19-008                   0.00    206.00   206.00    0.37      32     0.39
Including               26.00     33.00     7.00    0.35      21     0.36
And                     56.00     60.00     4.00    0.52      39     0.54
And                     70.00     76.00     6.00    0.35      38     0.37
And                     86.00     94.00     8.00    0.80      24     0.81
And                    116.00    172.00    56.00    0.57      42     0.60
And                    180.00    194.00    14.00    1.03     112     1.11
And                    212.00    220.00     8.00    0.13      66         
And                    244.00    252.00     8.00    0.18      11         
19-009                   0.00    130.00   130.00    0.19      26         
Including               58.00     76.00    18.00    0.43      66     0.47
And                     92.00     96.00     4.00    0.40      23     0.41
And                    106.00    110.00     4.00    0.34      18     0.35
19-010                   0.00     96.00    96.00    0.34      43     0.37
Including                3.35     24.00    20.65    0.34      43     0.37
And                     64.00     70.00     6.00    0.33      24     0.34
And                     74.00     78.00     4.00    0.30      28     0.32
19-011                   0.00    172.00   172.00    0.33      28     0.35
Including                3.00     22.00    19.00    0.37      19     0.38
And                     48.00     52.00     4.00    0.50      69     0.55
And                     68.00     78.00    10.00    0.36      12     0.36
And                     86.00    112.00    26.00    0.36      17     0.37
And                    122.00    140.00    18.00    0.97      07     0.97
And                    158.00    162.00     4.00    0.45      36     0.47
And                    168.00    172.00     4.00    0.30      06     0.30
19-012                   0.00    138.80   138.80    0.26      21     0.27
Including               24.00     28.80     4.80    0.33      37     0.35
And                     59.50     89.58    30.08    0.42      41     0.44
And                    100.00    118.00    18.00    0.38      39     0.40
19-013                  40.00    171.30   131.70    0.34      29     0.36
Including               50.00     56.00     6.00    0.36      36     0.38
And                     92.00     98.00     6.00    0.42      45     0.45
And                    116.00    138.00    22.00    0.58      49     0.61
And                    148.00    171.30    23.30    0.60      42     0.62
19-014                  10.00    132.00   122.00    0.23      20     0.24
Including               34.00     52.00    18.00    0.35      38     0.35
And                     76.00     80.00     4.00    0.36      30     0.38
And                     86.00    106.00    20.00    0.41      29     0.43
And                    126.00    132.00     6.00    0.32      10     0.32
19-015                   0.00     72.36    72.36    0.23      30     0.25
Including               38.00     42.00     4.00    0.87      09     0.93
19-016                  10.00     20.00    10.00    0.21      10     0.21
And                     48.00     62.00    14.00    0.27      36     0.29
Including               56.00     60.00     4.00    0.49      37     0.51
And                     94.00    107.15    13.15    0.28      <5     0.28
Uncluding              104.00    107.15     3.15    0.43      <5     0.43
And                    123.00    139.40    16.40    0.16       9         
19-017                   3.15      9.90     6.75    0.54      <5     0.54
19-018                  26.00     57.25    31.25    0.57      96     0.63
Including               32.17     48.00    15.83    0.94     185     1.07

At the Homestead target, the holes were drilled on east-west-oriented sections at 50-metre spacings for up to 200 metres to the north and 150 metres to the south of the drill section of earlier holes 18-002 and 18-003. The holes were mostly inclined to the east at 100-metre spacings on the drill sections.

Mineralization is now recognized to underlie an area with dimensions of more than 350 metres north-south and 350 metres east-west and is open downdip to the west of the drill grid. The mineralization is also open to the east in the northeast part of the drill grid, albeit at slightly lower copper grades (0.3 per cent to 0.5 per cent copper). The overall shape of the mineralization is interpreted as that of a west-tilted inverted saucer-shaped body of vertically stacked zones. Modelling copper zones at a 0.3-per-cent-copper cut-off indicates a set of vertically stacked zones with individual zones of mineralization from a few metres to as much as 110 metres in thickness. The primary copper mineralization is partially outcropping in the creek bed in the northern part of the drill grid but is generally covered by a soil and saprolite zone that varies between five metres and 40 metres depth. Drilling shows that the base of the copper mineralization is at approximately 100 metres vertically below the surface in the eastern part of the drill grid but is extending deeper in the west, down the dip direction. The deepest intersection to date is at 160 metres vertical in hole 19-008.

The lowest zone is best developed in terms of thickness and copper grade and appears to show good lateral continuity. The westernmost holes of this program on each of the drill sections all show wide zones of mineralization open to the west in the order of 50 metres to approximately 80 metres thick and with the copper grades between 0.46 per cent and 0.61 per cent copper (drill hole 19-001 -- 49.95 metres at 0.46 per cent copper, 19-008 -- 78 metres at 0.61 per cent copper, 19-006 -- 82 metres at 0.47 per cent copper and 19-013 -- 55.3 metres at 0.51 per cent copper).

Interpretation of the drill data in the southern part of the drill grid suggests the presence of a monoclinal structure with two to three stacked continuous copper zones dipping shallowly to the west, whereas in the northern part of the grid, the data are suggestive that these zones form a broad antiform-like structure which is draped over a north-south-trending zone of intense silica-potassium-feldspar-albite alteration of mafic rock protoliths. The copper-gold mineralization is hosted by pervasively altered mafic volcanics and gabbroic intrusives. Porphyritic andesite, alkaline granite and pegmatites form narrow sills or dikes from a few centimetres to as much as 30 metres thick that cut the mafic rocks. The andesite shows locally intense brittle fracturing and is mineralized albeit at lower copper grades than in the mafic rocks.

The main alteration minerals are potassium/feldspar, albite, magnetite, biotite, chlorite, calcite, epidote and quartz. The main zones of copper mineralization are mostly associated with intensely chloritized altered mafic rocks. Chalcopyrite is the only copper mineral identified and occurs as disseminations or in veins and veinlets, stockworks and breccias with chlorite/epidote, carbonate, quartz, and potassium-feldspar/magnetite, with trace pyrite at the periphery of the system.

The company completed and filed a final exploration report (RFP) with the ANM at the end of May and, once this has been approved, plans geophysical surveys and additional stepout drilling on the downdip extensions of Homestead and to advance other targets tested in this last program.

Sampling methodology, chain of custody, quality assurance and quality control

All the drill core cutting and sampling was carried out by or under the supervision of the company's vice-president of exploration and the chain of custody of the drill core from the project area to the company's sample preparation facility in Canaa dos Carajas was continuously monitored. Sample intervals for the drill core were mostly maintained at about two metres with some variation in the weathered saprolite zones and at times guided by the degree of copper mineralization. Blank and certified gold and copper reference materials were inserted at approximately every 20th sample.

The core samples were delivered by company staff to the SGS-Geosol and Intertek laboratories located in Parauapebas, 65 kilometres to the north from the project, where they were crushed and pulverized. The sample pulps for drill hole 19-001 were dispatched by SGS-Geosol to its analytical laboratory at Vespasiano near Belo Horizonte, Minas Gerais state, Brazil. The pulps were subjected to multiacid digestion with copper and 36 other elements were determined by inductively coupled plasma (ICP). Gold was determined by fire assay fusion and an atomic absorption (AAS) on a 50-gram charge.

Sample pulps for drill holes 19-002 to 19-018 were prepared and analyzed at Intertek in Parauapebas. The pulps were subjected to agua regia digestion and copper was determined by atomic absorption. Gold was determined by fire assay and an atomic absorption (AAS) on a 50-gram charge. Intertek carried out specific gravity measurements on fresh drill core for four drill holes, giving a good representation of the variations of densities of the host lithologies and mineralized zones across the target area.

About the Planalto project

The Planalto copper project comprises 4,726 hectares of exploration licences covering metavolcano-sedimentary sequences and intrusives of early Proterozoic-age with IOCG-type (iron oxide/copper/gold) mineralization, located near Vale's Sossego copper mine and Oz Minerals' Antas copper mine, in the Carajas mineral province of northern Brazil. Lara has the option to purchase 100 per cent of the Planalto project by making staged cash payments totalling $500,000 (U.S.) ($100,000 (U.S.) paid to date) and paying a 2-per-cent net smelter return (NSR) royalty on any production (Lara retains the right to purchase 50 per cent of this royalty for a cash payment of $2-million (U.S.)).

Lara has a staged earn-in agreement with Capstone Mining Corp. (see company news release of Feb. 4, 2019, for details), whereby Capstone can earn up to a 70-per-cent interest in the project by financing exploration, feasibility studies and electing to finance, build and operate a commercial mining operation, with Lara repaying its pro rata share of the production financing out of cash flow.

About Lara Exploration Ltd.

Lara is an exploration company following the prospect generator business model, which aims to minimize shareholder dilution and financial risk by generating prospects and exploring them in joint ventures financed by partners. The company currently holds a diverse portfolio of prospects and deposits located mostly in Brazil and Peru.

Michael Bennell, Lara's vice-president of exploration and a fellow of the Australasian Institute of Mining and Metallurgy, is a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and has approved the technical disclosure and verified the technical information in this news release.

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