Mr. Chris MacIntyre reports
UPDATE FOR THE CELESTA COPPER PROJECT IN BRAZIL
Lara Exploration Ltd. has provided a progress update on its Celesta copper project (previously known as the Maravaia copper project), located near the town of Curionopolis, in the Carajas mineral province, Para state, northern Brazil.
Development work in recent months has been focused on dewatering and a cutback of the Osmar pit and stripping to access the mineralized material. This work is expected to be completed by year-end in preparation for mining during the first quarter of 2020. In parallel with the mine preparation work, Celesta has been making improvements and upgrades to the processing plant, with supervision of work on both the plant and the mine provided by technicians from JDS Energy & Mining Inc. from Vancouver.
Lara owns a 2-per-cent net smelter returns royalty on the project and a 5-per-cent carried (to production) equity interest in the operating company Celesta Mineracao SA, which is jointly operated by partners Tessarema Resources Inc. (with 40-per-cent interest) and North Extracao de Minerio Ltda. (with 55-per-cent interest). Ocean Partners U.K. Ltd. provided loans to Tessarema during the development phase of the project (which now sit within Celesta) and is providing additional loans to finance the stripping, plant improvements and working capital in exchange for a life-of-mine offtake rights. The new corporate documents and pledges to Ocean Partners have now been duly registered and the additional debt financing made available. Lara is owed a $1-million (U.S.) late penalty fee, as the project was supposed to achieve commercial production in 2018. Celesta has assumed this obligation and will pay Lara in 10 monthly payments of $100,000 (U.S.), the first of which was due on Oct. 30, 2019, which has now been paid.
Celesta's development and mining program will initially focus on the Osmar target that has an indicated resource estimate of 2.14 million tonnes, with average grades of 4.2 per cent copper and 0.66 part per million gold. For details, see the National Instrument 43-101 technical report entitled "Maravaia Copper-Gold Deposit, Carajas Mining District, Para, Brazil," dated Jan. 15, 2016, which is filed on SEDAR and was prepared for Tessarema and Lara by Joao Batista G. Teixeira, geologist, doctor of philosophy, professional geoscientist.
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, deposits and royalties in Brazil and Peru.
Michael Bennell, Lara's vice-president of exploration and a fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), is a qualified person as defined by NI 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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