Lara Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) is pleased to report that it has started a 5,300-metre (approximately 12 hole) drill program at the Lara Copper-Molybdenum Project in southern Peru.
The program, funded through a partnership with Redzone Resources Ltd. (TSX VENTURE:REZ) ("Redzone"), aims to test the potential extensions of the porphyry system outlined by recent geological mapping, surface sampling and geophysical (Magnetics and Induced Polarization) surveys. Redzone has budgeted US$1.7 million for the program, sufficient to complete its earn-in to acquire 55% of the project.
2011 Drill Program
Lima-based MDH SAC ("MDH"), the same drilling contractor that completed the 2010 campaign, has been contracted for this program. The program includes seven holes targeting the eastern extensions of the porphyry system between the existing Lara resource and the high chargeability anomalies at Socos, also testing to the north and south of hole 35 from the 2010 program. Three holes will test the western part of the main Lara zone, where the mineralization is open and the recent geophysical program outlined coincident high chargeability and low resistivity anomalies. A further two holes will verify the northern part of Lara where the high chargeability and low resistivity zone continues to 500 metres in depth. These holes, together with those to the east, will test the east-west extension of the porphyry system for over 1,500 metres and for 700 metres north to south.
In June and July 2011 the Company completed Induced Polarization and Magnetic surveys covering approximately 80% of the property. The Magnetic survey included 24 east-west lines at a 100-metre spacing totaling 70.59 kilometres from Lara to the Socos target. This survey outlined a central zone with low magnetic susceptibility striking east-west that extends for over 3 kilometres and is open at both ends, within which, two more strongly (magnetite destructive) altered zones were identified. The Induced Polarization and Resistivity survey included 13 lines totaling 37 kilomtres striking east-west spaced every 200 metres with a pole-dipole array. The survey showed a very large low-resistivity zone (1,600 by 1,000 metres) with coincident high chargeability that covers both Lara and Socos targets.
Permitting and Access Roads
The permit from the Laramate Community was obtained on September 25, 2011. The property is located in the NASCA LINE national reserve and exploration permits are subject to a CIRA, obtained from the Ministry of Culture. Drill permits from the Mines and Energy Ministry, 7 CIRA (Certificate of Inexistence of Archaeological Remains) from the Ministry of Culture were approved in 2010, 8 CIRA automatically approved in 2011, and 5 CIRA currently in proceedings (at the Ministry of Culture). The drilling permit that was obtained from the Ministry of Mines in 2010 has been re-submitted to cover more exploration areas. This modified permit would allow the Company to drill up to 94 holes on a grid having 300 m intervals. The road from Hornopampa to the drill area, which was damaged during the 2011 rainy season has been rehabilitated and approximately 7 kilometres of new access roads have been completed to access all drill platforms for the 2011 program.
2010 Drill Program
Results from the 2010 drilling program (11 holes totaling 2,000 metres) extended the known limits of the Lara porphyry system, which remain open in all directions. The size of the supergene-enriched zone (host to the current resource) was increased and some oxide zones were intercepted with over 0.1% copper, which could reduce the stripping ratio. Deeper holes within the existing resource and the step out holes intercepted hypogene (unoxidized, or sulphide) mineralization with grades that suggest there is potential to delineate a medium-to-large porphyry system.
Redzone may earn an initial 55% interest in the Projects by spending US$2.5 million on exploration and issuing 850,000 common shares of Redzone to Lara over a three-year term. Redzone may then elect to earn an additional 20% interest in the Project by completing a bankable feasibility study and making a one-time cash payment to Lara of US$1.5 million on or before January 28, 2015. Lara retains a 1% net smelter royalty on all production from the Project. Redzone is Project operator, but to date has contracted Lara's Peruvian subsidiaries to manage and execute the field program.
Quality Control and Qualified Person: The Company follows industry standard quality assurance and quality control procedures for all its samples, under the supervision of Noel Díaz, General Manager Peru and André Gauthier, P. Eng., President of Lara Exploration Ltd., who is the Qualified Person and responsible for the content of this press release pursuant to NI 43-101.