Business
Lara Signs Option to Acquire Serrita Gold Project in Brazil
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 23, 2016) - Lara Exploration Ltd. (TSX VENTURE:LRA) ("Lara" or the "Company") is pleased to report that it has
About this update from Lara Exploration Ltd.
[{"type":"text","content":"VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 23, 2016) - Lara Exploration Ltd. (TSX VENTURE:LRA) (\"Lara\" or the \"Company\") is pleased to report that it has signed an Option Agreement (\"the Agreement\") to acquire the Serrita Gold Project in Pernambuco State, northeast Brazil. The property comprises three exploration licenses, totalling 5,998 hectares, covering a wide area of artisanal workings that follow narrow gold-bearing veins generally less than half a metre thick, but which can extend up to a kilometre in length. The host geology comprises schists of the Proterozoic-age Salgueiro Group. Previous exploration work includes geological mapping, regional soil/rock sampling and 109 channel samples that focused on exposed mineralization in the artisanal workings. The channels samples ranged from 10 centimetres to 2.3 metres in length (average 44 centimetres), though most of the mineralized veins are less than 50 centimetres thick. Forty of the samples reported over 1 gram per ton (\"g/t\") gold, with 19 reporting over 5g/t gold. The channel samples were targeting the quartz veins, but several that sampled adjacent ferruginous schists also reported significant gold values. The exploration database suggests the potential to host multiple high-grade vein deposits, though these have not been drill tested and there remains also the possibility of outlining a larger body of mineralization including multiple vein systems that could be amenable to bulk mining and heap leach processing. Serrita Purchase Option Under the terms of the Agreement, Lara has agreed to make staged and bonus cash payments totalling up to US$1,650,000 as follows in Table 2. Milestone/Date Payment US$ Upon signing the Definitive Agreement 10,000 Upon transfer of the Exploration License to Lara 10,000 12 months from transfer of the Exploration License 20,000 24 months from transfer of the Exploration License 20,000 36 months from transfer of the Exploration License 40,000 48 months from transfer of the Exploration License 50,000 Bonus at Bankable Feasibility if the reserve is >1Moz 500,000 Bonus at Commercial Production if rate is >50,000oz/year 1,000,000 The vendor will also be entitled to a 1.25% net smelter return royalty on any production, but Lara retains the right to purchase this royalty for a cash payment of US$1.5 million. The Company has al...