Lara options the Atenea Gold Project in Peru to Alta Resources
Thursday, Mar 29, 2012Lara Exploration Ltd. (TSX VENTURE:LRA) is pleased to report that it has signed an Option Agreement granting Alta Resources Inc., a private company based in Quebec currently being acquired by CJL Capital Inc. (a CPC company listed on the TSX Venture Exchange), an option to earn up to a 75% interest in Lara's Atenea Gold Project in southern Peru, by making payments to Lara of US$1.5 million, expending US$6.75 million on exploration of the Project and delivering a Pre-Feasibility Study within seven years.
Alta can earn an initial 55% interest by paying Lara US$500,000 (all or part of which may, subject to Exchange approval, be paid in shares) and spending US$2.75 million on exploration over three years. Once it has earned the 55% interest, Alta can elect to earn an additional 20% interest by paying Lara US$1 million and spending a further US$4,000,000 on exploration over a three year period and completing a Pre-Feasibility Study by the fourth anniversary of such election.
The Atenea Gold Project comprises three mining concessions covering 3,000 hectares and located in southern Peru about 120 kilometres southeast Cuzco. The Project lies within the Andahuaylas-Yaury skarn-porphyry belt and between the Constancia and Tintaya copper mines. Atenea is hosted by Tertiary volcanics at higher elevations than the skarn-porphyry deposits in the belt and has the typical indications of a high-sulphidation epithermal gold-silver system and artisanal miners work several quartz-veins off to the northwest of the Project. Lara has completed mapping and rock chip sampling on the Project, which suggests that it is in the Steam Heated zone (high in the epithermal system) with alteration characterized by granular and brecciated silica, with low but anomalous gold, silver and pathfinder element values. For maps and an extended summary of exploration results, please refer to the Company's website at www.laraexploration.com.
The Company follows industry standard quality assurance and quality control procedures for all its samples under the supervision of Noel Diaz, General Manager Peru and Andre Gauthier, P. Eng., President of Lara Exploration Ltd., who is the Qualified Person for Lara under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and who has approved this press release and verified the data disclosed.