Lara Exploration Ltd.announces high-grade iron-vanadium project acquisition in Northern Brazil
Wednesday, Apr 18, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 17, 2012) - Lara Exploration Ltd. (TSX VENTURE:LRA) ("Lara" or the "Company") is pleased to report that it has acquired 19,240 hectares of claims and exploration licenses covering gabbroic intrusives that are host to direct shipping grade magnetite mineralization with significant vanadium content. The properties are located close to paved roads, 55 kilometres from the Miritituba Port on the Tapajos River, from where the iron ore could be barged to a ship terminal on the Amazon River.
The target comprises multiple sub-vertical and sub-parallel bodies of magnetite up to 50 metres thick and up to 150 metres long. The Company has completed a geophysical survey (Magnetic) over part of the target and collected a number of surface grab samples. The high average grades of the surface samples analyzed: 48% metallic iron (69% magnetite Fe2O3), 22% titanium dioxide (TiO2) and 0.45% vanadium, indicate potential for the mining of a direct shipping ore product.
The magnetite mineralization outcrops on the crest and flanks of ridges, suggesting that it would be amenable to open pit mining with relatively low strip ratios. The main zone of mineralization outlined to date lies within an area of grassland and patchy scrub used for cattle grazing, so project development by the Company would not be contributing in any material way to environmental degradation in the region.
The Company has agreed to pay R$100,000 (approximately $55,000) upon transfer of one of the license areas and pay a bonus of US$0.30/ton of measured reserves of iron ore. One license area is also subject to a US$0.45/ton royalty payment. The other areas are claims registered by Lara directly.