Araguaia Nickel Project

The Araguaia Nickel Project comprises 45,000 hectares of 100%-owned exploration licenses near the important emerging nickel Carajás District, in Pará State, Northern Brazil. Lara holds a significant property position in the Araguaia belt, which has already generated two significant discoveries at Serra da Tapa and Vale dos Sonhos owned by Xstrata.

The regional geology comprises north-south to northwest-southeast oriented Proterozoic mobile belts with metasediments, mafic-ultramafic volcanics and intrusive lithologies. The exploration claims cover a range of targets defined from remote sensing using satellite imagery, airborne geophysics and fieldwork. Nickel mineralization associated with the mafic-ultramafic lithologies of the Quatipuru and Serra da Tapa ophiolites that comprise a package of basalts, talc-schists and serpentinites. The country rocks are predominantly metasedimentary phyllites and slates of the Couto Magalhães Formation, also of Proterozoic age. Both these units are part covered by Cenozoic detritic-lateritic cover.

The target geology is mafic and ultramafic intrusions that are part of the Araguaía Ophiolite Sequence, host to several large nickel deposits in this region. To date 66 diamond drill holes (47 in 2008) and 96 auger drill holes (mostly in 2008) have been completed on the project, defining significant nickel mineralization on two targets, Vila Oito and Floresta. The Vila Oita deposit is 1km by 1.14Km in size and has been diamond drilled on a minimum 200x200m grid spacing (54 holes). The Floresta deposit is 1.2x0.5km in size defined by soil geochem and auger drilling.

Results of the Vila Oito drilling are summarized in Table 1. Nickel intersections are reported with a minimum of 2 meters width and with a lower cut-off grade of 0.9% nickel.

Table 1 – Vila Oito Diamond Drilling Results
Drill Hole	Target	From (m)	To (m)	Interval (m)	Nickel %
PCA-DD-0419	Vila Oito	8.5	16.5	8.0	1.375
PCA-DD-0420	Vila Oito	7.3	12.43	5.13	1.375
PCA-DD-0421	Vila Oito	No significant results
PCA-DD-0422	Vila Oito	10.50	17.0	6.5	1.894
PCA-DD-0423	Vila Oito	16.00	27.9	11.9	1.069
PCA-DD-0424	Vila Oito	1.00	8.4	7.4	1.378
		13.4	19.0	5.6	1.176
PCA-DD-0425	Vila Oito	No significant results
PCA-DD-0426	Vila Oito	No significant results
PCA-DD-0427	Vila Oito	No significant results
PCA-DD-0428	Vila Oito	1.90	9.77	7.87	1.217
PCA-DD-0429	Vila Oito	4.00	26.3	22.3	1.343
PCA-DD-0430	Vila Oito	21.00	23.2	2.2	1.344
PCA-DD-0434	Vila Oito	No significant results
PCA-DD-0436	Vila Oito	No significant results
PCA-DD-0438	Vila Oito	3.10	11.6	8.5	1.474
PCA-DD-0440	Vila Oito	4.10	11.2	7.1	1.375
PCA-DD-0442	Vila Oito	22.00	28.0	8.0	1.118
PCA-DD-0444	Vila Oito	No significant results
PCA-DD-0446	Vila Oito	0	8.80	8.8	1.25
PCA-DD-0448	Vila Oito	No significant results
PCA-DD-0449	Vila Oito	3.20	6.20	3.0	1.27
PCA-DD-0450	Vila Oito	No significant results
PCA-DD-0451	Vila Oito	14.20	18.40	4.2	0.958
PCA-DD-0452	Vila Oito	No significant results
PCA-DD-0453	Vila Oito	10.0	17.0	7.0	0.944
PCA-DD-0460	Vila Oito	12.05	15.0	2.95	1.281
PCA-DD-0461	Vila Oito	1.11	4.41	3.3	0.948
PCA-DD-0462	Vila Oito	No significant results
PCA-DD-0463	Vila Oito	No significant results
PCA-DD-0464	Vila Oito	No significant results
PCA-DD-0465	Vila Oito	1.6	5.2	3.6	1.07
PCA-DD-0466	Vila Oito	4.1	16.1	12.0	1.25
PCA-DD-0467	Vila Oito	No significant results
PCA-DD-0468	Vila Oito	No significant results
PCA-DD-0469	Vila Oito	No significant results
PCA-DD-0471	Vila Oito	No significant results
PCA-DD-0472	Vila Oito	Hole abandoned and re-drilled
PCA-DD-0472A	Vila Oito	0.00	24.3	24.3	1.241
PCA-DD-0473	Vila Oito	1.00	4.5	3.5	1.192
PCA-DD-0474	Vila Oito	4.10	13.79	9.59	1.227
PCA-DD-0475	Vila Oito	0.00	2.17	2.17	1.006
PCA-DD-0477	Vila Oito	1.7	5.2	3.5	1.192
		7.7	11.0	3.3	1.01
PCA-DD-0445	N. Vila Oito	No significant results
PCA-DD-0447	N. Vila Oito	No significant results
PCA-DD-0485	N. Vila Oito	No significant results
PCA-DD-0486	N. Vila Oito	No significant results

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