Curionópolis IOCG Project

The Company’s 100%-owned Curionópolis IOCG Property (“iron oxide copper gold”) covers 19,849 hectares and is located in the prolific Carajás District in northern Brazil, approximately 10 kilometres south of the Serra Pelada gold project being developed by Colossus Minerals Ltd.

On September 30, 2010, the Company completed an Agreement with Codelco do Brasil Mineração Ltda., (“Codelco”) to earn up to a 75% interest in the project by funding exploration and resource studies. Codelco may earn an initial 51% interest in the property by investing US$3.8 million in exploration over a four-year period, of which the first US$400,000 is committed, and by assuming responsibility for the remaining option payments due to the underlying owner. Codelco may then elect to earn a further 9% interest (60% total) in the property by sole-funding such additional exploration works as are necessary to define a minimum resource of at least 500,000 tons of copper equivalent, independently reported under National Instrument 43-101 guidelines. Codelco may then elect to earn a further 15% interest (75% total) in the property by sole-funding such additional exploration and development works as are necessary to complete a Bankable Feasibility Study on the Project.

Codelco’s 2011 work program includes additional mapping and surface geochemistry (rock and soils) sampling and approximately 3,000-metre diamond-drilling program.

Project History

The Company has completed stream sediment sampling throughout the property, identifying several high priority gold and copper anomalies in -80# sediment samples, with the Chico Target to the northwest of the town of Curionópolis reporting the best results, 443 parts per billion gold (“ppb Au”), 733 parts per million copper (“ppm Cu”) with anomalous bismuth (max. 84 ppm), molybdenum (max. 24 ppm) and tungsten (max. 23 ppm). The Osmar target, with known small-scale copper workings, showed higher gold values with a maximum of 2,945 ppb Au but copper results were somewhat lower with a maximum of 154 ppm Cu from stream sediment sampling.

Lara’s geologists completed follow-up soil sampling and rock chip sampling over an area of approximately four kilometres by three kilometres on the Chico target zone, identifying more than twelve north-west or north-northeast oriented, sub-vertical auriferous quartz-iron-oxide veins and breccias dominated by hematite and magnetite. The rock chip sampling indicates that veins on this trend are gold-rich with anomalous values of copper, silver, molybdenum and locally tin. Individual veins vary from a few tens of meters to several hundred meters in strike length and locally form a sheeted vein system. To date only reconnaissance rock chip sampling has been completed, with the best result of 8.6 g/t Au over 2.5 metres from the main Chico working. Rock chip grab samples from veins and rock dumps at other current and abandoned small-scale workings indicate gold values up to a maximum of 24.78 ppm Au. Vein textures are suggestive of a high level epithermal vein emplacement.

On the two kilometre long Osmar target, located to the west of Curionópolis, ten north- or northeast orientated breccia veins with oxidized copper and gold mineralization have been identified and many are being partially exploited on a small-scale by artisanal miners (“garimpeiros”). Orientation -80# soil gridding has been carried out with the best soil values of 10,000 ppm Cu and 406 ppb Au. Copper and gold soil anomaly zones are generally co-incident and many of the highest values are closely related to the presence of known copper veins. The copper-in-soil anomalies generally show a greater aerial extent than for gold. The best rock chip sample, taken from one of the exposed veins with secondary copper mineralization reported 1,576 ppb Au and 18.9 % Cu. Soil sampling has also identified further anomalous copper zones 2 kilometres to the west and to the southwest of the Osmar target.

The mineralization identified at Curionópolis is IOCG-type (iron oxide copper gold), typical of the Carajás District. Gold and copper values are accompanied by anomalous arsenic, silver, bismuth, tungsten, molybdenum and uranium. Geology of the target areas are metamorphosed volcano-sedimentary sequences with wide-spread magnetite and actinolite veining, as well as, pervasive actinolite, albite and scapolite alteration that is also typical of IOCG systems.