The Liberdade Copper project comprises an exploration license covering 8,491 hectares, located in Pará State, at the western end of the prolific Carajás District in northern Brazil. The Project is covered by a joint venture agreement with Codelco do Brasil Mineração Ltda. (“Codelco”). Under the terms of this Agreement, Codelco can earn an initial 51% interest in the property by investing US$3 million in exploration over a four-year period and may then elect to earn a further 24% interest 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. The Company believes that the drilling results received from Codelco (see Lara news release of March 1, 2013 for details) represent the possible discovery of a large IOCG (“iron oxide copper gold”) mineralized system, consistent with the style and average grades of mineralization from known deposits in the Carajás District.
Codelco completed six diamond drill holes in 2012 in follow-up to the discovery hole FTCD-01 (see Lara news release of March 7, 2011 for details). The best sulphide (chalcopyrite) only intercepts are summarized. Hole LBCD-02 and LBCD-06 are located approximately 650 metres apart on the same geophysical and geochemical anomaly; LBCD-06 was terminated prematurely in 1% copper mineralization for technical reasons.
|Liberdade Best Intercepts - Primary Chalcopyrite Zone
||Cu Eq (%) *
* Copper Equivalent calculated as ((Copper %) + (0.6 * g/t Gold))