The Company has a option to purchase a 100% interest in Planalto Copper for $500,000 staged cash payments and a net smelter return royalty of 2%, half of which can be repurchased for $2 million (see Company news release of February 25, 2013 for details). The project comprises three exploration licenses, totalling 4,726 hectares in area, that lie approximately 10 kilometres to the west of Vale S.A.’s Cristalino Copper Deposit in the Carajás District of northern Brazil.
The geology of Planalto Copper Project comprises meta-volcano-sedimentary sequences and intrusives of early Proterozoic-age that are deeply weathered and have an extensive lateritic cover. Data provided by the vendors, includes reports of previous exploration work including soil sampling and two diamond drill holes. The Company does not have access to the drill cores or samples to confirm these historic results, but they are included here for information purposes in that they were the basis for the decision by the Company to enter into the option agreement. Lara plans to conduct its own work, making the staged purchase payments to the underlying owners, only if the results and the exploration potential of the property can be verified.
The historic surface sampling outlined two copper-in-soil anomalies with values in excess of 300 parts per million (“ppm”) copper, one of which is approximately 1.3 kilometres (“km”) by 0.9 km in size, the other 2.9 km by 0.3 km. The historical reporting also includes results of two drill holes executed approximately 100 metres (“m”) apart on the same East-West section on one of the copper-in-soil anomalies. Hole FD-73 has a reported intercept value of 188m of 0.4% copper, including 15m at 0.67%, 14m at 0.68% and 10m at 1.18% copper. Hole FD-74 has a reported intercept of 50m at 0.38% copper, including 21m at 0.6% copper.