São Lourenço Project
The São Lourenço property comprises seven mining licenses covering a total of 3,408 hectares in Rondônia State, which Lara has an option to acquire outright, subject statutory limitations on foreign ownership. In August 2011 the Company signed a Binding Letter of Intent (“the Agreement”) with Triumph Tin Mining Ltd., (“Triumph”) to take over the Company’s option and to earn up to a 75% interest in the Company’s 100%-owned tin exploration portfolio, denominated the North Brazilian Tin Project. The Agreement is subject to a 60-day due-diligence period and completion of a Definitive Agreement.
Under the terms of the Agreement, Triumph can assume the Company’s rights to the São Lourenço Tin Project by paying US$50,000 in cash and issuing US$500,000 in shares within 30 days of signing the Definitive Agreement. Triumph will pay a further US$1,000,000 in cash and/or shares in four annual payments of US$250,000 starting one year from signing the Definitive Agreement and will pay a 1% net smelter return royalty on any production.
The Company has an option to acquire 100% of the rights São Lourenço Tin Project for US$1,100,000 in cash (US$100,000 paid to date) payable before May 2012. The project comprises seven mining licenses covering a total of 3,408 hectares, where a local company, Mineração Oriente Novo S.A., produced some 12,000 tons of tin between 1973 and 1988, before going into liquidation. Production has continued on a small-scale since then to keep the licenses in good standing and there are still roads and camp infrastructure maintained on the property. Triumph will assume responsibility for the remaining obligations under the option agreement and will undertake to drill a minimum of 1,500 metres of diamond core drilling within 12 months of signing the Definitive Agreement.
Project History
The Company has completed surface exploration work that outlined a significant body of primary tin mineralization on the adjacent Isaac and Irene targets, with an average grade of 0.61 % tin. The Company has been sampling two granite stocks, Irene and Isaac, which stand out as hills within the wide area of past placer tin mining. Artisanal workings there have exposed a wide area of fresh and weathered (saprolite) granite that has now been systematically grid sampled with channel samples. Coarse-grained tin mineralization in the form of cassiterite (a tin oxide) is hosted by vein-like zones of alteration known as “greisens” that form a dense stock-working over most of the exposed area and extend into the meta-sedimentary country rocks. The exposed area represents only 40% of the granite hills and the known mineralization is open in all directions.
The Isaac target comprises multiple greisen zones ranging up to 500 metres in length and up to 50 metres in thickness, with an average grade of 0.54 % tin. The Irene target includes multiple zones of mineralization, with individual zones of up to 300 metres in length and up to 66 metres in thickness, with an average grade of 0.71 % tin. In outlining zones of mineralization a cut-off grade of 0.14 % tin and a minimum width of 4 metres (2 metres where the grade is over 1 % tin) was applied.
Irene Exploration Program & Channel Samples
The program comprised continuous channel sampling and detailed geological and alteration mapping of the target areas to define drill targets. Continuous channel sampling on the Irene Target has outlined 20-28 meter-wide zone extending for a strike-length of 200 meters. The new results are summarized in Table 1 below:
|
Table 1 – Main Serra de Irene Greisen |
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|
Sample line |
Interval (meters) |
Tin grade (% Sn) |
|
Line 9 |
28 |
0.36 |
|
Line 11 |
28 |
0.96 |
|
Line 12 |
20 |
3.29 |
|
Cut off 0.14% Sn, minimum width 4 meters and maximum internal waste 4 meters |
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Geological and alteration mapping show this zone to be open both to the northeast and southwest, where additional sample lines are being located to test grade and continuity of the system. The Irene Target also hosts several other zones of mineralization (including some with considerably higher grades) which are summarized in Table 2 below:
|
Table 2 – Other Serra de Irene Greisen Targets |
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|
Sample line |
Interval (meters) |
Tin grade (% Sn) |
|
Line 7 |
6 |
0.39 |
|
Line 8 |
8 |
1.57 |
|
|
20 |
0.59 |
|
|
10 |
0.23 |
|
|
4 |
0.18 |
|
Line 9 |
2 |
5.92 |
|
Line 10 |
14 |
0.25 |
|
|
6 |
0.25 |
|
|
4 |
0.19 |
|
|
6 |
0.26 |
|
|
6 |
1.52 |
|
Line 11 |
14 |
0.23 |
|
|
2 |
1.14 |
|
|
6 |
0.31 |
|
|
4 |
2.16 |
|
Line 12 |
6 |
0.20 |
|
|
2 |
4.69 |
|
|
6 |
0.18 |
|
|
4 |
0.30 |
|
Line 13 |
4 |
0.18 |
|
|
2 |
1.04 |
|
|
4 |
0.64 |
|
Line 14 |
8 |
1.53 |
|
|
2 |
3.53 |
|
Line 15 |
6 |
0.98 |
|
|
6 |
0.44 |
|
Line 16 |
2 |
8.46 |
North Brazilian Tin Project
Under the terms of the Agreement, Triumph can also earn up to a 75% interest in the North Brazilian Tin Project by paying US$35,000 in cash on signing the Definitive Agreement, investing US$2,500,000 in exploration over four years and paying a 1% net smelter return royalty on production. The North Brazilian Tin Project comprises seven exploration licenses covering a total of 36,634 hectares.
Project Photos
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