Fofoca South Gold Project

The project area of 946.54 ha is located in NW-SE trending Tapajos shear zone, which contains the known gold deposits of Cuiú-Cuiú, Tocantinzinho, Palito-São Chico and São Jorge. The project is located close to and adjacent to the block of tenements held by Serabi Gold plc ("Serabi") and 4 km to the northwest from Serabi's São Chico underground gold mine.

Numerous abandoned artisanal miners alluvial gold diggings occur within and adjacent to the Fofoca South Project area. Bedrock gold occurrences are known immediately to the north of the project area at the Fofoca and Cachoeirinha artisanal mining sites.

A soil sampling survey conducted in 2013 by Aurora Gold Corporation ("Aurora"), which previously held mineral rights to the Fofoca South area, identified anomalous gold zones in the northern part of the project in the area located to the southwest of the Fofoca gold occurrence.

Drilling at Fofoca by Aurora, in 2006 and 2007, identified an east-west orientated multiple lode gold system. The gold is hosted in quartz and breccia veins from 0.5m up to 3.0m true thickness, within a zone up to 20m wide of sheared granite and the drilling indicates a moderately to steeply south-dip on this structural zone. The gold mineralization carries anomalous silver values, up to a few tens of ppm Ag locally, and is associated with pyrite, arsenopyrite, galena and chalcopyrite. Wall rock alteration includes pervasive potassic alteration around the ore zone. The weathered zone varies from 25m to 45m vertical below the surface.

A National Instrument 43-101 compliant technical report (1) prepared for Aurora in 2013 by Geosure Exploration & Mining Solutions Pty Ltd ("Geosure") indicated that Geosure had previously, in 2010, conducted a resource estimation for the Fofoca deposit. This 2013 technical report indicated that the resource, all in the inferred category, was 2.1Mt @2.0 g/t Au for 130,000 oz Au using a cut off at 0.5 g/t Au.

Lara has not been able to source this 2010 document to verify the 2010 Geosure resource estimate, however, in a 2014 presentation by Aurora (2), this resource estimate is shown as being JORC compliant.

Disclaimer: The reader is cautioned that the information presented on deposits from adjacent properties is for informational purposes only and the type or style of mineral deposits found on the adjacent properties are not indicative of mineral deposits that might be found on the Company's property.

  1. Independent Technical Report on Sao Domingos Gold Project, Para State, Brazil – July 2013 by Michael Montgomery, Geosure Exploration and Mining Solutions Pty Ltd, Queensland Australia. (www.landmatrix.org/media/uploads/aurora-goldcomwp-contentuploads201402aurora-gold-ni-43-101technicalreportpdf.pdf)
  2. Slide 13 of Aurora Gold Update (March 2014) (dokumen.tips/investor-relations/auroragold-corporate-update-march-2014.html)