Corina Gold Project

The Corina Gold Project comprises a block of licenses totalling 8,300 hectares in area in the Antabamba region, Apurimac Department, Southern Peru. The geological setting is a belt of Tertiary-age volcanic rocks that also host Ares’s Pallancata and Immaculada mining operations and past producer Selene, with Lara’s main targets located approximately 15km north (approximately 25km by road) of the mill at Selene, which currently serves the Pallancata mine.

At Corina the host rocks are mostly felsic tuffs, cut by a roughly E-W fault, brecciation and veining that has been mapped at surface over several kilometres. Mineralization is typically hosted by zones of brecciation with silicification, stockworks and quartz veining, within two sub-parallel structures denominated Corina and Micky. The Corina structure has so far returned lower grades and carries grey-white quartz and pyrite. The Micky structure has returned better grades, associated with chalcedonic quartz and coliform textures typical of low sulphidation epithermal alteration systems. The current working hypothesis is that the better intercepts on the Micky structure represent shoots that plunge shallowly to the east (comparable to the comportment of the Pablo-Yurika silver vein at Pallancata and the Angela gold vein at Immaculada).

Compañía Minera Ares S.A.C. (“Ares”), a subsidiary of London-listed Hochschild Mining plc., has the option to purchase the Corina Project from Lara by making staged cash payments totalling US$4,150,000 of which US$300,000 has been paid to date, with the next installment of US$350,000 due by July 2020. Ares must also carry out US$2,000,000 in exploration expenditures, which will most likely be fulfilled by the current program and pay a 2% net smelter return royalty on any future production (see Company news release of June 23, 2014 for details).

Ares has reported multiple gold and silver intercepts from on-going diamond drilling in 2019 with results received to date are summarized in the following table:

Drillhole

From (m)

To (m)

Width (m)

Au g/t

Ag g/t

COR19001

201.55

204.75

3.20

1.13

24.00

including

203.40

204.75

1.35

1.80

31.00

COR19001

218.80

228.20

9.40

0.43

7.11

COR19002

253.15

254.45

1.30

0.43

4.40

COR19002

330.20

348.50

18.30

0.26

1.35

COR19003

142.85

146.85

4.00

0.28

1.57

219.80

221.00

1.20

0.46

67.40

COR19004

152.00

156.85

4.85

0.07

0.78

265.00

266.35

1.35

0.61

9.00

COR19005

91.10 

94.60 

3.50 

8.97 

32.00 

including

92.10 

93.65 

1.55 

15.90 

47.00 

COR19005

117.90

122.90

5.00

0.60

4.99

COR19005

160.80

162.80

2.00

1.18

2.90

COR19006

209.60

211.10

1.50

1.71

7.65

including

210.70

211.10

0.40

2.89

7.90

COR19006

284.85

287.10

2.25

0.27

0.87

COR19007

126.40 

142.10 

15.70 

4.56 

53.69 

including

132.30 

135.00 

2.70 

15.94 

207.20 

and

132.30 

133.70 

1.40 

19.55 

290.00 

COR19007

184.60

189.20

4.60

1.10

27.64

COR19007

200.75

201.75

1.00

1.32

14.50

COR19008

209.40

211.00

1.60

0.52

2.05

COR19008

220.80 

223.00 

2.20 

3.20 

25.66 

including

220.80 

221.80 

1.00 

5.73 

51.00 

COR19009

144.80

149.00

4.20

0.82

6.71

COR19009

152.50

157.60

5.10

1.05

14.19

including

156.50

157.00

0.50

2.63

53.70

COR19009

160.40

165.40

5.00

1.08

6.98

including

164.50

165.40

0.90

1.86

2.40

COR19010

186.60

202.60

16.00

6.00

28.68

including

195.10

198.10

3.00

16.08

82.60

COR19010

206.90

210.60

3.70

7.66

51.56

including

207.90

208.90

1.00

17.35

126.00

COR19010

212.40

215.80

3.40

2.52

25.00

COR19010

222.65

230.30

7.65

4.08

37.93

including

222.65

228.40

5.75

4.95

45.85

including

224.45

224.95

0.50

8.14

77.60

The reported intercepts do not necessarily represent true widths. The current program is expected to run until mid-October with a further four drillholes either planned or in progress (program total 14).

Drilling Data, QAQC and Qualified Person

Drilling is being supervised by Ares geologists based at site, who also take the core down to the Ares exploration base in Calhuanca, where it is photographed, logged and the altered sections then sampled. One quarter of core is sent to Ares’ certified internal laboratory at the Selene plant nearby and one-half of the core is sent to ALS Chemex in Lima. The results reported in the table above are all from the independent ALS Chemex laboratory. In addition to running all the samples through these two laboratories, Ares follows the standard QAQC procedures of inserting blank, reference and duplicate samples into its sample lots.

Michael Bennell, Lara’s Vice President Exploration and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects and has approved the technical disclosure and verified the technical information in this news release.

Presentation