Grace Gold Project

The Grace Gold Project covers 4,800 hectares of predominately Tertiary-age volcanics, located in the Ayacucho District of southern Peru at elevations of between 3,900 and 4,200 metres. Mapping and sampling have outlined extensive high-sulphidation epithermal alteration with anomalous gold and silver values. Lara’s property is contiguous with the open pit (oxide) mining operation of Minera Andina de Exploraciones S.A.C. (“Apumayo”), currently on care and maintenance.

Geology comprises andesitic volcanics (tuffs), cut by brecciated silica bodies and veins with wide quartz-alunite and granular silica halos, indicative of a well-preserved high-sulphidation epithermal system. The property also hosts widespread argillic alteration with patchy and disseminated pyrite. Individual silica bodies are up to 1,000 metres in length and up to 200 metres in thick. Lara has collected 62 rock chip samples from the anomaly area, 9 of which returned anomalous gold values ranging between 50 and 275 parts per billion (“ppb”) and 8 returned silver values between 0.7 and 7.5 parts per million (“ppm”). The alteration is also anomalous in arsenic (14 samples between 798 and 5,122 ppm), mercury (20 samples between 1.16 and 12.1 ppm) and antimony (8 samples between 57 and 620 ppm).

The property was under option to Apumayo from 2013 to 2017, during which time further surface sampling, mapping and geophysical surveys were completed to better define target areas and then three of these were drilled to assess their shallow oxide gold potential. Apumayo completed a total of 88 drillholes, 34 of which intercepted anomalous gold mineralization (tabled below), associated with high sulphidation epithermal alteration and brecciation of the andesitic volcanics.

Drillhole

Target

From (m)

To (m)

Length (m)

Gold g/t

GRA-01

Zone 4

0

8

8

0.22

GRA-02

Zone 4

0

14

14

0.21

GRA-03

Zone 4

0

10

10

0.22

GRA-04

Zone 4

0

10

10

0.19

GRA-05

Zone 4

0

8

8

0.31

GRA-06

Zone 4

0

22

22

0.37

GRA-07

Zone 4

0

10

10

0.20

GRA-08

Zone 4

0

52

52

0.47

GRA-08A

Zone 4

0

76

76

0.42

GRA-09

Zone 4

0

30

30

0.52

GRA-10

Zone 4

2

34

32

0.29

GRA-11

Zone 4

18

26

8

0.15

GRA-16

Zone 4

10

26

16

0.21

GRA-17A

Zone 4

0

10

10

0.51

GRA-18

Zone 4

0

38

38

0.27

GRA-19

Zone 4

0

34

34

0.41

GRA-20

Zone 4

0

6

6

0.26

GRA-22

Zone 4

0

34

34

0.22

GRA-23

Zone 4

0

28

28

0.30

GRA-24

Zone 4

14

26

12

0.18

GRA-25

Zone 4

0

14

14

0.27

GRA-42

Zone 4

0

28

28

0.32

GRA-45

Zone 4

0

8

8

0.31

Zone 4

26

54

28

0.29

GRA-46

Zone 4

18

40

22

0.67

Zone 4

40

50

10

0.69

GRA-47

Zone 4

0

26

26

0.21

GRA-49

Zone 4

4

14

10

0.19

Zone 4

20

28

8

0.11

Zone 4

32

46

14

0.21

GRA-50

Teton

50

72

22

0.44

Teton

82

98

16

0.22

GRA-58

Teton

60

112

52

0.53

GRA-59

Teton

8

26

18

0.28

GRA-62

Teton

36

46

10

0.11

GRA-65

Teton

6

34

28

0.24

GRA-68

Teton

8

16

8

0.15

GRA-69

Ana Paula

10

32

22

0.17

GRA-72

Ana Paula

32

40

8

0.19

Apumayo has not yet provided Lara with the detailed data to back up its report of the work completed at the Grace Gold Project during the 2017 program and these results are drawn from Apumayo’s summary report, a copy of which was provided to Lara. While Lara has no reason to doubt the quality of the work by Apumayo, it has not been able to verify the results in the report.

Images

Arsenic Geochem

Aster Alteration & Drilling 2017

Drilling 2017 and Apumayo Mines

Gold Geochem