Lara consolidates Canabrava property position

Lara Exploration has added to its Canabrava Project along strike from the Palmeiropolis volcanogenic massive sulphide (VMS) deposits in Central Brazil.

Based on regional prospecting conducted in 2007, additional claims have been registered, bringing the total to approximately 28,500 hectares. The property covers strike extensions of the Palmeiropolis Deposit, which is a series of zinc, lead, copper and silver sulphide ore bodies discovered by the CPRM (Brazilian Geological Survey) in the 1970’s. Lara has been gradually acquiring mineral rights along this trend, over the last two years, in anticipation of the privatization of the CPRM deposits. The Company started regional mapping, rock chip and soil geochemistry in late 2007 in parallel with adding to and consolidating its land position.

CPRM report from the year 2000, entitled “Zinco, Chumbo e Cobre de Palmeiropolis Estado de Tocantins”, shows that the CPRM drilled -32,000m of diamond core at Palmeiropolis in the 1970’s, of which -26,000 was used to define four ore bodies (C1 to C4) with resources of 5.5 million tonnes with an average grade of 5.28% zinc and lead, 0.83% copper and 23.95 grams per tonne silver. These resources are historical and not compliant with National Instrument 43-101 reporting standards, however, they are considered material to the prospectivity of the Lara property.

The Palmeiropolis ore bodies do not outcrop at surface and were targeted using geophysics. The Company believes there is considerable potential to discover additional mineralization within its properties using modern geophysical methods and that the base metal focused exploration work in the 1970’s may have under-estimated the gold and silver potential of the district.