The definitive agreement was signed by Mr. Rafael Neira, the General Manager of Apumayo, a subsidiary of Peruvian gold miner Aruntani S.A.C., to acquire 100% of the Company’s Grace Gold Project in southern Peru for US$2 million payable
Lara will also be entitled to Net Smelter Return ("NSR") royalty payments on gold and gold equivalent production from all metals.
Aruntani and its subsidiary, Apumayo, are further committed to minimum exploration expenditures on the property of US$500,000 and the completion of a minimum of 3,000 metres of drilling. Aruntani and Apumayo are currently developing open pit mining operations for gold on epithermal deposits immediately to the south of Lara’s Grace Gold Project and which are derived from mineralized alteration zones similar to those outlined at Grace.
The Company’s 6,600 hectare Grace Project covers Tertiary-age volcaniclastics, cut by brecciated silica bodies and veins with wide quartz-alunite and granular silica halos, indicative of a well-preserved high-sulphidation epithermal system. An area of hydrothermal alteration extending approximately 6 kilometres in length by 1 to 1.5 kilometres in width, has been outlined to date, where rock chip samples have returned anomalous gold, silver, arsenic, mercury and antimony values.
Quality Control
Andre Gauthier, Lara’s President and a member of the Quebec Order of Engineers, is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, has verified the technical information and approved the form of its disclosure in this release.
