LRA one of the few holders of tin properties.Bought a little today.
Lara Acquires Tin Properties
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2007) - Lara Exploration
Ltd. ("Lara") (TSX VENTURE:LRA) is pleased to announce that it has registered
claims over two highly prospective tin exploration properties at Espigao in
Rondonia State and Guariba in Mato Grosso State and has signed an option
agreement to acquire the Sao Lourenco tin mine in Rondonia State, in NW
Brazil.
Lara is building an exploration portfolio for tin and related metals in Brazil
with the assistance of Jeremy H. Bates, a Mining Engineer with over 35 years
experience covering most aspects of the tin exploration and mining business in
Brazil. All the properties and options will be held in the name of a joint
venture company ("BEML") which will be owned 80%-owned by Lara and 20% by Mr.
Bates.
The most advanced of the new properties, the Sao Lourenco tin mine, comprises
seven mining licenses covering a total of 3,459 hectares over two prominent
hills, Serra Isaac and Serra Irene, which are considered prospective for tin
and related metals (lead, tungsten and rare earths). Tin has been mined from
the flanks of these hills and the rivers that drain them and there are tin
bearing veins and alteration zones (known as greissens) exposed on both hills.
However, to date there has never been systematic exploration for a hard rock
deposit. A Brazilian company, Mineracao Oriente Novo SA, produced some 12,000
tonnes of tin metal (worth an estimated US$126 million at current tin prices)
from the Sao Lourenco district between 1973 and 1988, before going into
liquidation. Production has continued on a small-scale since then to keep the
licenses in good standing and there is still basic road and camp
infrastructure on the property. A project summary and maps will be posted to
the Lara webpage in the coming days.
BEML entered into an option agreement to purchase the Sao Lourenco property on
January 29, 2007 with Mineracao Ceu Azul Ltda. (which currently leases the
mine), Companhia de Mineracao Sao Lourenco Ltda. (titleholder of the mineral
rights) and Companhia Industrial Amazonense (owner of preferential purchase
rights of tin production). Under the terms of this agreement BEML will pay
US$73,500 in staged lease payments over three years (US$12,500 paid on
signing) while it evaluates the hard rock tin potential. BEML has up to three
years from the date of signing to exercise its option to acquire the mineral
rights by making a one-time payment of US$1 million. The Sao Lourenco mine
lies within the frontier zone and will thus be subject to certain foreign
ownership restrictions.
The Espigao property is a 7,150 hectare exploration claim near the town of
Espigao do Oeste in the southern part of Rondonia State a few hours drive from
Lara's Colorado gold project. The property covers a prominent hill that has
not been subject to systematic exploration for tin, but the streams that drain
it to the west, east and northeast contain known tin placer deposits.
The Guariba property comprises a 10,000 hectare exploration claim, located
along the Guariba River in northern Mato Grosso State, where tin
mineralization was identified by a prospector.
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