Lara Exploration (TSXV: LRA) announced that it signed a definitive agreement transferring all its rights and obligations for the Tocantins gold project to local mining company Mineração Aldeia de Vale Eireli in exchange for a 2% net smelter return royalty on production. The project is located near the town of Conceição de Tocantins in the eastern-central Brazilian state of Tocantins. It comprises two exploration licenses totalling 14,329 hectares, covering Lower Proterozoic age greenstone lithologies that have been mined for gold sporadically since colonial times. According to Lara, Vale S.A. (NYSE:VALE) carried out the first systematic exploration of the area in the 1990s, targeting gold associated with low-angle thrust faults and fold structures, completing 180 shallow reverse circulation drill holes that totalled 9,129 metres, and outlining several near-surface gold occurrences. “Further work undertaken more recently by a junior explorer, included twelve diamond drill holes (totalling 1,731 metres), targeting higher grade plunging zones in fold noses,” the Vancouver-based miner said in a press release. “The best results from this program were intercepts of 2 metres at an average grade of 18.97 grams per tonne gold (“g/tAu”) from drill hole TO-08, and 17 metres at 3.93 g/tAu, including 4 metres at 9.01 g/tAu and 2 metres at 11.05 g/tAu from drill hole TO-09.” Source: Mining.com
