Lara Exploration has signed an option agreement with Mineração Tariana, a subsidiary of Anglo American do Brasil, to acquire an exploration license for the Planalto copper project in Brazil.
Under the agreement, Planalto will pay $150,000 to Mineração Tariana and will complete at least 2,000 meters of diamond drilling with resource and reserve studies by May 2022, Lara Exploration said in a statement. The agreement also outlines a potential extension of the Homestead target for another 1,500 meters to the north.
Moreover, Planalto will pay a 1.25pc net smelter return royalty to Mineração Tariana on production, the South American exploration company added.
The Planalto copper project, which is located in the Carajás Mineral Province of northern Brazil, is near Brazilian miner Vale’s Sossego copper mine, Oz Minerals Antas, and Pedra Branca copper mines.
Lara Exploration plans to complete additional sampling, mapping, and geophysical surveys in the first quarter this year, to mobilize diamond drilling in Q2 2021 to complement the already approved follow-up drilling on other potential extensions.
Lara Exploration has three copper projects in Brazil: Liberdace copper project, Celesta copper mine, and Planalto copper project. It also operates mines in Peru and Chile.
Brazil’s copper ores and concentrates exports rose by 9.3pc to 98,085mt in December 2020, from 89,735mt shipped in the same month of 2019, according to the latest figures from the country’s ministry of economy.