Lara Exploration Ltd. [LRA-TSXV] reported drill results and provided an update on development work on the Osmar-2 target at the Celesta copper mine in northern Brazil. Work began to open up a second mining front at Osmar-2 in December, 2020, with production in the coming months derived exclusively of sulphide material from this new pit, while a cutback is being completed to access deeper material in the Osmar-1 pit.
Development of the Osmar-2 pit is based on mineralization indicated by diamond drilling (vertical holes) completed in 2020. The mineralization is dominated by fresh chalcopyrite, present from approximately 6-metre vertical depth below the surface.
Highlights include 20.58 metres grading 3.04% copper and 0.30 g/t gold; 9.50 metres of 3.71% copper and 0.42 g/t gold; 17.49 metres of 2.85% copper and 0.78 g/t gold; and 9.86 metres of 1.93% copper and 0.37 g/t gold. Refer to company press release for complete drill results.
Intercepts were calculated using a 0.5% copper cut-off and a maximum internal downhole waste thickness of two metres. There is insufficient drill information to determine if the downhole intervals represent the true widths of the mineralized zones.
Lara owns a 2% net smelter returns royalty on the project and has been receiving regular payments from Celesta with each concentrate shipment made to Ocean Partners. Lara also holds a 5% carried (to commercial production) equity interest in Celesta Mineracao SA, which is jointly operated by partners Tessarema Resources Inc. (with 40% interest) and North Extracao de Minerio Ltda. (with 55% interest). Ocean Partners U.K. Ltd. has provided project finance in exchange for life of mine offtake rights. Lara is also owed a US$1-million late penalty fee, of which US$200,000 has been paid to date.