Lara Exploration Announces Filing of the Preliminary Economic Assessment for its Planalto Copper-Gold Project in Brazil
Lara Exploration Announces Filing of the
Preliminary Economic Assessment for its
Planalto Copper-Gold Project in Brazil
Vancouver, British Columbia--(Newsfile Corp. - November 17, 2025) - Lara Exploration Ltd. (TSXV:
LRA) ("
Lara
" or the "
Company
") is pleased to report that it has filed an independent technical report
(the "Technical Report"), prepared in accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101"), supporting the Preliminary Economic Assessment ("
PEA
"
or the "
Study
") of its 100% owned Planalto Copper-Gold Project ("Planalto" or the "Project"), located in
the Carajás mining district, Pará State, Brazil.
The Technical Report, titled: "NI 43.101 Preliminary Economic Assessment for the Planalto Copper -
Gold Project, Brazil", dated November 14, 2025, with an effective date of October 15, 2025, can be
found under the Company's issuer profile on SEDAR+ (www.sedarplus.ca), with a copy also available on
the Company's website (
www.laraexploration.com
). The Technical Report was authored by SRK
Consulting (UK) Limited and SRK Consultores do Brasil Ltda., (together "SRK"). There are no material
differences in the Technical Report from those results disclosed in the Company's news release dated
October 21, 2025 or those disclosed below.
Planalto PEA highlights include
[1]
:
Estimated production of 560 kt
([2])
(1.2 billion lb
(2)
) of copper and 111 koz
(2)
gold over an 18-year
life of mine ("
LoM
").
During the first 6 years, the PEA production schedule produces on average 36 kt (79 million lb
(2)
)
of copper and 7.2 koz of gold per year.
Open pit mining of shallow dipping copper-gold mineralisation with a LoM strip ratio of 2:1 (1.36:1
Years 1-6).
Industry standard crush - grind - flotation processing plant operating at an annual rate of 8 Mt
(2)
of
run of mine ("
RoM
") feed, recovering 91% copper and 51% gold.
Producing a clean chalcopyrite concentrate grading 28% copper to be smelted internationally.
Site access by a 4 km
(2)
road from the state highway with high tension powerlines alongside.
Project located on private farmland between two major Carajás mining towns and within excellent
infrastructure.
Preliminary Economic Analysis:
After-tax net present value ("
NPV
") of US$378 million, using an 8% discount rate.
After-tax internal rate of return ("
IRR
") of 21%.
Payback period post-tax of 3.5 years from the start of production.
Initial capital expenditures of US$546 million and sustaining capital (including closure) of
US$170 million.
Average LoM all-in sustaining costs ("
AISC
") of US$5,920/t Cu payable.
Metals price assumptions used: copper price of US$9,500/t, gold price of US$2,500/oz.
Mining district infrastructure development advantage
Planalto is located within excellent infrastructure, which will support the Project development
and operation, having access to low-cost grid power via high tension power lines, a state
highway passing through the Project licence area and mining skilled labour and industry
service providers located close by.
Renewable and low carbon energy sources dominate the Brazilian grid generation mix. This
will contribute to lowering the carbon footprint of the Project. In addition, the current regulatory
framework would allow Planalto to sign virtual power purchase agreements for renewable
energy supply.
Pará state has a strong track record of supporting and permitting new mining projects,
particularly within the Carajás mining district. Regional and federal agencies have provided
various types of economic support to mining projects in the region including taxation relief
(SUDAM), which should extend to and have been assumed for Planalto and the PEA.
Project Opportunities
Tailings
- There is opportunity to significantly reduce required footprint areas for TSF development
by utilising paste thickened/central thickened discharge technologies. This would significantly
reduce the volumes of excess contact water to be managed on the TSF and simplify closure of the
facilities given that tailings material can be incorporated in the engineered cover system to form a
water shedding surface.
Metallurgy
- There is potential for further improvements to metallurgical recoveries and
optimization of processing reagent consumption during more detailed future study phases, which
could involve more exhaustive and larger scale pilot plant test work.
Test work is continuing.
MRE Growth Potential
- The Company believes that there is further potential to add to the 2024
MRE at Planalto, since the mineralization is open in some places within the MRE constraining pit
and at depth the pit is limited in places by the depth of existing drilling. Furthermore there is strike
extension potential in the Silica Cap deposit south-eastwards into the new Atlantica licence, where
historical drilling intercepted copper mineralization. There are also a number of copper-in-soil
geochemical anomalies within the Planalto Exploration Licence have had limited follow up
exploration including very limited drilling.
Oxide Exploration
- Excluded from the PEA is processing of oxide mineralised material, where
the exploration target has been defined through a combination of drilling, surface trenches and soil
geochemistry. Initial metallurgical testing suggests marginal economic recoveries, and more test
work is planned.
If incorporated into future studies, additional plant components would be required
that are not considered in the PEA.
Power
- There is potential to connect directly to the nearby 230 kV transmission line, reducing the
capital cost and line losses while simplifying access and permitting for the short 3Km connection
distance. In addition, significant savings in power tariff costs may be achieved when connecting
directly at the 230 kV transmission level as a "Grid User", circa USD 0.04/kWh compared with the
estimated PEA cost of USD 0.06/kWh for a 138 kV utility connected user. Power constitutes 39%
of the plant operational cost of 7.66 US$/t processed.
Concentrate Treatment and Refining Charges -
The PEA smelter charges to treat copper
concentrates reflect long term benchmark rates, Lara considers that current market rates are low
(negative) and may remain lower than rates used in the PEA.
Metal Price -
The Project economics are particularly sensitive to metal price. The current spot
price and consensus long term price for copper and gold are higher than the metal prices used in
the PEA. Higher metal prices have the potential to significantly improve the economic return of the
Project.
Project Risks
The PEA incorporates Inferred Mineral Resources which are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be
categorized as Mineral Reserves. While the Company intends to conduct further drilling with the
objective of converting Inferred Mineral Resources to Measured and Indicated Mineral Resources
there can be no assurance this will be successful.
The technical and cost estimates are at the scoping stage, with further technical, economic and
permitting related work required in order to achieve a prefeasibility level of study ("
PFS
"). Only
when a positive PFS is issued will it be possible to convert Indicated and Measured Mineral
Resources to Mineral Reserves.
The PEA assumes that Planalto would be eligible for SUDAM tax benefits, but Lara has not yet made
application to determine eligibility.
Technical Information and Qualified Persons
The following persons are the Qualified Persons under NI 43-101, responsible for the PEA and have
reviewed and approved the scientific and technical information contained in this news release:
Martin Pittuck, MIMMM(QMR) CEng FGS, Corporate Consultant (Resource Geology)
Leonardo de Freitas Leite, MSc, FAusIMM (CP), Principal Consultant (Mining Engineering)
Liam MacNamara PhD, ACSM, MIMMM, Principal Consultant (Mineral Processing)
Jamie Spiers, CEng MIMMM, Principal Consultant (Tailings Engineering)
David Carruth, CEng MICE IntPE, Principal Consultant (Water Engineering)
Colin Chapman, CEng MIMMM, Principal Consultant (Infrastructure)
Thiago Toussaint MSc, MBA, MAusIMM CP(Env) Principal Consultant, (Geoenvironmental)
All of the foregoing persons are independent Qualified Persons, as defined under NI 43-101.
About Lara Exploration
Lara is an exploration company, focused on advancing its 100%-owned Planalto Copper-Gold Project in
the Carajás mining district in northern Brazil. It is anticipated that Planalto will be developed as a
conventional open pit mine with a low strip-ratio, processing 8 Mtpa via a conventional crushing and
grinding circuit followed by froth flotation. A single saleable chalcopyrite concentrate with a minor gold
credit is to be transported internationally to third-party smelters. During the first 6 years, the PEA
production schedule produces on average 36 kt (79 million lb) of copper and 7.2 koz of gold per year,
and over an 18-year mine life, Planalto will produce 560 kt (1.2 billion lb) of copper and 111 koz gold.
The project is located on private farmland, 4 km from the state highway with high tension powerlines
alongside and close to two major Carajás mining towns within excellent infrastructure. A NI 43.101
Preliminary Economic Assessment and Mineral Resource Estimate are detailed in reports filed on
November 17, 2025 and October 17, 2024 respectively. The Company also holds a diverse portfolio of
prospects, deposits and royalties in Brazil, Peru and Chile. Lara's common shares trade on the TSX
Venture Exchange under the symbol "LRA".
For further information on Lara Exploration Ltd. please consult our website
www.laraexploration.com
, or
contact Chris MacIntyre, VP Corporate Development, at +1 416 703 0010.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of
Canada accepts responsibility for the adequacy or accuracy of this release.
Non-IFRS Financial Performance Measures
"All-in Sustaining Costs", "Total Site Costs", "Total Adjusted Operating Costs", "Average Annual Net
Revenue", "Average Annual Free Cashflow" and "Initial Capital/NPV ratio" are not performance
measures reported in accordance with International Financial Reporting Standards ("
IFRS
"). These
performance measures are included because these statistics are key performance measures that
management uses to monitor performance. Management uses these statistics to assess the overall
effectiveness and efficiency of the contemplated mining operations. These performance measures do
not have a standardized meaning under IFRS and, therefore, amounts presented may not be
comparable to similar data presented by other mining companies. The data presented is intended to
provide additional information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. As the Project is not in production, the
prospective non-IFRS financial measures presented may not be compared or reconciled to the
equivalent historical non-IFRS measure.
Cautionary Note Regarding Forward Looking Information
This news release contains forward-looking information which is not comprised of historical facts.
Forward-looking information is characterized by words such as "expect", "plan", "anticipate", "project",
"target", "potential", "schedule", "forecast", "budget", "estimate", "opportunity", "intend" or "believe",
variants of these words and other similar words, phrases, or statements that certain events or
conditions "could", "may", "should", "will" or "would" occur. This news release contains forward-looking
information regarding future or estimated financial and operational performance under the PEA
including: estimated initial capital, sustaining capital, operating, sustaining and other costs, closure
costs, net present value, internal rate of return and payback; metals price assumptions; estimated
gold and copper production; estimated processing rates, throughput, ore grades and recovery rates;
estimated LoM; the potential for future MRE growth from drilling; the development of Planalto as a
conventional open pit mine; the potential to process the oxide mineralized material and the
economics thereof; whether or not current or future discoveries of copper-gold mineralization at
Planalto will have sufficient economic merit to consider development; potential repeatability and
improvements to the economic assumptions and/or to metallurgical recoveries used in the PEA and
MRE in future studies; the potential to convert some or all of the MRE to mineral reserves through
economic studies and the timing and results of any such studies; opportunities to use a lower cut-off
grade in the future; the carbon intensity of any future operation; the results of subsequent stages of
permitting, including but not limited to the timing, granting and conditions of the LP, LI and LO referred
to herein; the outcomes of future economic studies and the Company's plans in respect thereof; the
potential for tax exemptions under SUDAM; project opportunities including the reduction of required
footprint areas for TSF development, oxide exploration and the processing of oxide mineralized
material, further improvements to metallurgical recoveries and optimization of processing reagent
consumption, and MRE growth potential and the potential to convert existing inferred resources to the
indicated category. Forward-looking information involves risks, uncertainties and other factors that
could cause actual events, results, and opportunities to differ materially from those expressed or
implied by such forward-looking information. Factors that could cause actual results to differ materially
from such forward-looking information include, but are not limited to, unexpected results from
exploration programs, changes in the state of equity and debt markets, fluctuations in commodity
prices and exchange rates, delays in obtaining required regulatory or governmental approvals or
permits, environmental risks, limitations on insurance coverage; and other risks and uncertainties
involved in the mineral exploration and development industry. Forward-looking information in this
news release is based on the opinions and assumptions of management considered reasonable as of
the date hereof, including, but not limited to, the assumption that the assay results confirm that the
interpreted mineralization contains significant values of copper and gold; that the mineralization
remains open at depth; that activities will not be adversely disrupted or impeded by regulatory,
political, community, economic, environmental and/or healthy and safety risks; the Company's ability
to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price
and market for outputs, including gold; foreign exchange rates; taxation levels; the timely receipt of
necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain
timely financing on reasonable terms when required; that the Planalto Project will not be materially
affected by potential supply chain disruptions; general business and economic conditions will not
change in a materially adverse manner; and other assumptions and factors generally associated with
the mining industry. Although the Company believes that the assumptions and factors used in
preparing the forward-looking information in this news release are reasonable, undue reliance should
not be placed on such information. The Company disclaims any intention or obligation to update or
revise any forward-looking information, other than as required by applicable securities laws.
END
[1]
The PEA is preliminary in nature, and it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as Mineral Reserves, and, as such, there is no certainty that the PEA
results will be realized.
[2]
kt; thousand metric tonnes; koz: thousand ounces; lb: pounds; Mt: million metric tonnes; km: kilometres
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https://www.newsfilecorp.com/release/274626