Lara Reports Results of Preliminary Economic Assessment for its Planalto Copper-Gold Project
Lara Reports Results of Preliminary Economic
Assessment for its Planalto Copper-Gold
Project
Vancouver, British Columbia--(Newsfile Corp. - October 21, 2025) - Lara Exploration Ltd. (TSXV: LRA)
(OTC Pink: LRAXF), ("
Lara
" or the "
Company
") is pleased to announce results of an independent
Preliminary Economic Assessment ("
PEA
" or the "
Study
") on its 100% owned Planalto Copper-Gold
deposit ("
Planalto
" or the "
Project
"), located in the Carajás mining district, Pará State, Brazil.
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, at 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.
"The Lara team has a track record of discovery and value creation for shareholders, and we are
pleased to be able to demonstrate through this Study, that Planalto has the key technical and
economic elements at a scoping level to become a mine.", said Simon Ingram, CEO. "Furthermore,
new copper mines are hard to find and often challenging to permit and build, Planalto's excellent local
infrastructure and a positive state permitting environment will benefit Planalto as it moves through
technical studies towards a potential production decision. The accelerating digitalisation and energy
transition megatrends are compounding increasing copper demand and improving the long-term
fundamentals of the copper market, which are expected to further benefit Planalto and Lara."
Lara Chairman, Miles Thompson added "The newly acquired Atlantica Exploration Licence has
historic drill intercepts with copper mineralisation similar to that at Planalto, directly along strike to the
Silica Cap PEA pit. Further exploration within the enlarged Planalto licence area has the opportunity
for additional near-term discovery."
Readers are strongly encouraged to read the Company's Technical Report prepared in accordance with
National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
("
NI 43-101
") in respect of
the PEA which will be filed on the Company's website and under the Company's profile on SEDAR+
within 45 days of this news release. The Technical Report will contain important qualifications,
assumptions and exclusions that relate to the PEA. The PEA has an effective date of October 15, 2025.
PEA Summary
It is anticipated that Planalto will be developed as a conventional open pit mine, with processing via a
conventional crushing and grinding circuit followed by froth flotation. The process plant with nameplate
capacity of 8 Mtpa
(3)
, will produce a single saleable chalcopyrite concentrate to be transported
internationally to third-party smelters. Revenue will be from copper with gold credits.
The Company retained SRK Consulting (UK) Ltd and SRK Consultores do Brasil Ltda., as Lara's
independent engineering consultants to prepare the PEA in accordance with NI 43-101.
Planalto MRE
The PEA is based upon the Planalto Mineral Resource Estimate dated July 3, 2024 ("
MRE
") which was
reported above a cut-off grade of 0.16% CuEq; see Table 11. Whilst SRK considers this cut-off grade to
be suitable for the PEA, the metal prices currently prevailing are higher which presents is an opportunity
to use a lower cut-off grade when resource reporting and mine planning work evolve in the future. The
MRE comprises:
Indicated Mineral Resources of 47.7 Mt
(3)
at an average grade of 0.53% Cu
(3)
and 0.06 g/t
(3)
Au
(3)
,
or 0.56% CuEq
(3)
, containing 253 kt Cu (0.56 billion lb Cu);
Inferred Mineral Resources of 154 Mt at an average grade of 0.36% Cu and 0.04g/t Au, or 0.38%
CuEq, containing 549 kt Cu (1.2 billion lb Cu).
All mineralised material processed in the PEA is from Mineral Resources that are currently classified as
Indicated and Inferred. The PEA is preliminary in nature and includes Inferred Mineral Resources which
make up approximately 76% of the total Mineral Resources. Inferred Mineral Resources 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 Indicated Mineral Resources there can be no
assurance this will be successful.
There is no certainty that the results and outcome of the PEA will be
realized.
Mining
Planalto is characterized by consistent geological and mineralisation continuity down dip and along a 1.5
km strike length. The shallow dipping and near surface mineralisation makes it highly amenable to open
pit extraction with a low waste to mineralisation strip ratio. Mineralised copper oxidised material is
observed at Planalto, however neither the MRE nor the PEA includes this material.
The PEA incorporates conventional open pit mining using a truck and shovel operation where drilling,
blasting, loading, and hauling are to be undertaken by mining contractors.
Over the estimated 18 year mine life, mineralised RoM (material exceeding an insitu grade of 0.16%
CuEq) is envisaged to be mined for 17 years from one large pit to mine the Homestead and Cupuzeiro
deposit areas and a second smaller pit to mine the Silica Cap deposit. Pre-stripping of 16.2 Mt and
RoM stockpiling will be undertaken ahead of plant commissioning. The pit designs incorporate PEA
stage geotechnical criteria. Bench heights have been designed to 10 m in waste and 5 m in RoM
material. The primary loading fleet will consist of 3.7 m
3
hydraulic excavators loading 40 t road trucks for
the smaller pit and RoM in the main pit. The waste material in the main pit will utilize a larger fleet of 15
m
3
hydraulic shovels loading 100 t trucks.
The smaller bench size and mining equipment for RoM mining have been designed to improve mining
selectivity and reduce dilution (7% dilution and 2% losses). Locally manufactured mining equipment
commonly used by local contractors has been selected to bring cost efficiency and benefits to
operations and maintenance.
Over Years 1-8 inclusive, the maximum material movement is on average projected to be 20 Mtpa
increasing to 35 Mtpa in later years. Over the LoM a total of 410 Mt is planned to be extracted, including
130 Mt of RoM mineralised material; 13 Mt of additional low-grade material to be processed at the end
of mining; and 266 Mt waste rock that will be placed in a designated facility. Table 2 sets out the
projected LoM mining schedule.
Table 2: Mining Production Schedule
Year
RoM *
(Mt)
Cu
(%)
Au
(g/t)
Waste
(Mt)
Strip
(t/t)
Total Moved
(Mt)
0
0.8
0.50
0.07
16.2
21.2
17.0
1
7.9
0.45
0.05
14.1
1.8
22.0
2
8.9
0.46
0.05
13.1
1.5
22.0
3
8.8
0.46
0.05
6.2
0.7
15.0
4
8.7
0.49
0.05
6.3
0.7
15.0
5
8.8
0.50
0.05
13.2
1.5
22.0
6
8.7
0.46
0.05
13.3
1.5
22.0
7
8.9
0.38
0.04
12.1
1.4
21.0
8
9.4
0.36
0.03
11.6
1.2
21.0
9
9.7
0.36
0.03
16.8
1.7
26.5
10
9.0
0.40
0.05
26.0
2.9
35.0
11
8.3
0.43
0.05
26.7
3.2
35.0
12
8.9
0.42
0.04
26.1
2.9
35.0
13
8.5
0.43
0.05
23.5
2.8
32.0
14
8.8
0.42
0.05
13.2
1.5
22.0
15
8.5
0.41
0.05
12.5
1.5
21.0
16
7.6
0.46
0.06
12.9
1.7
20.5
17
3.5
0.42
0.05
2.5
0.7
6.0
Total
144
0.43
0.05
266
1.9
410
* RoM includes 13 Mt of low-grade material stockpiled and processed at end of LoM
Metallurgy Recoveries
Metallurgical recoveries used in the PEA are based on results generated from 2 phases of laboratory
flotation testwork performed by Lara at Blue Coast Laboratories in Canada. The results of the Blue
Coast metallurgical testwork were used in a steady-state process simulation software (USIM PAC), to
develop a plant flowsheet and mass balance, with forecast concentrate quantity and quality based on
treating 8 Mtpa. Results indicated that Planalto chalcopyrite mineralisation has the metallurgical
characteristics to potentially produce a clean quality saleable copper-gold concentrate.
Processing and Tailings
The PEA assumes the plant will process RoM during the following stages, 0.6 Mt during commissioning,
7.5 Mt in Year 1 and 8 Mt in Year 2 through Year 18.
A traditional copper flotation process flow sheet has been adopted, incorporating a conventional semi-
autogenous grinding mill followed by 2 ball mills at a target grind size of 80% less than 75 μm. Initial
testing indicates that the RoM mineralisation is hard.
Fine material feeds into rougher flotation cells,
where a proportion of the product is reground to achieve improved liberation and separation of
chalcopyrite, which is then thickened, filter pressed and collected as copper-gold concentrate.
The
gangue is discarded and stored as tailings. The Cupuzeiro deposit is expected to contain slightly
elevated pyrite; when this material is fed to the processing plant it will be necessary to divert the pyrite-
rich cleaner-scavenger tailings to a dedicated pyrite tailings facility so that any subsequent interaction
with the natural environment can be appropriately managed. A water treatment plant is included to treat
return water from the tailings dam for re-use in the process plant, reducing water consumption.
Equipment selection was undertaken in conjunction with major equipment manufacturers and has been
costed based on quotes received from Brazilian and international manufacturers.
Based on average feed grades, the plant would be expected to achieve average metallurgical
recoveries of 90.9% for copper and 51.1% for gold producing a floatation concentrate containing 28%
copper and minor gold.
Table 3 presents the estimated LoM plant feed and concentrate production schedule, for the 18-year
LoM.
Table 3: Processing and Concentrate Production Schedule
Year
Plant Feed
(Mt)
Cu
(%)
Au
(g/t)
Cu concentrate
(kt)
Cu
(kt)
Au
(koz)
1
7.5
0.49
0.06
120.4
33.7
6.9
2
8.0
0.49
0.05
127.7
35.8
7.2
3
8.0
0.49
0.06
127.0
35.6
7.4
4
8.0
0.52
0.05
134.8
37.7
7.2
5
8.0
0.53
0.06
137.3
38.4
7.5
6
8.0
0.48
0.05
125.1
35.0
7.1
7
8.0
0.40
0.04
103.4
28.9
5.4
8
8.0
0.39
0.03
100.8
28.2
4.2
9
8.0
0.40
0.04
103.9
29.1
4.8
10
8.0
0.43
0.05
112.3
31.5
6.1
11
8.0
0.44
0.05
113.2
31.7
6.2
12
8.0
0.45
0.05
116.4
32.6
6.2
13
8.0
0.45
0.05
115.7
32.4
6.3
14
8.0
0.44
0.05
114.7
32.1
6.3
15
8.0
0.43
0.06
111.3
31.2
7.3
16
8.0
0.44
0.06
115.4
32.3
7.9
17
8.0
0.28
0.03
73.9
20.7
4.3
18
8.2
0.18
0.02
46.9
13.1
2.8
Total
144
0.43
0.05
2,000
560
111
The PEA envisages a tailings storage facility ("
TSF"
) located to the south-east of the mine site which is
entirely within Lara's licence area. The TSF comprises two cells which would be utilised for conventional
slurry tailings with storage for the first 13 years of tailings production.
During Year 13 of operations, a
new deep cone thickener would be installed close to the TSF.
Tailings deposition would switch to paste
(65-70% solids w/w) from Year 14 which would accommodate remaining LoM tailings. This approach is
utilised successfully for thickened tailings deposition at the nearby Sossego mine and is likely to be
viewed favourably by regulatory authorities. Furthermore, there will be a small, dedicated storage facility
for pyrite-rich tailings.
Infrastructure
The PEA envisages a number of infrastructure requirements for the Project which have been designed
and costed at a scoping level, including power supply, processing plant, tailings storage facility, waste
rock dump, water management channels including a river diversion, process water supply pond, water
treatment plant, a 4 km site access road and bridge, haul roads, RoM pad and low grade stockpile and
miscellaneous site utilities.
Power in Brazil's national grid is 85% from renewable sources and is relatively low cost by international
standards. The electrical supply connection is based on a quotation from the local electrical utility to
install and connect a supply of 138 kV to the Project to meet a demand of up to 52.5 MW.
There are a
number of power connection options due to the favourable location, just 4 km from the existing high
tension (500 and 230 kV) powerlines and proximity to major substations. Further trade off studies will
investigate opportunities for a direct grid connection to potentially reduce, transmission line capital
costs, transmission losses and tariffs.
This PEA assumes concentrate will be trucked by road approximately 680 km to the port of Vila do
Conde (Barcarena, Pará State) where it will be loaded onto ocean going vessels for shipping.
Water Management
The tropical climate and the topographic situation of the Project area mean that surface water
management will be key to de-risking mining operations and safeguarding the natural environment. The
PEA envisages numerous diversion channels to manage surface water runoff and water levels in the
nearby creeks particularly during intense storm events. It also gives consideration to treating all water
that has been in contact with sulphide-bearing rock. A water treatment plant has been designed and
costed at a scoping level.
A provisional water balance for the site, including the requirement for water in
the processing plant has been estimated.
Environment, Permitting and Social Considerations
Lara's approvals roadmap includes an application for the Preliminary License (LP) in Q3 2026, an
application for the Installation License (LI) in Q4 2028, and the Operating Licence (LO) for the start of
operations for 2030.
Building on environmental information collected from the Project area in 2021, CLAM Engenharia has
commenced an environmental impact assessment ("
EIA
") which is due to be completed in Q2 2026.
Field studies will include air quality, springs survey, water quality, flora and fauna, socio-economic and
speleology (caves). The need for studies on archaeology, historical and cultural heritage will be
determined following consultation with regulatory authorities.
As the EIA improves the understanding of the environmental and social context of the Project, strong
links between Project development and ESG workstreams will be needed to embed sustainability into
technical decision making. Early and effective integration of these workstreams will likely improve
permitting timeframes and outcomes.
Ongoing key issues include acquisition of surface rights, minimizing the Project footprint to avoid
impacts on existing land use and protected areas, characterizing and minimising geochemical risks
from mine waste, appropriate design of mine waste facilities, minimising impacts on surface water and
groundwater users and Project affected people. Climate change considerations will also need to be
considered in future stages of Project development, particularly minimising carbon emissions from the
future operation and demonstrating resilience to future climate scenarios in operational and closure
designs.
A provisional estimated closure cost of US$ 18.3 million has been allowed for in the PEA.
Life of Mine Production Plan
The estimated LoM production under the PEA is summarized in Figure 1 and Table 4.
Figure 1: Mining and Cu in Concentrate Profile
Note: Year 0 is the pre-stripping year, with some RoM mined and stockpiled
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2373/271209_figure1.jpg
Table 4: LoM Production Summary
Units
Value
Production Rates
Peak mining rate (ore+waste)
Mt/yr
35.0
Peak processing
Mt/yr
8.0
Mine Production
Total mined
Mt
410
Waste
Mt
266
RoM
Mt
130
Low grade material
Mt
13.4
Strip ratio
t/t (waste/RoM)
1.9
Payable metal
Copper
kt
540
Gold
koz
99.7
Capital Costs
The estimated initial capital for construction and ramp-up, together with expected sustaining capital and
closure costs, is presented in Table 5. The costs have been estimated to an accuracy of -30% / +50%.
A
20% contingency has been added to the initial capital and the mine closure costs.
Table 5: Capital Costs
Initial
(US$ million)
Sustaining
(US$ million)
Total
(US$ million)
Mining Pre-Strip
28.5
--
28.5
Processing Plant
238.5
85.9
324.4
Tailing Management Facility
13.1
62.1
75.2
Water Management
15.0
--
15.0
On-Site Infrastructure
28.3
--
28.3
Power Supply
20.6
--
20.6
Construction Support
29.5
--
29.5
EPCM
47.3
--
47.3
Owners Costs
33.7
--
33.7
Mine Closure
--
18.3
18.3
Contingency
90.9
3.7
94.6
Total
546
170
716
Operating Costs
The estimated Planalto operating costs represent the onsite costs to produce copper concentrate;
additional costs associated with the concentrate transport are captured in the net smelter return
calculation. Projected site operating costs are presented in Table 6. The average life-of-mine operating
cost of material moved is US$3.04/t moved.
Table 6: Operating Costs
Description
Unit
Cost
Mining
US$/t ex-pit
3.04
Mining
US$/t processed
8.34
Processing
US$/t processed
7.66
Tailings
US$/t processed
0.13
G&A
US$/t processed
1.62
Total
US$/t processed
17.75
SUDAM Taxation Benefit
Companies located in the Amazon region may benefit from certain tax incentives. SUDAM is an
administratively and financially independent federal government agency that oversees development in
the Amazon region. The region includes the state of Pará in which the Project is located. Under the
concession program, companies can receive either partial or complete tax exemption on income taxes
for Brazilian companies.
The tax exemption applies only to income from facilities operating in the designated region and consists
of a reduction of 75% off the regular corporate income tax (25%). For the purposes of the PEA, the
financial model factors in a reduction of the corporate income tax rate plus social contribution of 34%
(25% + 9%) to the 15.25% (25% * 0.25% + 9%) rate available under the SUDAM regime for the Project.
The concession is available for an initial period of 10 years of operation.
The PEA assumes that the Planalto Project would be eligible for SUDAM tax exemption, but this can
only be confirmed once an application has been submitted and approved.
Metal Price Assumptions and Payability
Metal prices used for the PEA reflect a long term, real basis. These are included in Table 7 alongside 3
year historic prices, long-term consensus forecast ("
CMF
") prices and current spot prices. CMF prices
have been sourced from SCP resource Finance, a UK based financial institution with extensive
experience in the copper-gold mining sector that analyses data from Bloomberg and FactSet, where the
2029 median price has been selected. The PEA has been prepared on a 100% equity funding basis.
Table 7: Metal Price Assumptions
Commodity
PEA Prices
3yr Historic Price to 15 Oct
2025
Consensus Long Term
Spot Price 15 Oct 2025
Copper
US$ 9,500/t
US$9,250
US$ 10,494/t
US$ 11,067/t
Gold
US$ 2,500/oz
US$ 2,434/oz
US$ 2,752/oz
US$ 4,163/oz
The payabilities applied to the economic model were benchmarked from publicly available data from
various other mines selling copper-gold concentrates through a third-party refiner, inclusive of treatment
charges. The economic analysis assumes all handling and logistics costs associated with shipping of
concentrates to an Asian smelter. The smelter payment terms applied in the PEA are detailed in Table
8.
Table 8: Smelter Terms
Metal
Payability (%)
Treatment Charge
Refining Charge
Cu
96.6
US$ 55/dmt
(4)
con
US$ 0.055/lb Cu
Au
90.0
-
US$ 5/oz Au
Economic Analysis
The cash flow model was based on the assumed production schedule, associated metal grades,
metallurgical recoveries and capital and operating costs outlined in this news release.
Table 9 shows the
projected Planalto PEA highlights.
Table 9: PEA Financial Highlights
Key Unit Costs
Total site costs*
US$/lb Cu payable
2.14
Government royalties
US$/lb Cu payable
0.08
Total adjusted operating costs*
US$/lb Cu payable
2.54
All in sustaining costs*
US$/lb Cu payable
2.70
Capital Costs
Initial
US$ million
546
Sustaining
US$ million
148
Closure cost
US$ million
22
Total capital cost
US$ million
716
Financial Evaluation
Average annual net revenue*
US$ million
259
Average annual free cashflow*
US$ million
91
After-tax NPV @ 8% discount
US$ million
378
After-tax IRR
%
21.0%
Initial capital/NPV ratio*
1:1
1.44
Payback**
Years
3.5
*This is a non-IFRS measure.
See "Non-IFRS Financial Performance Measures" below; **Payback from start of production
Sensitivity Analysis
The sensitivity analysis of the Planalto Project's NPV to the discount rate is presented in Table 10 and
11.
Table 10: Sensitivity Analysis to Discount Rate
Discount Rate
Unit
NPV Sensitivity to Discount Rate
6%
US$ million
495
8%
US$ million
378
10%
US$ million
284
Table 11: Sensitivity Analysis to Metal Price
Copper Price
Gold Price
NPV 8% After Tax Sensitivity
to Metal price (US$M)
IRR After Tax Sensitivity to
Metal price
US$/t
US$/oz
9,250
1
2,434
328
20%
9,500
2
2,500
378
21%
10,500
3
2,750
582
27%
11,000
4
4,000
724
30%
1: 3 year historic average, 2: PEA prices, 3: Consensus long term; 4: Spot Prices on 15 October 2025 - see Table