Lara files NI 43-101 tech report for Planalto project

Executive Summary

• Lara Exploration Ltd. has filed an independent NI 43-101 Preliminary Economic Assessment (PEA) for its 100%-owned Planalto copper-gold project in the Carajas mining district, Brazil.
• The PEA outlines an 18-year mine life with estimated production of 560,000 tonnes of copper and 111,000 ounces of gold, yielding an after-tax Net Present Value (NPV) of $378 million and an Internal Rate of Return (IRR) of 21%.
• The project features low strip ratios, strong infrastructure access, and potential for cost savings through direct power grid connection and metallurgical optimization, though it remains at the scoping stage pending further drilling and a Prefeasibility Study (PFS).

Key Details

• Production Profile:
  • Life of Mine (LoM): 560,000 tonnes (1.2 billion pounds) of copper and 111,000 ounces of gold over 18 years.
  • First 6 Years: Average production of 36,000 tonnes (79 million pounds) of copper and 7,200 ounces of gold per year.
  • Processing: 8 million tonnes per annum (Mtpa) run of mine (RoM) feed via crush-grind-flotation circuit.
  • Recovery Rates: 91% copper and 51% gold.
  • Product: Clean chalcopyrite concentrate grading 28% copper.
• Economic Metrics:
  • After-tax NPV (8% discount rate): $378 million (US).
  • After-tax IRR: 21%.
  • Payback Period: 3.5 years post-tax from start of production.
  • Initial Capital Expenditures (CapEx): $546 million (US).
  • Sustaining Capital (including closure): $170 million (US).
  • Average LoM All-In Sustaining Costs (AISC): $5,920 (US)/t Cu payable.
• Mining & Infrastructure:
  • Mining Method: Open pit with a LoM strip ratio of 2:1 (1.36:1 for years 1-6).
  • Location: Private farmland in the Carajas mining district, Para state, Brazil.
  • Access: 4-kilometer road from state highway; high-tension power lines alongside.
  • Infrastructure: Proximity to two major mining towns, skilled labor, and service providers.
• Cost & Price Assumptions:
  • Copper Price: $9,500 (US)/t.
  • Gold Price: $2,500 (US)/oz.
  • Power Cost: Estimated at 6 US cents/kWh (138 kV utility user); potential to reduce to ~4 US cents/kWh via direct 230 kV connection.
  • Power constitutes 39% of plant operational costs ($7.66 US/t processed).
• Opportunities for Value Creation:
  • Tailings: Potential to reduce TSF footprint using paste thickened/central thickened discharge technologies.
  • Metallurgy: Potential for improved recoveries and reagent optimization via further pilot plant testwork.
  • Resource Growth: Potential to expand the 2024 Mineral Resource Estimate (MRE) by drilling to depth and extending strike in the Silica Cap deposit into the Atlantica licence.
  • Oxide Exploration: Oxide material excluded from PEA due to marginal recoveries; further testwork planned.
  • Power: Direct connection to 230 kV transmission line could lower CapEx and operational costs.
  • Metal Prices: Current spot/consensus prices for copper and gold are higher than PEA assumptions, suggesting potential for improved economics.
• Risks & Next Steps:
  • PEA includes inferred resources, which are speculative and not converted to reserves.
  • Further drilling is required to convert inferred resources to measured/indicated.
  • A Prefeasibility Study (PFS) is required to achieve mineral reserve status.
  • SUDAM tax benefits assumed in PEA have not yet been applied for by the company.
• Qualified Persons:
  • Report authored by SRK Consulting (UK) Ltd. and SRK Consultores do Brasil Ltda.
  • Key Qualified Persons include Martin Pittuck (Geology), Leonardo de Freitas Leite (Mining Engineering), Liam MacNamara (Mineral Processing), Jamie Spiers (Tailings), David Carruth (Water), Colin Chapman (Infrastructure), and Thiago Toussaint (Geoenvironmental).