Lara Reports Results of Preliminary Economic Assessment for its Planalto Copper-Gold Project

Core Insights - Lara Exploration Ltd. announced the results of an independent Preliminary Economic Assessment (PEA) for its Planalto Copper-Gold Project, indicating strong technical and economic viability for the project [1][4][5] Project Overview - The Planalto Project is located in the Carajás mining district, Pará State, Brazil, and is 100% owned by the company [1][5] - The PEA estimates production of 560,000 tonnes (1.2 billion pounds) of copper and 111,000 ounces of gold over an 18-year mine life [5][6] - The project features a conventional open-pit mining approach with a life of mine (LoM) strip ratio of 2:1 [5][7] Economic Metrics - The after-tax net present value (NPV) is estimated at US$378 million at an 8% discount rate, with an internal rate of return (IRR) of 21% and a payback period of 3.5 years [5][48] - Initial capital expenditures are projected at US$546 million, with sustaining capital costs of US$170 million [5][48] - Average all-in sustaining costs (AISC) are estimated at US$5,920 per tonne of payable copper [5][48] Production and Processing - The processing plant is designed to operate at an annual rate of 8 million tonnes of run-of-mine (RoM) feed, achieving recoveries of 91% for copper and 51% for gold [5][22] - The project will produce a clean chalcopyrite concentrate grading 28% copper for international smelting [5][7] Infrastructure and Location - The project benefits from excellent local infrastructure, including access to high-tension power lines and proximity to major mining towns [5][25] - The Brazilian grid is predominantly powered by renewable energy sources, which will help reduce the project's carbon footprint [5][25] Regulatory and Environmental Considerations - The company plans to apply for various licenses, including a Preliminary License in Q3 2026 and an Installation License in Q4 2028, with operations expected to start in 2030 [28][29] - An environmental impact assessment (EIA) is underway, expected to be completed by Q2 2026 [29][30] Mineral Resource Estimate - The PEA is based on a Mineral Resource Estimate (MRE) dated July 3, 2024, which includes both Indicated and Inferred resources [9][56] - Approximately 76% of the total mineral resources are classified as Inferred, which are considered too speculative to be categorized as Mineral Reserves [9][56] Future Opportunities - The company sees potential for further exploration and resource growth within the Planalto license area, particularly in the newly acquired Atlantica Exploration Licence [6][58] - There are opportunities to optimize processing and reduce environmental impacts through advanced tailings management techniques [54][58]