Lara Exploration commences production at Celesta copper project in Brazil

TSXV-listed Lara Exploration earlier this week reported that mining and processing have started at its Celesta copper project in Northern Brazil, with first concentrates to be shipped in early August.

The mining programme at Celesta will initially focus on the Osmar target, which has an indicated resource estimate of 2.14 million tonnes with average grades of 4.2% copper and 0.66 parts per million gold.

Lara owns a 2% net smelter returns royalty on the project and a 5% carried (to production) equity interest in the operating company Celesta Mineração S.A. In addition, Ocean Partners UK has provided project finance in exchange for life of mine offtake rights.

Meanwhile, the company yesterday confirmed the sale of its Lara Copper Project for US$5.75 million and a 1.5% NSR royalty to Peruvian tin and gold miner Minsur S.A.

Lara and its partner Global Battery Metals have granted Minsur an exclusive option to acquire a 100% interest in the Project by making staged cash payments based on permitting milestones.

The project comprises mineral rights covering a partly defined copper-molybdenum porphyry deposit, located around 400 km south of Lima on the Southern coast of Peru.