Luna Gold Corp.
TSX VENTURE : LGC
OTCQX : LGCUF
LMA : LGC

Luna Gold Corp.

August 13, 2012 08:58 ET

Luna Gold Corp. Drills 13.00 Metres @ 4.89 g/t Au Including 1.50 Metres @ 25.10 g/t Au at Piaba, Aurizona and Extends Mineralization to Below 600 Metres Vertical Depth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2012) - Luna Gold Corp. (TSX VENTURE:LGC)(LMA:LGC)(OTCQX:LGCUF) ("Luna Gold" or the "Company") is pleased to announce positive assay results from the initial deep drill program at the Piaba gold deposit, Aurizona. The program was conducted to extend the depth of the Piaba mineralized structure beneath the limit of the 2011 resource estimate and to identify high-grade gold targets at depth in the system. Program objectives have been met and an updated drill plan map and three dimensional Corebox model showing the drill hole locations in the deposit have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below.

Significant intercepts:

  • 26.00 metres @ 1.94 g/t Au including 2.00 metres @ 5.74 g/t Au and 2.00 meters @ 6.09 g/t Au in BRAZD438 (Section 0400E)
  • 13.00 metres @ 4.89 g/t Au including 1.50 meters @ 25.10 g/t Au and 0.50 meters @ 10.45 g/t Au in BRAZD436 (Section 0100W)

Luna Gold's President & CEO, John Blake, comments, "The initial deep drill program has produced very encouraging results extending the Piaba orebody to depths of over 600 metres vertical depth. The Piaba remains open along a 3.3 kilometre strike and at depth. All holes intersected down-dip extensions to the main deposit. The results from these six widely spaced exploration holes consolidate Piaba as a major mineralizing system. Several holes intersected high-grade mineralization confirming our deposit model and future programs will focus on vectoring towards higher grade potential underground targets. The results further demonstrate the major resource expansion potential of Aurizona which currently contains Measured and Indicated gold resources totaling 78.0 Mt at 1.26 g/t Au or 3.17 million ounces gold and Inferred gold resources totaling 15.2 Mt at 1.47 g/t Au or 0.72 million ounces gold."

Today's assay results are for six drill holes totaling 3,950 metres drilled on six sections covering a three kilometre strike length of the Piaba deposit. Drill hole spacing ranges from 300 metres to 900 metres along strike. All holes intersected the down-dip extension of the Piaba orebody with strong hydrothermal alteration characterized by graphite, silica, and sulfide though the mineralized zone. Piaba is a large and deep seated orogenic gold deposit containing high-grade cross-cutting structures hosted within a major shear zone. Significant mineralized intercepts from holes drilled across the deposit are tabulated below.

SECTION HOLE ID AZI DIP START DEPTH (M) END
DEPTH
(M)
FROM
(M)
TO
(M)
INT
(M)
AU (G/T)
UNCAPPED
1100E BRAZD439 168 -70 600.40 No Intercepts greater than 1.00 g/t Au
0400E BRAZD438 168 -77 0.00 640.73 558.00 584.00 26.00 1.94
Including 561.00 563.00 2.00 5.74
And 570.00 572.00 2.00 6.09
0100W BRAZD436 168 -70 0.00 682.90 564.00 576.00 12.00 1.12
594.00 630.00 36.00 1.40
Including 606.00 607.00 1.00 7.33
642.00 654.00 12.00 2.09
Including 643.00 646.00 3.00 4.98
658.00 671.00 13.00 4.89
Including 659.00 660.50 1.50 25.10
And 670.50 671.00 0.50 10.45
0700W BRAZD435 168 -70 0.00 776.54 602.00 603.00 1.00 4.11
665.50 669.00 3.50 1.55
1000W BRAZD434 168 -70 0.00 594.46 436.00 452.00 16.00 1.88
Including 443.00 444.00 1.00 6.22
1900W BRAZD437 168 -75 0.00 655.16 528.00 534.00 6.00 1.02
554.00 559.00 5.00 2.13
Including 554.00 556.00 2.00 3.81

Table 1. Mineralized drill intercepts from the initial Aurizona deep drill program ordered from east to west. Intervals are calculated as composites using a 0.30 gram/tonne Au cut-off and maximum 2 metre internal waste. True widths to be established. Intervals lower than 1.00 g/t Au are not shown.

To view Figure 1, please visit the following link: http://www.marketwire.com/library/20120812-luna_800.jpg.

To view Piaba Drill Plan Map, please visit the following link: www.lunagold.com/en/investormediarelations/resources/PiabaDrillPlanMap1.pdf.

To view Piaba Section 1100E, please visit the following link: www.lunagold.com/en/investormediarelations/resources/PiabaSection1100E1.png.

To view Piaba Section 0400E, please visit the following link: www.lunagold.com/en/investormediarelations/resources/PiabaSection0400E.png.

To view Piaba Section 0100W, please visit the following link: www.lunagold.com/en/investormediarelations/resources/PiabaSection0100W.png.

To view Piaba Section 0700W, please visit the following link: www.lunagold.com/en/investormediarelations/resources/PiabaSection0700W.png.

To view Piaba Section 1000W, please visit the following link: www.lunagold.com/en/investormediarelations/resources/PiabaSection1000W.png.

To view Piaba Section 1900W, please visit the following link: www.lunagold.com/en/investormediarelations/resources/PiabaSection1900W.png.

About Luna Gold Corp.

Luna is a gold production and exploration company engaged in the operation, exploration and development of gold deposits and advanced stage gold exploration projects in Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake, President and CEO

Regulatory Footnotes

Luna operates a rigorous QA/QC protocol on all aspects of sampling and analytical procedure. Drill core is checked, logged, marked for sampling and sawn in half. One half of the HQ diameter core is maintained for future reference and one half of the core is sent for analysis. For the six drill holes contained in this release core diameter was reduced to NQ below 400 m core depth. Samples are collected at approximately 2 metre intervals, which is reduced to 1 metre intervals or less when a mineralized zone is encountered. All core and samples are stored in secure locked areas under Luna supervision. Samples are transported from the Aurizona project to the ALS Chemex sample preparation facility in Belo Horizonte, Minas Gerais and Goiania, Goias accompanied by Luna personnel. Samples are assayed at ALS Chemex Labs in Lima, Peru and Perth, Australia using a 50 gram fire assay with AAS finish. Some samples are transported from the Aurizona project to the ACME Labs sample preparation facility in Cuiaba, Mato Grosso and Goiania, Goias accompanied by Luna personnel. Samples are assayed at ACME Labs in Santiago, Chile using a 50 gram fire assay with AAS finish. Both ACME Labs and ALS Chemex are international laboratories and are independent of Luna. Each sample batch contains 10% of randomly inserted internal control samples consisting of certified analytical standards, blanks (barren rock) and duplicates. These QA/QC procedures provide several measures of data quality and assure the Company that the assay data is representative of the original sample. Additional technical information about the Aurizona Project is available in our technical report dated January 23, 2012, filed on SEDAR.

Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's Vice President Exploration is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has supervised the preparation of and reviewed the technical disclosure in this press release. Non-qualified persons currently work on Luna's exploration programs under the guidance of Titus Haggan. Dr. Haggan takes responsibility for work, information and advice generated by non-Qualified persons and has taken the steps required to ensure that the work, information and advice is sound.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the United States Securities Act of 1933 and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements

This release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to future gold production and/or the results of analysis on gold production. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward- looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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