Luna Gold Corp.
TSX VENTURE : LGC
BVL : LGC

Luna Gold Corp.

June 28, 2011 08:30 ET

Luna Gold Drills 44.00 Meters @ 4.94 g/t Au Including 5.00 Meters @ 30.51 g/t Au at Aurizona and Extends Drill Program by 20,000 Meters

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 28, 2011) - Luna Gold Corp. (TSX VENTURE:LGC)(BVL:LGC) ("Luna Gold" or the "Company") is pleased to announce additional positive assay results from eight new holes from its ongoing resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map and cross sections have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below. Significant intercepts are highlighted below:

  • 32.00 meters @ 2.78 g/t Au including 1.00 meter @ 6.62 g/t Au and 6.50 meters @ 7.10 g/t Au in BRAZD304
  • 44.00 meters @ 4.94 g/t Au including 0.50 meters @ 21.40 g/t Au, 0.50 meters @ 14.35 g/t Au and 5.00 meters @ 30.51 g/t Au in BRAZD306
  • 17.00 meters @ 5.18 g/t Au including 3.50 meters @ 12.71 g/t Au and 2.00 meters @ 14.32 g/t Au in BRAZD314

Direct Links:

Updated Drill Plan Map: http://www.lunagold.com/i/pdf/Piaba_DP_230611.pdf

Drill Sections:

500W: http://www.lunagold.com/i/pdf/Piaba_DS_0500W.pdf

700W: http://www.lunagold.com/i/pdf/Piaba_DS_0700W.pdf

800W: http://www.lunagold.com/i/pdf/Piaba_DS_0800W.pdf

1000W: http://www.lunagold.com/i/pdf/Piaba_DS_1000W.pdf

1200W: http://www.lunagold.com/i/pdf/Piaba_DS_1200W.pdf

1400W: http://www.lunagold.com/i/pdf/Piaba_DS_1400W.pdf

Luna Gold's President & CEO, John Blake, comments, "Drilling at Aurizona continues to deliver outstanding results and these holes follow on the excellent drill intercepts received since we commenced the resource drill program in August 2010. Luna is on track to deliver a new resource upgrade in Q4 2011. The results received to date underpin the major potential to expand the current Proven & Probable Reserves of 17.2 million tonnes at 1.36 g/t Au or 731,000 combined ounces of gold in the Piaba deposit, which will ultimately extend the initial 12 year mine life and provide the foundation to increase average annual gold production."

Of the current 20,000 meter drill program, which commenced in August 2010, assays from 39 holes totaling 10,668 meters have been received and samples from 10 additional holes are currently at the assay lab. Today's assay results are for eight drill holes totaling 2236 meters drilled on six sections covering a strike extent of 900 meters in the west central portion of the Piaba deposit. In seven holes, core was not recovered from surface. All drill holes intersected considerable zones of gold mineralization and the deposit remains open at depth on all sections. Significant mineralized intercepts are tabulated below.

SECTIONHOLE IDAZIDIPSTART DEPTH (M)END DEPTH (M)FROM (M)TO (M)INT (M)AU (G/T) UNCAPPED
0500WBRAZD309168-600.00320.90262.00270.008.003.60
Including265.50266.501.0020.24
281.50283.001.5017.14
290.00297.007.001.30
300.00309.009.001.27
0700WBRAZD308168-64100.00320.70222.00230.008.001.39
234.00253.0019.001.29
Including247.50248.000.506.89
259.00267.008.001.68
Including264.00264.500.5018.35
270.00275.005.001.51
0800WBRAZD306168-69100.00367.30235.00250.0015.001.04
260.00304.0044.004.94
Including279.00279.500.5021.40
And283.00283.500.5014.35
And293.00298.005.0030.51
BRAZD312168-6250.00276.20198.00216.0018.001.39
Including201.00202.001.005.81
And212.00214.002.004.08
219.00237.0018.001.56
1000WBRAZD310168-63100.00319.65206.00208.002.006.36
217.00238.0021.001.26
1200WBRAZD304168-65100.00224.35125.00157.0032.002.78
Including126.00127.001.006.62
And141.50148.006.507.10
BRAZD314168-50100.00179.55116.00133.0017.005.18
Including120.00123.503.5012.71
And130.00132.002.0014.32
1400WBRAZD307168-6980.00226.85156.00163.007.001.24
166.00177.0011.001.15
Table 1. Mineralized drill intercepts from the ongoing Aurizona resource drill program. Intervals are calculated as composites using a 0.30 gram/tonne Au cut-off and maximum 2 meter internal waste. True widths to be established.

Luna Gold's VP Exploration, Titus Haggan, states, "Drilling is nearing completion in the central zone and the diamond rigs are now split into two groups moving progressively east and west to extend the limits of mineralization (see updated deposit map: http://www.lunagold.com/i/pdf/Piaba_DP_230611.pdf). Piaba is a long, linear 'orogenic gold deposit' hosted within a major shear zone. Minimal drilling has been conducted to test for strike extensions and this will be our focus going forward. Drilling to date has intersected mineralization at depths of –350 meters RL and the deposit remains open on all sections. The consistent delivery of high grade intercepts well beneath the base of the current optimized pit show us that this pit will be deepened when the results of the current drill program are incorporated into the new resource estimate. Based on the success of the current program and the potential to increase resources at the Piaba deposit we have extended the current drill program by 20,000 meters. This will maximize drill production as we move towards the Q4 2011 resource update."

Other Matters

Further to Luna Gold's press release dated April 13, 2011, the Company is pleased to report that as of May 20, 2011, the Company's Common Shares have commenced trading on the Bolsa de Valores de Lima ("BVL") under the symbol LGC.

About Luna Gold Corp.

Luna Gold is actively engaged in the operation, exploration, acquisition and development of gold opportunities in Brazil. The company currently has a gold mining operation, Aurizona Gold Mine in Maranhão, Brazil, a gold development project, the Cachoeira project in Para, Brazil and the Company is exploring in a large strategically placed greenfields land position in Maranhão, 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 HTW (71 mm diameter) core is maintained for future reference and one half of the core is sent for analysis. Samples are collected at approximately 2 meter intervals, which is reduced to 1 meter interval or less when a mineralized zone is encountered. All core and samples are stored in secure locked areas. Samples are transported from the Aurizona project to the ALS Chemex sample preparation facility in Belo Horizonte, Minas Gerais accompanied by Luna personnel. Samples are assayed at ALS Chemex Labs in Lima, Peru using a 50 gram fire assay with AAS finish. 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 September 1, 2010, 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 the exploration program for the Company's exploration programs and any planned resource upgrades. 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. Certain of the statements made herein by Luna Gold Corp. are forward-looking and subject to various risks and uncertainties, both known and unknown, many of which are beyond the ability of Luna Gold Corp. to control or predict. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Forward-looking information is subject to known and unknown risks and uncertainties that may cause Luna Gold Corp.'s actual results, performance or achievements may be materially different from those expressed or implied by such forward-looking information, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to 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, mine development and production costs, the projected life of the Company's mines, future production levels, 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.

Contact Information

  • Luna Gold Corp.
    Investor Relations
    (604) 558 0560
    (604) 558 0561 (FAX)
    www.lunagold.com