Luna Gold Corp.
TSX VENTURE : LGC

Luna Gold Corp.

April 18, 2011 08:30 ET

Luna Gold Drills 55.00 Meters @ 4.15 Grams/Tonne Au Including 17.00 Meters @ 7.80 Grams/Tonne Au at Aurizona

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 18, 2011) - Luna Gold Corp. (TSX VENTURE:LGC) ("Luna Gold" or the "Company") is pleased to announce positive assay results from seven 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 mineralized intercepts are highlighted below:

  • 55.00 meters @ 4.15 grams/tonne Au including 1.00 meter @ 20.00 grams/tonne Au and 17.00 meters @ 7.80 grams/tonne Au in BRAZD293A
  • 21.00 meters @ 2.50 grams/tonne Au including 8.00 meters @ 5.21 grams/tonne Au in BRAZD297
  • 29.00 meters @ 2.53 grams/tonne Au including 0.50 meters @ 57.00 grams/tonne Au in BRAZD301

Direct Links

1100W: http://www.lunagold.com/i/pdf/Aurizona_DS_1100W.pdf

1200W: http://www.lunagold.com/i/pdf/Aurizona_DS_1200W.pdf

1300W: http://www.lunagold.com/i/pdf/Aurizona_DS_1300W.pdf

Piaba Drill Plan Map: http://www.lunagold.com/i/pdf/Piaba_DPM_2011-04.pdf

Luna Gold's President & CEO, John Blake, comments, "We are again pleased with the level of consistency in our drill results that demonstrate the strike and depth continuity of the ore body. Consistent mineralization along strike and at depth is encouraging for our objective to increase gold ounces in our resource. These excellent results gives a high level of confidence in the resource upgrade planned for Q4 2011."

Luna Gold's VP Exploration, Titus Haggan, states, "These are significant results from the west central sector of the Piaba deposit which has seen relatively little drilling. Our exploration programs continue to unlock the potential of the Aurizona Project which is quickly proving to be a significantly larger mineralizing system than previous drilling demonstrated."

The Company approved a major 2011 exploration budget for the Aurizona and Maranhão Greenfields projects and will continue to aggressively drill the Aurizona deposits, with the goal of expanding our current resource base ahead of a scoping study to increase annual gold production beyond 100,000 ounces per year from end 2012.

Of the current 20,000 meter drill program, which commenced in August 2010, assays from 25 holes totaling 6,613 meters have been received and samples from 14 additional holes are currently at the assay lab. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources.

Today's assay results received were for seven drill holes totaling approximately 1,746 meters drilled on three sections in the west central portion of the Piaba deposit. In six holes, core was not recovered from surface to accelerate drill production and reduce costs. All drill holes intersected 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
1100WBRAZD292168-69100.00293.10160.00163.003.0020.68
173.00175.002.003.13
179.00181.002.003.58
184.00196.0012.000.99
BRAZD300168-60100.00226.35123.00146.0023.001.86
INCLUDING144.00145.001.0025.40
1200WBRAZD293A168-79128.95336.45172.00227.0055.004.15
INCLUDING187.00188.001.0020.00
AND197.00214.0017.007.80
BRAZD298168-7380.00280.65150.00163.0013.000.57
1300WBRAZD295A168-8193.10227.50173.00191.0018.000.85
BRAZD297168-71-217.25105.00126.0021.002.50
INCLUDING110.00118.008.005.21
142.00147.005.001.04
156.00161.005.001.00
BRAZD301168-5050.00164.7597.00126.0029.002.53
INCLUDING113.50114.000.5057.00
118.00122.504.504.46

Table 1. Mineralized drill intercepts from the ongoing Aurizona resource drill program. Intervals are calculated as composites using a 0.30 grams/tonne Au cut-off and maximum 2 meter internal waste. True widths to be established.

About Luna Gold Corp.

Luna Gold is a producing gold company with development and exploration projects. Gold production is from the Aurizona Mine in Maranhão, Brazil, development is the Cachoeira deposit in Para, Brazil and the Company is exploring in a large strategically placed 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 VP 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 Aurizona and Maranhão Greenfields projects and any planned scoping studies. 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) 689-7317 or toll free: 1-866-689-7317
    1-604-688-0094
    www.lunagold.com