VANCOUVER, Feb. 9 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna Gold" or the "Company") is pleased to announce the commencement of commercial production at
the Company's Aurizona Gold Mine ("Aurizona"), located in Maranhão
Aurizona Gold Mine Status Highlights:
Gold Production for November and December 2010 and January 2011, totals
Combined 90-day average throughput rate in excess of 3,615 tonnes per
day, including peak daily throughputs as high as 5,000 tonnes
Additional plant modifications to be completed in February and March
2011 will increase productive capacity and provide more consistency in
Full production ramp-up to consistently produce 4,500 tonne-per-day
capacity is on schedule from April 2011
On track to meet 2011 gold production guidance of 55,000 to 60,000
"Over the course of its construction and production ramp-up, Aurizona
has overcome significant challenges and achieved an operational
milestone today with the commencement of commercial production," said
John Blake, President and CEO, of Luna Gold Corp.
"Our operational and exploration teams have demonstrated their skills
and expertise to achieve this production milestone. We will apply these
skills to our next suite of growth projects, which include the
expansion of the Aurizona production capacity, increasing the Aurizona
resource base, advancing the Cachoeira development project and fast
tracking new discoveries in our highly prospective 170,000 ha land
holding in Maranhão State."
Gold is now being routinely produced and sold to customers around the
world. As this successful ramp-up continues, the Company will focus on
cost reduction and the acceleration of cash flows. Guidance on
production and cash operating costs will be provided in the next
Aurizona's feasibility study has a designed processing capacity in year
one of 55,000 ounces of Gold, ramping up to 60,000 ounces of gold per
year for an 11 year mine life.
The Company continues to advance a number of initiatives to further
enhance the economics at Aurizona with the aim to increase production
capacity. To provide for this additional capacity, the Company is
undertaking major drill programs at Aurizona with the aim of increasing
the resource base. There is potential for significant supplemental gold
production from satellite deposits identified in the near mine area.
The Company also holds an additional 170,000 ha of exploration licenses
in the state of Maranhão, where exploration teams have identified
several priority targets which are being advanced to drill stage.
Additionally, the Company is planning to commence a scoping study based
on the recently announced NI 43-101 maiden resource estimate at
Cachoeira, in Para state, Brazil.
About Luna Gold Corp.
Luna Gold is a gold mining and exploration company engaged in the
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
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.
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.
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 certain technical disclosure in this press release.
Further information on the Aurizona Gold Mine can be found in the
technical report entitled "NI 43-101 Technical Report Mineracao
Aurizona S.A. Aurizona Project" and dated September 1, 2010 as filed on
SEDAR at www.sedar.com under Luna's profile.
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
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.
SOURCE Luna Gold Corp.
For further information:
For further information contact Investor Relations at (604) 689-7317 or toll free at 1-866-689-7317.