VANCOUVER, Dec. 23 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce a maiden National
Instrument ("NI") 43-101 compliant mineral resource estimate at its
100% owned Cachoeira Project in Para State, northern Brazil. The
mineral resource has been prepared by Scott Wilson Roscoe Postle
Associates Inc. (Scott Wilson RPA) according to the guidelines of the
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM").
Cachoeira has an Indicated mineral resource of 12.5 million tonnes at
1.11 grams/tonne Au, or 446,000 ounces gold, and an Inferred resource
of 5.4 million tonnes at 1.27 grams/tonne Au, or 221,300 ounces gold.
Mineral Resource Estimate
The Cachoeira mineral resource estimate comprises drilling results from
the Tucano, Arara and Coruja deposits and is shown in Table 1. A plan
map showing the location of the deposits and preliminary open pit
shells has been uploaded to the Luna Gold website at www.lunagold.com or to view directly click here. A technical report will be filed on SEDAR in due course.
Table 1 Mineral Resources - December 22, 2010
Luna Gold Corp. - Cachoeira Project
CIM definition standards were followed for Mineral Resources.
The Qualified Person for this Mineral Resource estimate is Patti
Mineral Resources are estimated at a pit discard cut-off grade of 0.3
g/t Au. Preliminary open pit shells were used to constrain the
The Tucano database consists of 86 diamond holes (DH), 78 reverse
circulation (RC) holes, 6 combined RC/DH holes and 221 auger drill
holes in addition to 70 surface channels and 32 underground channels.
The Arara database consists of 64 diamond drill holes, 101 auger drill
holes, and 8 surface channels.
The Coruja database consists of 33 diamond drill holes, 14 RC holes, 2
combined RC/DH holes, 166 auger drill holes, and 86 surface channels.
High assays were capped at 30 g/t Au at Tucano and 10 g/t Au at Arara
Tucano, Arara and Coruja block dimensions: 10 m E x 10 m N x 5 m high.
Mineral Resources are estimated using a gold price of US$1,238 per
Bulk densities used were 2.70 t/m3 to 2.75 t/m3 in rock, 2.17 t/m3 to 2.40 t/m3 in the transition zone, and 1.72 t/m3 to 1.89 t/m3 in saprolite.
Numbers may not add due to rounding.
Mineral Resource estimates may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing
or other factors.
Luna's President & CEO, John Blake, comments, "This initial resource
estimate is a significant milestone at Cachoeira, with ample scope to
increase the resource Cachoeira is now a new stand-alone project, a
solid platform in the development of Cachoeira into mine production.
This resource estimate provides Luna Gold with additional value at low
Whittle pit shells were used to constrain all mineral resources and
significant mineralization extends beyond the pit constraints,
particularly at Arara where 50% of mineralization lies outside the
Whittle pit shell, and Coruja where 68% of mineralization lies outside
the Whittle pit shell. At Tucano 17% of mineralization is located
outside of the Whittle pit shell. While this mineralization cannot
currently be considered a resource it demonstrates that strong
potential exists to increase the Cachoeira mineral resources."
The Scott Wilson RPA Qualified Person under NI 43-101 is Patti
Nakai-Lajoie, P.Geo., who has reviewed and approved this news release
as it applies to the mineral resource estimate.
Luna's VP Exploration, Titus Haggan, states, "The Cachoeira exploration
team has made excellent progress in 2010 and we are finalizing our 2011
work programs and budgets with the objective of aggressively advancing
Cachoeira. Field teams are currently auger drilling newly defined
regional gold targets within the Cachoeira Shear Zone and assay results
will be reported as they are received. Socio-economic diagnostic
studies have been commissioned and we will be assigning key personnel
to the project in early 2011."
Geology & Mineralization
Cachoeira is an advanced stage gold project in northeast Pará state,
Brazil. Orogenic gold mineralization occurs within a 5 km long north
trending shear zone. Three deposits, Tucano, Coruja and Arara, have
been defined to date. The Tucano deposit is located within the
Cachoeira town urban limit.
In October 2007, as amended in December 2008, January 2010 and August
2010, the Company entered into an agreement to acquire a 100% interest
in the Cachoeira project from a consortium (the "Vendors"). To acquire
the interest, the Company paid the Vendors 0.5 million BRL (US$0.3
million), committed to incur exploration and eventual project
feasibility and development expenditures of approximately 9.5 million
BRL (US$5.5 million) by December 2011, and to provide a royalty of 4%
of net profits interest. The Company has the right to buy-back 2% of
the net profits interest for a payment of US$4.0 million any time prior
to the first anniversary of commercial gold production. Commercial
production must commence by October 2012 or the Company will pay a fine
of $0.2 million each year on a monthly pro rata basis, in lieu of the
operating royalty until commercial production is achieved.
At September 30, 2010, Luna had incurred accumulated exploration
expenditures of 6.24 million BRL as part of the Company's agreement
with the vendors to incur exploration expenditures of 9.5 million BRL.
The Company has presented a NI 43-101 compliant resource estimate to
the Vendors and satisfied this contractual obligation.
Luna Gold Corp. is pleased to announce that further to its release of
December 14, 2010, it has uploaded 3 cross sections from its ongoing
resource drill program at the Piaba gold deposit, Aurizona to its
website at www.lunagold.com or to view cross sections directly click below:
Luna's President & CEO, John Blake, commented, "The sections now
displayed on our website relate to the recent results of 7 drill holes
at the Piaba deposit. The holes were drilled on sections 000, 200W and
400W and demonstrate continuous mineralisation along 400m strike length
to a depth of -300m RL. Drilling continues at Piaba to define further
mineralization within the 3 km long orogenic gold deposit and we are
confident that we can deliver a significant increase in resources. To
provide context, the current Aurizona 2010 FS pit at its deepest point
is RL - 136m. Assay results are expected in late January from trenching
and auger drilling programs ongoing at the exploration targets at
Aurizona which are located in close proximity to the Aurizona Plant
currently in commissioning."
About Luna Gold Corp
Luna is a gold mining and exploration company engaged in the exploration
and development of gold deposits and advanced stage gold exploration
projects in Brazil. The Company is currently commissioning its Aurizona
gold mine in Maranhão, 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.
Exploration at the Cachoeira Project was initiated in 1985 by Companhia
de Mineração e Participações (CMP) and Mineração CCO Ltda (CCO) and
continued through the 1990's with work by Brazilian Goldfields Ltd
(BGZ) and Goldfields Ltd (Goldfields). Companhia Vale do Rio Doce
(Vale) conducted an exploration program at Cachoeira in 2003. Luna
acquired the property in 2007 and commenced exploration soon after. CMP
drill core assays were conducted at the Geosol and Delab/MNA
Laboratories, Belo Horizonte and the LBPM/Nomos Laboratory in Rio de
Janeiro. CCO drill core assays were conducted at Geoser Laboratory,
Belo Horizonte. The BGZ and Goldfields drill core assays were conducted
at Bondar Clegg Laboratories, Vanvouver. The Vale core assays were
conducted at Geosol Laboratories, Belo Horizonte. Luna used ALS Chemex
Laboratories in Belo Horizonte, Brazil and Lima, Peru for drill core
assays. Luna's QA/QC program consists of blanks, Certified Reference
Materials (CRM) and quarter core duplicates.
Patti Nakai-Lajoie, P.Geo., of Scott Wilson RPA is a Qualified Person as
defined under National Instrument 43-101. Ms Nakai-Lajoie was
responsible for the preparation of the above resource estimate on the
Cachoeira Project and is independent of the Company in accordance with
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.
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.
This release contains certain forward looking statements.
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
SOURCE LUNA GOLD CORP.
For further information: For further information:
Investor Relations at (604) 689-7317 or toll free at 1-866-689-7317.