Luna Gold increases measured and indicated resources at the Piaba gold deposit by 21% to 844,000 oz gold



    VANCOUVER, Jan. 15 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the
"Company") is pleased to announce an updated resource for its wholly owned
Piaba gold project in Maranhão State, Brazil. The resource has been updated by
SRK Consulting (U.S.) Inc. according to Canadian National Instrument 43-101
guidelines. Based on limited new in-fill drilling, Luna has increased the
measured ("M") and indicated ("I") resource by 21% from the May 2008 resource
estimate used in its recent Feasibility Study. Piaba now has an M&I resource
of 19.6 million tonnes at 1.34 grams/tonne Au, or 844,000 ounces gold, and an
inferred resource of 9.1 million tonnes at 1.19 grams/tonne Au or 347,000
ounces gold. Total gold resources at Aurizona (Piaba and Tatajuba deposits)
are currently estimated at 909,000 oz of M&I and 403,000 oz of inferred.

    
    Table 1. - Aurizona 43-101 Resource Estimate (January, 2009)

                Measured           Indicated        M&I        Inferred
           ------------------------------------------------------------------
           tonnes  Au         tonnes  Au                  tonnes  Au
            (Kt)  (g/t)  oz    (Kt)  (g/t)   oz     oz     (Kt) (g/t)   oz
           ------------------------------------------------------------------
    Piaba   1,616 1.41 73,000 17,999 1.33 771,000 844,000  9,099 1.19 347,000
    Tatajuba                   1,554 1.30  65,000  65,000  1,859 0.94  56,000
           ------------------------------------------------------------------
    total   1,616 1.41 73,000 19,553 1.33 836,000 909,000 10,958 1.14 403,000

           1) 20g/t cap at Piaba
           2) block dimensions are 10m x 10m in the xy plane and 3m on the
              z axis
           3) Piaba database consists of 172 diamond drill holes and
              63 RC holes
           4) Mineral resources that are not mineral reserves do not have a
              demonstrated economic viability
           5) the independent QP responsible for the mineral resource
              estimate is Leah Mach, CPG, of SRK Consulting, Denver
    

    Luna's CEO, Jim Bahan, comments, "The conversion rate from inferred
resources has been excellent. The estimated ounces available from fresh rock
have increased by over 50%. This better grade resource is free milling and
presents an opportunity, through careful planning, to blend a mill feed that
will lower average costs per ounce, as well as increase the annual ounces
produced, above forecast in the Piaba feasibility study. The May 2008 M&I
resources were the basis of that study, while inferred resources were
considered as waste in the pit design. A new mine design and production plan
will be developed from the updated block model. The new model will act as a
guide to future drilling with the intent of further increasing the M&I
resource, as well as the overall resource."
    Luna's Exploration Manager, Titus Haggan states "The updated Piaba
resource estimate was based on only 20 new drill holes totaling 3672 m and
three resurveyed historic drill holes totaling 234 m. The objective of the
drill program was to upgrade inferred resource blocks to the M&I categories
thereby increasing the quality and confidence of the resource and improving
project economics, as per the Feasibility Study, which treated inferred
resources as waste. The drill program intersected significant intervals of
gold mineralization and upgraded approximately 37 oz Au per metre drilled to
the M&I categories. These exploration results reflect the excellent strike and
depth continuity of the Piaba deposit."

    Methodology of the Resource Estimate

    The resource estimation was conducted according to the procedures used in
the May 2008 resource. Gold grades were estimated with the inverse distance
squared algorithm and were constrained by a mineralized envelope defined at
0.3 grams/tonne Au. Waste blocks within the envelope were defined by indicator
kriging. Measured and indicated resources required a minimum of 4 composites
from at least two drillholes. All composites for measured blocks were within
15m of the block and all composites for indicated blocks were within 60m of
the block. Inferred resources require a minimum of 3 composites with a minimum
of 1 drillhole and a search distance of 120m from the block centroid.

    Geology & Mineralization

    The Piaba deposit is classified as an Orogenic Gold Deposit and consists
of a near-vertical mineralized envelope of gold mineralization with an average
width of 40 m within a major ENE-trending fault zone in the Archean aged
Aurizona Greenstone Belt. The Piaba deposit is hosted in a northern hanging
wall volcanic sequence with porphyritic intrusives. The deposit footwall is
formed by a distinctive graphitic volcano-sedimentary sequence which delimits
the deposit to the south. The volcanic sequence is andesitic to basaltic in
composition. Primary gold mineralization shows a close spatial association
with graphitized andesites and diorites and strong quartz veining with an
associated chlorite-carbonate overprint. Piaba is a bulk tonnage, low-grade
gold deposit amenable to open pit mining methods situated in a tropical
environment similar to other gold deposits in this part of South America
including the Las Cristinas and El Callao gold deposits in Venezuela, the Omai
Gold Mine in Guyana, and the Gross Rosebel gold deposit in Suriname.

    About Luna Gold Corp

    Luna is a mining exploration company focused on the acquisition,
exploration, and development of gold resources and advanced stage gold
exploration projects in northeastern Brazil.

    
    On behalf of the Board of Directors

    LUNA GOLD CORP.

    Jim Bahan - CEO

    Website: www.lunagold.com

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this press release.
    

    Regulatory Footnotes

    Exploration on the Aurizona Project was initiated in 1978 by Brascan
Recursos Naturais S.A. (Brascan) and continued through the 1990's with work by
Brascan, Unamgen Mineração e Metalurgia S.A (Unamgen) an exploration
subsidiary of Gencor Ltd and Eldorado Gold Corp (Eldorado). Luna acquired the
property in 2007 and commenced exploration soon after. Historic drill core (HQ
(63.5mm) diameter) analyses by previous operators Unamgem and Eldorado were
conducted at Nomos Laboratory in Rio de Janeiro and Bondar Clegg Laboratory in
Luziânia, Goias respectively. Unamgen and Eldorado conducted laboratory QA/QC
programs and retained all original assay certificates. Luna used ALS Chemex
Laboratories in Belo Horizonte, Brazil and Lima, Peru for the new drilling.
Luna's QA/QC program consists of blanks, Certified Reference Materials (CRM)
and quarter core duplicates. The updated Piaba resource estimate contains
drill data produced up to 18/07/2008.
    Leah Mach, CPG, of SRK Consulting is a Qualified Person as defined under
National Instrument 43-101. Ms Mach is responsible for the resource estimate
on the Aurizona Project.
    Titus Haggan Ph.D., EurGeol Certified Professional Geologist No. 746,
Luna's Brazil Exploration Manager is the Qualified Person as defined under
National Instrument 43-101 responsible for the scientific and technical work
on the exploration program and has reviewed the 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.

    Forward-Looking Statements:

    Statements in this release that are 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, fluctuating metal
prices, the possibility of project cost overruns or unanticipated costs and
expenses, uncertainties relating to the availability and costs of financing
needed in the future. 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.




For further information:

For further information: contact Investor Relations at (604) 689-7317 or
toll free at 1-866-689-7317

Organization Profile

LUNA GOLD CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890