VANCOUVER, March 22 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce that it has renegotiated the terms of agreement relating to its Cachoeira project which was originally announced on October 9, 2007 and amended on December 12, 2008. The Company has also commenced work programs required to finalize a NI 43-101 compliant resource estimate and technical report on the Tucano deposit. Further details relating to the Cachoeira project are available on the Luna web site. The principal earn-in terms have been amended as follows:
- Timeframe for complying with the remaining exploration expenditure
requirement has been extended by 15 months to December 2011
- Exploration expenditure definition has been expanded to include any
eventual project feasibility and development costs
Luna's President & CEO, Jim Bahan, comments, "We are very pleased to be restarting technical work at Cachoeira which was put on care and maintenance while we focused on the development of the Aurizona Project. We made excellent progress at Cachoeira in 2007 and 2008 and are optimistic about the resource potential of the Tucano zone of the project area. Cachoeira is located approximately 100km from Aurizona."
Upon Luna funding the remaining balance of the required expenditures at Cachoeira, of approximately R$5M, it will acquire a 100% interest in the property through its wholly owned local subsidiary, Luna Gold Mineração Ltda, subject to a 4.0% net profits interest of which Luna has the right to buy back up to 2.0% by paying the vendors (a consortium comprised of a wholly-owned subsidiary of Kinross Gold Corporation and two private Brazilian companies) a total of US$4M. The subsidiary of Kinross Gold Corporation has the right to back-in for a 51% interest by refunding Luna's exploration expenditure should a NI 43-101 compliant resource estimate, containing mineable reserves exceeding 2 million ounces of gold, be completed by October, 2010.
In the event that the program date of October 2012 for commercial gold production is not achieved, Luna will pay the vendors a total of US$200,000 per year on a monthly pro rata basis, in lieu of the net profits interest, until such time as commercial gold production is achieved.
Luna's Exploration Manager, Titus Haggan states, "This will be the first NI 43-101 resource estimate and technical report at Cachoeira. There is a significant amount of historic and Luna drilling and additional drilling is not required at this time. The drill database will be complemented by a large surface and underground sampling program to commence immediately. Core relogging, structural field mapping and geotechnical data acquisition programs have already commenced. Surface and underground surveying are also in progress. Quotes have been received from several mineral consulting firms and the resource and technical report is expected be completed by the end of the third quarter of 2010."
About Luna Gold Corp
Luna is a gold mining and mineral exploration company engaged in the acquisition, exploration, and development of gold deposits and advanced stage gold exploration projects in Brazil. The Company is currently commissioning its Aurizona gold project in Maranhão, Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
Jim Bahan - 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.
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.
All statements other than statements of historical fact included in this news release are forward-looking information that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and expectations of the Company in relation to the completion of a technical report and resource estimate for its Cachoeira gold project. These statements are identified through the words "plan" and "expected" (or derivations thereof) in this news release. Such forward-looking information represents management's best judgment based on information currently available. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks detailed from time to time in the filings made by the Company 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 exploration and operations, fluctuating metal prices, 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, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements or information whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.
SOURCE LUNA GOLD CORP.
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