Vancouver, August 10, 2011 - Luna Gold Corp. (TSXV-LGC) (BVL-LGC) ("Luna Gold" or the "Company") announces positive surface exploration results from the Areal target located within Luna Gold's 100% owned prospective Maranhão Greenfields project area. Areal is located 20 km due southwest from the Aurizona mine and is one of several greenfields gold targets being advanced by Luna Gold. Data from geochemical and geophysical surveys combined with geological mapping indicate that a large shear hosted gold mineralizing system exists at Areal. Project maps have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below. Areal is a priority drill target for 2012 and can be summarized as:
Major gold in soil anomaly measuring 1.70 km X 0.45 km at a 50 ppb Au cut-off with maximum values of 8.97 g/t Au associated with garimpeiro workings, mineralized quartz vein sets and sulfidized felsic intrusives
Gold anomaly is associated with elevated Bi and Mo values and is hosted within a major NW trending shear corridor with well defined footwall mafic volcanics - prospective structural corridor
Reconaissance rock grab and channel sampling program returned gold values up to 1.60 g/t Au
Follow-up programs to commence in Q3 to advance Areal to drill stage in 2012
Areal Location Map
Areal Geology Map
Areal Geophysical (RTP) Map
Luna Gold's President and CEO, John Blake, comments, "We are very pleased with the exploration results from Areal which is one of several gold targets being generated by Luna Gold. Our exploration team is focused on the discovery of multimillion ounce gold deposits hosted within regional shear corridors at Maranhão Greenfields which holds significant potential in becoming a new Brazilian gold district. The addition of a further 20,000 ha to the Maranhão Greenfields project adds to our dominant landholding now totaling 190,000 ha in this emerging gold district and further strengthens Luna Gold's growth profile".
Areal was an active garimpo (artisanal mine) in the 1980's where miners worked northwest trending quartz veins hosted within sulfidized tonalities, syenogranites and granites. Luna Gold conducted a geochemical survey followed by a ground magnetic survey and geologic mapping program which has identified a 1.7 km long gold in soil anomaly within a northwest trending shear zone. Gold mineralization is associated with outcropping quartz veins and hydrothermal alteration and is coincident with a pronounced magnetic low that is associated with altered felsic intrusives within the shear corridor. The geophysical anomalies correlate very well with the geologic mapping and importantly have identified a mafic volcanic footwall sequence providing a strong structural control to the mineralization. Gold shows certain correlation with molybdenum, bismuth and lead consistent with a shear hosted intrusive mineralizing system. The scale of the anomaly and geological and geophysical associations are consistent with Luna Gold's Greenfields target criteria. Luna Gold's geologists collected 303 reconnaissance rock chip and channel samples from across the Areal target with a maximum gold value of 1.60 g/t Au.
Luna Gold's VP Exploration, Titus Haggan, states, "Luna Gold's objective at Maranhão Greenfields in 2011 is to discover district scale gold mineralizing systems and advance the best targets to drill stage for the 2012 exploration season. The exploration results at Areal are very encouraging and indicate a major surface gold anomaly associated with elevated Bi, Mo and Pb values hosted within a series of sheared and altered felsic intrusives. Geologic mapping has groundtruthed the soil anomalies and points to a clear association of gold with quartz veining and sulfidation of the intrusives. Ground magnetic surveys have confirmed the target structure and geology which is hosted within a major NW-trending shear zone. A project grid has been established at Areal and an auger program will commence in Q3 followed by a trenching program ahead of drilling in 2012. This is the first target to be reported from Maranhão Greenfields and several more are in the pipeline. Following the receipt of these excellent results we have extended the soil grid targeting extensions to Areal and will report results from this and other ongoing programs at Maranhão Greenfields project in due course."
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, and development is focused on the Cachoeira deposit in Para, Brazil. The Company is exploring a large strategically placed greenfields land position in Maranhão, Brazil.
On behalf of the Board of Directors
Vancouver, August 8, 2011 -- Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") today announces its results for the three and six months ended June 30, 2011. The complete financial statements and management discussions and analysis are available for review at www.lunagold.com and should be read in conjunction with this news release.
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Overview
Luna Gold Corp. (the "Company") is a publicly listed company on the TSX Venture Exchange trading under the symbol "LGC". The Company is actively engaged in the operation, exploration, acquisition and development of gold properties in Brazil. The Company currently has one gold mining operation, one development project and one large greenfield exploration project located in northeast Brazil.
The Aurizona gold mining operation ("Aurizona") consists of an open pit mine and gold process plant. Aurizona consists of the Piaba and Tatajuba deposits and over 10 near mine exploration targets which are being actively explored by the Company. It covers approximately 15,500 hectares of land and includes a mining license and three exploration permits.
The Cachoeira gold project ("Cachoeira") is a development gold project with a National Instrument 43-101 compliant resource estimate in three gold deposits consisting of quartz vein systems, hydrothermally altered host rocks and stockworks within a north-south trending shear zone.
The Maranhao Greenfields exploration property ("Maranhao Greenfields") is located next to Aurizona and consists of an extensive landholding of exploration licenses totalling 190,000 hectares. This unexplored land holding is highly prospective due to its location in the southern extension of the Guyana Shield and displays strong geologic and structural similarities to major West African gold deposits. The area contains over 100 artisanal gold workings that are being explored by the Company.
The Company's near term focus is to:
Significantly increase the size of the Aurizona mineral resource and release an updated NI 43-101 resource estimate for the Piaba gold deposit and advance certain near mine exploration targets to drill stage;
Increase Aurizona gold production above current feasibility study levels through plant optimization and plant expansion;
Complete a scoping study on the Cachoeira resource and advance the project to a feasibility study; and
Continue the exploration programs at Maranhao Greenfields to define drill targets for the 2012 exploration season.
The Company's longer term focus is to:
Increase Aurizona gold production to 100,000 ounces per annum;
Continue to invest in brownfield exploration activities to attempt to increase the mineral resources and mineral reserves at Aurizona to replace production and provide a longer mine life;
Develop Cachoeira as an organic growth pipeline project for the Company; and
Identify new gold resources through the exploration of the 190,000 hectare Maranhao Greenfields property and business development programs.
HIGHLIGHTSNet loss was $7.7 million in Q2 and was $7.5 million for the year to date;
Operating cash outflow before working capital was $5.5 million in Q2 and was $6.3 million for the year to date;
Successfully completed the planned Aurizona plant upgrade in April and recommenced ramp up of gold production;
Aurizona gold production was approximately 5,600 ounces in Q2 and was approximately 14,800 ounces for the year to date; Gold production since the plant upgrade in April has steadily increased month on month;
The Company began trading on the Lima Stock Exchange under the symbol LGC;
The Company closed a $30 million Senior Secured Credit Facility with WestLB AG; and
Aurizona resource definition drilling continued with significant gold intercepts reported in Q2 including:
19.00 metres @ 4.67 g/t Au and 53.00 metres @ 2.09 g/t Au;
44.00 metres @ 4.94 g/t Au including 5.00 metres @ 30.51 g/t Au;
48.00 metres @ 3.29 g/t Au including 12.00 metres @ 7.93 g/t Au; and
55.00 metres @ 4.15 g/t Au including 17.00 metres @ 7.80 g/t Au.
The Company significantly strengthened its operational management team in Q2 with the additions of a Vice President Operations, General Manager of Aurizona, Mining Manager of Aurizona and Brazil Director of Exploration.
OUTLOOKAurizona gold production target for the 2011 year revised to approximately 40,000 ounces for the 2011 year at a targeted cash cost of between $900 and $915 per ounce. The second half of the 2011 year targeted cash cost(1) is between $620 and $640 per ounce of production;
The Company remains on target to complete 30,000 metres of the ongoing 40,000 meter Aurizona exploration drill program and release an updated NI 43-101 compliant resource in Q4 2011; and
Cachoeira and Aurizona Expansion scoping study to be completed and the results released in Q2 2012.
AURIZONA GOLD MINE -- MARANHAO STATE, BRAZIL
The Aurizona gold mine is wholly-owned by the Company and is situated in the municipality of Godofredo Viana in Maranhão State, Brazil, near the coast of the Atlantic Ocean. Aurizona contains the Piaba and Tatajuba deposits and over 10 near mine exploration targets. The area is covered by a mining licence and three exploration permits. The Tatajuba deposit is located within an exploration permit which is in the process of being converted to a mine license.
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