Vancouver, October 27, 2010 - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to provide an update on exploration activities at its Cachoeira gold project including results of extensive auger drilling and surface and underground channel sampling programs at the Tucano deposit. Highlights include:

Significant oxide mineralization defined via auger drilling at Tucano including:
15.00 meters @ 5.91 g/t Au in auger hole TX0094
15.00 meters @ 3.37 g/t Au in auger hole TX0154
15.00 meters @ 2.53 g/t Au in auger hole TX0134
High-grade quartz vein sets defined via Tucano underground channel sampling including:
6.85 meters @ 63.62 g/t Au in channel B L-50_4
16.59 meters @ 31.06 g/t Au in channel B L-60_2
15.70 meters @ 31.44 g/t Au in channel B L-69_2
Wide zones of gold mineralization defined via Tucano surface channel sampling including:
15.03 meters @ 3.53 g/t Au including 4.01 meters @ 6.40 g/t Au in channel OC-29
10.98 meters @ 3.11 g/t Au in channel OC-29A
18.02 meters @ 2.80 g/t Au including 9.00 meters @ 4.98 g/t Au in channel OC-35
Luna's President & CEO, John Blake, comments, "These results, combined with those previously drilled, are being incorporated into a maiden NI 43-101 resource estimate to be released in December 2010 for the Cachoeira Gold Project. Luna Gold will continue with exploration at Cachoeira and at Aurizona to pursue further resource development in the Company's highly prospective landholding in this mining friendly region of Brazil. "

Auger Drill Program

An auger drill program totaling 2,441 meters (2,675 individual samples including QA/QC) in 221 holes was conducted at the Tucano deposit to determine the extent of oxide gold mineralization and provide supplementary drill data for resource estimation purposes. Holes were drilled on a regular 50x25 meter section grid to 15 meters depth. In some cases planned depth was not achieved due to difficult ground conditions. Average hole depth for the program is 11 meters. The program has identified an extensive oxide mineralized zone over the Tucano deposit and many holes ended in mineralization. Select mineralized intervals are tabulated below.


HOLE ID HOLE DEPTH (m) FROM (m) TO (m) INT (m) AU (G/T)
TX0094 15.00 0.00 15.00 15.00 5.91
TX0101 15.00 0.00 15.00 15.00 1.33
TX0114 15.00 0.00 11.00 11.00 4.93
TX0133 15.00 0.00 15.00 15.00 1.29
TX0134 15.00 0.00 15.00 15.00 2.53
TX0135 15.00 0.00 15.00 15.00 2.14
TX0147 15.00 0.00 15.00 15.00 1.62
TX0152 15.00 0.00 15.00 15.00 1.32
TX0154 15.00 0.00 15.00 15.00 3.37
TX0186 15.00 0.00 7.00 7.00 5.27
10.00 15.00 5.00 1.32

Table 1. Top 10 mineralized auger drill intervals, Tucano deposit. All holes are vertical. All holes shown apart from TX0114 ended in mineralization. True widths to be established. A total of 221 holes were drilled. Assay values for auger holes not reported here range between below detection limit (<0.05 g/t Au) to 18.25 g/t Au.

Underground Channel Sampling Program

A channel sampling program was conducted in all accessible underground workings at Tucano. 360 meters of sampling (385 individual samples including QA/QC) was completed along and across quartz veins and cutting inter-vein host units in five separate workings. This program was conducted to improve understanding of structural controls on gold mineralization and to provide additional assay data on quartz vein sets and the host rock sequence. The program intersected high-grade gold values in smoky and white quartz vein sets consistent with both historic and recent Luna drill assay data. Geologic and structural mapping of these workings combined with the new assay data confirms the deposit model of stacked high-grade quartz veins hosted by mineralized volcanics. Significant mineralized intervals for quartz veins and mineralized wall rock are tabulated below.

CHANNEL
ID LOCATION VEIN/
WALLROCK LITHOLOGY TOTAL CHANNEL
LENGTH (M) FROM
(M) TO
(M) INT
(M) AU (G/T)
UNCAPPED
B L-50_1 Wall Wallrock AQS 10.06 4.02 10.06 6.04 0.94
B L-50_2 Roof Vein-X SQV 2.41 0.00 2.41 2.41 63.58
B L-50_4 Wall Vein-L SQV 14.42 0.00 6.85 6.85 63.62
B L-50_5 Wall Wallrock AQS 9.47 0.00 9.47 9.47 0.73
B L-50_6 Roof Vein-X SQV 3.65 0.00 3.65 3.65 52.75
B L-60_1 Wall Wallrock AQS 40.74 0.00 5.09 5.09 0.86
B L-60_2 Wall Vein-L SQV\QV 16.59 1.03 17.62 16.59 31.06
B L-60_3 Wall Vein-L QV 3.54 0.00 3.54 3.54 27.28
B L-60_6 Wall Vein-L QV 10.87 1.02 10.87 9.85 9.17
B L-69_2 Wall Vein-L SQV 15.70 0.00 15.70 15.70 31.44
B L-69_4 Wall Wallrock AQS 3.54 0.00 3.54 3.54 0.56
B L-74_1 Wall Wallrock/Vein-L AQS/QV 18.24 0.00 18.24 18.24 5.04
B L-74_2 Roof Vein-L QV 17.52 0.00 17.52 17.52 7.49
C L+7_1 Wall Wallrock AQS 65.36 7.95 14.03 6.08 1.43
26.06 34.57 8.51 0.62
38.67 42.71 4.04 1.46
D L+11_1 Wall Vein-X QV 47.58 14.19 18.69 4.50 7.08
Wall Vein-X QV 24.34 26.42 2.08 7.88
Wall Vein-X SQV 29.89 34.21 4.32 62.22
Wall Vein-X QV 40.16 42.35 2.19 16.16
D L+11_2 Roof Vein-X QV 1.24 0.00 1.24 1.24 12.40
N L+7_1 Wall Wallrock AQS 20.27 7.20 13.19 5.99 1.83
AQS = Albite-Quartz-Sulfide altered wallrock Vein-X = Sample Cross-cutting (across) Vein
SVQ = Smoky Quartz Vein Set Vein-L = Sample Longitudinal to (along) Vein
QV = White/Light Gray Quartz Vein Set
Table 2. Average gold grades of underground channel sampling, Tucano deposit. Mineralized intervals are reported. Channel samples were collected both paralleling and cross-cutting individual quartz veins and also in inter-vein areas. Assay intervals listed are composites. True widths to be established. A total of 360 metres of underground workings were sampled. Assay values for underground channels not reported here range between below detection limit (<0.05 g/t Au) to 41.10 g/t Au.

Surface Channel Sampling Program

A channel sampling program was conducted across all suitable surface outcrops at Tucano. 1,077 meters of sampling (1199 individual samples including QA/QC) was completed. Program objectives were the same as the underground program. Detailed mapping was conducted along the channels and data integrated into the deposit model. The program identified several zones of both low- and high-grade outcropping mineralization which assist in correlating surface and underground mineralized zones.

CHANNEL
ID LITHOLOGY VEINING TOTAL CHANNEL
LENGTH (M) FROM
(M) TO
(M) INT
(M) AU (G/T)
UNCAPPED
OC-04 Ser_Sch VZ 48.64 31.29 47.63 16.34 1.00
OC-06 Ser_Sch VZ/STW 24.44 0.00 24.44 24.44 1.17
OC-11 Ser_Sch VZ 27.99 0.00 26.99 26.99 0.90
OC-12 Ser_Sch VZ 13.95 6.73 11.95 5.22 1.19
OC-21 AQS/Ser_Sch VZ/QV 46.56 29.45 36.49 7.04 7.44
INCLUDING 32.48 34.49 2.01 19.75
OC-23 Ser_Sch VZ 66.94 0.00 22.96 22.96 0.80
OC-25A Ser_Sch VZ 16.68 0.96 9.70 8.74 0.85
OC-28 Ser_Sch VZ/QV 73.67 0.00 4.78 4.78 1.25
45.66 64.52 18.86 1.42
INCLUDING 63.51 64.52 1.01 7.44
OC-29 AQS/Ser_Sch VZ 15.03 0.00 15.03 15.03 3.53
INCLUDING 2.01 6.02 4.01 6.40
OC-29A AQS VZ 10.98 0.00 10.98 10.98 3.11
OC-30 Ser_Sch QV 6.77 0.00 6.77 6.77 1.33
INCLUDING 0.96 1.94 0.98 4.20
OC-35 AQS VZ 32.29 0.00 18.02 18.02 2.80
INCLUDING 0.00 9.00 9.00 4.98
OC-38 AQS/Ser_Sch VZ 29.10 1.63 7.66 6.03 2.36
Ser_Sch = Sericite Schist VZ - Zones of Sheeted Quartz Microveining
AQS = Albite-Quartz-Sulfide Alteration STW = Zones of Quartz Stockwork
QV = White/Light Gray Quartz Vein Set
Table 3. Average gold grade of surface channel sampling, Tucano deposit. Mineralized intervals are reported. Assay intervals listed are composites. True widths to be established. A total of 1077 meters of underground workings were sampled. Assay values for surface channels not reported here range between below detection limit (<0.05 g/t Au) to 8.33 g/t Au.

Luna's VP Exploration, Titus Haggan, comments, "The 2010 exploration programs at the Tucano deposit are complete and work is well advanced on the NI 43-101 resource estimate and technical report. The results have considerably enhanced our understanding of the geology and structural controls on gold mineralization at Tucano. Exploration programs are also nearing completion at the Coruja and Arara targets and assay data will be released for these targets in due course."

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 targets, Tucano, Coruja and Arara, have been defined to date. The Tucano deposit is located within the Cachoeira town urban limit.

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.

Website: www.lunagold.com

Luna Gold
CET 17.34
C$0,63 +5ct en 498.500 sts omzet.

toevoeging op 28 10 2010 om 07.27 uur
Gesloten werd op C$0,64 +6ct en 1.087.465 sts omzet