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Something happening? No bid/ask for Luna today. No news. Hmm.
b4
Treasure Islands
Miners Face Increasing Danger from Crime, Social Unrest and Violence
By Greg Klein
With 22 years’ experience in the British Special Forces, 10 of them with the Royal Marines and the other 12 with the SAS, Alan Bell is no stranger to conflict. Since founding the Toronto-based security company Globe Risk International in 1996, he’s provided his expertise and active involvement to a number of exploration and mining companies overseas. And he’s seen a few changes over the years.
“I remember when I started out in the 1990s, the old VPs of exploration used to go out into the mountains with their hammers and their boots and their trousers tucked into their socks. The old-school guys would go out there and say, ‘We don’t need any security.’ Well the world has changed dramatically since then.”
Read the rest of this article. http://resourceclips.com/2012/01/30/treasure-islands/
Luna is holding a special meeting on Feb 14, to vote on a 5 for one reverse split. Those never work out well for shareholders and I sent in my votes as against it.
b4
TO CONSIDER AND, IF DEEMED APPROPRIATE, TO PASS, WITH OR WITHOUT VARIATION, A SPECIAL RESOLUTION AUTHORIZING THE BOARD OF DIRECTORS, IN ITS SOLE DISCRETION, TO AMEND THE ARTICLES OF LUNA GOLD CORP. (THE "COMPANY") TO CONSOLIDATE ALL OF THE ISSUED AND OUTSTANDING COMMON SHARES OF THE COMPANY, ON THE BASIS OF ONE (1) POST-CONSOLIDATION COMMON SHARE FOR UP TO EVERY FIVE (5) PRE-CONSOLIDATION COMMON SHARES, AS MORE PARTICULARLY DESCRIBED IN THE ACCOMPANYING MANAGEMENT INFORMATION CIRCULAR OF THE COMPANY.
Luna Gold-Aurizona Gold Mine Announces Record Gold Production in Q4and Full Year 2011
Jan 19, 2012 08:31:23 (ET)
VANCOUVER, BRITISH COLUMBIA, Jan 19, 2012 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (lma:LGC) ("Luna" or the "Company") is pleased to announce its gold production update for the Aurizona Gold Mine for the quarter ending December 2011 and for the full year 2011.
Aurizona Gold mine produced a quarterly record in Q4 of 13,620 ounces, completing the year 2011 with a gold production of 41,898 ounces in Luna's first full year of production.
Luna's President & CEO, John Blake, comments, "Luna Gold is pleased with gold production. The company continues to demonstrate consistent productive capacity at Aurizona with Q3 and Q4 achieving Feasibility Study levels of gold production."
Table of Production for 2011
----------------------------------------------------------------------------
Q1 Q2 Q3 Q4 Total 2011
----------------------------------------------------------------------------
Processed ore - tonnes 293,393 210,558 416,822 389,476 1,310,249
----------------------------------------------------------------------------
Average grade processed 1.19 1.27 1.28 1.38 1.29
- g/t
----------------------------------------------------------------------------
Average recovery rate % 83 65 83 79 77
----------------------------------------------------------------------------
Gold produced (ounces) 9,209 5,595 13,473 13,620 41,898
----------------------------------------------------------------------------
Luna Gold Announces Proposed Share Consolidation
Dec 22, 2011 08:31:34 (ET)
VANCOUVER, BRITISH COLUMBIA, Dec 22, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (lma:LGC) ("Luna Gold" or the "Company") announces today a proposed consolidation (the "Share Consolidation") of its share capital on the basis of up to five (5) existing common shares for one (1) new common share. Currently, a total of 522,550,895 common shares in the capital of the Company are issued and outstanding. Accordingly, if put into effect on the basis of five (5) existing common shares for one (1) new common share, a total of 104,510,179 common shares in the capital of the Company would be issued and outstanding following the Share Consolidation, assuming no other change in the issued capital.
The Share Consolidation will affect all of the Company's stock options and warrants issued and outstanding at the effective date. At the time of the Share Consolidation, the number, exchange basis or exercise price of all stock options and warrants issued and outstanding will be adjusted to reflect the one-for-five Share Consolidation. The actual adjustment will be made by the Company in consultation with its advisors.
The Board of Directors of the Company will ask the shareholders of the Company to approve the Share Consolidation at a Special Meeting of shareholders to be held on Tuesday, February 14, 2012. The Share Consolidation is subject to shareholder approval and acceptance of the TSX Venture Exchange.
About Luna Gold Corp.
Luna Gold is a producing gold company with development and exploration projects. Gold production is from the Aurizona Mine in Maranhao, Brazil, and development is focused on the Cachoeira deposit in Para, Brazil. The Company is exploring Maranhao Greenfields, a large strategically placed land position in Maranhao, Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
John Blake - President and CEO
Luna Gold Drills 23.00 Metres @ 4.04 g/t Au Including 6.00 Metres @12.40 g/t Au at Aurizona and Commences Drilling at Near MineExploration Target
Nov 29, 2011 09:18:52 (ET)
VANCOUVER, BRITISH COLUMBIA, Nov 29, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (bvlac:LGC) ("Luna Gold" or the "Company") is pleased to announce positive assay results from 30 additional holes from the resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map and 3D Corebox model showing the drill hole locations in the deposit have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below.
Significant intercepts:
-- 23.00 meters @ 4.04 g/t Au including 6.00 meters @ 12.40 g/t Au in
BRAZD400 (Section 1300E - New East Extension)
-- 71.00 meters @ 1.69 g/t Au in BRAZD390 (Section 1100E - New East
Extension)
-- 18.00 meters @ 3.54 g/t Au including 2.50 meters @ 7.30 g/t Au and 1.00
m @ 12.40 g/t Au in BRAZD391 (Section 1900W - New West Extension)
Updated Drill Plan Map
To view the Map, visit the following link: http://www.lunagold.com/i/pdf/Piaba_Drill_Plan_Map_241111.pdf .
Luna Gold's President & CEO, John Blake, comments, "We are on target to finalize the NI 43-101 resource update in early December. These new drill results, inclusive of high grade holes located well outside the boundary of our current resource estimate, are of major significance. They further extend the strike length of the Piaba deposit beyond the limits announced earlier this month (see Luna press release dated November 7, 2011) and continue to demonstrate Aurizona's growth potential. Management is very encouraged by the continued positive trend in drill results and we look forward to further development possibilities."
Today's assay results are for thirty drill holes totaling 6,961 meters drilled on 17 sections covering the now extended 3.3 kilometer strike length of the Piaba deposit. Significant mineralized intercepts from holes drilled across the deposit are tabulated below.
Been in Luna for years canuck. We are finally there. Glad to have you aboard.
b4
To The Moon—Or 300K Oz Annually
Luna Gold Plans to Upsize Brazil Production
By Ted Niles
Things seem to be coming together for Luna Gold Corp TSX:LGC. That might seem an odd thing to say about a company that’s been producing since February at its Aurizona Gold Mine, but success is not a static achievement. Bringing a mine to production only really marks the transition of a junior miner from adolescence to adulthood. Issues of liquidity, logistical strength and effective management require constant attention for success to burgeon. That’s why John Blake was appointed Luna President and CEO in September 2010.
“My job was to review the company, and I had full support from the board,” Blake says. “We had mechanical issues in the construction phase that have been repaired, and now we’re delivering our feasibility-study production. We’ve revamped our management team, and we’ve got a really strong operational team now to add to the strong team we already had in finance and exploration. We’ve recently recapitalized the company in terms of new project debt financing with WestLB, and we’ve raised equity in the market. So we’ve now got very solid capital structure to move the company forward. The next step is to increase our resource in December so we’ve got a solid platform for growth.”
Read the rest of this article: http://bit.ly/tlo3Tr
Luna Gold Corp. Reports Operational and Financial Results for the Three and Nine Months Ended September 30, 2011
Nov 10, 2011 08:31:49 (ET)
VANCOUVER, BRITISH COLUMBIA, Nov 10, 2011 (MARKETWIRE via COMTEX) -- (expressed in United States dollars, unless otherwise noted) -
Luna Gold Corp. (bvlac:LGC) ("Luna" or the "Company") today announces its results for the three and nine months ended September 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.
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 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 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 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 Company's near term focus is to:
-- Significantly increase the size of the Aurizona mineral resource and
reserve; release an updated NI 43-101 resource and reserve estimate for
the Piaba gold deposit and drill certain near mine exploration targets;
-- Increase Aurizona gold production above current feasibility study levels
through plant optimization and plant expansion;
-- Complete a scoping study on the expansion options for the Aurizona mine;
-- Complete a structural analysis at Aurizona and assess possible deep
drill targets;
-- Continue the exploration programs at Maranhao Greenfields to define
drill targets for the 2012 exploration season; and
-- Complete a scoping study on the Cachoeira resource and advance the
project to a feasibility study.
The Company's longer term focus is to:
-- Increase Aurizona gold production to greater than 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.
HIGHLIGHTS
-- Record quarterly gold production of 13,473 ounces was achieved in Q3
with feasibility study rates achieved in August and September. Gold
production for the nine month period was 28,277 ounces;
-- Net income was $2.7 million in Q3 and the net loss of the nine month
period was $4.8 million;
-- Operating cash inflow before working capital was $2.4 million in Q3 and
operating cash outflow before working capital for the nine month period
was $3.9 million;
-- Q3 unit cash cost of production was $830 per ounce and for the nine
month period was $1,117 per ounce;
-- The Company successfully raised CA$42 million through a combination of a
marketed public offering and private placement in Q3;
-- Aurizona resource definition drilling continued with significant gold
intercepts:
-- Priority gold target defined at Maranhao Greenfields with major gold in
soil anomaly measuring 1.70 kilometre by 0.45 kilometre at a 50 ppb Au
cut-off with maximum values of 8.97 g/t Au with garimpeiro workings,
mineralized quartz vein sets and sulfidized felsic intrusives;
OUTLOOK
-- Aurizona gold production target for the 2011 year revised to between
42,000 and 44,000 ounces for the 2011 year at a targeted unit cash cost
of between $990 and $1,000 per ounce. The Q4 targeted unit cash cost(1)
is between $750 and $780 per ounce of production;
-- The Company remains on target to release an updated NI 43-101 compliant
resource on Aurizona in Q4 2011; and
-- Cachoeira and Aurizona Expansion scoping study to be completed and the
results released in Q2 2012.
Luna Gold-Unsuccessful Robbery Attempt at Aurizona Gold Mine
Nov 9, 2011 14:21:24 (ET)
VANCOUVER, BRITISH COLUMBIA, Nov 09, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (bvlac:LGC) ("Luna Gold" or the "Company") -
An unsuccessful robbery attempt was made at the Aurizona gold mine in the early hours of Wednesday, November 9, 2011. Armed individuals who had taken employees as hostages from a nearby village attempted to force entry to Luna Gold's gold storage facility located at site. All of the hostages were released unharmed and no injuries were sustained by any employees at Aurizona. The individuals were unsuccessful in the attempted robbery and no gold was stolen.
Production at Aurizona continues without interruption with some damage sustained to the gold storage facility.
The policies and procedures introduced after the robbery in December 2010 prevented a loss of gold in this unsuccessful attempt. Luna Gold will continue to monitor and upgrade security policies and procedures. Police are currently on site at Aurizona working with management to investigate the robbery.
About Luna Gold Corp.
Luna Gold is actively engaged in the operation, exploration, acquisition and development of gold opportunities in Brazil. The company currently has a gold mining operation, Aurizona Gold Mine in Maranhao, Brazil, a gold development project, the Cachoeira project in Para, Brazil and the Company is exploring in a large strategically placed greenfields land position in Maranhao, Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
Luna Gold Drills 13.00 Meters @ 33.63 g/t Au Including 4.00 Meters @104.83 g/t Au at Aurizona
Nov 7, 2011 08:31:39 (ET)
VANCOUVER, BRITISH COLUMBIA, Nov 07, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (bvlac:LGC) ("Luna Gold" or the "Company") is pleased to announce additional positive assay results from 22 new holes from the recently completed resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map and 3D Corebox model showing the drill hole locations in the deposit have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below.
Significant intercepts:
-- 68.00 meters @ 2.46 g/t Au including 11.00 meters @ 6.02 g/t Au and 3.00
meters @ 5.04 g/t Au in BRAZD368 (Section 1100E - New East Extension)
-- 50.00 meters @ 3.87 g/t Au including 7.00 meters @ 8.47 g/t Au and 1.00
meter @ 53.30 g/t Au in BRAZD360 (Section 0600W - Deposit Centre)
-- 13.00 meters @ 33.63 g/t Au including 4.00 meters @ 104.83 g/t Au in
BRAZD367 (Section 1600W - New West Extension)
To view Updated Drill Plan Map click on: www.lunagold.com/i/pdf/Piaba_Drill_Plan_Map_190711.pdf
Luna Gold's President & CEO, John Blake, comments, "The 40,000 meter drill program is now complete and we are on track to finalize the NI 43-101 resource update in early December 2011. These recent results are excellent in both grade and width which are significantly above the 1.36 g/t Au average grade of the current NI 43-101 reserve. In addition most of the holes reported here are new discoveries along eastern and western strike extensions to the Piaba deposit that lie outside the boundary of the 2009 resource update. We are strongly positioned to increase the Company's gold resources through upgrading inferred resources to the measured and indicated categories and by the addition of new ounces at depth and along strike."
Of the current 40,000 meter drill program, which commenced in August 2010, assays from 94 diamond drill holes totaling 24,577 meters have been received and samples from 40 additional holes are currently at the assay lab and assays will be delivered within 15 days. Today's assay results are for 22 drill holes totaling 5,088 meters drilled on 12 sections covering a strike extent of 3.1 kilometers of the Piaba deposit. In two holes, core was not recovered from surface. Significant mineralized intercepts from holes drilled across the deposit are tabulated below.
Luna Gold's VP Exploration, Titus Haggan, states, "These latest results are of major significance because they extend the Piaba deposit strike by 600 meters east of the 2009 resource boundary limit (Section 600E) including an interval of 68.00 meters @ 2.46 g/t Au including 11.00 meters @ 6.02 in BRAZD368 (Section 1100E) and 31.00 meters @ 2.65 g/t Au in BRAZD369 (Section 0900E). Similarly new mineralized intervals have been intersected beyond the 2009 western limit of the deposit including 10.00 meters @ 3.51 g/t Au in BRAZD379 (Section 1900W)." See updated plan map for location of these new gold intercepts. SRK Denver has been retained to prepare the updated resource and reserve upgrades in conjunction with Luna Gold staff.
Welcome to the board canuck and thanks for the info. Sounds great.
I can't wait for the next quarterly report. Luna has been one of Doug Casey and Jim Sinclair's picks. It just hasn't got much traction lately.
b4
Luna President John Blake on Brazil gold assays of 2.57 g/t over 53m
Luna Gold Corp TSXV:LGC announced results from its Piaba gold deposit in northeast Brazil. Assays include
1.54 g/t gold over 36 metres
1.64 g/t over 31 metres
1.24 g/t over 24 metres
2.57 g/t over 53 metres
2.61 g/t over 14 metres
4.32 g/t over 31 metres
2.22 g/t over 54 metres
2.03 g/t over 35 metres
2.49 g/t over 55 metres
3.64 g/t over 22 metres
1.11 g/t over 25 metres
2.6 g/t over 41 metres
2.01 g/t over 52 metres
1.21 g/t over 38 metres
1.51 g/t over 65 metres
President/CEO John Blake tells ResourceClips.com, “We’re a producing gold mine. We hit our feasibility study production levels in August this year, and we’re producing at the rate of 60,000 ounces per year—we’ve been steady on that for the last three months. We’re working along the Piaba pit, which is a three-kilometre strike length of greenstone orogenic structure.
Read the rest of this interview: http://bit.ly/sInyX8
Luna Gold Drills 13.50 Meters @ 3.15 G/T Au Including 3.00 Meters @8.12 G/T Au at Aurizona
Oct 27, 2011 08:53:43 (ET)
VANCOUVER, BRITISH COLUMBIA, Oct 27, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (bvlac:LGC) ("Luna Gold" or the "Company") is pleased to announce additional positive assay results from 23 new holes from the resource drill program now nearing completion at the Piaba gold deposit, Aurizona. An updated drill plan map and 3D Corebox model showing the drill hole locations in the deposit have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below.
Significant intercepts:
-- 13.50 meters @ 3.15 g/t Au including 3.00 meters @ 8.12 g/t Au in
BRAZD333
-- 4.00 meters @ 9.46 g/t Au including 0.50 meter @ 59.10 g/t Au in
BRAZD329A
-- 36.00 meters @ 1.54 g/t Au including 1.00 meter @ 4.99 g/t Au and 1.00
meter @ 17.75 g/t Au in BRAZD335
Updated Drill Plan Map: http://www.lunagold.com/i/maps/Aurizona/DrillPlanMap-21102011.pdf .
Luna Gold's President & CEO, John Blake, comments, "The company commenced a 20,000 meter drill program in August 2010, which was extended by 20,000 meters in July 2011. Our exploration team remains on target to complete the NI 43-101 resource update in Q4. All results published to date confirm consistent continuity of mineralization along strike with the deposit remaining open at depth.
The aim of the program is to significantly increase the company's gold resources by upgrading inferred resources to the measured and indicated categories and by the addition of new ounces at depth and along strike. Previous results, in combination with these results, give us great confidence to deliver these goals."
Of the current 40,000 meter drill program, which commenced in August 2010, assays from 72 diamond holes totaling 19,490 meters have been received and samples from 43 additional holes are currently at the assay lab. Today's assay results are for twenty three drill holes totaling 5,265 meters drilled on 18 sections covering a strike extent of 2.0 kilometers of the Piaba deposit. In eleven holes, core was not recovered from surface. Six of these holes were drilled down dip and are reported separately below. All drill holes intersected considerable zones of gold mineralization and the deposit remains open at depth. Significant mineralized intercepts from holes drilled across the deposit are tabulated below.
Geeze! A producing mine sponsored by Stansbury and Casey Research with 2 followers?
Get on it dummies.
b4
Luna Gold Corp.: Aurizona Gold Mine Third Quarter Production Update
Oct 7, 2011 08:31:58 (ET)
VANCOUVER, BRITISH COLUMBIA, Oct 07, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. ("Luna" or the "Company") is pleased to announce its gold production update for the Aurizona Gold Mine for the quarter ending September 30, 2011.
Gold Production for the third quarter was an Aurizona record of 13,473 ounces.
Luna's President & CEO, John Blake, comments, "Luna Gold is pleased with gold production for this quarter, continuing to demonstrate consistent positive improvement in productive capacity at Aurizona, which consolidates our recent production estimates."
The production for Q3, 2011 has satisfied the "Completion Guarantee" in the agreement with Sandstorm Gold exceeding the three month production minimum whereby Luna Gold was required to produce 12,500 ounces of gold in a three month period before April 2012.
Table of Production for Q3 2011:
July to September Qtr 2011
------------------------------------------------------------
------------------------------------------------------------
Processed ore - tonnes 393,157
Average grade processed - g/t 1.27
Average recovery rate % 84
Gold produced (ounces) 13,473
-- Note - These production statistics are unaudited and may be subject to
change.
About Luna Gold Corp.
Luna is a gold production and exploration Company engaged in the exploration and development of gold deposits and advanced stage gold exploration projects in Brazil. The Company is producing gold at its Aurizona gold mine in Maranhao, Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
Luna Gold Corp.: Aurizona Gold Mine August Production Update
Sep 6, 2011 08:31:21 (ET)
VANCOUVER, BRITISH COLUMBIA, Sep 06, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (bvlac:LGC) ("Luna" or the "Company") is pleased to announce its gold production update for the Aurizona Gold Mine for the month of August 2011.
Gold Production for August 2011 was 5,018 ounces.
Luna's President & CEO, John Blake, comments, "Luna Gold is pleased with gold production for August demonstrating consistent positive improvement in productive capacity at Aurizona, which consolidates our recent production estimates."
Table of Production for 2011:
Apr 11 May 11 Jun 11 July 11 Aug 11
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Processed ore - tonnes 32,465 82,654 95,416 111,783 144,728
Average grade processed -
g/t 1.02 1.32 1.31 1.20 1.29
Average recovery rate % 63 61 69 82 88
Gold produced (ounces) 671 2,123 2,766 3,380 5,018
Note - These production statistics are unaudited and may be subject to
change.
Luna Gold Defines Priority Gold Target at Maranhao Greenfields andFurther Extends Landholding by 20,000 Hectares
Aug 10, 2011 08:31:44 (ET)
VANCOUVER, BRITISH COLUMBIA, Aug 10, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (bvlac:LGC) ("Luna Gold" or the "Company") announces positive surface exploration results from the Areal target located within Luna Gold's 100% owned prospective Maranhao 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: http://www.lunagold.com/i/pdf/Areal_Locatinon_Map.pdf
Areal Geology Map: http://www.lunagold.com/i/pdf/Areal_Geology_Map.pdf
Areal Geophysical (RTP) Map: http://www.lunagold.com/i/pdf/Reduced_to_Pole_Geophysical_Map.pdf
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 Maranhao Greenfields which holds significant potential in becoming a new Brazilian gold district. The addition of a further 20,000 ha to the Maranhao 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 Maranhao 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 Maranhao 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 Maranhao Greenfields project in due course."
Luna Gold Drills 19.00 Meters @ 4.67 g/t Au and 53.00 Meters @ 2.09g/t Au at Aurizona
Jul 25, 2011 08:31:11 (ET)
VANCOUVER, BRITISH COLUMBIA, Jul 25, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (bvlac:LGC) ("Luna Gold" or the "Company") is pleased to announce additional positive assay results from 12 new holes from its ongoing resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map and cross sections have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below.
Luna Gold Corp.: Q2 Production Update
Jul 5, 2011 08:30:44 (ET)
VANCOUVER, BRITISH COLUMBIA, Jul 05, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (bvlac:LGC) ("Luna Gold" or the "Company") provides an update on key production outputs for Q2, 2011 at the Aurizona Gold mine operation and an exploration summary at Aurizona.
During the quarter our performance had mixed results, lower than forecast production has been offset by success in rebuilding the operational team and excellent results in exploration.
The management team have developed plans to deliver feasibility levels of gold production and are currently executing this plan. The new management team includes a Vice President Operations, a General Manager Aurizona Gold Mine and Mining Manager Aurizona Gold Mine.
Management evaluation of the Aurizona plant have confirmed the process plant construction did not deliver key process and operational performances as designed. Luna Gold management and our consulting engineers have identified major and minor modifications required to achieve reliable and consistent feasibility design performance. Plant improvements and upgrades will proceed progressively while production continues.
Performance in Q2 was low due to planned downtime to complete upgrades in the SAG mill and other modifications. Changes in the SAG, screens and other mechanical upgrades required re-commissioning the plant causing lower throughput and recoveries.
The production results for Q2 below demonstrate a positive upward trend in all key indicators, particularly tonnes throughput, grade and gold produced. Looking forward to Q3 and Q4 ramping up to feasibility target production of 4,500 to 5,000 ounces of Gold per month will require a 18% increase in mill throughput and a 24% increase in recoveries. Management plans feasibility targets to be achieved in Q3 and produced consistently in Q4.
Production results for Q2 2011 were as follows:
SEE COMPANY WEBSITE FOR THE TABLES AND CHARTS. B4
Luna Gold Drills 44.00 Meters @ 4.94 g/t Au Including 5.00 Meters @30.51 g/t Au at Aurizona and Extends Drill Program by 20,000 Meters
Jun 28, 2011 08:31:33 (ET)
VANCOUVER, BRITISH COLUMBIA, Jun 28, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. (bvl:LGC) ("Luna Gold" or the "Company") is pleased to announce additional positive assay results from eight new holes from its ongoing resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map and cross sections have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below. Significant intercepts are highlighted below:
-- 32.00 meters @ 2.78 g/t Au including 1.00 meter @ 6.62 g/t Au and 6.50
meters @ 7.10 g/t Au in BRAZD304
-- 44.00 meters @ 4.94 g/t Au including 0.50 meters @ 21.40 g/t Au, 0.50
meters @ 14.35 g/t Au and 5.00 meters @ 30.51 g/t Au in BRAZD306
-- 17.00 meters @ 5.18 g/t Au including 3.50 meters @ 12.71 g/t Au and 2.00
meters @ 14.32 g/t Au in BRAZD314
Direct Links:
Updated Drill Plan Map: http://www.lunagold.com/i/pdf/Piaba_DP_230611.pdf
Drill Sections:
500W: http://www.lunagold.com/i/pdf/Piaba_DS_0500W.pdf
700W: http://www.lunagold.com/i/pdf/Piaba_DS_0700W.pdf
800W: http://www.lunagold.com/i/pdf/Piaba_DS_0800W.pdf
1000W: http://www.lunagold.com/i/pdf/Piaba_DS_1000W.pdf
1200W: http://www.lunagold.com/i/pdf/Piaba_DS_1200W.pdf
1400W: http://www.lunagold.com/i/pdf/Piaba_DS_1400W.pdf
Luna Gold's President & CEO, John Blake, comments, "Drilling at Aurizona continues to deliver outstanding results and these holes follow on the excellent drill intercepts received since we commenced the resource drill program in August 2010. Luna is on track to deliver a new resource upgrade in Q4 2011. The results received to date underpin the major potential to expand the current Proven & Probable Reserves of 17.2 million tonnes at 1.36 g/t Au or 731,000 combined ounces of gold in the Piaba deposit, which will ultimately extend the initial 12 year mine life and provide the foundation to increase average annual gold production."
Of the current 20,000 meter drill program, which commenced in August 2010, assays from 39 holes totaling 10,668 meters have been received and samples from 10 additional holes are currently at the assay lab. Today's assay results are for eight drill holes totaling 2236 meters drilled on six sections covering a strike extent of 900 meters in the west central portion of the Piaba deposit. In seven holes, core was not recovered from surface. All drill holes intersected considerable zones of gold mineralization and the deposit remains open at depth on all sections. Significant mineralized intercepts are tabulated below.
Luna Gold Drills 48.00 Meters @ 3.29 g/t Au Including 12.00 Meters @7.93 g/t Au at Aurizona
Jun 6, 2011 08:31:24 (ET)
VANCOUVER, BRITISH COLUMBIA, Jun 06, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. ("Luna Gold" or the "Company") is pleased to announce positive assay results from six new holes from its ongoing resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map and cross sections have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below. Significant mineralized intercepts are highlighted below:
-- 11.00 meters @ 15.48 g/t Au including 0.50 meters @ 20.60 g/t Au and
0.50 meters @ 282.00 g/t Au in BRAZD294
-- 56.00 meters @ 1.92 g/t Au including 15.00 meters @ 3.22 g/t Au and 3.00
meters @ 6.81 g/t Au in BRAZD296
-- 48.00 meters @ 3.29 g/t Au including 12.00 meters @ 7.93 g/t Au and 1.00
meter @ 9.84 g/t Au in BRAZD299
To view the "500 W Cross Section", please visit: http://www.lunagold.com/i/pdf/500W.pdf
To view the "Drill Plan Map", please visit: http://www.lunagold.com/i/pdf/Piaba_Drill_Plan_Map_270511.pdf
Luna Gold's President & CEO, John Blake, comments, "Luna Gold's investment in the Aurizona resource definition drilling program continues to produce excellent results. We are again pleased with the level of consistency in our drill results and particularly from the western sector of the deposit where drilling is intersecting high grade mineralization near surface. These excellent results provide a high level of confidence for a significant increase in the new resource upgrade planned for Q4 2011."
Of the current 20,000 meter drill program, which commenced in August 2010, assays from 31 holes totaling 8,432 meters have been received and samples from 18 additional holes are currently at the assay lab. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources.
Today's assay results are for six drill holes totaling 1,819 meters drilled on six sections covering a strike extent of 1 kilometer in the west central portion of the Piaba deposit. In four holes, core was not recovered from surface. All drill holes intersected considerable zones of gold mineralization and the deposit remains open at depth on all sections. Significant mineralized intercepts are tabulated below.
Luna Gold Corp. Reports Operational and Financial Results for theThree Months Ended March 31, 2011
May 17, 2011 08:37:53 (ET)
VANCOUVER, BRITISH COLUMBIA, May 17, 2011 (MARKETWIRE via COMTEX) -- (expressed in United States dollars, unless otherwise noted) -
Luna Gold Corp. ("Luna" or the "Company") today announces its results for the three months ended March 31, 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.
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 15,000 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 consisting of multiple mineralized zones, which include isolated 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 170,000 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 West African gold deposits. The area contains over 100 artisanal gold workings that require further exploration.
The Company's near term focus is to:
-- Significantly increase the size of the Aurizona resource and release an
updated NI 43-101 resource estimate for the Piaba and Tatajuba gold
deposits and certain near mine exploration targets;
-- Increase the 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 feasibility study; and
-- Advance the exploration activity at Maranhao Greenfields to define drill
targets for the 2012 exploration program.
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 increase the
resource 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 170,000
hectare Maranhao Greenfields property and through business development
programs.
HIGHLIGHTS
-- Net operating income for the quarter was $726.4 thousand, which was its
first positive quarterly operating income since inception of the
Company;
-- Operating cash inflow after working capital was $425.7 thousand, which
was its first positive quarterly operating cash inflow after working
capital movements since inception of the Company;
-- Aurizona gold production was approximately 9,200 ounces for the quarter;
-- Aurizona brownfield exploration drilling results in Q1 included 55.00
meters at 4.15 grams per tonne (g/t) of gold, including 17.00 meters at
7.80 g/t of gold;
-- The Company applied for a secondary listing on the Lima Stock Exchange;
and
-- The Company appointed Peter Mah as VP Operations and Carlos Paranhos as
Brazilian Exploration Director.
OUTLOOK
-- Aurizona gold production remains on target for between 55,000 and 60,000
ounces for the 2011 year at a targeted cash cost of between $610 and
$620 per ounce;
-- The Company remains targeted to complete the Aurizona 20,000 metre
exploration drill program and release an updated NI 43-101 compliant
resource in Q4 2011; and
-- Cachoeira scoping study to be completed and the results released in Q4
2011.
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 Maranhao 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.
Operating Data
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Three months ended Mar 2011 Dec 2010 Sep 2010 Jun 2010 Mar 2010
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Mined waste - tonnes 348,036 579,012 299,396 278,670 110,269
Mined ore - tonnes 111,609 457,873 371,931 276,011 347,946
Ratio of waste to ore 3.1 1.3 0.8 1.0 0.3
Ore Grade mined - g/t 1.79 1.15 1.13 0.97 1.25
Processed ore - tonnes 293,393 328,735 279,654 138,960 -
Average grade processed - g/t 1.19 1.19 0.90 1.58 -
Average recovery rate % 83% 78% 59% 17% -
Gold produced (ounces) 9,209 9,768 4,774 1,217 -
Gold sold (ounces) 8,358 9,594 1,462 739 -
Total cash costs (per ounce) $1,100 $1,233 $1,136 $1,998 -
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Mining production
The Company mined approximately 460,000 tonnes of material of which approximately 111,600 tonnes was ore at an average head grade of 1.79 grams per tonne during Q1. This represented a reduction of 56% of total material mined and 75% of ore mined compared to the previous quarter. The lower mining activities were due to the onset of the rain season in Q1 and a decision to reduce mining activities while processing ore from the large build-up of the ore stockpile. The rain season in Brazil has been one of the heaviest on record, which has resulted in many disruptions to the mining activities. The Company also began blasting harder materials and focused on increasing the waste stripping in anticipation of mining higher grade ore in future periods and achieving a steady strip ratio over the life of the mine.
Of the total unit cash cost of production for Q1, approximately $250 per ounce was related to mining and ore costs. The cost per tonne of ore mined during the quarter was approximately $21 per tonne. Costs were higher than the feasibility study average rate due to the lower volumes mined and the related fixed costs of the mining function.
The Company is currently in the process of implementing its own mining team rather than utilizing a contract mining group. The Company obtained certain mining equipment during the quarter and is using a mining contractor for waste stripping activities. This is expected to benefit the operation resulting in lower mining production costs. A further study is currently in process to obtain the balance of the necessary mining equipment and team to implement the mining function at Aurizona.
Mill Processing
The mill processed approximately 11% less tonnes of ore in Q1 than the previous quarter. The lower production was the result of the onset of the rain season and an increase in downtime in preparation for the planned plant shutdown and upgrade which was completed in mid-April. The ore grade processed was similar to the previous quarter and the recovery percentage continued to improve while ramping up to feasibility level production rates.
The processing cash cost per unit of gold produced in Q1 was approximately $850 per ounce. This cost includes all milling, processing and administrative related costs of the operation. Costs were significantly higher than the full year average target of $620 per ounce due to the lower levels of production and the planned shutdown to upgrade the plant. The planned shutdown to achieve the targeted production levels resulted in higher salary related costs and increased consumable costs that were necessary to implement the plant upgrades. However, the average cash cost of production decreased from the previous quarter as the Company continues to reduce overhead costs related to the development and construction stage of the Aurizona.
The Company successfully installed the reduction gear box in the SAG mill, installed the pinion in ball mill #4 and upgraded the trash screens in April. The plant is currently being ramped up to full feasibility production levels in a steady rate while monitoring the increases to ensure there are no significant breakdowns. The Company also began to reduce the size of the workforce to targeted levels which will result in a reduction of cash operating costs.
AURIZONA EXPLORATION
The Company's exploration teams continued to advance exploration at Aurizona during the quarter as summarized below. Diamond drilling is on schedule for completion of the Phase 1, 20,000 metre program in July 2011. The Company's exploration strategy of surface exploration techniques combined with magnetic geophysical surveys is proving highly successful in defining the principal mineralized structures at the near mine targets.
Diamond Drilling
The Company embarked on a 20,000 metre drill program at Aurizona in August 2010 and currently has seven drill rigs in operation at the Piaba deposit. Assays from 25 holes totaling 6,613 meters have been received and samples from 14 additional holes are at the assay lab. Drilling is currently focused on infilling over the 3 kilometre strike length of the Piaba deposit to increase measured and indicated resources. Holes are being drilled on 100 metre spaced sections to a maximum depth of minus 300 metres RL. On completion of the Piaba drill program, the rigs will be sited at the Tatajuba deposit and the Boa Esperanca near mine exploration target, which is drill ready following a successful trenching program. Recent significant drill intercepts (not true widths) from the ongoing program are listed below:
-- 55.00 meters @ 4.15 grams/tonne Au including 1.00 meter @ 20.00
grams/tonne Au and 17.00 meters @ 7.80 grams/tonne Au in BRAZD293A
-- 21.00 meters @ 2.50 grams/tonne Au including 8.00 meters @ 5.21
grams/tonne Au in BRAZD297
-- 29.00 meters @ 2.53 grams/tonne Au including 0.50 meters @ 57.00
grams/tonne Au in BRAZD301
Soil Surveys
Assays have been received for the majority of samples collected near the mine site and the data is being processed and new targets prioritized. Soil surveying commenced in the unexplored western portion of the Aurizona project (LDW Grid) in November 2010 targeting new gold mineralization within extensions to the west-southwest trending structures that host the gold mineralization in the main Aurizona area. This surveying is ongoing.
Trenching
A trenching program was completed at the Ferradura target in March where gold anomalies were associated with Banded Iron Formations, a mineralization style previously undocumented in the district. These trench samples are currently at the assay laboratory. Trenching was also recently completed at the Conceicao target and samples will be shipped to the assay laboratory in the coming weeks. Trenching will continue throughout 2011 to advance the near mine targets to drill stage.
Permitting
The process of converting the Tatajuba exploration licence, which hosts the Tatajuba deposit, to a mining license advanced during the quarter. The DNPM approved the Company's positive final exploration report in March and work has commenced on the Brazilian Level Feasibility Study (PAE).
Auger Drilling
Auger drilling was completed at the Micote near mine target and the samples are currently at the assay laboratory. Auger drilling commenced at the Piaba East target area with the objective of defining extensions to the main Piaba ore body beyond the current eastern boundary of the resource model. This program is ongoing. Auger drilling also commenced at the newly defined Agenor near mine exploration target and drilling is ongoing.
CACHOEIRA GOLD PROJECT
The Cachoeira Gold Project is located in northern Brazil in the Gurupi Greenstone Belt, approximately 220 kilometres southeast of the Para State capital of Belem and about 270 km northwest of the port city of Sao Luis, Maranhao State. Cachoeira comprises one contiguous block consisting of two mining and two exploration licenses covering approximately 3,826 hectares and an application for an exploration license covering approximately 916 hectares.
On October 9, 2007, Luna Gold announced that it had finalized an option agreement whereby it could earn a 100% interest in the property from a consortium of vendors. According to the terms of the agreement the Company can earn its interest by making a one-time cash payment and by incurring work expenditures over a 50 month period. As at March 31, 2011, the Company had incurred accumulated exploration expenditures of approximately BRL 9.1 million as part of the commitment to incur expenditures of approximately BRL 9.5 million. The Company's interest in the property would be subject to a 4.0% net profits royalty with a provision for a partial buy-out of this royalty.
The major asset associated with Cachoeira is a series of shear zone hosted gold deposits consisting of quartz veins, stockworks and wall rock alteration. Three deposits, Tucano, Arara and Coruja, have been defined to date within the north-south trending Cachoeira Shear Zone. In December, the Company released a maiden NI 43-101 compliant mineral resource estimate at Cachoeira and filed the technical report on February 7th, 2011 on SEDAR.
Cachoeira Regional
The Company is currently auger drill testing several new gold-in-soil anomalies in the northern part of the Cachoeira Shear Zone, which are located outside the main gold deposits defined to date. Results were received for auger drill holes completed at the Bavete target. Zones of narrow mineralization were defined which require follow-up via trenching programs. Drilling was completed at the Arara North target and samples will be shipped to the assay laboratory shortly.
MARANHAO GREENFIELDS EXPLORATION PROPERTY - MARANHAO STATE, BRAZIL
The Maranhao Greenfields exploration property is located to the southwest and southeast of Aurizona and contains multiple shear zones and over 100 historic artisanal gold workings (garimpos). It consists of over 170,000 hectares of contiguous exploration licenses and is located within the Sao Luis Craton, southeast of the Guiana shield, which hosts several major gold deposits including Rosebel and Las Cristinas. Geologic reconstruction of the South American and African continents places the Sao Luis Craton in close proximity to the Birimian Gold Belt of West Africa. Strong geologic and structural similarities exist between the Sao Luis Craton, the Guiana shield and the West African Craton. The area is characterized by low relief and an extensive sedimentary cover sequence with deep weathering profiles. Historic exploration in the district was limited to soil and rock sampling, auger drilling, geophysical surveys and some shallow reconnaissance drill holes.
The Company currently has exploration crews working four targets simultaneously in the Maranhao Greenfields project area. The Company continues its exploration programs throughout the wet season although at reduced rates.
Areal Grid
Areal is located in the north central part of the Maranhao Greenfields area and contains several inactive garimpo (artesan) pits including Areal, Leite, Novo Destino and Iricuri. Partial soil assay results have been received and the final data will be released when all assays have been delivered. A geological mapping program was completed at Areal during the quarter which identified intrusion related gold mineralization associated with several granitoid bodies. Ground magnetic surveying is underway.
JST Grid
Soil and channel samples from the JST Grid are at the assay laboratory.
PC and BML Grids
Soil sampling and regolith mapping continued at the PC grid in the quarter which hosts the Portuguesa and Cearazinho garimpo workings. Line cutting commenced at the new BML target area (eastern area) in January and work is progressing well. A new field base was established to support the eastern Maranhao Greenfields program. Both grids will be completed within 3 months at which time new grids will be initiated. The Company is aggressively exploring its extensive and prospective landholding at Maranhao Greenfields.
SUMMARY OF OPERATING RESULTS - THREE MONTHS ENDED
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---------
(tabled amounts are
expressed in
thousands of US
dollars) Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010
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Revenue 10,357.4 13,656.7 1,620.3 829.5 -
Operating expense (8,728.9) (13,922.3) (5,576.2) (2,393.4) -
Depreciation and
amortization (902.1) (1,783.0) (303.8) (46.9) -
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726.4 (2,048.6) (4,259.7) (1,610.8) -
General &
administration(1) (1,062.0) (1,320.7) (1,367.6) (1,037.0) (1,019.1)
Exploration expense (1,398.7) (665.4) (1,334.5) (725.7) (63.2)
Financing (cost)
income, net (355.6) (491.2) (327.4) (78.6) 30.8
Unrealized gains
(losses) from
derivative
liability 1,628.3 (899.0) 472.7 (520.9) -
Foreign exchange and
other 650.4 519.1 30.4 349.5 4.6
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Net income (loss) 188.8 (4,905.8) (6.786.1) (3,623.5) (1,046.9)
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Basic loss income
per share 0.00 (0.01) (0.02) (0.01) (0.00)
Diluted loss income
per share 0.00 (0.01) (0.02) (0.01) (0.00)
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(1) General and administration consists of general and administrative
expenses, professional fees and stock based compensation charges.
The Company achieved its first quarter of positive operating income and operating cash flow in its history. This achievement was driven by the high gold price, declining cash costs since achieving gold production in the second quarter of 2010 and by a non-cash derivative liability gain.
The Company sold 8,358 ounces of gold bullion compared to 9,594 ounces in the previous quarter. Of the total gold bullion sold, 6,937 ounces was sold at an average realized gold price of $1,401 per ounce and 1,421 ounces were delivered to Sandstorm Gold Ltd. at $400 per ounce, which was 17% of the total gold sold as per the Sandstorm Gold Purchase Agreement.
Operating expense decreased from the previous quarter due to a decrease in the average unit cash cost of production and due to lower sales volumes.
General and administrative expense was lower than the previous quarter due to the costs associated with the recruitment and replacement of the President and Chief Executive Officer of the Company, which were included in the previous quarter's expenses. Excluding those costs, Q1 2011 remained reasonably consistent with prior quarters.
Exploration expense increased over the previous quarters as the Company continued its exploration programs at Aurizona, Cachoeira and Maranhao Greenfields. In the current quarter, the Company spent $2.9 million at Aurizona (capitalized in mineral properties for accounting purpose), $0.6 million at Cachoeira and $0.7 million at Maranhao Greenfields.
Net financing cost was lower due to interest earned on higher cash balances outstanding during the quarter as compared to the previous quarter. Due to the transition to IFRS, warrants outstanding were classified as a derivative liability and were re-classed from share capital to liability. This derivative liability is to be mark-to-market every period end and will fluctuate based on factors such as Company's stock price and volatility. The non-cash unrealized gains and losses resulted from the required revaluation from the current quarter end. Foreign exchange gain was the result of positive currency movements for the Company on its funds held in foreign currencies.
LIQUIDITY AND CAPITAL RESOURCES - THREE MONTHS ENDED MARCH 31
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(tabled amounts are expressed in thousands
of US dollars) 2011 2010 2009
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Cash flows from operating activities
- Before working capital (801.7) (385.4) (928.8)
- After working capital 425.7 (1,650.0) (1,902.0)
Cash flows from financing activities (1,143.2) 13,910.1 24,774.8
Cash flows from investing activities (5,955.6) (15,858.7) (1,673.1)
Effect of exchange rates on cash 58.2 (41.9) (165.6)
Net cash flows (6,673.1) (3,598.6) 21,199.7
Cash balance 4,088.7 8,925.0 21,390.0
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The Company had approximately $4.1 million in cash and 3,227 ounces of finished gold on hand at March 31. The Company achieved its first positive operating cash inflow after working capital movements in its history. This achievement was the result of the positive net income in the quarter and an increase in accounts payable. The accounts payable increased from the previous quarter due to the receipt of the plant upgrades near the end of the quarter, which were implemented subsequent to quarter end.
Financing activities included a payment of $1.7 million on the Aurizona project debt facility and cash proceeds of approximately $0.6 million from the exercise of stock options. Cash flow from financing activities was significantly lower than the comparative quarter as the comparative quarter included the drawdown of the RMB debt facility.
Investing activities included payments of $2.9 million of capitalized exploration costs related to the brownfield exploration program to increase the resource at Aurizona. The balance of investment activity cash outflow was related to equipment purchases and plant upgrades at the Aurizona plant. Cash outflow from investing activities was significantly lower than the comparative quarter as the plant was substantially completed in late 2010.
In March, the Company accepted an indicative proposal for financing of a senior secured credit facility of up to $30 million to refinance the existing Aurizona project debt facility, fund future capital expenditures and provide additional working capital related to the Aurizona operation. The proposed facility would consist of a $20 million senior secured term loan ("Term Loan") and a $10 million senior secured revolving facility ("Revolving Facility"). The Term Loan would bear interest at 6-month Libor plus 3.625% per annum, be repaid in equal semi-annual instalments commencing twelve months from the closing date and would mature five years from the closing date. The Revolving Facility would bear interest at 6-month CDI plus 3.25% per annum, be repaid in full on the final maturity date and mature three years from the closing date. This proposed financing is currently subject to due diligence and final approval by the lender.
This proposed financing will assist the Company in its plans to upgrade the Aurizona production facility to achieve a production rate of 100,000 ounces per annum, subject to the results of the Company's proposed scoping study, and allow for additional working capital and liquidity in the current year.
As at March 31, 2011, the Company had the following contractual obligations outstanding:
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(tabled
amounts are
expressed in Less
thousands of than 1 - 2 2 - 3 3 - 4 4 - 5 There-
US dollars) Total 1 year years years years years after
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Long term
debt 20,148.7 9,238.5 7,545.7 2,545.8 545.8 272.9 -
Accounts
payables 6,507.2 6,507.2 - - - - -
Asset
retirement
obligation 8,072.3 - - - - - 8,072.3
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Aurizona Project Debt Facility
In December 2009, the Company entered into a senior secured, project debt facility (the "Facility") in the amount of up to $15.0 million with RMB Resources Inc. to assist in the completion of the Aurizona processing plant. The facility is comprised of two tranches in the amount of $7.5 million each, that each bear interest at LIBOR plus 7.5% and are to be fully repaid by December 31, 2012. The facility is secured by a first fixed floating charge over Aurizona, a first mortgage over the shares of Mineracao Aurizona S.A. ("MASA") and the rights, titles and licenses associated with Aurizona and a general security agreement between Luna Gold Corp. and RMB Resources Inc.
The Company shall maintain a Loan Life Net Present Value Cover Ratio ("LLNPVCR") greater than 1.5 over the life of the loan. The LLNPVCR is defined as the net present value of the project cash flow from the calculation date to the final repayment date, as determined from the cash flow model that is agreed upon by the Company and RMB.
Commitment from Acquisition of Aurizona Goldfields Corporation
In January 2007, the Company acquired the Aurizona property from Brascan Brasil ("Brascan") and Eldorado Gold Corporation ("Eldorado") in exchange for a series of staged payments (the "Purchase Agreement"), some of which were conditional upon the project reaching commercial production, as defined in the Purchase Agreement. The Company has repaid all outstanding amounts in relation to this agreement but remained liable for payments of $1.0 million payable to each party on the first, second and third anniversary of the commencement of commercial production of Aurizona. As defined under the terms of the Purchase Agreement, the Company achieved commercial production on December 2, 2010 resulting in the first payment becoming due and payable on December 2, 2011.
FINAME Equipment Purchase Financing ("FINAME")
In February 2011, the Company entered into debt financing in the amount of 4.0 million Brazilian Reais ("BRL") to purchase mining equipment through the FINAME financing program, which is administered through the Brazilian Development Bank ("BNDES"). Interest is calculated at 5.5% per annum and are repayable in equal monthly instalments beginning September 15, 2011 and ending February 15, 2016.
SHAREHOLDERS' EQUITY
Shareholders' equity increased over the prior year due to the Company's equity financing activities during the period, which was partially offset by an increase in the deficit.
As at the date of this report the Company had 443,522,764 shares outstanding, 21,751,666 share purchase options and 22,606,223 common share warrants outstanding.
The following is a summary of stock options outstanding as at the date of this report:
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--
------------------------------------------------------------------
Vested Price per share
Number of shares ('000s) ('000s) CA$ Expiry Date
--------------------------------------------------------------------
275 275 0.30 15-May-11
100 100 0.50 14-Mar-12
365 365 0.85 8-Aug-12
210 210 1.23 16-Jan-13
165 165 1.05 2-May-13
250 250 0.90 20-Jun-13
6,091 6,091 0.42 24-Jul-14
750 750 0.37 29-Jul-14
100 67 0.55 4-Jan-15
1,370 457 0.63 5-Jul-15
5,000 1,000 0.58 24-Sep-15
7,075 - 0.65 12-Apr-16
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21,751 9,730
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The following is a summary of warrants outstanding as at the date of this report:
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--
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Numb
er of warrants ('000s) Price per share CA$ Expiry Date
--------------------------------------------------------------------
15,747 0.80 14-Jun-11
6,859 1.00 20-Jun-12
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22,606
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OUTLOOK AND STRATEGY
Aurizona Gold Mine
The Company continues to target its 2011 production to be between 55,000 ounces and 60,000 ounces of gold at an estimated cash cost between $610 and $620 per ounce of production. The capital upgrades needed to rectify the identified production constraints were successfully completed in April and the plant is currently ramping up to produce gold at feasibility study levels. Programs are underway to reduce current cash costs to achieve the targeted cash cost through a planned retrenchment program, improved maintenance programs and implementing the Company's own mining team to reduce reliance on mining contractors.
The Company remains targeted on spending approximately $10.5 million on capital projects and upgrades at the Aurizona mine in 2011. These items include $4.4 million to complete the mine construction and $6.1 in sustaining capital, including $2.5 million allocated for surface rights acquisition.
The Aurizona brownfield exploration and drill program remains on target to produce an updated NI 43-101 resource estimate for release in Q4.
Cachoeira Gold Property
The Company is targeting on completing the Cachoeira scoping study (the "Scoping Study") in Q3 2011 that will deliver the path forward to developing Cachoeira into a mining project feasibility study.
Maranhao Greenfields Property
The Company continues to aggressively explore the extensive Maranhao Greenfields property to discover new gold deposits and will maintain exploration crews working four targets simultaneously throughout 2011. Regional scale exploration is underway designed to generate large gold-in-soil anomalies consistent with the Aurizona mineralization style. Through these programs the Company intends to define between six and eight new target areas, several of which will be brought to drill stage in 2012.
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
(expressed in thousands of U.S. dollars, except where indicated)
---------------------------------------------------------------------------
Three months ended
--------------------
March 31, March 31,
Note 2011 2010
---------------------------------------------------------------------------
Revenue
Gold sales 8 $ 10,357.4 $ -
---------------------------------------------------------------------------
10,357.4 -
---------------------------------------------------------------------------
Operating expenses
Cost of goods sold (8,728.9) -
Depletion and amortization (902.1) -
---------------------------------------------------------------------------
726.4 -
---------------------------------------------------------------------------
Other (expenses) income, net
Exploration (1,398.7) (63.2)
General and administrative 9 (717.6) (410.2)
Unrealized gains on derivative liability 10 1,628.3 -
Foreign exchange gain (loss) 619.1 (22.9)
Stock-based compensation 6 (344.4) (608.9)
Finance income 117.2 76.7
Finance cost (472.8) (45.9)
Other (expense) income 31.3 27.5
---------------------------------------------------------------------------
Net income (loss) and
comprehensive (loss)
income for the period $ 188.8 $(1,046.9)
---------------------------------------------------------------------------
Earning (Loss) per common share
Basic 0.00 (0.00)
Diluted 0.00 (0.00)
Weighted average shares outstanding (000's)
Basic 435,638 358,839
Diluted 441,957 358,839
---------------------------------------------------------------------------
Total shares issued and outstanding (000's) 436,213 358,837
---------------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated
financial statements.
Interim Consolidated Statements of Financial Position
(expressed in thousands of U.S. dollars, except where indicated)
---------------------------------------------------------------------------
March 31, December 31, January 1,
Note 2011 2010 2010
---------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 4,088.7 $ 10,703.6 $ 12,565.5
Accounts receivable and prepaid
expenses 2,693.9 3,647.9 743.7
Inventory 8,707.1 6,325.5 393.6
Investments - - 2,942.9
---------------------------------------------------------------------------
15,489.7 20,677.0 16,645.7
Property, plant and equipment 4 95,978.4 88,166.0 54,867.6
Other assets 1,590.0 1,089.5 408.1
---------------------------------------------------------------------------
Total assets $ 113,058.1 $ 109,932.5 $ 71,921.4
---------------------------------------------------------------------------
Liabilities
Current liabilities
Accounts payable and accrued
liabilities $ 6,507.2 $ 3,524.2 $ 5,364.6
Current portion of derivative
liability 317.5 1,605.8 -
Current portion of debt
instruments 5 8,986.5 8,118.3 301.6
Current portion of unearned
revenue 1,675.5 1,748.2 1,787.2
---------------------------------------------------------------------------
17,486.7 14,996.5 7,453.4
Debt instruments 5 9,431.7 9,383.2 4,989.2
Derivative liability 633.6 1,019.2 -
Unearned revenue 19,737.3 19,917.9 20,308.8
Asset retirement obligation 2,317.2 2,370.9 2,108.5
---------------------------------------------------------------------------
Total liabilities 49,606.5 47,687.7 34,859.9
---------------------------------------------------------------------------
Shareholders' equity
Share capital 108,251.3 107,233.3 65,687.7
Deficit (44,799.7) (44,988.5) (28,626.2)
---------------------------------------------------------------------------
Total shareholders' equity 63,451.6 62,244.8 37,061.5
---------------------------------------------------------------------------
Total liabilities and
shareholders' equity $ 113,058.1 $ 109,932.5 $ 71,921.4
---------------------------------------------------------------------------
---------------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated
financial statements.
Interim Consolidated Statements of Changes in Shareholders'
Equity and Deficit
(expressed in thousands of U.S. dollars, except where indicated)
---------------------------------------------------------------------------
Attributable to equity holders of the Company
---------------------------------------------------------------------------
Contri-
Share buted
Notes Shares capital surplus Deficit Total
---------------------------------------------------------------------------
Balance at
January 1, 2010 358,837 60,063.2 5,624.5 (28,626.2) 37,061.5
Net loss for the
period - - - (1,046.9) (1,046.9)
Stock options
exercised 100 66.5 (25.2) - 41.3
Stock-based
compensation
charges - 702.6 - 702.6
---------------------------------------------------------------------------
Balance at
March 31, 2010 358,937 $ 60,129.7 $ 6,301.9 $(29,673.1) $ 36,758.5
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Balance at
January 1, 2010 358,837 60,063.2 5,624.5 (28,626.2) 37,061.5
Net loss for the
year - - - (16,362.3) (16,362.3)
Escrow shares
returned to
treasury and
cancelled (214) (35.7) 35.7 - -
Stock options
exercised 3,267 1,183.2 (405.6) - 777.6
Stock-based
compensation
charges - - 1,952.9 - 1,952.9
Issue of share
capital, net 72,649 38,701.6 113.6 - 38,815.2
---------------------------------------------------------------------------
Balance at
December 31,
2010 434,539 $ 99,912.3 $ 7,321.1 $(44,988.5) $ 62,244.9
---------------------------------------------------------------------------
Net income for the
period - - - 188.8 188.8
Stock options
exercised 6 1,674 1,083.8 (410.3) - 673.5
Stock-based
compensation
charges 6 - - 344.4 - 344.4
---------------------------------------------------------------------------
Balance at
March 31, 2011 436,213 $100,996.1 $ 7,255.2 $(44,799.7) $ 63,451.6
---------------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated
financial statements.
Interim Consolidated Statements of Cash Flows
(expressed in thousands of U.S. dollars, except where indicated)
---------------------------------------------------------------------------
Three months ended
---------------------------------------------------------------------------
March 31, March 31,
Notes 2011 2010
---------------------------------------------------------------------------
Cash flows from operating activities
Net income (loss) for the period $ 188.8 $ (1,046.9)
Items not affecting cash
Depletion and amortization 919.3 8.5
Recognition of unearned revenue (253.3) -
Unrealized foreign exchange (gains) losses (584.8) 16.7
Unrealized gains from warrant liability (1,628.3) -
Stock-based compensation charges 6 344.4 608.9
Accretion of asset retirement obligation 65.8 45.9
Accretion of interest 146.4 -
Other - (18.5)
---------------------------------------------------------------------------
(801.7) (385.4)
Change in non-cash operating working
capital
Decrease in accounts receivable and prepaid
expense 932.2 71.1
Increase in inventory (1,895.0) (1,259.7)
Increase in accounts payable and accruals 2,287.8 -
Payments to the Departamento Nacional de
Producao Mineral ("DNPM") (97.6) (76.0)
---------------------------------------------------------------------------
425.7 (1,650.0)
---------------------------------------------------------------------------
Cash flows from financing activities
Proceeds from debt financing, net - 13,868.8
Payment of debt financing fees (150.0) -
Repayment to principal of debt financing (1,666.7) -
Proceeds on issuance of common shares 673.5 41.3
---------------------------------------------------------------------------
(1,143.2) 13,910.1
---------------------------------------------------------------------------
Cash flows from investing activities
Proceeds from disposal of investments - 2,964.2
Payments for property, plant and equipment (5,955.6) (18,822.9)
---------------------------------------------------------------------------
(5,955.6) (15,858.7)
---------------------------------------------------------------------------
Effect of exchange rate changes on cash 58.2 (41.9)
Decrease in cash and cash equivalents (6,673.1) (3,598.6)
Cash and cash equivalents -
beginning of period 10,703.6 12,565.5
---------------------------------------------------------------------------
Cash and cash equivalents - end of period $ 4,088.7 $ 8,925.0
---------------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated
financial statements.
On behalf of the Board of Directors
LUNA GOLD CORP.
John Blake, President and CEO
Forward Looking Statements
This MD&A includes certain statements that constitute "forward-looking statements", and "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements" and "forward-looking information" are collectively referred to as "forward-looking statements", unless otherwise stated). These statements appear in a number of places in this MD&A and include statements regarding our intent, or the beliefs or current expectations of our officers and directors. Such forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this MD&A, words such as "believe", "anticipate", "estimate", "project", "intend", "expect", "may", "will", "plan", "should", "would", "contemplate", "possible", "attempts", "seeks" and similar expressions are intended to identify these forward-looking statements.
Forward-looking statements may relate to the Company's future outlook and anticipated events or results and may include statements regarding the Company's future financial position, business strategy, budgets, litigation, projected costs, financial results, taxes, plans and objectives. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. These forward-looking statements were derived utilizing numerous assumptions regarding expected growth, results of operations, performance and business prospects and opportunities that could cause our actual results to differ materially from those in the forward-looking statements. While the Company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Accordingly, you are cautioned not to put undue reliance on these forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results. To the extent any forward-looking statements constitute future-oriented financial information or financial outlooks, as those terms are defined under applicable Canadian securities laws, such statements are being provided to describe the current anticipated potential of the Company and readers are cautioned that these statements may not be appropriate for any other purpose, including investment decisions. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, we assume no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements. If we update any one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. You should not place undue importance on forward-looking statements and should not rely upon these statements as of any other date. All forward-looking statements contained in this MD&A are expressly qualified in their entirety by this cautionary statement.
Other Technical Information
Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's VP of Exploration, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration programs and has reviewed the corresponding technical disclosure throughout this MD&A. John Blake Ph.D., Certified Mining Engineer, Luna's President and CEO is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the development programs and has reviewed the corresponding technical disclosure throughout this MD&A.
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.
Contacts:
Luna Gold Corp.
Investor Relations
(604) 689-7317 or toll free: 1-866-689-7317
(604) 688-0094 (FAX)
www.lunagold.com
Luna Gold Increases Operational and Exploration Strength ofManagement
May 5, 2011 08:32:05 (ET)
VANCOUVER, BRITISH COLUMBIA, May 05, 2011 (MARKETWIRE via COMTEX) -- Luna Gold Corp. ("Luna Gold" or the "Company") is pleased to announce the strengthening of its management team as it continues to work to increase production at the Aurizona gold mine, expand the resource base at Aurizona and the Maranhao Greenfields, and to continue development of the Company's Cachoeira project.
Luna Gold welcomes Peter Mah as Vice President Operations and Carlos Paranhos as Director Exploration Brazil.
John Blake, President and CEO said, "Luna Gold is indeed fortunate to have Messrs. Mah and Paranhos join the Luna Gold management team. The combination of the high quality of the strength and experience of Luna Gold's current management team with the experience of Peter Mah and Carlos Paranhos will consolidate the quality of the resources of Luna Gold's management team and position Luna Gold to achieve its next level of development as an emerging gold producer."
Mr. Mah and Mr. Paranhos, working alongside the Company's senior management team, will work to oversee production and future expansion of the Aurizona gold mine and the development of the Company's pipeline projects in Brazil.
Mr. Mah has over 20 years of practical mine operations and development experience spanning project studies, construction and operations management with some of the industry's largest major producers. As Group Executive, Newmont Mining Corporation, he was responsible for the strategic business development of 20 to 40 million ounces of early stage global gold projects. Prior to Newmont, Mr. Mah was the Mine General Manager of the Debeers Victor open pit mine, Ontario's first diamond mine. There he led the development of the operating team during construction and operations. In 2009, the project was recognized globally by Mining Magazine as "Mine of the Year". Mr. Mah's international track record includes attracting and leading world-class teams where, as Mine Manager he oversaw construction and operations for Newcrest's 450,000 ounce per annum Kencana gold mine, Indonesia's first underhand cut and fill mine. Mr. Mah's extensive mining operations experience includes various engineering, project, strategic business planning and production roles with Goldcorp's Red Lake and the Campbell Red Lake and Musselwhite Mines formerly owned and operated by Placer Dome. Mr. Mah has extensive experience in the management of safety, health, environment, community engagement, government relations and social responsibility programs.
Mr. Mah holds a Bachelor's of Applied Science in Mining and Mineral Process Engineering and a Master's of Applied Science majoring in Rock Mechanics from the University of British Columbia, Canada. He is a registered Professional Engineer in the Province of Ontario, Canada and was formerly a member of the Ontario Mining Association Board of Directors. Mr. Mah will be based in Vancouver and report to the President and CEO.
Mr. Paranhos graduated with a B.Sc. in Geology from the University of Para (UFPA) in 1993 and was awarded an M.Sc. in Structural Geology in 1996 from UFPA for his work on the structural framework of the Gurupi Region of northeast Brazil. Mr. Paranhos has spent over 15 years working and managing both greenfields and brownfields gold exploration programs in South America and Africa with AngloGold Ashanti. During his time in Africa, Mr. Paranhos made significant contributions to determining structural controls on several major gold deposits resulting in increased life of mine. Recently Mr. Paranhos acted as Exploration Coordinator for AngloGold Ashanti Brazil in the prolific Iron Quadrangle Region of Minas Gerais State where he was responsible for setting-up and running regional exploration programs targeting an additional 6 million ounces of gold of new inferred resources to the existing AngloGold Ashanti Brazil mineral statement.
About Luna Gold Corp.
NEWS RELEASE April 18
Vancouver, April 18, 2011 – Luna Gold Corp. (TSXV-LGC) (“Luna Gold” or the “Company”) is pleased to announce positive assay results from seven new holes from its ongoing resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map and cross sections have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below. Significant mineralized intercepts are highlighted below:
55.00 meters @ 4.15 grams/tonne Au including 1.00 meter @ 20.00 grams/tonne Au and 17.00 meters @ 7.80 grams/tonne Au in BRAZD293A
21.00 meters @ 2.50 grams/tonne Au including 8.00 meters @ 5.21 grams/tonne Au in BRAZD297
29.00 meters @ 2.53 grams/tonne Au including 0.50 meters @ 57.00 grams/tonne Au in BRAZD301
Direct Links
1100W
1200W
1300W
Piaba Drill Plan Map
Luna Gold’s President & CEO, John Blake, comments, "We are again pleased with the level of consistency in our drill results that demonstrate the strike and depth continuity of the ore body. Consistent mineralization along strike and at depth is encouraging for our objective to increase gold ounces in our resource. These excellent results gives a high level of confidence in the resource upgrade planned for Q4 2011.”
Luna Gold’s VP Exploration, Titus Haggan, states, “These are significant results from the west central sector of the Piaba deposit which has seen relatively little drilling. Our exploration programs continue to unlock the potential of the Aurizona Project which is quickly proving to be a significantly larger mineralizing system than previous drilling demonstrated.”
The Company approved a major 2011 exploration budget for the Aurizona and Maranhão Greenfields projects and will continue to aggressively drill the Aurizona deposits, with the goal of expanding our current resource base ahead of a scoping study to increase annual gold production beyond 100,000 ounces per year from end 2012.
Of the current 20,000 meter drill program, which commenced in August 2010, assays from 25 holes totaling 6,613 meters have been received and samples from 14 additional holes are currently at the assay lab. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources.
Today’s assay results received were for seven drill holes totaling approximately 1,746 meters drilled on three sections in the west central portion of the Piaba deposit. In six holes, core was not recovered from surface to accelerate drill production and reduce costs. All drill holes intersected gold mineralization and the deposit remains open at depth on all sections. Significant mineralized intercepts are tabulated below.
ot - you a glass blower or lampworker by chance?
I rock a herbie.
go luna
Pardon me only 8.5%
Have you any Grey Poupon?
b4
hehe
Nice 5.5% gain so far today. That sure beats the .5% APR my savings account pays, haha!
b4
if you want anything added let me know
Very nice work on the Ibox, melt! I can't thank you enough!
b4
From your lips to God's ears!
Move up the food chain, Sir.
b4
I'll scrape up something I have a bunch of r/c sailplane crap I don't use that's been just itching to go to ebay.
Yeah, I often enjoy pm's post it was an easy decision.
Bad plan, nbri and sgcp are just starting. Can't sell the babies. The big money is coming. Find new money and the offer will always be open. Great choice of pm, I love that effer!
b4
Sounds good but I need to get paid by sgcp or nbri first I'm always looking for something good especially in the precious metals area.
Maybe I'll save few bucks and check this out.
I have a pit-bull named LUNA
luna is that Spanish for to da moon!
You did so well on the other board. Charts are not my strong suit. Open a position and be my asst. mod. Please...Please!
Luna is a really great stock with Casey Research behind it. Like b4, NO ONE TO TRIFLE WITH.
b4
Ha Ha Ha! if anyone came here I would work on the board. Since it is ignored I will keep all the profit for myself (and the rest of the smart investors that don't waste time on the Hub.)
Always glad to hear from you melt!
b4
why doesn't the chart and pps show up?
what's they story here?
LUNA GOLD DRILLS 19.00 M @ 1.45 G/T AU AND 2.00 M @ 130.45 G/T AU AT AURIZONA
Mar 15, 2011 08:30:00 (ET)
VANCOUVER, March 15, 2011 /PRNewswire via COMTEX/ -- Luna Gold Corp. ("Luna" or the "Company") is pleased to announce positive assay results from eight holes from its ongoing resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map and cross sections have been uploaded to the Luna Gold website at www.lunagold.com or to view directly click below. Significant mineralized intercepts are highlighted below:
19.00 m @ 1.45 g/t Au including 2.00 m @ 5.99 g/t Au and 1.00 m @ 6.44 g/t Au in BRAZD285
15.00 m @ 1.46 g/t Au including 1.00 m @ 4.20 g/t Au in BRAZD286
9.00 m @ 2.23 g/t Au including 1.00 m @ 10.65 g/t Au and 2.00 m @ 8.85 g/t Au in BRAZD287
2.00 m @ 130.45 g/t Au and 6.00 m @ 1.67 g/t Au including 2.00 m @ 3.83 g/t Au in BRAZD288
Direct Links
400W 900W 1000W Aurizona Drill Plan Map Feb. 2010
Luna's President & CEO, John Blake, comments, "We are pleased with the level of consistency in our drill results that demonstrate the strike and depth continuity of the ore body. Consistent mineralization along strike and at depth is encouraging for our objective to increase gold ounces in a resource update at the completion of our drill program planned for delivery in the Q4 of 2011."
The Company embarked on a 20,000 m drill program in August 2010 and currently has seven drill rigs in operation at Aurizona. Assays from 15 holes have been received and samples from 7 additional holes are at the assay lab. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources. Holes are being drilled on 100 meter spaced sections to a maximum depth of -300 meters RL. Drill production has increased significantly in recent weeks.
Complete assay results have been received for eight drill holes totaling approximately 1,738 m drilled on five sections in the central portion of the Piaba deposit. In seven holes core was recovered from 100 meters depth to accelerate drill production and reduce costs. All drill holes intersected gold mineralization and the deposit remains open at depth on all sections. Significant mineralized intercepts are tabulated below.
SECTION HOLE ID AZI DIP START DEPTH (M) END DEPTH (M) FROM (M) TO(M) INT(M) AU (G/T) UNCAPPED
100W BRAZD284 168 62 100.00 238.50 210.00 221.00 11.00 0.98
224.00 234.00 10.00 0.59
BRAZD289 168 51 100.00 229.75 150.00 154.00 4.00 0.67
163.00 171.00 8.00 1.52
199.00 206.00 7.00 1.31
200W BRAZD285 168 59 100.00 295.80 156.00 157.00 1.00 4.54
161.00 166.00 5.00 1.17
182.00 223.00 41.00 0.95
INCLUDING 190.00 191.00 1.00 4.58
INCLUDING 211.00 212.00 1.00 6.97
232.00 239.00 7.00 1.19
245.00 264.00 19.00 1.45
INCLUDING 253.00 255.00 2.00 5.99
INCLUDING 260.00 261.00 1.00 6.44
286.00 291.00 5.00 1.45
400W BRAZD287 168 71 100.00 377.65 164.00 168.00 4.00 1.18
172.00 177.00 5.00 0.81
181.00 186.00 5.00 0.72
216.00 225.00 9.00 0.78
231.00 234.00 3.00 1.50
252.00 253.00 1.00 12.55
261.00 265.00 4.00 1.70
296.00 299.00 3.00 1.55
307.00 311.00 4.00 1.76
315.00 324.00 9.00 2.23
INCLUDING 323.00 324.00 1.00 10.65
330.00 335.00 5.00 1.06
374.00 376.00 2.00 8.85
BRAZD291 168 63 100.00 319.25 142.00 146.00 4.00 1.43
166.00 167.00 1.00 15.85
173.00 179.00 6.00 2.59
INCLUDING 175.00 176.00 1.00 10.00
204.00 214.00 10.00 0.84
INCLUDING 213.00 214.00 1.00 3.29
220.00 233.00 13.00 0.62
244.00 250.00 6.00 0.99
270.00 273.00 3.00 1.54
278.00 282.00 4.00 1.00
292.00 300.00 8.00 1.90
INCLUDING 294.00 295.00 1.00 7.08
309.00 314.00 5.00 2.02
900W BRAZD286 168 67 100.00 293.65 161.00 162.00 1.00 16.95
169.00 184.00 15.00 1.46
INCLUDING 183.00 184.00 1.00 4.20
270.00 272.00 2.00 2.47
BRAZD288 168 55 100.00 202.00 144.00 145.00 1.00 4.29
151.00 153.00 2.00 130.45
159.00 166.00 7.00 0.76
169.00 176.00 7.00 1.38
INCLUDING 171.00 172.00 1.00 4.83
180.00 186.00 6.00 1.67
INCLUDING 184.00 186.00 2.00 3.83
lOOOW BRAZD290 168 78 0.00 481.35 300.00 314.00 14.00 0.93
Table 1. Mineralized drill intercepts from the ongoing Aurizona resource drill program. Intervals are calculated as composites using a 0.30 g/t Au cut-off and maximum 2 meter internal waste. True widths to be established.
Luna's VP Exploration, Titus Haggan, states, "Drilling rates have accelerated significantly with the mobilization of two additional rigs and we are currently on schedule to finalize drilling ahead of an updated resource estimate at Aurizona in the fourth quarter of 2011. Near mine exploration targets are also being brought to the drill stage and will be included in the 2011 resource update."
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 state Brazil, development is the Cachoeira deposit Para, Brazil and the Company is exploring in a large strategically placed land position in Maranhão, Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
John Blake- President and CEO
Luna is up 60% and still way undervalued. Producing miners are really ripe to be take over targets.
b4
February 16, 2011
Luna Gold Intersects 81.50 Meters @ 1.18 G/T Au Including 2.04 Meters @ 9.15 G/T Au and 5.10 Meters @ 3.15 G/T Au in Boa Esperança Trenches, Aurizona
Vancouver, February 16, 2011 -- Luna Gold Corp. (TSXV-LGC) ("Luna Gold" or the "Company") is pleased to announce positive trenching results from the Boa Esperança near mine exploration target, located 1 kilometer southeast of the Piaba deposit in the Aurizona Main project area. Plan maps showing the location of the Boa Esperança target and the individual trench results have been uploaded to the Luna Gold website at www.lunagold.com. Highlights include:
•81.50 meters @ 1.18 g/t Au including 2.01 meters @ 7.61 g/t Au, 2.04 meters @ 9.15 g/t Au and 5.10 meters @ 3.15 in trench BE-TR-000
•65.82 meters @ 1.15 g/t Au including 2.00 meters @ 3.07 g/t Au and 3.90 meters @ 3.30 g/t Au in trench BE-TR-100E
Luna's President & CEO, John Blake, comments, "Luna Gold is pleased with the results at Boa Esperança which is now a drill ready target with high potential to increase the Aurizona resource. The results validate our exploration team's methodology and strategy to build on the Company's resource base. Boa Esperança is one of ten potential satellite deposits identified as high priority resource definition targets, located close to the Aurizona processing plant."
An increased resource will allow Aurizona to increase production, while maintaining a long mine life. An updated Aurizona resource statement is expected to be released in Q4 2011 following completion of the Aurizona resource definition program. A sixth drill rig has been mobilized to the project and is in operation, and a seventh rig is expected on site shortly.
LUNA GOLD FILES NI 43-101 TECHNICAL REPORT FOR INITIAL RESOURCE ESTIMATE AT THE CACHOEIRA GOLD DEPOSIT, BRAZIL
Feb 10, 2011 13:59:00 (ET)
VANCOUVER, Feb 10, 2011 /PRNewswire via COMTEX/ -- Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce the February 07, 2011 SEDAR filing of a National Instrument 43-101 Technical Report, in support of the recently announced initial resource estimate at the Cachoeira gold project in Northern Brazil (see Luna press release dated December 23, 2010). Cachoeira consists of a series of orogenic gold deposits and is located in the north central portion of the Gurupi Gold Belt.
The Technical Report was completed 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. All deposits are open along strike and at depth.
The Technical Report has been filed on SEDAR and can also be viewed at Luna Gold's website at www.lunagold.com or directly here.
John Blake, Luna's President & CEO, 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 cost. The next step in our process is the commencement of a scoping study, based on this NI 43-101 initial resource estimate to further progress Cachoeira into a mine project."
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, 13% 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.
LUNA GOLD ANNOUNCES COMMERCIAL PRODUCTION AT AURIZONA
Feb 9, 2011 08:30:00 (ET)
VANCOUVER, Feb 09, 2011 /PRNewswire via COMTEX/ -- Luna Gold Corp. (TSXV-LGC) ("Luna Gold" or the "Company") is pleased to announce the commencement of commercial production at the Company's Aurizona Gold Mine ("Aurizona"), located in Maranhão State, Brazil.
Aurizona Gold Mine Status Highlights:
Gold Production for November and December 2010 and January 2011, totals 10,905 ounces
Combined 90-day average throughput rate in excess of 3,615 tonnes per day, including peak daily throughputs as high as 5,000 tonnes
Additional plant modifications to be completed in February and March 2011 will increase productive capacity and provide more consistency in production
Full production ramp-up to consistently produce 4,500 tonne-per-day capacity is on schedule from April 2011
On track to meet 2011 gold production guidance of 55,000 to 60,000 ounces
"Over the course of its construction and production ramp-up, Aurizona has overcome significant challenges and achieved an operational milestone today with the commencement of commercial production," said John Blake, President and CEO, of Luna Gold Corp.
"Our operational and exploration teams have demonstrated their skills and expertise to achieve this production milestone. We will apply these skills to our next suite of growth projects, which include the expansion of the Aurizona production capacity, increasing the Aurizona resource base, advancing the Cachoeira development project and fast tracking new discoveries in our highly prospective 170,000 ha land holding in Maranhão State."
Gold is now being routinely produced and sold to customers around the world. As this successful ramp-up continues, the Company will focus on cost reduction and the acceleration of cash flows. Guidance on production and cash operating costs will be provided in the next quarterly report.
Aurizona's feasibility study has a designed processing capacity in year one of 55,000 ounces of Gold, ramping up to 60,000 ounces of gold per year for an 11 year mine life.
The Company continues to advance a number of initiatives to further enhance the economics at Aurizona with the aim to increase production capacity. To provide for this additional capacity, the Company is undertaking major drill programs at Aurizona with the aim of increasing the resource base. There is potential for significant supplemental gold production from satellite deposits identified in the near mine area. The Company also holds an additional 170,000 ha of exploration licenses in the state of Maranhão, where exploration teams have identified several priority targets which are being advanced to drill stage. Additionally, the Company is planning to commence a scoping study based on the recently announced NI 43-101 maiden resource estimate at Cachoeira, in Para state, Brazil.
Canadian Gold Company's Brazil Project Targeted By Robbers
Dec 30, 2010 07:16:32 (ET)
DOW JONES NEWSWIRES
A Canada-based junior mining company exploring for gold in Brazil was the target of an armed robbery Wednesday.
Vancouver-based Luna Gold Corp. (LGC.V) said a group of armed robbers took about 1,500 ounces of gold from its Aurizona operation, which is in Maranhao State. No one was injured.
Gold has recently been trading above $1,400 an ounce.
Luna said it has insurance to cover this type of loss and is in the process of filing a claim. The robbery is under investigation by local police.
Luna, which trades on the TSX Venture Exchange, is focused on fast-tracking the development of the Aurizona project. Its other Brazil gold project is called Cachoeira.
-By Carolyn King, Dow Jones Newswires; 416-306-2100; carolyn.m.king@dowjones.com
(END) Dow Jones Newswires
December 30, 2010 07:16 ET (12:16 GMT)
News Releases December 23, 2010
Luna Gold Announces Initial Resource Estimate at Cachoeira
http://www.lunagold.com/s/NewsReleases.asp?ReportID=434715
Vancouver, December 23, 2010 - 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.
LUNA GOLD DRILLS 32.00 M @ 3.20 G/T AU AND 15.00 M OF 2.66 G/T AU INCLUDING 4.00 M OF 7.49 G/T AU AT AURIZONA
Vancouver, December 14, 2010 – Luna Gold Corp. (TSXV-LGC) (“Luna” or the “Company”) is pleased to announce positive assay results from the first seven holes from its ongoing resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map has been uploaded to the Luna Gold website at www.lunagold.com or to view directly click here. Significant mineralized intercepts are highlighted below.
15.00 m @ 2.66 g/t Au including 4.00 m @ 7.49 g/t Au in BRAZD278
30.00 m @ 1.32 g/t Au including 1.00 m @ 7.37 g/t Au and 3.00 m @ 5.06 g/t Au in BRAZD279A
32.00 m @ 3.20 g/t Au including 1.00 m @ 60.60 g/t Au and 16.00 m @ 2.13 g/t Au including 4.00 m @ 6.57 g/t Au and 6.00 m @ 2.87 g/t Au in BRAZD282
5.00 m @ 4.45 g/t Au and 7.00 m @ 2.01 g/t Au including 1.00 m @ 9.74 g/t Au in BRAZD283
Luna’s President & CEO, John Blake, comments, “Our drill results continue to be very encouraging and fully support the confidence we have that the overall Aurizona gold resource has potential to grow significantly as we continue to drill the Piaba deposit. The structurally controlled mineralization in these latest drill holes confirms our deposit model which is consistent with other gold deposits in the Guiana Shield.”
The 2010 drill program commenced at the start of September and the Company currently has five rigs in operation. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources. Holes are being drilled on 100 meter spaced sections to a maximum depth of -300 meters RL.
Complete assay results have been received for seven drill holes totaling approximately 2379 m drilled on three sections in the central portion of the Piaba deposit. For several holes core was not recovered from surface to accelerate drill production and reduce costs. All drill holes intersected gold mineralization and the deposit remains open at depth on all sections. Significant mineralized intercepts are tabulated below.
LUNA GOLD DRILLS 32.00 M @ 3.20 G/T AU AND 15.00 M OF 2.66 G/T AU INCLUDING 4.00 M OF 7.49 G/T AU AT AURIZONA
Dec 14, 2010 09:25:00 (ET)
VANCOUVER, Dec 14, 2010 /PRNewswire via COMTEX/ -- Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce positive assay results from the first seven holes from its ongoing resource drill program at the Piaba gold deposit, Aurizona. An updated drill plan map has been uploaded to the Luna Gold website at www.lunagold.com or to view directly click here. Significant mineralized intercepts are highlighted below.
15.00 m @ 2.66 g/t Au including 4.00 m @ 7.49 g/t Au in BRAZD278
30.00 m @ 1.32 g/t Au including 1.00 m @ 7.37 g/t Au and 3.00 m @ 5.06 g/t Au in BRAZD279A
32.00 m @ 3.20 g/t Au including 1.00 m @ 60.60 g/t Au and 16.00 m @ 2.13 g/t Au including 4.00 m @ 6.57 g/t Au and 6.00 m @ 2.87 g/t Au in BRAZD282
5.00 m @ 4.45 g/t Au and 7.00 m @ 2.01 g/t Au including 1.00 m @ 9.74 g/t Au in BRAZD283
Luna's President & CEO, John Blake, comments, "Our drill results continue to be very encouraging and fully support the confidence we have that the overall Aurizona gold resource has potential to grow significantly as we continue to drill the Piaba deposit. The structurally controlled mineralization in these latest drill holes confirms our deposit model which is consistent with other gold deposits in the Guiana Shield."
The 2010 drill program commenced at the start of September and the Company currently has five rigs in operation. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources. Holes are being drilled on 100 meter spaced sections to a maximum depth of -300 meters RL.
Complete assay results have been received for seven drill holes totaling approximately 2379 m drilled on three sections in the central portion of the Piaba deposit. For several holes core was not recovered from surface to accelerate drill production and reduce costs. All drill holes intersected gold mineralization and the deposit remains open at depth on all sections. Significant mineralized intercepts are tabulated below.
SECTION HOLE ID AZI DIP DEPTH (M) FROM (M) TO (M) INT (M) AU (G/T) UNCAPPED
000 BRAZD279A* 168 80 388.65 236.00 242.00 6.00 1.48
262.00 292.00 30.00 1.32
INCLUDING 266.00 267.00 1.00 7.37
INCLUDING 278.00 281.00 3.00 5.06
BRAZD280 168 73 318.55 177.95 179.00 1.05 21.50
209.00 210.00 1.00 41.30
212.00 244.00 32.00 0.81
BRAZD283 168 64 256.30 149.00 154.00 5.00 4.45
170.00 186.00 16.00 1.09
190.00 197.00 7.00 2.01
INCLUDING 193.00 194.00 1.00 9.74
200W BRAZD278 168 75 391.80 301.00 312.00 11.00 1.00
321.00 336.00 15.00 2.66
INCLUDING 326.00 330.00 4.00 7.49
BRAZD282 168 68 330.30 208.00 240.00 32.00 3.20
INCLUDING 236.00 237.00 1.00 60.60
241.00 250.00 9.00 1.04
260.00 276.00 16.00 2.13
INCLUDING 266.00 270.00 4.00 6.57
280.00 286.00 6.00 2.87
400W BRAZD277 168 80 394.75 340.00 341.00 1.00 71.70
348.00 351.00 3.00 1.83
BRAZD281** 168 76 298.25 226.00 230.00 4.00 1.25
290.00 298.25 8.25 1.01
*BRAZD279 was lost at 114.40m. Hole BRAZD279A was sited on the same pad
and core was recovered from 100.00m.
**BRAZD281 ended in mineralization due to difficult ground conditions.
Table1. Mineralized drill intercepts from the 2010 Piaba deep drill program. Intervals are calculated as composites using a 0.30 g/t Au cut-off and maximum 2 meter internal waste. True widths to be established.
Luna's VP Exploration, Titus Haggan states, "This is a good start to the drill program. All holes intersected the deposit and demonstrate strong vertical continuity to the ore body. Gold mineralization is associated with quartz veining and strong hydrothermal alteration in the core of the deposit. Drilling is ongoing at Piaba and new results will be released as assays are received."
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
Website: www.lunagold.com
LUNA GOLD FURTHER INCREASES STRATEGIC LAND POSITION AT AURIZONA
Dec 13, 2010 09:21:00 (ET)
VANCOUVER, Dec 13, 2010 /PRNewswire via COMTEX/ -- Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce that it has been granted a further 35,000 ha of new mineral exploration licenses in the Aurizona Regional project area by the Brazilian Mines Department (DNPM).
The granting of the four new exploration licences has increased the Company's landholding to 165,000 ha of contiguous areas 100% owned by Luna's Brazilian subsidiary company. The Aurizona Regional project area is located to the southwest and southeast of the Aurizona Main project area and contains multiple shear zones and numerous historic artisanal gold workings. A new claim map has been uploaded to the Luna Gold website at www.lunagold.com or to view map directly click here.
Luna's President & CEO, John Blake, comments, "This latest addition to our landholding further consolidates our dominant and strategic land position in the prospective Aurizona Regional district. The area is 100% owned by Luna and has seen very little modern exploration."
The Aurizona Regional project is located within the São Luis Craton, southeast of the Guiana shield, which hosts several major gold deposits including Rosebel and Las Cristinas. Geologic reconstruction of the South American and African continents places the São Luis Craton in close proximity to the Birimian Gold Belt of West Africa. Strong geologic and structural similarities exist between the São Luis Craton, the Guiana shield and the West African Craton. The area is characterized by low relief and an extensive sedimentary cover sequence with deep weathering profiles. Over 50 gold garimpos (artisanal gold workings) occur within the Aurizona Regional project area. Historic exploration in the district was limited to soil and rock sampling, auger drilling, geophysical surveys and some shallow reconnaissance drill holes.
Luna's VP Exploration, Titus Haggan, states, "These areas were staked following a detailed reinterpretation of Luna's proprietary aerogeophysical survey in late 2009 and field reconnaissance in early 2010 which identified extensions to the Aurizona Group greenstone terrain in northwest Maranhão in areas previously mapped as crystalline basement. Numerous regional scale structures and strong magnetic anomalies occur in the new areas which are characteristics shared with the Aurizona Main gold camp. Our exploration teams are currently exploring in four target areas at Aurizona Regional."
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Luna Gold Corp. is in the business of acquiring, exploring, operating and developing gold resource properties in Brazil. Luna's proven management team has extensive experience in all facets of the mining industry, and are focused on achieving optimized production of 60,000 oz Au per year at Aurizona, increasing the resource base, expanding on the maiden NI 43-101 resource estimate at Cachoeira and developing Cachoeira as an organic growth pipeline project.
Total gold resources at Aurizona are currently estimated at 904,300 oz M&I, and 400,000 oz Inferred. Luna has commenced a 20,000m drill program to increase the size of the Aurizona resource base and define new oxide gold deposits within trucking distance of the Aurizona plant. Total gold resources at Cachoeira are currently estimated at 446,000 oz M&I, and 221,300 oz Inferred. Additionally, the Company is actively exploring for new deposits in the Maranhão Greenfields area.
The Maranhão Greenfields project consists of all Company exploration permits located outside of the Aurizona Main area and covers an area of 170,000 ha (Fig. 3). There are over 100 hard rock (primary) gold garimpos located within the Maranhão Greenfields permits (Fig. 3). Luna has inherited a large database covering Maranhão Greenfields from the project vendors which includes airborne geophysical surveys, soil, auger and drill data. These data are being reviewed and targets prioritized. Luna initiated a reconnaissance program of mapping and rock chip sampling in 2008 which returned gold values of up to 9.71 g/t Au in rock grab samples (these samples were neither part of, nor alone do they constitute, a statistically representative sampling program). The Company has also commissioned a high resolution satellite image (Geoeye-01) covering the entire project area.
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