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Luna Gold Increases Measured and Indicated Resources to 3.63 Million Ounces and Inferred Resources to 1.04 Million Ounces at Aurizona

Mar 14 2013 12:00AM

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/14/13 -- Luna Gold Corp. (TSX: LGC)(OTCQX: LGCUF)(LMA: LGC) ("Luna Gold" or the "Company") has completed an independent mineral resource update at the Company's Aurizona Gold Mine in Brazil.

As a result of this update, Aurizona's Measured and Indicated mineral resources now total 3.63 million ounces, a 15% increase from the mine's December 2011 resource update. Aurizona's Inferred mineral resources are now 1.04 million ounces, a 44% increase from the December 2011 resource update.

The update incorporates an additional 6,933 metres drilled at the Piaba deposit and 7,478 metres drilled at the Boa Esperanca, Ferradura and Conceicao deposits throughout 2012. A pit optimization exercise was also conducted for the Tatajuba deposit. Measured and Indicated gold resources now total 82 million tonnes at 1.38 grams per tonne gold, or 3.63 million ounces gold. Inferred gold resources now total 18.5 million tonnes at 1.74 grams per tonne gold, or 1.04 million ounces gold.

"Luna is very pleased to announce this increase of both resource tonnes and grade," stated John Blake, Luna's President and CEO. "The transition of several of Aurizona's multiple near mine targets - Boa Esperanca, Ferradura, and Conceicao - to deposit status represents the continued progress of our efforts to grow resources through drilling, an initiative we began in 2007. These encouraging resource results will be followed later this month by a reserve update for Piaba. I look forward to this further definition of our asset's potential."

Table 1: Aurizona project consolidated mineral resource table. Inclusive of reserves effective as at January 29, 2013.---------------------------------------------------------------------------- Au AuDeposit Type Class Tonnes g/t Ounces----------------------------------------------------------------------------Piaba Pit constrained Measured 19,510,000 1.36 850,000 Indicated 59,010,000 1.40 2,652,000 ----------------------------------------- Measured and 78,520,000 1.39 3,502,000 Indicated ----------------------------------------- Inferred 6,990,000 1.61 362,000 ------------------------------------------------------------- Outside Pit Shell Inferred 9,450,000 1.95 592,000----------------------------------------------------------------------------Tatajuba Pit constrained Indicated 1,380,000 1.40 62,000 Inferred 810,000 1.39 36,000----------------------------------------------------------------------------Boa Esperanca Pit constrained Indicated 1,430,000 0.79 36,000 Inferred 970,000 1.00 31,000----------------------------------------------------------------------------Conceicao Pit constrained Indicated 160,000 0.75 4,000 Inferred 60,000 0.82 2,000----------------------------------------------------------------------------Ferradura Pit constrained Indicated 500,000 1.65 27,000 Inferred 260,000 1.65 14,000----------------------------------------------------------------------------Total Pit Constrained Measured 19,510,000 1.36 850,000 and Outside Pit Indicated 62,480,000 1.38 2,781,000 ----------------------------------------- Measured and 81,990,000 1.38 3,631,000 Indicated ----------------------------------------- Inferred 18,540,000 1.74 1,036,000----------------------------------------------------------------------------Notes:1. Open pit resources (Whittle pit® optimization) are constrained by a 0.30 g/t Au grade domain and stated at the following cut-off grades for Piaba, Boa Esperanca, Ferradura and Conceicao: Laterite & Saprolite - 0.322 g/t Au, Transition - 0.364 g/t Au and Fresh Rock - 0.400 g/t Au based on a gold price of US$1,500 per ounce, pit slopes of 45 degrees for Laterite/Saprolite/Transition and 55 degrees for Fresh Rock, mining cost of US$1.80/t material moved, process and G&A cost of US$14.00/t (Laterite/Saprolite), US$15.50/t (Transition) and US$17.00/t (Fresh), recoveries of 92% (Laterite/Saprolite) and 90% (Transition/Fresh Rock) and selling cost (transportation, insurance, royalty) of US$30.00/t.2. Open pit resources (Whittle pit® optimization) are constrained by a 0.30 g/t Au grade domain and stated at the following cut-off grades for Tatajuba: Laterite & Saprolite - 0.368 g/t Au, Transition - 0.411 g/t Au and Fresh Rock - 0.447 g/t Au based on the same parameters as outlined in point 1 above plus an additional cost of U$2.00/t for transportation to the Aurizona mill.3. Fresh rock outside pit shell resources are stated at the following cut- off grades for Piaba: 1.50 g/t Au based on a gold price of US$1,500 per ounce, mining cost of US$45.00/t moved, process and G&A cost of US$19.00/t, recovery of 90%, selling cost of US$30.00/t and an additional 1% royalty increase.4. Aurizona topography is current as of October 31, 20125. Maptek's Vulcan v8.1.4 was used in the resource estimation including compositing and grade estimation. Internal waste blocks inside the 0.30 g/t Au grade shell were designated through indicator kriging. Gold was estimated separately in the internal waste blocks and the mineralized blocks by the ID3 algorithm.6. Block dimensions are 10m x 5m in the xy plane x 3m on the z axis. Sub- blocking to 1m x 1m in the xy plane and 3m in the z axis was performed at the 0.30 g/t Au grade domain margins and at topography.7. The Aurizona resource estimates are supported by the following number of individual specific gravity measurements: Piaba - 12,657; Boa Esperanca - 1273; Tatajuba - 804; Ferradura - 1000; Conceicao - 473.8. The Piaba database contains 77,574 metres consisting of 351 diamond drill holes, 142 reverse circulation holes and 448 auger drill holes.9. The Boa Esperanca database contains 9,015 metres consisting of 15 diamond drill holes, 48 reverse circulation holes 175 auger drill holes and 8 trenches.10. The Tatajuba database consists of 4,740 metres in 45 diamond drill holes (2008).11. The Ferradura database contains 5,398 metres consisting of 17 diamond drill holes, 13 reverse circulation holes 118 auger drill holes and 9 trenches.12. The Conceicao database contains 2,834 metres consisting of 7 diamond drill holes, 10 reverse circulation holes 79 auger drill holes and 5 trenches.13. The following capping values were used prior to compositing: Piaba (Laterite - 11 g/t Au, Saprolite - 18 g/t Au, Transition/Fresh Rock - 25 g/t Au), Tatajuba - 10 g/t Au, Boa Esperanca - 6 g/t Au, Ferradura - 10 g/t Au and Conceicao - 3 g/t Au.14. Tonnes are rounded to the nearest 10,000. Ounces are rounded to the nearest 1,000 and small tonnage and grade differences may be found due to rounding.15. Mineral resources that are not mineral reserves do not have a demonstrated economic viability16. There may be political, environmental, legal and other risks that may materially affect the mineral resource estimate disclosed in this press release.17. The independent Qualified Person who prepared the preparation of the mineral resource estimate is Leah Mach, CPG, of the Denver office of SRK Consulting (U.S.), Inc.



This resource update was conducted by SRK Consulting (U.S.) Inc. ("SRK"), performed according to Canadian National Instrument 43-101 guidelines, and based upon 14,411 metres of new diamond and reverse circulation drilling by Luna Gold.

Piaba Deposit

The updated Piaba resource contains 14 new diamond holes. Six were deep holes completed to both extend the depth of the Piaba mineralized structure beneath the limit of the 2011 resource estimate and identify high-grade gold targets at depth in the system. The most significant intersection from this program was 13.00 metres @ 4.89 g/t Au, including 1.50 metres @ 25.10 g/t Au and 0.50 metres @ 10.45 g/t Au. Eight infill holes were completed in those areas of the deposit that were not drilled in 2011. Further drilling is required to close off areas that to date remain undrilled. Additional auger holes were also completed. In comparison to the 2011 update, the 2012 pit constrained resource contains an additional 4.8 million tonnes of Measured and Indicated mineral resources and an additional 4.5 million tonnes of Inferred mineral resources and overall the grade is approximately 10% higher than the 2011 update. The 2012 outside pit shell resources declined by 2.74 million tonnes of Indicated resources and 1.5 million tonnes of Inferred resources with a resultant average grade increase of approximately 25% in the Inferred category compared to the 2011 update. Table 2 summarizes the 2011 and 2012 Piaba resource statements.

Table 2: 2011 and 2012 mineral resource statements, Piaba deposit, Aurizona---------------------------------------------------------------------------- Au AuYear Type Class Tonnes g/t Ounces----------------------------------------------------------------------------2011 Pit constrained Measured 10,782,000 1.13 391,000 -------------------------------------------------- Indicated 62,939,000 1.28 2,596,000 -------------------------------------------------- Measured and Indicated 73,721,000 1.26 2,987,000 -------------------------------------------------- Inferred 2,469,000 1.47 117,000 ---------------------------------------------------------------------- Outside Pit Shell Indicated 2,738,000 1.29 113,000 -------------------------------------------------- Inferred 10,901,000 1.56 547,000----------------------------------------------------------------------------2012 Pit constrained Measured 19,510,000 1.36 850,000 -------------------------------------------------- Indicated 59,010,000 1.40 2,652,000 -------------------------------------------------- Measured and Indicated 78,520,000 1.39 3,502,000 -------------------------------------------------- Inferred 6,990,000 1.61 362,000 ---------------------------------------------------------------------- Outside Pit Shell Inferred 9,450,000 1.95 592,000----------------------------------------------------------------------------



SRK and Luna conducted detailed comparative studies of the 2011 and 2012 resource estimates. The principal changes in the resource estimation and accompanying grade and tonnage are attributable to additional drilling and the resultant expanded Piaba grade domain and improved estimation parameters. Two factors in the 2012 resource estimation related to an increase in gold grade are:

1) reduction in block size from 10x10x3 metres (2011) to 10x5x3 metres (2012) and

2) reduction in composite length from three metres (2011) to two metres (2012). The reduction in block size resulted in better definition of internal waste blocks in the deposit and the reduction in composite size resulted in lower dilution in the composite gold grades compared to 2011.

The 2012 resource estimate also utilized more conservative cost input parameters and lower gold recoveries for the definition of pit constrained and outside pit shell resources. For outside pit shell resources these factors also contributed to a decrease in tonnage and increase in grade. See footnotes to Table 1 for more details. As in the 2011 resource estimate, the 2012 pit optimization has enveloped a very high percentage of the total mineral resources.

To view "Figure 1: Piaba deposit showing updated resource blocks, new drill holes and new pit shell" click on: http://media3.marketwire.com/docs/lgc314i.pdf

Near Mine Deposits

Initial mineral resource estimates were completed for the Boa Esperanca, Ferradura, and Conceicao near mine deposits with the objective of defining near surface oxide mineralization. These initial estimations have successfully delineated mineralization that will supplement ore from the Piaba deposit. A pit optimization exercise and a resource statement update were also completed for the Tatajuba deposit to standardize Luna's resource reporting within pit shells. The resource estimation for all these deposits followed the same parameters as those used for the Piaba deposit. The sole exception to this was the Tatajuba deposit, which included an extra cost for hauling to the process plant.

Luna has also completed an Induced Polarization ("IP") geophysical survey in the area located between the eastern limit of the Piaba and Boa Esperanca deposits and the Micote near mine target. The survey has identified important new structural trends marked by linear chargeability anomalies. These trends will serve to guide future resource drill programs at Aurizona.

The updated Aurizona mineral resource estimate will form the basis for the updated reserve estimate that is underway and due for completion in the first quarter of 2013. The technical report for the resource and reserve updates will be filed under the Company's profile on SEDAR in due course.

About Luna Gold Corp.

Luna is a gold production company engaged in the operation, expansion, and exploration of gold projects in Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake, President and CEO

Regulatory Footnotes

Luna operates a rigorous QA/QC protocol on all aspects of sampling and analytical procedure. Diamond drill core is checked, logged, marked for sampling and sawn in half. One half of the HQ diameter core is maintained for future reference and one half of the core is sent for analysis. Samples are collected at approximately 1 metre intervals which is reduced when a mineralized zone is encountered. Reverse Circulation drill samples are collected at the RC drill rig using 4.5 inch core tools. The entire RC sample is sent to the commercial laboratory for preparation and analysis. Samples are collected at both 1 and 2 metre intervals. Channel sampling is supervised by geologists and mining technicians and recorded on special log sheets. All areas intended for sampling are assessed and marked-up for sampling by geologists. For surface channel sampling all sample faces are cleaned to a depth of 15 centimeters and marked for sampling which is conducted at nominal 1 metre intervals using appropriate sampling tools which are cleaned between each sample. Sample intervals are surveyed using a Total Station. All core, RC and channel samples are stored in secure locked areas under Luna supervision. Samples are transported from the Aurizona project to the ALS Chemex sample preparation facility in Belo Horizonte, Minas Gerais accompanied by Luna personnel. Samples are assayed at ALS Chemex Labs in Lima, Peru using a 50 gram fire assay with AAS finish. ALS Chemex is an international laboratory and is independent of Luna. Each sample batch contains 10% of randomly inserted internal control samples consisting of certified analytical standards, blanks (barren rock) and duplicates. These QA/QC procedures provide several measures of data quality and assure the Company that the assay data is representative of the original sample.

Except as otherwise indicated herein, Titus Haggan, Ph.D., EurGeol Certified Professional Geologist #746, Luna's Vice President Exploration, is the Qualified Person as defined under National Instrument 43-101 who reviewed and approved technical information in this press release. Mr. Haggan is responsible for the scientific and technical work on our exploration programs.

The independent Qualified Person under National Instrument 43-101 who prepared the preparation of the mineral resource estimate is Leah Mach, CPG, of the Denver office of SRK Consulting (U.S.), Inc.

Cautionary Note to U.S. Readers Concerning Estimates of Measured, Indicated and Inferred Mineral Resources

Information concerning the properties and operations discussed in this news release has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable to similar information for United States companies. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" used in this news release are Canadian mining terms as defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this news release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission. An "Inferred Mineral Resource" has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. It cannot be assumed that all or any part of an "Inferred Mineral Resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into Mineral Reserves. Readers are also cautioned not to assume that all or any part of an "Inferred Mineral Resource" exists, or is economically or legally mineable. In addition, the definitions of "Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM standards differ in certain respects from the standards of the United States Securities and Exchange Commission.

Forward-Looking Statements

This release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, mineral resource estimates, statements with respect to future gold production and/or the results of analysis on gold production. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management and qualified persons to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. In addition, forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators, including, without limitation, its latest annual information form. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, uncertainties inherent to mineral resource estimates, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.



Contacts:
Luna Gold Corp.
Investor Relations
(604) 568-7993
www.lunagold.com





Source: Marketwire