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
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.
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