Luna Gold Corp Awards 6,000 Meter Drill Contract and Provides Exploration Update for the Cachoeira Projec by 24hgold

Keywords : Brazil | Diamond | Gold | Storage |

Tuesday, March 04, 2008
Luna Gold Awards 6,000 Meter Drill Contract and Provides Exploration Update for the Cachoeira Project

Vancouver, March 4, 2008 - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce that it has awarded a drill contract for its wholly-owned Cachoeira Gold Project in the state of Pará to Boart Longyear Geoserv ("Geoserv") of Rio De Janeiro, Brazil. Geoserv will begin the program at the start of April and, using two rigs, will drill a minimum of 6,000 meters.

Luna CEO, Tim Searcy, comments "Luna won the competitive tender for the Cachoeira project in July 2007 and is the first company to consolidate the mining and exploration permits that overly the Cachoeira mineralized trend. In the past, development at Cachoeira was hampered by its fragmented ownership, and by the fact that the permit boundaries bisect some of the larger zones of known mineralization. Luna is the first company to evaluate the project without the complications of an unconsolidated land package."

The drill program will be conducted throughout the 3.5 km deposit corridor in approximately 45 holes and is designed to test the strike and depth extent of both the historic high-grade and wide, lower-grade gold intersections, to provide infill data on wide-spaced historic drill sections, to confirm historic drill results, and to provide new data required to complete the geologic model. These data will be integrated with the historic drill database which contains over 23,000 m of Diamond drilling to produce a preliminary assessment of mineral resources in late 2008.

Luna has been rapidly advancing the Cachoeira project since it was acquired outright in October, 2007. The Company has been well received by the local community and has set-up a new office and headquarters in the town of Cachoeira. An Environmental Baseline Study was commissioned in October, 2007 and is due to be submitted to the state environmental authorities in March.

Historic exploration data, from previous operators such as Gold Fields, Vale, TVX, and others, have been compiled and reorganized into a coherent project database. Historic drill core is being moved to a newly constructed core storage and logging facility at the Company's headquarters. A new project baseline has been established and surveyed to provide new reference base. A regional soil sampling program, designed to locate new mineralized trends outwith the main deposit is approximately 70% complete with 120 line km sampled to date. A mapping and channel sampling program of the garimpeiro pits, designed to determine grade and nature of the gold mineralization within the available surface outcrop has also commenced. An order has been placed for provision of new high-resolution satellite images covering a 448 km2 area encompassing the Cachoeira project and environs.

Luna's Exploration Manager, Dr. Titus Haggan states "Progress at Cachoeira is going very well since we acquired the project in October, 2007. We have been concentrating on several key areas including database validation, generation of new exploration data designed to identify new target areas within the entire 3,750 ha project area and planning of the upcoming 6,000 m drill program which is the first of a series of drill programs that the Company plans to conduct at Cachoeira."

The Cachoeira project is located at the northern end of the Gurupi Gold Belt which hosts several gold deposits located in the Tentugal Shear Zone (TSZ) at the boundary between the São Luís Craton and the Gurupi Belt. The TSZ is an approximately 120 km long and 15-30 km wide strike-slip corridor of intensely deformed metavolcanosedimentary and sedimentary sequences with intercalated intrusives. These deposits are generally controlled by shear zones along the main Tentugal Shear Zone and collectively may be classed as orogenic gold deposits. Strong correlations exist between the geology and mineralization styles of the Gurupi Belt and the West African metallogenic gold provinces.

About Luna Gold Corp

Luna is a mining exploration company focused on the acquisition, exploration, and development of gold resources and advanced stage gold exploration projects in northeastern Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

Tim Searcy, P. Geo. - President and CEO

Website: www.lunagold.com
For further information contact Investor Relations at (604) 689-7317 or toll free at 1-866-689-7317.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Qualified Person

Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's Brazil Exploration Manager is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has reviewed the technical disclosure in this press release.

Regulatory Footnotes

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the United States Securities Act of 1933 and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements

Statements in this release that are 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. 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. Luna Gold does not assume the obligation to update any forward-looking statement.

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