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Tuesday, September 29, 2009
Luna Gold Provides Development Update
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Vancouver, September 29, 2009 - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to provide a progress update on its wholly owned Aurizona gold project in Maranh�o State, Brazil.
Progress highlights
- Mine General Manager appointed
- Project presentation made to Maranh�o State Governor
- Site clearance completed and overall site preparation at a very advanced stage
- Contract for mining production and tailings dam construction awarded and work commenced
- Contract for mechanical/electrical erection awarded and gold plant erection in progress
- Purchasing of major steel structures, including process tanks, completed with delivery currently in progress
- Imported mill items at port or currently in transit in the United States
- Analytical laboratory in an advanced stage of completion
- Soils and acceptance testing laboratory for all civil works in operation
- Reverse circulation drill on site
Luna's CEO, Jim Bahan, comments, "Our team continues to make excellent progress. The detailed engineering phase is essentially completed and all the long lead items for the gold plant have been procured. Work is now in progress on civil construction and mechanical-electrical erection of the gold plant with the expectation to commence gold production in the second quarter of 2010.
Our web site is being redesigned to include a project update section, whereby our shareholders will be able to watch us build the mine. It is expected to be up and running very shortly.
The Company is pleased to welcome Jose Reis as the future General Manager of the Aurizona operation. Jose is working closely with the project team to ensure a smooth transition through commissioning to production. Jose has considerable experience in Brazil and South Africa in open pit and underground gold operations.
The Company's project was recently presented to the Governor of Maranh�o State, Roseana Sarney. The Governor expressed great interest in this project, which will be the first gold mine in the State, and is examining means by which the State Government can assist further in the infrastructural development of the region."
Appointment of General Manager
Jose (Joe) Alberto Reis has been appointed as the future General Manager of the Piaba mine and is on site working with the project team in preparation for the hand-over to production. Joe has over 25 years experience since he started his career in 1974 with Mintek in Johannesburg, South Africa. He progressed thereafter through a series of management positions in gold and platinum with Anglovaal Mining Limited, JCI Gold Limited and Gencor Ltd, before transferring to Brazil, first as Manager Mining, then General Manager of Gencor's Sao Bento mine.
Presentation to the Governor of Maranh�o State
On September 15th, a presentation of the Aurizona project was given to the State Governor, Roseana Sarney, by the directors of Luna's operating subsidiary, Minera��o Aurizona S.A. Also in attendance were the Vice Governor and other state and municipal officials.
The Governor requested various state secretaries, including those responsible for infrastructure and public safety, to examine the means by which the State could further assist in the development of the mine and the region in general. This includes the asphalting of certain roads and improving the local electrical energy capacity. For its part, the Company has recently completed a 1.2 kilometer by-pass road to avoid traffic passing through the Aurizona village, the Company's closest neighbor with a population of approximately 1,500 people. The Company is also working with the local mayor's office in the provision of treated running water to the homes of the village. The municipality is now benefiting from the service taxes on contracted works.
Engineering and Construction Management
Detailed engineering of the process plant is essentially completed and mechanical erection of the mill building frame is in progress. Civil works have started for the CIL tanks and reagents storage. Site preparation of the thickeners area is completed and civil work is awaiting final definition from the equipment suppliers. Site supervision offices and canteen as well as lay-down areas are completed and functioning.
The principal earthmoving contractor for mining and the construction of the tailings dam has been selected and is now working on site.
All long lead items have been procured and the equipment is arriving on site. This includes the RC drill which will start definition drilling in early October, following training courses for the operators and maintenance personnel. The milling plant, including the SAG mill, is expected to arrive in Brazil on November 9th.
The soils laboratory for QA/QC verification of the site and dam civil works is functioning with Company and independent third party technicians. The sample preparation and analytical laboratories continue with internal and external finishing, prior to equipment installation.
Exploration and Definition Drilling
The Piaba deep Diamond drill program was completed on schedule at the start of September and the rig has been demobilized. The objective of the program was to test the continuity of the Piaba orebody at a vertical depth of 300 meters RL on 200 meter spaced sections covering 1.2 kilometers of deposit strike. A total of 2,737 meters were drilled in 7 holes. Core samples are at the laboratory and assays will be released within the context of the new geologic model when all data have been received.
The Company has commenced evaluation of the satellite targets at Aurizona Main, which is the area in the vicinity of the Piaba and Tatajuba deposits. Soil assay data have been received for the area between the Piaba and Tatajuba deposits and also for the Boa Esperan�a target. These data have identified several strong gold-in-soil anomalies in both areas. Auger drill programs have been designed to test these anomalies and will be completed in the coming months. In addition, a high resolution satellite image has been commissioned to advance evaluation of gold targets at Aurizona Main and also the Aurizona Regional project area.
About Luna Gold Corp.
Luna is a mineral exploration and development company engaged in the acquisition, exploration, and development of gold resources and advanced stage gold exploration projects in Brazil. The Company is currently developing its Aurizona gold project in Maranh�o, Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
Jim Bahan -- CEO
Website: www.lunagold.com
For further information contact Investor Relations at (604) 689-7317 or toll free at 1-866-689-7317.
Neither the 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.
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. 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, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, the possibility of project cost overruns or 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. | |
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