VANCOUVER, March 4 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 Para 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 overlie 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 km(2) 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 Sao Luis 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:
Luna Gold Corp. - Home Page - Tue Mar 4, 2008
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 No.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.
For further information: Investor Relations at (604) 689-7317 or toll
free at 1-866-689-7317