LUNA GOLD REPORTS HIGH-GRADE GOLD INTERSECTIONS FROM AUGER DRILLING AND CHANNEL SAMPLING AT CACHOEIRA

Oct 27, 2010, 07:00 ET from Luna Gold Corp.

VANCOUVER, Oct. 27 /PRNewswire/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to provide an update on exploration activities at its Cachoeira gold project including results of extensive auger drilling and surface and underground channel sampling programs at the Tucano deposit. Highlights include:

Significant oxide mineralization defined via auger drilling at Tucano including:

  • 15.00 meters @ 5.91 g/t Au in auger hole TX0094
  • 15.00 meters @ 3.37 g/t Au in auger hole TX0154
  • 15.00 meters @ 2.53 g/t Au in auger hole TX0134

High-grade quartz vein sets defined via Tucano underground channel sampling including:

  • 6.85 meters @ 63.62 g/t Au in channel B L-50_4
  • 16.59 meters @ 31.06 g/t Au in channel B L-60_2
  • 15.70 meters @ 31.44 g/t Au in channel B L-69_2

Wide zones of gold mineralization defined via Tucano surface channel sampling including:

  • 15.03 meters @ 3.53 g/t Au including 4.01 meters @ 6.40 g/t Au in channel OC-29
  • 10.98 meters @ 3.11 g/t Au in channel OC-29A
  • 18.02 meters @ 2.80 g/t Au including 9.00 meters @ 4.98 g/t Au in channel OC-35

Luna's President & CEO, John Blake, comments, "These results, combined with those previously drilled, are being incorporated into a maiden NI 43-101 resource estimate to be released in December 2010 for the Cachoeira Gold Project. Luna Gold will continue with exploration at Cachoeira and at Aurizona to pursue further resource development in the Company's highly prospective landholding in this mining friendly region of Brazil. "

Auger Drill Program

An auger drill program totaling 2,441 meters (2,675 individual samples including QA/QC) in 221 holes was conducted at the Tucano deposit to determine the extent of oxide gold mineralization and provide supplementary drill data for resource estimation purposes. Holes were drilled on a regular 50x25 meter section grid to 15 meters depth. In some cases planned depth was not achieved due to difficult ground conditions. Average hole depth for the program is 11 meters. The program has identified an extensive oxide mineralized zone over the Tucano deposit and many holes ended in mineralization. Select mineralized intervals are tabulated below.

HOLE ID HOLE DEPTH (m) FROM (m) TO (m) INT (m) AU (G/T)
TX0094 15.00 0.00 15.00 15.00 5.91
TX0101 15.00 0.00 15.00 15.00 1.33
TX0114 15.00 0.00 11.00 11.00 4.93
TX0133 15.00 0.00 15.00 15.00 1.29
TX0134 15.00 0.00 15.00 15.00 2.53
TX0135 15.00 0.00 15.00 15.00 2.14
TX0147 15.00 0.00 15.00 15.00 1.62
TX0152 15.00 0.00 15.00 15.00 1.32
TX0154 15.00 0.00 15.00 15.00 3.37
TX0186
 
15.00
 
0.00
10.00
7.00
15.00
7.00
5.00
5.27
1.32

Table 1. Top 10 mineralized auger drill intervals, Tucano deposit. All holes are vertical. All holes shown apart from TX0114 ended in mineralization. True widths to be established. A total of 221 holes were drilled. Assay values for auger holes not reported here range between below detection limit (<0.05 g/t Au) to 18.25 g/t Au.

Underground Channel Sampling Program

A channel sampling program was conducted in all accessible underground workings at Tucano. 360 meters of sampling (385 individual samples including QA/QC) was completed along and across quartz veins and cutting inter-vein host units in five separate workings. This program was conducted to improve understanding of structural controls on gold mineralization and to provide additional assay data on quartz vein sets and the host rock sequence. The program intersected high-grade gold values in smoky and white quartz vein sets consistent with both historic and recent Luna drill assay data. Geologic and structural mapping of these workings combined with the new assay data confirms the deposit model of stacked high-grade quartz veins hosted by mineralized volcanics. Significant mineralized intervals for quartz veins and mineralized wall rock are tabulated below.

CHANNEL ID LOCATION VEIN/ WALLROCK LITHOLOGY TOTAL CHANNEL LENGTH (M) FROM (M) TO (M) INT (M) AU (G/T) UNCAPPED
B L-50_1 Wall Wallrock AQS 10.06 4.02 10.06 6.04 0.94
B L-50_2 Roof Vein-X SQV 2.41 0.00 2.41 2.41 63.58
B L-50_4 Wall Vein-L SQV 14.42 0.00 6.85 6.85 63.62
B L-50_5 Wall Wallrock AQS 9.47 0.00 9.47 9.47 0.73
B L-50_6 Roof Vein-X SQV 3.65 0.00 3.65 3.65 52.75
B L-60_1 Wall Wallrock AQS 40.74 0.00 5.09 5.09 0.86
B L-60_2 Wall Vein-L SQV\QV 16.59 1.03 17.62 16.59 31.06
B L-60_3 Wall Vein-L QV 3.54 0.00 3.54 3.54 27.28
B L-60_6 Wall Vein-L QV 10.87 1.02 10.87 9.85 9.17
B L-69_2 Wall Vein-L SQV 15.70 0.00 15.70 15.70 31.44
B L-69_4 Wall Wallrock AQS 3.54 0.00 3.54 3.54 0.56
B L-74_1 Wall Wallrock/Vein-L AQS/QV 18.24 0.00 18.24 18.24 5.04
B L-74_2 Roof Vein-L QV 17.52 0.00 17.52 17.52 7.49
C L+7_1
 
 
Wall
 
 
Wallrock
 
 
AQS
 
 
65.36
 
 
7.95
26.06
38.67
14.03
34.57
42.71
6.08
8.51
4.04
1.43
0.62
1.46
D L+11_1
 
 
 
Wall
Wall
Wall
Wall
Vein-X
Vein-X
Vein-X
Vein-X
QV
QV
SQV
QV
47.58
 
 
 
14.19
24.34
29.89
40.16
18.69
26.42
34.21
42.35
4.50
2.08
4.32
2.19
7.08
7.88
62.22
16.16
D L+11_2 Roof Vein-X QV 1.24 0.00 1.24 1.24 12.40
N L+7_1 Wall Wallrock AQS 20.27 7.20 13.19 5.99 1.83
AQS = Albite-Quartz-Sulfide altered wallrock           Vein-X = Sample Cross-cutting (across) Vein
SVQ = Smoky Quartz Vein Set                                 Vein-L = Sample Longitudinal to (along) Vein
QV = White/Light Gray Quartz Vein Set

Table 2. Average gold grades of underground channel sampling, Tucano deposit. Mineralized intervals are reported. Channel samples were collected both paralleling and cross-cutting individual quartz veins and also in inter-vein areas. Assay intervals listed are composites. True widths to be established. A total of 360 metres of underground workings were sampled. Assay values for underground channels not reported here range between below detection limit (<0.05 g/t Au) to 41.10 g/t Au.

Surface Channel Sampling Program

A channel sampling program was conducted across all suitable surface outcrops at Tucano. 1,077 meters of sampling (1199 individual samples including QA/QC) was completed. Program objectives were the same as the underground program. Detailed mapping was conducted along the channels and data integrated into the deposit model. The program identified several zones of both low- and high-grade outcropping mineralization which assist in correlating surface and underground mineralized zones.

CHANNEL ID LITHOLOGY VEINING TOTAL CHANNEL LENGTH (M) FROM (M) TO (M) INT (M) AU (G/T) UNCAPPED
OC-04 Ser_Sch VZ 48.64 31.29 47.63 16.34 1.00
OC-06 Ser_Sch VZ/STW 24.44 0.00 24.44 24.44 1.17
OC-11 Ser_Sch VZ 27.99 0.00 26.99 26.99 0.90
OC-12 Ser_Sch VZ 13.95 6.73 11.95 5.22 1.19
OC-21
 
AQS/Ser_Sch
 
VZ/QV
 
46.56
INCLUDING
29.45
32.48
36.49
34.49
7.04
2.01
7.44
19.75
OC-23 Ser_Sch VZ 66.94 0.00 22.96 22.96 0.80
OC-25A Ser_Sch VZ 16.68 0.96 9.70 8.74 0.85
OC-28
 
 
Ser_Sch
 
 
VZ/QV
 
 
73.67
 
INCLUDING
0.00
45.66
63.51
4.78
64.52
64.52
4.78
18.86
1.01
1.25
1.42
7.44
OC-29
 
AQS/Ser_Sch
 
VZ
 
15.03
INCLUDING
0.00
2.01
15.03
6.02
15.03
4.01
3.53
6.40
OC-29A AQS VZ 10.98 0.00 10.98 10.98 3.11
OC-30
 
Ser_Sch
 
QV
 
6.77
INCLUDING
0.00
0.96
6.77
1.94
6.77
0.98
1.33
4.20
OC-35
 
AQS
 
VZ
 
32.29
INCLUDING
0.00
0.00
18.02
9.00
18.02
9.00
2.80
4.98
OC-38 AQS/Ser_Sch VZ 29.10 1.63 7.66 6.03 2.36
Ser_Sch = Sericite Schist                                           VZ - Zones of Sheeted Quartz Microveining
AQS = Albite-Quartz-Sulfide Alteration                       STW = Zones of Quartz Stockwork                                                                                                             QV = White/Light Gray Quartz Vein Set

Table 3. Average gold grade of surface channel sampling, Tucano deposit. Mineralized intervals are reported. Assay intervals listed are composites. True widths to be established. A total of 1077 meters of underground workings were sampled. Assay values for surface channels not reported here range between below detection limit (<0.05 g/t Au) to 8.33 g/t Au.

Luna's VP Exploration, Titus Haggan, comments, "The 2010 exploration programs at the Tucano deposit are complete and work is well advanced on the NI 43-101 resource estimate and technical report. The results have considerably enhanced our understanding of the geology and structural controls on gold mineralization at Tucano. Exploration programs are also nearing completion at the Coruja and Arara targets and assay data will be released for these targets in due course."

Cachoeira is an advanced stage gold project in northeast Pará state, Brazil. Orogenic gold mineralization occurs within a 5 km long north trending shear zone. Three targets, Tucano, Coruja and Arara, have been defined to date. The Tucano deposit is located within the Cachoeira town urban limit.

About Luna Gold Corp

Luna is a gold mining and exploration company engaged in the exploration and development of gold deposits and advanced stage gold exploration projects in Brazil. The Company is currently commissioning its Aurizona gold mine in Maranhão, Brazil.

On behalf of the Board of Directors

LUNA GOLD CORP.

John Blake- President and CEO

Website: cr="true" href="http://www.lunagold.com/">www.lunagold.com

NEITHER 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.

Regulatory Footnotes

Luna operates a rigorous QA/QC protocol on all aspects of geochemical sampling and analytical procedure. Auger drilling is conducted using Company owned motorized Honda auger drills. Auger drill teams are supervised by mining technicians. Auger samples are collected at continual 1 metre intervals using a 10.16 centimeter diameter collector. Sample weight averages 16 kilograms.  All data including depth, sample number and geologic information are recorded on special log sheets.  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 meter intervals using appropriate sampling tools which are cleaned between each sample. For underground channel sampling all sample faces are washed using high pressure water hoses and marked for sampling which is conducted a nominal 1 meter intervals using electric rock saws which are cleaned between each sample. Sample intervals are surveyed using a Total Station. All auger and channel samples are stored in secure locked areas under Company supervision. Samples are transported from the Cachoeira project to the ALS Chemex sample preparation facility in Belo Horizonte, Minas Gerais accompanied by Luna personnel. Auger and channel samples are assayed for gold via fire assay (50 grams) at ALS Chemex, Lima, Peru. Luna operates a rigorous QA/QC program for auger and channel samples which involves the insertion of blanks, CRM and sample duplicates (channel only).  These QA/QC procedures provide several measures of data quality and assure the Company that the assay data is representative of the original sample.

Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's VP Exploration is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has supervised the preparation of and reviewed the technical disclosure in this press release. Non qualified persons currently work on Luna's exploration programs under the guidance of Titus Haggan. Dr Haggan takes responsibility for work, information and advice generated by non-Qualified persons and has taken the steps required to ensure that the work, information and advice is sound.

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.

SOURCE Luna Gold Corp.