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| News Release |
Tuesday, January 12, 2010 |
Luna Gold Provides a Development Update on its Aurizona Gold Project
Vancouver, January 12, 2010 - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to provide a summary of progress on its wholly owned Aurizona gold project in Maranh�o State, Brazil. Photographs of construction activity are taken at regular intervals and may be viewed on the Company's website at http://www.lunagold.com/s/Building_Aurizona.asp.
Luna's CEO, Jim Bahan, comments, "Our team continues to make excellent progress. The project remains within the capital investment estimated in the Feasibility Study and commissioning of the mills and gravity circuit is expected to start in the current quarter, using the diesel generators, with commissioning of the CIL plant remaining on schedule for the second quarter of 2010."
- Detailed engineering has been completed.
- All major site preparation has been completed.
- Tailings dam construction is expected to be completed before mid February.
- Mechanical erection of the mill/gravity/elution building has been completed and equipment installation is in progress, as referred to below. All major mechanical equipment components, including reagents tanks, agitators, screens and pumps, are on site.
- All mills have been installed and the installation of the drive, lubrification and hydraulic systems continues. Lining of the mills is in progress. The loading-grizzly structures are nearing completion and installation of the conveyor from the apron feeder to SAG mill is in progress. The receiving tank for the mills product, together with mill pumps, cyclones, gravity concentrators and screens are in place and work continues on the associated piping and electrical installations.
- Construction of the CIL tanks continues with completion expected before the end of January. Installation of the top gantries has commenced. Completion of the CIL circuit is expected in the second quarter of this year.
- Construction of the CIL and tailings thickeners continues for completion in the second quarter of this year.
- The analytical laboratory has been operating on one shift since late November. A second shift is being trained.
- Infill drilling, for production planning purposes, continues using the reverse circulation drill.
- The stockpile patio has been essentially completed and stockpiling of ore has commenced. The laying of hard core continues on the access roads and the base of the stockpile.
- The detailed project engineering report for the 69Kv power line has been completed and lodged with the State power utility. Approval is expected shortly. Construction and equipment supply bids are being evaluated. The main substation transformer has been ordered and will be delivered in February.
- The standby generators are in shipment and scheduled to arrive at the port of Itaqui on the 15th January. The buildings for the generators and associated electrical control panels are essentially completed. All transformers for generator and process plant operations are on site.
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, the potential for delays in the construction of the plant, 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.
You can also view this News Release on our website at:
http://www.lunagold.com/s/NewsReleases.asp?ReportID=379844
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