Luna Gold Corp. Reports Operational and Financial Results for the Three Months Ended March 31, 2011

Alleen voor leden beschikbaar, wordt daarom gratis lid!

Overig advies 18/05/2011 16:34
(expressed in United States dollars, unless otherwise noted).
Vancouver, May 17, 2011 - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") today announces its results for the three months ended March 31, 2011. The complete financial statements and management discussions and analysis are available for review at www.lunagold.com and should be read in conjunction with this news release.
OVERVIEW
Luna Gold Corp. (the "Company") is a publicly listed company on the TSX Venture Exchange trading under the symbol "LGC". The Company is actively engaged in the operation, exploration, acquisition and development of gold properties in Brazil. The Company currently has one gold mining operation, one development project and one large greenfield exploration project located in northeast Brazil.

The Aurizona gold mining operation ("Aurizona") consists of an open pit mine and gold process plant. Aurizona consists of the Piaba and Tatajuba deposits and over 10 near mine exploration targets which are being actively explored by the Company. It covers approximately 15,000 hectares of land and includes a mining license and three exploration permits.

The Cachoeira gold project ("Cachoeira") is a development gold project with a National Instrument 43-101 compliant resource estimate consisting of multiple mineralized zones, which include isolated quartz vein systems, hydrothermally altered host rocks and stockworks within a north-south trending shear zone.

The Maranhao Greenfields exploration property ("Maranhao Greenfields") is located next to Aurizona and consists of an extensive landholding of exploration licenses totalling 170,000 hectares. This unexplored land holding is highly prospective due to its location in the southern extension of the Guyana Shield and displays strong geologic and structural similarities to West African gold deposits. The area contains over 100 artisanal gold workings that require further exploration.

The Company's near term focus is to:
Significantly increase the size of the Aurizona resource and release an updated NI 43-101 resource estimate for the Piaba and Tatajuba gold deposits and certain near mine exploration targets;
Increase the Aurizona gold production above current feasibility study levels through plant optimization and plant expansion;
Complete a scoping study on the Cachoeira resource and advance the project to feasibility study; and
Advance the exploration activity at Maranhao Greenfields to define drill targets for the 2012 exploration program.

The Company's longer term focus is to:
Increase Aurizona gold production to 100,000 ounces per annum;
Continue to invest in brownfield exploration activities to increase the resource at Aurizona to replace production and provide a longer mine life;
Develop Cachoeira as an organic growth pipeline project for the Company; and
Identify new gold resources through the exploration of the 170,000 hectare Maranhao Greenfields property and through business development programs.

HIGHLIGHTS
Net operating income for the quarter was $726.4 thousand, which was its first positive quarterly operating income since inception of the Company;
Operating cash inflow after working capital was $425.7 thousand, which was its first positive quarterly operating cash inflow after working capital movements since inception of the Company;
Aurizona gold production was approximately 9,200 ounces for the quarter;
Aurizona brownfield exploration drilling results in Q1 included 55.00 meters at 4.15 grams per tonne (g/t) of gold, including 17.00 meters at 7.80 g/t of gold;
The Company applied for a secondary listing on the Lima Stock Exchange; and
The Company appointed Peter Mah as VP Operations and Carlos Paranhos as Brazilian Exploration Director.

OUTLOOK
Aurizona gold production remains on target for between 55,000 and 60,000 ounces for the 2011 year at a targeted cash cost of between $610 and $620 per ounce;
The Company remains targeted to complete the Aurizona 20,000 metre exploration drill program and release an updated NI 43-101 compliant resource in Q4 2011; and
Cachoeira scoping study to be completed and the results released in Q4 2011.

AURIZONA GOLD MINE - MARANHAO STATE, BRAZIL

The Aurizona gold mine is wholly owned by the Company and is situated in the municipality of Godofredo Viana in Maranhão State, Brazil, near the coast of the Atlantic Ocean. Aurizona contains the Piaba and Tatajuba deposits and over 10 near mine exploration targets. The area is covered by a mining licence and three exploration permits. The Tatajuba deposit is located within an exploration permit which is in the process of being converted to a mine license.

Operating Data

Three months ended Mar 2011 Dec 2010 Sep 2010 Jun 2010 Mar 2010
Mined waste - tonnes 348,036 579,012 299,396 278,670 110,269
Mined ore - tonnes 111,609 457,873 371,931 276,011 347,946
Ratio of waste to ore 3.1 1.3 0.8 1.0 0.3
Ore Grade mined - g/t 1.79 1.15 1.13 0.97 1.25
Processed ore - tonnes 293,393 328,735 279,654 138,960 -
Average grade processed - g/t 1.19 1.19 0.90 1.58 -

Average recovery rate % 83% 78% 59% 17% -
Gold produced (ounces) 9,209 9,768 4,774 1,217 -
Gold sold (ounces) 8,358 9,594 1,462 739 -
Total cash costs (per ounce) $1,100 $1,233 $1,136 $1,998 -


Mining production

The Company mined approximately 460,000 tonnes of material of which approximately 111,600 tonnes was ore at an average head grade of 1.79 grams per tonne during Q1. This represented a reduction of 56% of total material mined and 75% of ore mined compared to the previous quarter. The lower mining activities were due to the onset of the rain season in Q1 and a decision to reduce mining activities while processing ore from the large build-up of the ore stockpile. The rain season in Brazil has been one of the heaviest on record, which has resulted in many disruptions to the mining activities. The Company also began blasting harder materials and focused on increasing the waste stripping in anticipation of mining higher grade ore in future periods and achieving a steady strip ratio over the life of the mine.

Of the total unit cash cost of production for Q1, approximately $250 per ounce was related to mining and ore costs. The cost per tonne of ore mined during the quarter was approximately $21 per tonne. Costs were higher than the feasibility study average rate due to the lower volumes mined and the related fixed costs of the mining function.

The Company is currently in the process of implementing its own mining team rather than utilizing a contract mining group. The Company obtained certain mining equipment during the quarter and is using a mining contractor for waste stripping activities. This is expected to benefit the operation resulting in lower mining production costs. A further study is currently in process to obtain the balance of the necessary mining equipment and team to implement the mining function at Aurizona.

Mill Processing

The mill processed approximately 11% less tonnes of ore in Q1 than the previous quarter. The lower production was the result of the onset of the rain season and an increase in downtime in preparation for the planned plant shutdown and upgrade which was completed in mid-April. The ore grade processed was similar to the previous quarter and the recovery percentage continued to improve while ramping up to feasibility level production rates.

The processing cash cost per unit of gold produced in Q1 was approximately $850 per ounce. This cost includes all milling, processing and administrative related costs of the operation. Costs were significantly higher than the full year average target of $620 per ounce due to the lower levels of production and the planned shutdown to upgrade the plant. The planned shutdown to achieve the targeted production levels resulted in higher salary related costs and increased consumable costs that were necessary to implement the plant upgrades. However, the average cash cost of production decreased from the previous quarter as the Company continues to reduce overhead costs related to the development and construction stage of the Aurizona.

The Company successfully installed the reduction gear box in the SAG mill, installed the pinion in ball mill #4 and upgraded the trash screens in April. The plant is currently being ramped up to full feasibility production levels in a steady rate while monitoring the increases to ensure there are no significant breakdowns. The Company also began to reduce the size of the workforce to targeted levels which will result in a reduction of cash operating costs.

AURIZONA EXPLORATION

The Company's exploration teams continued to advance exploration at Aurizona during the quarter as summarized below. Diamond drilling is on schedule for completion of the Phase 1, 20,000 metre program in July 2011. The Company's exploration strategy of surface exploration techniques combined with magnetic geophysical surveys is proving highly successful in defining the principal mineralized structures at the near mine targets.

Diamond Drilling

The Company embarked on a 20,000 metre drill program at Aurizona in August 2010 and currently has seven drill rigs in operation at the Piaba deposit. Assays from 25 holes totaling 6,613 meters have been received and samples from 14 additional holes are at the assay lab. Drilling is currently focused on infilling over the 3 kilometre strike length of the Piaba deposit to increase measured and indicated resources. Holes are being drilled on 100 metre spaced sections to a maximum depth of minus 300 metres RL. On completion of the Piaba drill program, the rigs will be sited at the Tatajuba deposit and the Boa Esperança near mine exploration target, which is drill ready following a successful trenching program. Recent significant drill intercepts (not true widths) from the ongoing program are listed below:


55.00 meters @ 4.15 grams/tonne Au including 1.00 meter @ 20.00 grams/tonne Au and 17.00 meters @ 7.80 grams/tonne Au in BRAZD293A
21.00 meters @ 2.50 grams/tonne Au including 8.00 meters @ 5.21 grams/tonne Au in BRAZD297
29.00 meters @ 2.53 grams/tonne Au including 0.50 meters @ 57.00 grams/tonne Au in BRAZD301


Soil Surveys

Assays have been received for the majority of samples collected near the mine site and the data is being processed and new targets prioritized. Soil surveying commenced in the unexplored western portion of the Aurizona project (LDW Grid) in November 2010 targeting new gold mineralization within extensions to the west-southwest trending structures that host the gold mineralization in the main Aurizona area. This surveying is ongoing.

Trenching

A trenching program was completed at the Ferradura target in March where gold anomalies were associated with Banded Iron Formations, a mineralization style previously undocumented in the district. These trench samples are currently at the assay laboratory. Trenching was also recently completed at the Conceicao target and samples will be shipped to the assay laboratory in the coming weeks. Trenching will continue throughout 2011 to advance the near mine targets to drill stage.

Permitting

The process of converting the Tatajuba exploration licence, which hosts the Tatajuba deposit, to a mining license advanced during the quarter. The DNPM approved the Company's positive final exploration report in March and work has commenced on the Brazilian Level Feasibility Study (PAE).

Auger Drilling

Auger drilling was completed at the Micote near mine target and the samples are currently at the assay laboratory. Auger drilling commenced at the Piaba East target area with the objective of defining extensions to the main Piaba ore body beyond the current eastern boundary of the resource model. This program is ongoing. Auger drilling also commenced at the newly defined Agenor near mine exploration target and drilling is ongoing.

lees meer op
http://www.lunagold.com/s/NewsReleases.asp?ReportID=457491



Beperkte weergave !
Leden hebben toegang tot meer informatie! Omdat u nog geen lid bent of niet staat ingelogd, ziet u nu een beperktere pagina. Wordt daarom GRATIS Lid of login met uw wachtwoord


Copyrights © 2000 by XEA.nl all rights reserved
Niets mag zonder toestemming van de redactie worden gekopieerd, linken naar deze pagina is wel toegestaan.


Copyrights © DEBELEGGERSADVISEUR.NL