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Posts tagged ‘Luna Gold Corp (LGC)’

Athabasca Basin and beyond

December 14th, 2013

Uranium news from Saskatchewan and elsewhere for December 7 to 13, 2013

by Greg Klein

Next Page 1 | 2

Spincos Fission 3.0 and Alpha Exploration debut on TSXV, Fission Uranium plans most aggressive campaign ever

Never mind Fission 3.0’s FUU ticker. When Fission Uranium TSXV:FCU was created out of Fission Energy earlier this year, only a last-minute change prevented that spinco from becoming FUC. And now that Alpha Minerals has delisted to create its spinco, Alpha Exploration TSXV:AEX, two new companies join the Venture while Patterson Lake South comes under the sole ownership of Fission Uranium, a particularly tempting takeover target.

Uranium news from Saskatchewan and elsewhere for December 7 to 13, 2013

Now with sole control over Patterson Lake South, Fission Uranium seems
likely to use winter drilling as a theatrical build-up to a maiden resource.

Fission 3.0 debuted December 10 at $0.12 and quickly shot up to $0.30 before plunging to a $0.135 close. The stock finished December 13 at $0.16. With 152.96 million shares outstanding, Mach III had a $24.47-million market cap.

Alpha Exploration began trading December 12 at $0.45 and reached a daily high of $0.63. But it fell all the way to a $0.30 close. The following day’s finish dropped a penny lower. AEX’s 13.96 million shares represented a market cap of $4.05 million.

Each spinco got $3 million in start-up money from Fission Uranium. Alpha Minerals nominees Warren Stanyer and Kurt Bordian joined Fission Uranium’s board, replacing Frank Estergaard and Jeremy Ross who moved to Fission 3.0 along with Dev Randhawa and Ross McElroy, who lead both Fissions. Alpha Exploration’s management and board remains “substantially the same” as that of Alpha Minerals.

Meanwhile the PLS role played by father/son team Ben and Garrett Ainsworth (ex-Alpha Minerals now Alpha Ex) have won them the 2013 Colin Spence Award for excellence in global mineral exploration, the Association for Mineral Exploration British Columbia announced on December 12.

Fission 3.0 keeps its predecessor’s uranium focus with six Athabasca Basin-area projects and another in the Macusani region of Peru. Alpha Exploration lists its initial key assets as two gold projects, Mikwam in Ontario and Donna in B.C., as well as Saskatchewan uranium properties.

The spin-outs have hardly diminished Fission Uranium’s attraction, a $12.87-million financing suggests. Announced December 11, the company’s 8.58 million $1.50 subscription receipts have been exchanged for one flow-through share each, a transaction that closed after the Alpha Minerals acquisition.

Evidently emboldened by all that dough, McElroy announced Fission Uranium’s “most aggressive drill program to date at PLS—approximately 30,000 metres in up to 100 drill holes,” the news release quoted him. “Our core focus will be growth, including the specific goal of eliminating the distance between the six identified zones. We will also be testing new targets, using radon sampling on other EM conductors and employing resistivity ground geophysics to help identify additional prospective corridors.”

With assays still pending for over 50 holes, Fission Uranium might be accused of teasing investors prior to a first resource.

Late December 13 the company announced it granted a consultant one million options at $1.10 for two years.

Lakeland Resources bolsters team with Canon Bryan and Sam Wong

Two more appointments add to a busy period of announcements from Lakeland Resources TSXV:LK. On December 9 mining financial professional Canon Bryan joined Lakeland’s advisory board. Two days later another mining specialist, Sam Wong, took the position of chief financial officer.

With Bryan’s appointment Lakeland not only gains additional expertise but renews a relationship that’s already proved successful. Bryan’s resume lists management positions for several public and private companies including Uranium Energy Corp NYSE MKT:UEC, which Bryan co-founded. He also founded Terrestrial Energy Inc, which is developing a commercial molten salt reactor, and operates a merger-and-acquisition consulting service for the uranium sector.

Now he’s working again with people who’ve benefited from his past accomplishments. Lakeland director Ryan Fletcher recalls the genesis for what’s now NioCorp Developments TSXV:NB. “Canon came to us [Zimtu Capital Corp TSXV:ZC] with the idea to go to Nebraska and acquire a niobium project,” Fletcher says. “It was a great project, although difficult because we had to acquire it from 40 farmers. It took quite a while and a bit of money but we were successful.”

I co-founded [Uranium Energy Corp] with three other folks and took it through the hoops. It’s now listed on the New York Stock Exchange and producing uranium in Texas.—Lakeland Resources
adviser Canon Bryan

Known as Elk Creek, NioCorp calls it “the only primary niobium deposit in the U.S., and… the highest-grade, large-tonnage undeveloped deposit in North America.”

Bryan says, “I found the project and Zimtu was able to facilitate funding, so it was a good collaboration and profitable for everyone.”

With Uranium Energy Corp, “I co-founded the company with three other folks and took it through the hoops,” Bryan adds. “It’s now listed on the New York Stock Exchange and producing uranium in Texas. Producing uranium in the U.S. is quite a rare thing. It’s something I’m personally quite proud of.”

He says working with Lakeland renews “a collaboration that’s never really gone away. We’re colleagues in the industry. We agreed it would be a good fit for everybody, very much an organic fit.”

He joins three other well-respected names on Lakeland’s advisory board, all with complementary fields of expertise—John Gingerich, Richard Kusmirski and Thomas Drolet.

“Uranium M&A is my area of expertise,” Bryan says. “So naturally that’s something I would like to bring to the table.”

Wong, Lakeland’s new CFO, holds the same position at Lowell Copper TSXV:JDL and Chesapeake Gold TSXV:CKG. He’s also served as corporate controller at Luna Gold TSX:LGC, where he oversaw the finance division during Luna’s transition from development to commercial production. Wong articled as a chartered accountant at Deloitte & Touche LLP, where he specialized in assurance and advisory for mining companies.

In a statement accompanying the December 11 announcement, Lakeland president/CEO Jonathan Armes said Wong brings “strength in financial reporting, strategic planning, corporate governance, equity financings, due diligence for acquisitions and corporate development to our growing team. His attention to detail and in running a tight ship will be another strong asset for Lakeland as we advance as an up-and-coming leader in the Athabasca Basin.”

The appointments follow a flurry of recent news from the uranium explorer, which includes a joint venture with Declan Resources TSXV:LAN that expands Lakeland’s upcoming Gibbon’s Creek drill program, another JV with Star Minerals Group TSXV:SUV that increases Lakeland’s portfolio and the publication of a research report by Zimtu research and communications officer Derek Hamill.

Meanwhile results are pending from last season’s exploration on the Riou Lake/Gibbon’s Creek property in the north-central Basin.

Read more about Lakeland Resources here and here.

Forum completes ground gravity survey, plans ground EM at Clearwater

A December 11 announcement moves Forum Uranium TSXV:FDC closer to drilling its Clearwater project. With a ground gravity survey finished, around 11 drill targets have been chosen. The survey followed up on previously identified electromagnetic conductors and radon anomalies to find four gravity lows, three of which held several conductors. An early January ground EM survey will further refine targets for drilling that’s expected to start later that month.

In late November Forum released lake sediment samples from the southern area of the 9,910-hectare property. Clearwater lies adjacently southwest of, and on trend with, PLS.

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Lakeland Resources appoints Sam Wong CFO

December 11th, 2013

by Greg Klein | December 11, 2013

Lakeland Resources appoints Sam Wong CFO

Lakeland CFO
Sam Wong

Lakeland Resources TSXV:LK management added more mining and exploration expertise with the December 11 appointment of Sam Wong as chief financial officer. Currently CFO of Lowell Copper TSXV:JDL and Chesapeake Gold TSXV:CKG, Wong has also served as corporate controller at Luna Gold TSX:LGC, where he oversaw the finance division during Luna’s transition from development to commercial production. Wong articled as a chartered accountant at Deloitte & Touche LLP, where he specialized in assurance and advisory for mining companies.

In a statement accompanying the announcement, Lakeland president/CEO Jonathan Armes said Wong brings “strength in financial reporting, strategic planning, corporate governance, equity financings, due diligence for acquisitions and corporate development to our growing team. His attention to detail and in running a tight ship will be another strong asset for Lakeland as we advance as an up-and-coming leader in the Athabasca Basin.”

The appointment follows a flurry of recent news from the uranium explorer, which includes the appointment of Canon Bryan to the company’s advisory board, a joint venture with Declan Resources TSXV:LAN that accelerates Lakeland’s winter drill plans, another JV with Star Minerals Group TSXV:SUV that expands Lakeland’s portfolio and the publication of a research report by Zimtu Capital TSXV:ZC research and communications officer Derek Hamill.

Read more about Lakeland Resources.

Disclaimer: Lakeland Resources Inc and Zimtu Capital Corp are clients of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in those companies.

Sandstorm announces $130M Bought-Deal Financing

August 23rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSandstorm Gold Ltd TSXV:SSL announced it has increased its previously announced bought-deal financing from C$75 million to C$130 million. Lead underwriter Cormark Securities Inc along with National Bank Financial Inc, Paradigm Capital Inc, BMO Capital Markets Inc, Casimir Capital Ltd, Canaccord Genuity Corp and TD Securities Inc have agreed to buy, on a bought deal basis, 13,050,000 units at C$10 for gross proceeds of approximately C$130 million. Sandstorm has granted to the underwriters an option to buy up to an additional 15% of the number of units. If that option is wholly exercised, the aggregate gross proceeds will be approximately C$150 million. Each unit consists of one common share of Sandstorm and one-third of one common share purchase warrant, which will entitle the holder to acquire one common share of Sandstorm at a price of US$14 up to five years following completion of the offering.

Sandstorm provides upfront financing for gold-mining companies seeking capital in return for agreements giving it the right to buy percentages of life-of-mine gold produced at fixed prices. Sandstorm has completed gold purchase or royalty agreements with Luna Gold Corp TSXV:LGC, SilverCrest Mines Inc TSXV:SVL, Rambler Metals and Mining plc TSXV:RAB, Brigus Gold Corp TSX:BRD, Metanor Resources Inc TSXV:MTO, Donner Metals Ltd TSXV:DON, Magellan Minerals Ltd TSXV:MNM, Solitario Exploration & Royalty Corp TSX:SLR and Ely Gold & Minerals Inc TSXV:ELY. The net proceeds of the offering will be used for general corporate purposes including potential future purchases of precious-metal streams and working capital.

View Company Profile

Nolan Watson
President/CEO
604.689.0234

by Kevin Michael Grace

Luna reports Brazil Gold Assays up to 4.89 g/t over 13m, 1.4 g/t over 12m

August 13th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningLuna Gold Corp TSXV:LGC announced results from the Piaba Deposit of its Aurizona Gold Mine in Brazil. Highlights include

1.94 grams per tonne gold over 26 metres
(including 5.74 g/t over 2 metres)
1.12 g/t over 12 metres
1.4 g/t over 36 metres
(including 7.33 g/t over 1 metre)
2.09 g/t over 12 metres
(including 4.98 g/t over 3 metres)
4.89 g/t over 13 metres
(including 25.1 g/t over 1.5 metres)
1.88 g/t over 16 metres
(including 6.22 g/t over 1 metre)
1.02 g/t over 6 metres
2.13 g/t over 5 metres

President/CEO John Blake commented, “The initial deep-drill program has produced very encouraging results extending the Piaba orebody to depths of over 600 metres vertical depth. The Piaba remains open along a 3.3-kilometre strike and at depth. All holes intersected down-dip extensions to the main deposit. The results from these six widely spaced exploration holes consolidate Piaba as a major mineralizing system. Several holes intersected high-grade mineralization confirming our deposit model, and future programs will focus on vectoring towards higher-grade potential underground targets. The results further demonstrate the major resource expansion potential of Aurizona, which currently contains measured and indicated gold resources totaling 78 million tonnes at 1.26 g/t gold or 3.17 million ounces gold and inferred gold resources totaling 15.2 million tonnes at 1.47 g/t gold or 0.72 million ounces gold.”

View Company Profile

Investor Relations
604.558.0560

Read feature story on Luna Gold Corp

Read an interview with President/CEO John Blake

by Kevin Michael Grace

Treasure Islands

January 30th, 2012

Miners Face Increasing Danger from Crime, Social Unrest and Violence

By Greg Klein

With 22 years’ experience in the British Special Forces, 10 of them with the Royal Marines and the other 12 with the SAS, Alan Bell is no stranger to conflict. Since founding the Toronto-based security company Globe Risk International in 1996, he’s provided his expertise and active involvement to a number of exploration and mining companies overseas. And he’s seen a few changes over the years.

“I remember when I started out in the 1990s, the old VPs of exploration used to go out into the mountains with their hammers and their boots and their trousers tucked into their socks. The old-school guys would go out there and say, ‘We don’t need any security.’ Well the world has changed dramatically since then.”

Miners Face Increasing Danger from Crime, Social Unrest and Violence

His admonition would apply to all resource companies but especially those of Canada, “the global leader in mineral exploration,” according to the Prospectors and Developers Association of Canada. Rising prices and limited supply push exploration into increasingly dangerous places, in a world that is itself becoming more troubled.

Companies often turn to Globe “when things go wrong,” Bell says. “They’ve got to spend a lot more time researching where they’re going and what they’re going to do. They’re running out of places to go, and the places that are left are where there’s problems.”

Bell’s company will visit the site of a proposed project to assess certain types of risk—not so much political risk, which might involve expropriation or a sudden and onerous tax/royalty regimen, but conflict in the form of crime, social unrest, sectarian violence or terrorism.

“There could be anything from suicide bombers to vehicle-exploding devices. We talk about what’s in the area. Can you get helicopters in there; what type of security do you need; who can assist you? We assess the local population, aviation, flight clearances, landing sites. Basically we develop a report for the client so they can see what their problems and options are before they bid on these contracts.

“We’ve had many clients who have looked at our reports and said, ‘Well this looks like an option, we’re willing to take a certain amount of risk,’ and they go in. Others say, ‘Shit, we’re not going to get involved in this, it’s too dangerous.’”

Bell started out with assignments in Latin America and Africa. In 2004, he began working on Canadian government contracts in Afghanistan. He employs a number of former Canadian military but trains locals to work as onsite security.

“We just finished a major project in northern Afghanistan for a Chinese company looking to start in March or April. What we will do, if they wish, is provide them with security to do their work. We’ll get a camp built for them, train the security team, get the vehicles. When they come over and start carrying out their exploration, we’ll support them from a security perspective as well.”

Precautions notwithstanding, not everything can be predicted, let alone prevented.

Last September, for example, Semafo TSX:SMF shut down its Kiniero Gold Mine in Guinea and evacuated its expatriate employees after protests about foreign workers turned violent. The mine still hasn’t re-opened, although exploration resumed in late October.

In December 2010, Luna Gold TSXV:LGC lost 1,500 ounces of gold, worth over $2 million at the time, to an armed gang at its Aurizona Mine in Maranhao State, Brazil, about 2,000 kilometres north of Rio de Janeiro. Robbers failed in a second attempt last November, however, despite taking hostages. The captives were released unharmed, an outcome which the company attributes to precautions taken after the initial heist.

We knew that this was going to happen based on intelligence-gathering by our security people. We advised the local police. The police were on site at the time the outsiders came. And the police just stood by while they vandalized the place —Donald East

In March 2011 Torex Gold TSX:TXG suspended work at its Morelos Project in Guerrero State, 200 kilometres southwest of Mexico City, after the armed robbery of several of its trucks. No one was hurt, but employees were evacuated nonetheless. Operations have since resumed.

Last June Torex President/CEO Fred Stanford explained, “We’re in a little town that had no police, and it had never needed them. I think we injected enough money into the community that we attracted a criminal element…. There are now police, and we’re back and moving forward. The government’s been very good; the community wants the mine; and we’re negotiating now for land. No doubt there will be issues, but we’ve got a great partnership with the community.”

Other companies work in the thick of cartel country. US Gold’s TSX:UXG El Gallo Silver-Gold Project is slated for mid-2012 production in Sinaloa State on Mexico’s north-central coast. Senior VP Ian Ball said, “We have been very active there for three or four years and have been able to establish a pretty good relationship—and this might sound strange—with the cartel. You have to know who they are and inform them what you’re doing and where you’re moving to…. They don’t want you near their marijuana crops.”

When it comes to Colombia, Sunward Resources TSX:SWD COO David Forest can’t say enough good things about the country. “Geologically, there’s nothing like it,” he told ResourceClips.com last August. “There’s nothing on the planet with that kind of potential that’s so underexplored. Nothing happened there for 50 years. It’s phenomenal terrain, completely underexplored.”

He added that his flagship Titiribi Gold-Copper Project is in Antioquia Department, a region of northwest Colombia “which has very strong rule of law and tradition of order. We don’t have any security at site.” That confidence seems to be borne out by the presence of others. Neighbours include AngloGold Ashanti, Gran Colombia TSX:GCM, Colombian Mines TSX:CMJ, Continental Gold TSX:CNL, Bellhaven Copper and Gold TSX:BHV and Batero Gold TSX:BAT.

But while Forest emphasized, “The security and safety situation is fine in 90% of the country now,” there is that other 10%. It includes Sunward’s former Murindo-Mande Norte Project straddling the border between Antioquia and Choco departments. “There’s a number of issues including FARC [the Revolutionary Armed Forces of Colombia] and indigenous groups,” he said. “If you can name an issue in Colombia, that region’s got it. The prize, if and when we can get in there, is enormous. It’s an anomaly the size of Yaletown [a high-density Vancouver neighbourhood], with copper sticking out of the ground. For 30 years, everybody’s known about this unbelievable anomaly, but it’s remained a place where nothing happened. We’re working on getting in there and, if we can, it’ll be a lot of fun.” By December, however, Sunward had divested itself of the property.

Speaking from Bogotá, Gran Colombia COO Donald East waxes enthusiastic about his company’s Marmato Gold Project, now in prefeasibility and projected for 2015 production. If all goes to plan, it will be the company’s seventh operating mine in northern Colombia. Last October, however, the company shut down its Mazamorras Project in Nariño Department, in the southwest corner of the country, after a mob demolished the buildings.

“We knew that this was going to happen based on intelligence-gathering by our security people,” says East. “We advised the local police. The police were onsite at the time the outsiders came. And the police just stood by while they vandalized the place. We then complained to the government about that. In any country in the world you have to rely on some sort of legal protection for your assets. So I think that created a bit of a wake-up call for the government.”

There’s nothing remarkable about the security company’s presence, East maintains. “Obviously on any mine you have security because you have assets. It’s just a local security company; that happens on every mine.”

East says he still doesn’t know who’s responsible for the attack or what motivated them. But he believes they were from outside the region and the attack was somehow linked to the local and regional elections that were about to take place. The local population, he says, supports the project for the sake of jobs as well as the social work the company performs. “We’re just going to let the thing wait until we feel the risks aren’t too great for any of our people to go back there. So it’s probably going to be next year before we start to re-visit that project. Mazamorras is not really critical to our current planning.”

Read Part II of this story here.

Luna reports Brazil Gold Assays including 1.69 g/t over 71m

November 30th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningLuna Gold Corp TSXV:LGC announced results from the Piaba Deposit of its Aurizona Gold Mine in Brazil. Highlights include

1.69 g/t gold over 71 metres
5.43 g/t over 19 metres
(including 11.9 g/t over 2 metres)
4.04 g/t over 23 metres
(including 12.4 g/t over 6 metres)
2.49 g/t over 28 metres
(including 5.93 g/t over 3 metres)
3.54 g/t over 18 metres
(including 6.84 g/t over 2.5 metres)
1.53 g/t over 38 metres
(including 9.78 g/t over 0.5 metres)

President/CEO John Blake remarked, “We are on target to finalize the NI 43-101 resource update in early December. These new drill results, inclusive of high-grade holes located well outside the boundary of our current resource estimate, are of major significance. They further extend the strike length of the Piaba Deposit beyond the limits announced earlier this month and continue to demonstrate Aurizona’s growth potential. The management is very encouraged by the continued positive trend in drill results and we look forward to further development possibilities.”

View Company Profile

Contact:
Investor Relations
604.558.0560

Read feature story on Luna Gold Corp.

by Greg Klein

To The Moon—Or 300K Oz Annually

November 15th, 2011

Luna Gold Plans to Upsize Brazil Production

By Ted Niles

Things seem to be coming together for Luna Gold Corp TSX:LGC. That might seem an odd thing to say about a company that’s been producing since February at its Aurizona Gold Mine, but success is not a static achievement. Bringing a mine to production only really marks the transition of a junior miner from adolescence to adulthood. Issues of liquidity, logistical strength and effective management require constant attention for success to burgeon. That’s why John Blake was appointed Luna President and CEO in September 2010.

“My job was to review the company, and I had full support from the board,” Blake says. “We had mechanical issues in the construction phase that have been repaired, and now we’re delivering our feasibility-study production. We’ve revamped our management team, and we’ve got a really strong operational team now to add to the strong team we already had in finance and exploration. We’ve recently recapitalized the company in terms of new project debt financing with WestLB, and we’ve raised equity in the market. So we’ve now got very solid capital structure to move the company forward. The next step is to increase our resource in December so we’ve got a solid platform for growth.”

Luna Gold Plans to Upsize Brazil Production

And Luna Gold is well on its way in that endeavour. Its 190,000-hectare Aurizona gold project—located in the state of Maranhão in northeast Brazil, roughly equidistant between the cities of São Luis and Belém—has a 2009 NI 43-101 resource estimate of 909,000 ounces gold measured and indicated, and 403,000 ounces inferred. (With proven and probable reserves of 729,000 ounces.) From August 2010 to October 2011, the company drilled 40,000 metres. “The resource-definition program has been drilling along strike and at depth to improve our inferred resources to measured and indicated and also to add more ounces,” Blake reports. “The 1.3-million-ounce resource we have at Aurizona at the moment was based on 30,000 metres of drilling. So you can see what we’re trying to target in terms of an additional upgrade.”

November 7 assays of Aurizona’s Piaba deposit included

  • 33.63 grams per tonne gold over 13 metres (including 104.83 over 4 metres)
  • 3.87 g/t over 50 metres (including 8.47 g/t over 7 metres)
  • 2.46 g/t over 68 metres (including 6.02 g/t over 11 metres)
  • 2.65 g/t over 31 metres (including 6.32 g/t over 1 metre)

October 27 results included

  • 2.57 g/t over 53 metres
  • 4.32 g/t over 31 metres
  • 2.22 g/t over 54 metres
  • 2.03 g/t over 35 metres
  • 2.49 g/t over 55 metres
  • 3.64 g/t over 22 metres
  • 2.6 g/t over 41 metres
  • 2.01 g/t over 52 metres
  • 1.51 g/t over 65 metres

Blake comments, “We’re getting very good and consistent values, and I’d say that the upgraded resource is going to show that continuity both along strike and at depth. We’re very encouraged that we can get a sizeable increase in our resource. There are some very good high-grade intersections, but what [these results] really demonstrate is that we’ve got really good continuity around about the 1.36 g/t range, which is our current resource head grade.”

We’re a 60,000-ounce producer; cash costs are coming down; and we’re looking forward to producing 100,000 ounces per year and building up our resource base —John Blake

In addition to the upcoming resource update, Luna has undertaken a preliminary economic assessment to be released 2Q 2012. Upgrades to the SAG mill earlier this year caused a delay in reaching 2011 targeted production of 60,000 ounces per year. On November 10, Luna reported Q3 production of 13,473 gold ounces at $830 per ounce and nine-month production of 28,277 ounces at $1,117 per ounce. The company reported $2.72 million net income for the quarter and revised its 2011 gold production target to 42,000 to 44,000 gold ounces at $990 to $1,000 per ounce. Blake says, “Our scoping study will give us a path to produce 100,000 ounces in 2013.”

The project’s relative disadvantages—illustrated perhaps most dramatically by the December 2010 theft of 1,500 ounces of gold from the mine—are offset, Blake argues, by governmental support. “We’re in an area that’s largely been underexplored, and we’re getting some very good encouragement from the state of Maranhão to work in the area. They worked with us in the construction phase to build a 69kV power line to deliver power to site, and they have given us a discount in corporate tax for the first 10 years of operation. So the government is really working hard to attract mining investment in the northeast of Brazil.”

Blake believes Luna is undervalued, and he puts this down to a lack of exposure. “If you look at our history,” he says, “we’ve raised our capital through private placements. Last month we raised $42 million with National Bank Financial as our lead. That’s the first time we’ve used banks. Up until now we’ve had no coverage, so we would be one of the only gold producers on the TSX without market analyst coverage. So we are not a well-known story for the institutions.”

He concludes, “Now we’ve got a good story to tell. We’re a 60,000-ounce producer; cash costs are coming down; and we’re looking forward to producing 100,000 ounces per year and building up our resource base. We’re not setting ourselves up for takeover. We’ve got 190,000 hectares of prime exploration country, where we expect to find another couple million ounces in the very near future. We’re spending between $12 million and $15 million on exploration every year to generate our own future and get us up to a 300,000-ounce producer in three to five years.”

At press time, Luna Gold Corp had 522.6 million shares trading at $0.58 for a $303.1 million market cap. It had $41.4 million in cash and equivalents as of September 30. Sandstorm Gold Ltd TSX:SSL holds 17% of the life-of-mine gold production from the Aurizona Mine. Luna Gold’s other projects in northeast Brazil are the Cachoeira project and the Maranhão Greenfields.

Luna, Sandstorm report Brazil Gold Assays of 33.63 g/t over 13m

November 7th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningLuna Gold Corp TSXV:LGC and Sandstorm Gold Ltd TSXV:SSL announced results from the Piaba Deposit of Luna’s Aurizona Gold Project in northeastern Brazil. Highlights include

33.63 g/t gold over 13 metres
(including 104.83 over 4 metres)
3.87 g/t over 50 metres
(including 8.47 g/t over 7 metres)
2.46 g/t over 68 metres
(including 6.02 g/t over 11 metres)
2.65 g/t over 31 metres
(including 6.32 g/t over 1 metre)
1.93 g/t over 32 metres
(including 3.18 g/t over 8 metres)
1.75 g/t over 32 metres
(including 3.1 g/t over 12 metres)

Aurizona is 100% owned and operated by Luna. Sandstorm may purchase 17% of Aurizona’s life-of-mine gold at a per-ounce price equal to the lesser of $400 or the prevailing market price.

Luna President/CEO John Blake remarked, “The 40,000-metre drill program is now complete and we are on track to finalize the NI 43-101 resource update in early December 2011. These recent results are excellent in both grade and width, which are significantly above the 1.36 g/t gold average grade of the current NI 43-101 reserve. In addition most of the holes reported here are new discoveries along eastern and western strike extensions to the Piaba Deposit that lie outside the boundary of the 2009 resource update. We are strongly positioned to increase the company’s gold resources through upgrading inferred resources to the measured and indicated categories and by the addition of new ounces at depth and along strike.”

View Company Profile

Contact:
Luna Gold Corp
Investor Relations
604.558.0560

Sandstorm Gold Ltd
Nolan Watson
President/CEO
604.689.0234
or Denver Harris
Investor Relations
604.628.1178

by Greg Klein

Luna President John Blake on Brazil gold assays of 2.57 g/t over 53m

October 28th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningLuna Gold Corp TSXV:LGC announced results from its Piaba gold deposit in northeast Brazil. Assays include

1.54 g/t gold over 36 metres
1.64 g/t over 31 metres
1.24 g/t over 24 metres
2.57 g/t over 53 metres
2.61 g/t over 14 metres
4.32 g/t over 31 metres
2.22 g/t over 54 metres
2.03 g/t over 35 metres
2.49 g/t over 55 metres
3.64 g/t over 22 metres
1.11 g/t over 25 metres
2.6 g/t over 41 metres
2.01 g/t over 52 metres
1.21 g/t over 38 metres
1.51 g/t over 65 metres

President/CEO John Blake tells ResourceClips.com, “We’re a producing gold mine. We hit our feasibility study production levels in August this year, and we’re producing at the rate of 60,000 ounces per year—we’ve been steady on that for the last three months. We’re working along the Piaba pit, which is a three-kilometre strike length of greenstone orogenic structure.

“We’re coming to the end of our drill program. The company embarked on a 40,000-metre drill program last August. We’ll cut off the drilling at the end of this month, and we’ll be doing our resource upgrade. We’re targeting the first week in December to make the upgrade public. The resource-definition program has been drilling along strike and at depth to improve our inferred resources to measured and indicated and also to add more ounces. The 1.3-million-ounce resource we have at Aurizona at the moment was based on 30,000 metres of drilling. We’re doing 40,000 now, so you can see what we’re trying to target in terms of an additional upgrade.

There are some very good high-grade intersections, but what it really demonstrates is that we’ve got really good continuity around about the 1.36 g/t range—John Blake

“What these results show is continuity along strike and at depth,” Blake continues. “We’re getting very good and consistent values, and I’d say that the upgraded resource is going to show that continuity both along strike and at depth. We’re very encouraged that we can get a sizeable increase in our resource, and these drill results just show that level of consistency. There are some very good high-grade intersections, but what it really demonstrates is that we’ve got really good continuity around about the 1.36 g/t range, which is our current resource head grade.

“We are in process with our scoping study at the moment which will be completed in 2Q 2012. Our market guidance for 2012 is for 60,000 ounces of gold production, and our scoping study will give us a path to produce 100,000 ounces in 2013.

“We’re an emerging producer at the moment, and we’re undervalued. If you look at our history, we’ve raised our capital through private placements. Last month, we raised $42 million with National Bank Financial as our lead. That’s the first time we’ve used banks. Up until now we’ve had no coverage, so we would be one of the only gold producers on the TSX without market analyst coverage. So we are not a well known story for the institutions. We haven’t actively marketed ourselves until recently because we weren’t producing, but now we’ve got a good story to tell.

“We went through a phase where we had mechanical issues in the construction phase that have been repaired and are operating,” Blake adds. “But now we’re delivering our feasibility-study production. We’ve revamped our management team, and we’ve got a really strong operational team now to add to the strong team we already had in finance and exploration. Also, we’ve recently recapitalized the company with WestLB in terms of new project debt financing, and we’ve raised equity in the market.

He concludes, “We’ve now got very solid capital structure to move the company forward. The next step is to increase our resource in December so we’ve got a solid platform for growth.”

View Company Profile

Contact:
Investor Relations
604.558.0560

by Ted Niles

Luna reports Brazil Gold Assays as high as 2.22 g/t over 54m

October 27th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningLuna Gold Corp TSXV:LGC announced results from its Piaba gold deposit in northeast Brazil. Assays include

1.54 g/t gold over 36 metres
1.64 g/t over 31 metres
1.24 g/t over 24 metres
2.57 g/t over 53 metres
2.61 g/t over 14 metres
4.32 g/t over 31 metres
2.22 g/t over 54 metres
2.03 g/t over 35 metres
2.49 g/t over 55 metres
3.64 g/t over 22 metres
1.11 g/t over 25 metres
2.6 g/t over 41 metres
2.01 g/t over 52 metres
1.21 g/t over 38 metres
1.51 g/t over 65 metres

President/CEO John Blake tells ResourceClips.com, “We’re a producing gold mine. We hit our feasibility study production levels in August this year, and we’re producing at the rate of 60,000 ounces per year—we’ve been steady on that for the last three months. We’re working along the Piaba pit, which is a three-kilometre strike length of greenstone orogenic structure.

“We’re coming to the end of our drill program. The company embarked on a 40,000-metre drill program last August. We’ll cut off the drilling at the end of this month, and we’ll be doing our resource upgrade. We’re targeting the first week in December to make the upgrade public. The resource-definition program has been drilling along strike and at depth to improve our inferred resources to measured and indicated and also to add more ounces. The 1.3-million-ounce resource we have at Aurizona at the moment was based on 30,000 metres of drilling. We’re doing 40,000 now, so you can see what we’re trying to target in terms of an additional upgrade.

There are some very good high-grade intersections, but what it really demonstrates is that we’ve got really good continuity around about the 1.36 g/t range—John Blake

“What these results show is continuity along strike and at depth,” Blake continues. “We’re getting very good and consistent values, and I’d say that the upgraded resource is going to show that continuity both along strike and at depth. We’re very encouraged that we can get a sizeable increase in our resource, and these drill results just show that level of consistency. There are some very good high-grade intersections, but what it really demonstrates is that we’ve got really good continuity around about the 1.36 g/t range, which is our current resource head grade.

“We are in process with our scoping study at the moment which will be completed in 2Q 2012. Our market guidance for 2012 is for 60,000 ounces of gold production, and our scoping study will give us a path to produce 100,000 ounces in 2013.

“We’re an emerging producer at the moment, and we’re undervalued. If you look at our history, we’ve raised our capital through private placements. Last month, we raised $42 million with National Bank Financial as our lead. That’s the first time we’ve used banks. Up until now we’ve had no coverage, so we would be one of the only gold producers on the TSX without market analyst coverage. So we are not a well known story for the institutions. We haven’t actively marketed ourselves until recently because we weren’t producing, but now we’ve got a good story to tell.

“We went through a phase where we had mechanical issues in the construction phase that have been repaired and are operating,” Blake adds. “But now we’re delivering our feasibility-study production. We’ve revamped our management team, and we’ve got a really strong operational team now to add to the strong team we already had in finance and exploration. Also, we’ve recently recapitalized the company with WestLB in terms of new project debt financing, and we’ve raised equity in the market.

He concludes, “We’ve now got very solid capital structure to move the company forward. The next step is to increase our resource in December so we’ve got a solid platform for growth.”

View Company Profile

Contact:
Investor Relations
604.558.0560

by Ted Niles