Luna Gold assays outshine historic work at Aurizona

Luna Gold (LGC-V) shares got a 33%-boost today thanks to the latest drill results from the Piaba zone of its Aurizona deposit in Brazil.

Luna shares rose 30 to $1.20 on a trading volume of about 733,000 shares, matching the companys 52-week rolling high, reached on Nov. 6.

Hole 212 returned a 46.8-metre intersection grading 8.94 grams gold per tonne, which ended in mineralization due to ground conditions.

The company says the latest results are better than any of the historical assays from the desposit.

Tim Searcy, Lunas CEO, says the drilling shows potential for resource expansion at depth.

The company has received results for 5 holes totaling 737 metres of a 4,000-metre program along a 2.4 km corridor, most of which has been completed.

Other highlights include Hole 209, which returned a 43.35-metre intersection grading 1.57 grams gold per tonne and Hole 210, which returned a 25.75-metre intersection grading 1.10 grams gold per tonne.

The holes were drilled on 5 north-south sections spaced approximately 50 metres apart on the eastern portion of the Piaba zone.

In June, Luna began a feasibility study on the project, which it hopes to finish by early 2008, with production starting in 2009.

Luna is working on updating and expanding the historical resource calculated in 2000 (not compliant with National Instrument 43-101 standards) of 12.5 million tonnes grading 1.27 grams gold per tonne, under the measured and indicated category and an inferred resource of 8.6 million tonnes grading 1.27 grams gold per tonne, using a cutoff gold price of uS$350 per oz.