VANCOUVER, Jan. 25 /PRNewswire-FirstCall/ -- Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") announces that Centerra (U.S.) Inc. ("Centerra") has terminated its earn-in agreement on Luna's Red Rock project, in Lander County, Nevada.
Centerra had spent approximately USD$1,450,000 on geophysical and geochemical surveys, mapping, and drilling over the last two years. Centerra returned the project to Luna citing their preference to focus on shallower targets.
Tim Searcy, Luna's President and CEO comments: "The Company is very happy to regain full control of the project although disappointed to lose Centerra as a partner."
Centerra's work completed satisfies 100% of Luna's spending commitment to its underlying claim holder. Luna is only responsible for advanced royalty payments to the underlying claim holder, which amounts to USD$50,000 this year.
Mr. Searcy continues: "Centerra's work highlighted the potential of the project. With only three holes drilled, two intercepted altered Lower Plate rocks and one intercepted mineralized Lower Plate rocks (see the press release dated November 7th, 2007). Considering the results of the recent work, the proximity of the project to the world class Cortez Joint Venture, which hosts the multi-million ounces deposits Pipeline and Cortez Hills, and the current gold price environment, Luna is pleased to be gaining control of the project."
Luna's strategy in Nevada is to generate projects, undertake preliminary surface work in order to identify drill targets, and then joint venture the projects to majors or intermediates for the drill testing of the targets. Luna maintains this low-cost, low-risk strategy in Nevada while it aggressively develops its gold resources in Brazil.
About Luna Gold Corp
Luna Gold is a mining exploration company with a focus on gold development in Brazil and gold exploration in Nevada.
On behalf of the Board of Directors LUNA GOLD CORP. "Tim Searcy" Tim Searcy, P. Geo. - President and CEO Website: http://www.lunagold.com/ The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release. Regulatory Footnotes
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.
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