Luna Gold Corp Provides 2014 Guidance and Phase I Expansion Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 28, 2014) - Luna Gold Corp. (TSX:LGC)(OTCQX:LGCUF)(LMA:LGC) ("Luna" or the "Company") is pleased to announce its guidance for 2014 and an update on the Aurizona Gold Mine Phase I Expansion.
"Maximizing our cash margin, preserving balance sheet strength and completion of the Aurizona Phase I Expansion are Luna's top priorities in 2014," stated John Blake, Luna's President and Chief Executive Officer. "In the third quarter of 2014, we plan on delivering our Aurizona Phase II Preliminary Feasibility Study which will consider further expansion of the Aurizona Gold Mine to produce between 200,000 and 300,000 ounces of gold per year. I am confident that the dedication and talent of our team will allow us to reach these goals, and establish Luna as a mid-tier gold producer."
The Aurizona Gold Mine Phase I Expansion is progressing and remains on budget as at December 31, 2013. The overall engineering, including detailed site engineering, reached 97% complete, procurement awarded reached 90% complete (37 of 41 procurement packages awarded) and construction reached 42% complete. Completion of Phase I Expansion remains targeted for the first half of 2014. The Company remained focused on managing cash flows in a period of gold price volatility, and the construction schedule remains flexible to adapt expenditures to available cash flow.
The Phase I construction schedule has been designed to allow for a delay in execution upon an unexpected reduction in cash flow, without impacting the Phase I budget.
Luna's 2014 guidance is as follows:
- Average annual cash cost of production of US$690 to US$740 per ounce of gold;
- Average annual all-in sustaining cost of production of US$800 to US$900 per ounce of gold;
- Annual gold production of 85,000 to 95,000 ounces;
- On budget completion of Phase I of Aurizona's expansion during the first half of 2014;
- Anticipated delivery of an updated NI 43-101 Resource and Reserve Estimate for the Aurizona Gold Mine during the third quarter of 2014;
- Targeted release of a Preliminary Feasibility Study for Phase II of Aurizona's expansion during the third quarter of 2014; and
- Capital expenditure on sustaining items and other non-expansionary projects of $9 million throughout 2014.
The Company anticipates releasing its financial results for the three-month and twelve-month periods ended December 31, 2013 after market close on Wednesday, March 19th, 2014. Luna will also host a conference call at 11:00 a.m. Eastern Time on Thursday, March 20th, 2014, where Management will both review the financial results and discuss the progress of Luna's business.
About Luna Gold Corp.
Luna is a gold production company engaged in the operation, expansion, and exploration of gold projects in Brazil.
On behalf of the Board of Directors
John Blake, President and CEO
Forward-Looking Statements
This release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to future gold production and/or the results of analysis on gold production. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. 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, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, 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.
