Luna Gold Corp. acquires option on Dongchuan gold project, Yunnan Province, China
02 Junio 2004 - 11:42AM
PR Newswire (US)
Luna Gold Corp. acquires option on Dongchuan gold project, Yunnan
Province, China VANCOUVER, June 2 /PRNewswire-FirstCall/ -- Luna
Gold Corp. (TSXV-LGC.U) ("Luna") is pleased to announce that it has
entered into a formal co-operative agreement with Yunnan Nonferrous
Mining and Geology Ltd. ("YNMG") pursuant to which the parties have
agreed to establish a Sino-Foreign co-operative joint venture
company in the Yunnan Province, PRC. Joint Venture The joint
venture company will be called the Xinan Mineral Resources Co. Ltd.
It will be established for the purpose of jointly exploring and, if
successful, mining any viable deposits discovered in the Dongchuan
area of the Yunnan, Province, PRC. Pursuant to the terms of the
co-operative agreement, Luna has agreed to invest, at its option, a
total of US$3.1 million over three years to earn a 70% interest in
the co-operative company. After Luna has earned its 70% interest,
at its option, it may earn a further 20% interest in the co-
operative company by investing an additional US$6 million. If Luna
elects to terminate the co-operative agreement at any time, all
unexpended amounts that Luna may have paid to the co-operative
company will be returned to Luna and all rights to the property
will be returned to YNMG. Dongchuan Project The Dongchuan Project
is located approximately 420 kilometres north of Kunming, the
largest city in the Yunnan Province. The parties have agreed to
jointly explore for gold, silver and base metals in an area that
covers approximately 252 square kilometres. Within this area there
are three Exploration Rights (Laohuoshan, Jiduodikeshu, and Xicha-
Daliangzi). The agreement also includes two Exploration Rights
applications covering a further 217 square kilometres. Upon YNMG
successfully being granted the concessions, they will be
transferred to the co-operative company by YNMG. A mineralized gold
belt known as the Dongchuan Copper - Gold Belt has been identified
in this area. Geological mapping and interpretation have recognized
that rocks from the Middle Proterozoic Luoxue Formation, the Yimin
Formation and the Lower Proterozoic Meidang Formation occur in the
concession areas. The Luoxue Formation is comprised of
carbonate-rich sediments and the Yimin Formation is comprised of
purple, metamorphosed iron-rich siltstones, breccias, spillites and
mafic rocks. These rocks host the upper strataform/strata bound
iron-copper deposits e.g. the Dongchuan Copper mine, and Beijiashan
Iron Mine. The Lower Proterozoic Meidang Formation consists of iron
rich siltstone, carbonaceous and silicified slates that host the
lower strataform/stratabound (bedded) iron deposits and the Boka
gold deposits. Previous airborne magnetic survey and stream
sediment sampling indicates the potential for the existence of
Dongchuan type Copper Deposits and Boka type gold deposits in this
geological environment. Luna has retained the services of an
independent geologist who is preparing a 43-101 report respecting
the properties for filing with the TSX Venture Exchange. For
further information contact David De Witt at (604) 687-9931
(extension 245). On behalf of the Board of Directors LUNA GOLD
CORP. "David De Witt" David De Witt, President Website:
http://www.lunagold.com/ For further information contact Investor
Relations (604) 689-7317 The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of
the contents herein. 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 the Luna Gold Corps' 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.
DATASOURCE: Luna Gold Corp. CONTACT: Investor Relations, (604)
689-7317
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