Luna Gold LGCUD

Middelkoop Discovery Alert

[willex]

Issue 42 - Luna Gold (LGC.V)

Middelkoop Discovery Alert Luna Gold (LGC.V)

Shares o.s. 57 mln
Market cap C$ 69 mln


"Luna Gold intercepts 46.80 m OF 8.94 g/t Au in Brazil"


Hello all,

With the raging and deteriorating credit crisis, it is extremely
important to invest as defensively as possible, with lots of gold and
silver assets in one's portfolio. That´s why I am currently even more
interested than usual in gold and silver discoveries than in base metal
discoveries.

Summary

After the great gold find by Kodiak Exploration, I am happy to
introduce a new gold discovery by Luna Gold, which is quite a new
company and has only been listed since 2006. On Wednesday afternoon,
Luna Gold reported a great hole (46.80 m of 8.94 g/t gold), causing an
immediate 30% jump in share price. The gold grades intersected in this
hole (BRAZD-212) surpass all historic drill intersections to date.
Drilling at Aurizona is continuing.

How to play this

Given the current investment environment, and the fact that this is not
a discovery hole but part of a broader discovery play, I would advise
not to chase shares in the first days after the publication of the
press release. Take advantage of a next round of profit taking, which
may bring shares down 20/35% in a short period of time. But one can
always buy a core position right away of course. I have owned shares in
this company for some time.


Details

Hole BRAZD-212 intersected several mineralized intervals, the best of
which ran almost 50 metres grading an average 8.94 g/t gold from 129 m
to the end of the hole. That gives a gold discovery index end of almost
450 (m x g), with is a very good score. This hole could have been even
better, as it was stopped in mineralization due to poor ground
conditions. The final meter drilled delivered the best intercept, at a
depth of 166 metres, with bonanza-grade gold of 171.40 g/t. These are
remarkable grades, giving rocks of this section a value of over $4000
per tonne. A total of 3,890 m of diamond drilling has been completed to
date, with all core holes distributed within a 2.4 km corridor that
represents the known strike extent of the Piaba zone. The core program
has been extended to 4,000 m and will finish on schedule in late
November. The current drilling program has been designed to confirm and
expand the saprolite (oxidized) resource at the Aurizona gold deposit,
to provide data to complete a NI 43-101 compliant reserve and resource
estimate, and to test the fresh rock potential at depth. Based on
historical information the Aurizon gold deposit currently holds over
450.000 ounces of gold (this is a non 43-101 resource estimate of
Eldorado)
About the company

Luna is a mining exploration company focused on the
acquisition, exploration, and development of gold resources and
advanced stage gold exploration projects in northeastern Brazil.


All the best,


Willem Middelkoop, November 22th 2007