Projects

Project Geology

Cachoeira consists of a series of gold deposits and occurrences hosted within the N-trending, subvertical, transcurrent displacement ductile-brittle Cachoeira Shear Zone (CSZ) located in the Gurupi Greenstone Belt (GGB). The GGB hosts several orogenic gold deposits including Cipoeiro and Chega Tudo. Gold mineralization at Cachoeira occurs in quartz veins and stockworks associated with sulfides. The main rock units on the property consist of ultramafic metavolcanics, mafic and intermediate intrusives/volcanics and volcanosedimentary rocks of the Maracaçumé Complex. The sequence is intruded by porphyritic dacites. The sequence was subjected to folding, brittle/ductile shearing and intense late-stage faulting and hydrothermal alteration.

The main mineralized trend identified to date is approximately 4 km long and consists of two sub-parallel trends in Cachoeira North which merge southwards, possibly joining near Tucano in the south (Fig. 4). Three main targets occur from south to north: Tucano, Coruja and Arara. The best gold mineralization at Cachoeira occurs at Tucano where multiple, sub parallel individual gold mineralized zones can be traced over a strike length of approximately 300 m and across widths of 1 to 15 m.

The extent of the enclosing hydrothermal alteration and gold mineralization indicate that a large and deep seated mineralizing system was operative within the CSZ. The host rocks are highly foliated indicating intense shearing occurred. The dominant control on gold mineralization at Cachoeira is structural, both in the formation of dilatant structures in the CSZ and also in the subsequent shearing, folding, boudainage and displacement of the gold lodes.

Mineralization/Alteration

Two main types of primary mineralization have been identified:

1. System of gold-bearing quartz veins hosted predominantly in mafic volcanics and extending over a strike length of over 4 km within the CSZ. These veins are aligned with the foliation, strongly banded and mineralized with accessory fine-grained pyrite and arsenopyrite. A notable aspect of mineralization at Cachoeira is the occurrence of free gold in quartz veins in high-grade intervals from the 2008 LGM drill program from Tucano, Coruja and Arara. The visible gold is usually found in grains 0.1-1.0 mm in diameter (Fig. 5)


2. Disseminated gold in sulfide-bearing quartz vein stockworks associated with both porphyritic intrusive bodies and marginal to the main quartz veins. The average grade of these bodies is generally 1-3 g/t Au although individual veins usually have considerably higher grade.

The alteration and gold mineralization is spatially and temporally related to the north trending CSZ. Metamorphic grade is greenschist facies. Two phases of pervasive hydrothermal alteration can be recognized:

1. An older phase characterized by carbonization and silification which directly affects the mafic-ultramafic volcanics.


2. A late phase manifest by albitization, sericitization, carbonization, silification and sulfidation which is associated extensive fracturing and veining of the host rocks. Most of the gold mineralization is related to this later phase of hydrothermal activity

Deposit Type
Gold mineralization at Cachoeira is typical of quartz vein systems in greenstone belt shear zones and is classed as an orogenic gold deposit. Mineralization is similar to that at Hollinger-McIntyre and the West African Ashanti Belt.

Tucano
Tucano extends over a strike length of about 400m and includes a series of steeply west-dipping quartz veins and stockwork zones, the uppermost portions of which have been exploited by garimpeiro pits and shafts which extend down to a maximum depth of 110m. Historical and Company drilling has intersected multiple individual mineralized veins/stockworks ranging in width between 1 and 15 m mixed with low-grade to barren zones which together form mineralized shells as wide as 100m. Table 2 shows select historical and Company drill results from Tucano. The high-grade ore shoots have a south to southwest plunge. Company drilling in 2008 consisted of a series of wide step-out holes to text the dip and plunge extent of the mineralization. Most holes intersected good gold intervals which open up the potential of Tucano.

Table 2

Target	Company	Hole ID	From (M)	To (M)	Interval (M)	Au (G/T)
TUCANO	BGZ	TH01	14.00	64.00	50.00	2.43
		INCLUDING	38.00	46.00	8.00	8.37
	CML	CSD01	43.00	49.00	6.00	11.06
		CSD04	19.00	24.55	5.55	12.18
		CSD09	57.00	77.00	20.00	6.72
		INCLUDING	73.00	77.00	4.00	22.93
		CSD10	131.00	214.00	83.00	1.7
		CSD11	55.00	65.00	10.00	11.43
		CSD12	73.00	110.33	37.33	2.45
		INCLUDING	100.00	108.59	8.59	5.59
	LUNA	LCD018	92.60	96.00	3.40	7.01
			224.00	233.00	9.00	5.96
		INCLUDING	229.00	232.00	3.00	15.4
		LCD025	108.50	115.00	6.50	4.38
			227.50	239.40	11.90	3.45
		INCLUDING	227.50	229.75	2.25	15.99
		LCD026	137.55	159.00	21.45	5.87
		INCLUDING	137.55	145.50	7.95	14.96

Luna's QP has not undertaken any independent analysis of the results of historical drilling and therefore the data should not be relied upon.

Cachoeira North
The Cachoeira North area consists of Luna's mining permits located north of the federal highway BR-316. Mineralization can be intermittently traced for 3 km in two sub-parallel trends flanking the west and east side of the Cachoeira Ridge (Fig. 4). The Company focused the 2008 drill program at the Coruja and Arara targets which consist of high-grade quartz veins hosted in mafic volcanics. Table 3 shows Historical and Company drill results from Coruja and Arara. The eastern mineralized trend (Pernalonga, Manelao and Bragança Targets) has only been explored in a preliminary fashion.

Table 3

Target	Company	Hole ID	From (M)	To (M)	Interval (M)	Au (G/T)
CORUJA	LUNA	LCD013	52.00	58.00	6.00	1.93
		LCD017	33.00	53.00	20.00	9.04
		INCLUDING	47.00	53.00	6.00	27.72
ARARA	CCO	FS21	21.50	26.50	5.00	15.04
		FS26	7.69	12.45	4.76	2.02
		FS31	70.03	71.96	1.93	33.14
	CVRD	FD003	66.00	102.00	36.00	1.02
		FD004	120.00	139.00	19.00	4.95
		INCLUDING	122.00	130.00	8.00	9.62
		FD008	82.00	89.00	7.00	18.97
		FD010	3.00	13.00	10.00	2.42
	LUNA	LCD001	0.00	97.00	97.00	0.43
		LCD004	55.00	69.35	14.35	1.68
		LCD007	151.00	153.00	2.00	5.4
		LCD009	164.00	170.00	6.00	12.58

Luna's QP has not undertaken any independent analysis of the results of historical drilling and therefore the data should not be relied upon.