TORONTO, Jan. 22, 2007 (PRIME NEWSWIRE) -- Last week, a hard rock formation was uncovered as a result of Sierra Gold's (Pink Sheets:SGCP) ongoing bulk sampling program on the Pampana North property. Initial observation indicates the presence of gold.
In his 43-101 report (April 2006), geologist Hendrik Velduyzen states that there is a 400 meter long gold bearing quartz vein system, parallel to the Yirisen gold vein deposit reported in the literature from historical work done. Mr. Velduyzen observed certain geological indicators that could support the existence of a gold vein deposit. The Yirisen gold vein system located in the Sula mountains is the largest known gold deposit in Sierra Leone. Historically the Pampana River and its tributaries have supported some of the richest alluvial gold workings both in the Sula mountains and in the country.
Sierra Gold's geological team will return to the Pampana North property at the end of January to investigate and further explore the hard rock formation. The team will plan a program to more clearly define and develop the property, which will include a drill program in conjunction with trenching.
The company needs to do more extensive testing to determine the value of the potential hard rock gold deposits. The value per share of $7.42 given on December 13, 2006 only pertains to the placer gold deposits on the property. The value of gold reserves is $588,404,000 and with 79,031,973 shares outstanding, the gold reserves have a per share value of $7.42 before calculating the costs of extraction.
Sierra Gold is engaged in the exploration and development of gold and diamond properties in West Africa. The company will continue to conduct extensive research and development of high quality mineral exploration projects.
Safe Harbour
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when used in the preceding of discussion, the words "pleased", "plan", "confident that," "believe," "expect," or "intent to" and similar conditional expressions are intended to identity forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional financings and other risks in the company's SEC reports and filings.