TORONTO, Feb. 28, 2007 (PRIME NEWSWIRE) -- Sierra Gold Corporation (Pink Sheets:SGCP) has just received assay results from its December 2006 bulk-sampling program from SGS Laboratories in Toronto, Canada that has confirmed the presence of rare earth metals with encouraging results. Sample concentrates were taken from two separate pits. Assay results that proved more interesting were Zirconium (Zr) and Neodymium (Nb) with grades of over 10 grams (.35 oz) per ton. More specific analysis will be required to determine the exact grades.
Zirconium is classified as a rare earth metal. More than 90% of zirconium metal production is consumed by commercial nuclear power generation, a rapidly expanding sector needed to meet increasing global energy demands. It is also used by the chemical industry for piping in corrosive environments. The jewelery industry uses Zirconium to produce low cost diamond substitutes.
Neodymium is another rare earth metal that is used for coloring glass and enamels. It is also used in the strongest permanent magnets known.
Sierra Gold's geological team has recently returned to the Pampana North property to investigate and further explore the presence of precious metals. The team is planning a program to more clearly define and develop the property in the areas tested that have given the most encouraging results, which will include a drill program in conjunction with trenching for the hard rock portion of the property.
Because the company needs to do more extensive testing to determine the value of the potential rare earth metals, the value per share of $7.42 given on December 13, 2006 only pertains to the placer gold deposits on the property.
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 Harbor: No assurance can be given that past or similar results of precious metal mining will be indicative of future results. 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 harbour 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.