TORONTO, July 22, 2008 (PRIME NEWSWIRE) -- Sierra Gold Corporation (Pink Sheets:SGCP) announced today that it has entered into an agreement to purchase an 8" dredge from a South African company. This equipment will enable the company to expand its river dredging operation to another part of the country. The first dredge purchased last month will be employed on the Pampana river while this second dredge will operating on the Sewa river.
The 8" dredge is presently located in Sierra Leone and will be transported to Sierra Gold's Sewa river concession licensed by its joint venture partner. Operations are to begin in 3-4 weeks time. The Sewa river is well known for its richness in both gold and diamonds. The company has done preliminary testing on the property to substantiate the presence of gold and is encouraged by the initial results.
The gold extracted from both rivers will increase the company's potential gold reserves. Previous calculations from land work done totalled just over 936,000 ounces with an estimated gold value of US$800 million at today's prices.
Doug Evans, CEO of Sierra Gold, commented: "We are excited about the addition of a substantial piece of equipment, which will allow us to expand to the Sewa river and to be able to mine throughout the year. We look forward to the opportunity to increase the company's value through increased gold production."
Sierra Gold is engaged in the exploration and development of gold and diamond properties in West Africa. The Birimian greenstone belt of West Africa has had a long history of gold mining and prospecting. The region has been one of the fastest growing gold producing areas worldwide.
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 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.