TORONTO, April 21, 2009 (GLOBE NEWSWIRE) -- Sierra Gold Corporation (Pink Sheets:SGCP) today announced that the March gold production yielded over 57 troy ounces of gold and evidence of significant diamond potential on its properties. As mentioned in the company's previous press release, the equipment used on the properties was out of service through March 10 for repairs, so the extraction numbers for March are for a short month of production. On a more positive note, all equipment is now in full service and the company expects gold extraction figures for April and May to reflect full production from the equipment. In addition to the March gold production, the company's Joint Ventures in the South have consistently, on a daily basis, found several clear and colored diamonds on those properties leading management to expect they will continue to find larger diamonds in greater quantities as more gravel is processed.
John Semachko Jr. , President of Sierra Gold Corporation, reports the following outlook:
Rainy Season Production to Commence
Currently, as dredged gravel is processed, the larger gold nuggets are extracted with the smaller pieces falling through the screens into the tailings. The resulting tailings (gold ore) remain rich with smaller gold particles and potential diamonds. Previously this gold ore has been stockpiled in large quantities with the gold washed from the tailings by hand sifting. This process is cumbersome and time consuming, but we expect gold ore processing will be very lucrative due to the fact that we plan to process the tailings during the rainy season thereby eliminating dead time which, in the past, has resulted in no gold/diamond extraction during the rainy season months. The laborious task of hand washing the gold ore can be eliminated through automating that process. We understand that automation is the key to increasing gold and diamond production in Sierra Leone and the gold ore mentioned above can be very easily processed through use of a wash plant which will extract gold particles down to the size of a grain of sand. We are in negotiations with investors to acquire capital to purchase a wash plant and other ancillary equipment to more easily move the gold ore and diamond-bearing gravel to weather-protected areas for processing during the rainy season. The required equipment is readily available in Sierra Leone so the delivery time will be much shorter than we experienced for the dredges and processors. We will update our investors on the status of obtaining capital when we have reached a final agreement with the potential investors. The stockpiled gold ore has been sampled and tested by mining experts in Canada and the amount of gold in each ton of ore is very significant. We are currently evaluating the stockpiles of this gold ore and will post pictures and estimated volumes of gold ore and diamond-bearing gravel in our next Field Report coming later this month.
Website Update
We are planning to update the website in the near future and update its information more frequently. We intend to update the field reports every month and will issue a monthly press release with extraction numbers, equipment updates, and farming operations. Doug Evans, our CEO, also intends to update his letter to investors.
2008 Financials
The company's 2008 financial report will be complete by the end of April, 2009. We intend to issue the report in mid-May after the proper audits and accounting reviews have been completed.
2009 Outlook
As we stated in our last press release, we fully expect to be profitable in 2009 and beyond. Our intention is to grow our operations both in the mining sector and in our farming activities, thereby growing our profits and our shareholders' value.
Safe Harbor: 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.