LAS VEGAS, Dec. 13, 2006 (PRIME NEWSWIRE) -- Sierra Gold (Other OTC:SGCP.PK - News) commissioned Geologist Alieu Madhi to do a report on the potential gold values of the Pampana North property. The report estimates the gold reserves to be just over 936,000 ounces. At $626.50 per ounce (Dec. 11 second London fix price), the value of the gold reserves is $586,404,000. With 79,031,973 shares currently outstanding, the gold reserves have a per share value of $7.42 before calculating the costs of extraction. ADVERTISEMENT
Madhi's report is based on extensive bulk sampling work completed by the National Diamond Mining Corporation (NDMC), a Sierra Leone government operated mining company. He combined figures from Manke's report with work done by NDMC. Manke's gold grades were over three times higher than the grades used by Madhi to calculate the gold reserves.
Mr. Madhi (BSc, MSc) holds degrees in Geology and Engineering Geology from England. He worked as a Chief Geologist for NDMC on several of their projects. For over 30 years, he has consulted for numerous government and international mining companies.
The company will continue its comprehensive testing program to further corroborate Madhi's and Manke's reports. Initial bulk sampling tests have produced higher gold grades than the gold grades found in both reports. The company has also begun dialogue with other mineral companies to mine the property under a joint venture agreement.
Safe Harbor
No assurance can be given that past or similar results of gold 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