SIERRA GOLD CORP (U-SGCP) - News Release Sierra Gold Corporation Discovers Diamonds On Pampana North Property
2006-12-14 14:30 ET - News Release
LAS VEGAS, Dec. 14, 2006 (PRIME NEWSWIRE) -- Sierra Gold Corporation (Pink Sheets:SGCP) announces that diamonds have been discovered on the Pampana North Property as a result of recent test samples from the company's ongoing bulk sampling program. This discovery confirms geologist, Hendrik Velduyzen's statement in his 43-101 report (2006) that "certain stones found in the gold bearing gravel are similar to those found in kimberlite and suggest the presence of diamonds". Because the company needs to do more extensive testing to determine the potential value of the diamonds, the value per share of $7.42 given yesterday only pertains to the gold deposits on the property. The value of the gold reserves is $586,404,000 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 Leone is a major exporter of diamonds and is recognized internationally for the size and quality of its diamonds. The country's major source of hard currency consists of the sale of diamonds. Sierra Leone's production is characterized by a high proportion of top-quality gem diamonds. The county became famous world-wide after the discovery of the Star of Sierra Leone, a magnificent 969 carat diamond. In 2002, a 1440 carat, gem quality diamond was discovered in Kono which was later sold in Belgium for $75 million. Sierra Leone has produced several of the largest alluvial diamonds ever discovered.
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 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.
CONTACT: Sierra Gold Corporation Jeremy Hunt, Corporate Consultant (304) 523-3980 jhunt*invstrategies.com www.sierragoldcorp.com Posted by PCola77 on :
And completely tanking after the news. Ouch. Company diluting into it?
Geez, I bougth some yesterday and am getting smoked.
Posted by cmsrem on :
Dropped yesterday after supposedly good news. Crazy stock