Sierra Gold Corporation (SGCP.PK) is emerging in the gold and diamond mining industry. The company explores and develops gold and diamond properties in Western Africa. The company also owns the rights to Northern Star Resources Limited, with mining properties covering 40 square kilometers in Sierra Leone.
The company’s mining properties are located in the Pampana region, which is well known to be rich in high value gold and other precious metal reserves. In February 2007, the gold reserves were estimated at around 520,000 ounces. In June 2007, the gold reserves increased to 936,000 ounces, worth approximately $616 million.
Sierra Gold Corporation’s goal is to acquire and develop gold and other precious mineral properties in order to increase shareholder value. The company is on the right track with their already acquired mining assets, proving to be more valuable than previously estimated.
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Sierra Gold Corporation began ordering equipment for the mining of gold in the late Winter/early Spring season on its Pampana River property in Sierra Leone.
Sierra Gold owns the mining rights of Northern Star Resources Ltd, from Sierra Leone. The 40 sq/km property is located on the North Pampana River and south of the Sula Mountains which is one of the richest mining rivers in Sierra Leone. The government has granted the company a two year exploration license.
Michael Manke reported in the mid 1990’s gold grades of .12 oz/ton taken from the auriferous gravel in the Pampana Channel and its flanking flats and terraces. Recent large bulk sampling work in 2005 indicated gravel depths more than double those previously reported and significant gold values in the overburden. Considering the previous, resource potential could be in excess of $500,000,000; however no guarantees can be made regarding potential profits.
Based on a report from Sierra Gold’s geological consultant, Hendrik Veldhuyzen, the company plans to raise $2.5 million for a test mining program. In addition to the exploration and development, the company plans to satisfy the requirements necessary to qualify and move the NASDAQ market.
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