Current gold prices continue to advance on the back of a weakening dollar to regain their month-high price of $668. International investors are looking to gold as a safe-haven as concerns over the state of the U.S. economy continue to persist. Two factors are weighing heavily on investors’ minds; the overall effect that the sub-prime mortgage woes will have on the rest of the economy, and the weakening U.S. dollar. On July 13, the Euro hit an all-time high against the U.S. dollar, and the British Pound stands at a 26-year high against the dollar. Geopolitical concerns regarding the Middle East continue to worry investors as they seek out safe-haven investments, which gold has historically been a part of.
Sierra Gold Corp. could possibly benefit from the high gold prices once the company transitions to a production phase. Geological estimates of Sierra’s Pampana North Property value the reserves at $600 million. Recent assay results conducted by the company consistently have the gold reserves grades being 300% over the geological report. The geological report and the recent assay results do not take into account the possible presence of a hard rock formation. Also, the existence of other precious metals such as diamonds and platinum are not taken into account in the reports. As gold prices continue to remain high and trend higher, Sierra Gold Corp. should begin to see the benefits in terms of revenue as the company works to enter the production phase.
About Sierra Gold:
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.