Commentary

Ahhh, our first bit of news since we released Sierra Gold as the most recent 'Featured Pick'. Good release too, as the company announced that the previously ordered gold processing plants will be shipped at the end of this month/beginning of next. Apparently, these puppies can each process 10 tonnes of earth per hour, which we believe is more than a whole team of local villagers can do in a week or more. Should help get the existing monthly gold production up in a big way. The Company is estimating a 10 fold increase from current levels. That would be 320 Troy Oz per month, or over $300k per month, or $3.6 Million in annual gold production at current spot prices. Thats roughly 1X sales given the current market cap.

Gotta love it...

Press Release

Sierra Gold Corp. Announces Confirmed Delivery Schedule for Portable Extraction, Processing and Recovery Equipment

Apr 16, 2008 8:30:00 AM

FREETOWN, Sierra Leone, April 16, 2008 (PRIME NEWSWIRE) -- Sierra Gold Corp. (Pink Sheets:SGCP) today announced that the Company has received confirmation of the delivery schedule for two self-contained high tech gold processing plants previously ordered by the Company in November 2007. The plants will be ready for shipping to Sierra Leone no later than May 1, 2008. Assuming 8-10 weeks for delivery to Freetown and an additional 2-3 weeks for delivery to the Pampana Gold Concession property and recently announced Joint Venture properties, the new portable units should be in production no later than August, 2008.

The two gold processing plants will enable Sierra Gold to process up to 20 tons of earth per hour, 10 tons per unit per hour at its mining sites, speeding up the existing gold production process considerably. Additionally, the portability of the two units will enable the company to move the gold processing plants to whatever location they deem appropriate.

Ideally suited for alluvial/placer operations, hard rock mines or sand and gravel operations, the gravity separating technology allows for cost-effective gravity separation of materials of differing densities utilizing a revolutionary, patented transverse spiral belt separator which helps the system boast recovery rates of 95%-98%. Additionally, this technology offers an environmentally friendly process with no chemicals and reduced water use.

Doug Evans, CEO of Sierra Gold, commented, "After a lengthy back ordering wait, we are very excited at the prospect that our state-of-the-art processing units will be at our production sites and in production in a mere matter of weeks. Currently we are using rudimentary and inefficient manual separation processes that utilize local labor. As such we have only been able to extract 1 Kg per month on average from the Pampana Gold Concession." He continued, "With these two units in place, processing up to 20 tons of earth per hour, we should be able to speed up production and monthly yield by a factor of 10 times or more in the short term."