CAD24 million market cap??
Jun 22, 2007 13:26 ET
Sierra Minerals Inc. Reports 2007 First Quarter Profit From Its Cerro Colorado Mining Operation
TORONTO, ONTARIO--(Marketwire - June 22, 2007) - Sierra Minerals Inc. (TSX:SIM) ("Sierra" or the "Company") announces that it has released its financial results for the first quarter of 2007. The unaudited financial statements, together with the accompanying management's discussion and analysis for the three-month period ended March 31, 2007, are available under the Company's name at www.sedar.com.
Keith Piggott, Sierra's Chairman, is pleased to report on the Company's financial and operational results for the first quarter ended March 31, 2007. "This was a very successful quarter for Sierra," he stated. "We produced over 4,100 ounces of gold at an average cash operating cost of US$525 per ounce at our Cerro Colorado Gold Mine in Sonora, Mexico. The last three quarters have shown successive improvement in mine production, and this trend continues into the second quarter."
First Quarter 2007 Highlights:
During the three-month period ended March 31, 2007, the Company:
- Generated revenue from gold sales of $3,613,326 in the first quarter of 2007, compared to Q4 2006 revenue of $2,191,436 and Q3 2006 sales of $1,895,296
- Achieved a net profit of $515,000 ($0.01 per share).
- Sold 4,560 ounces of gold at an average realized price of US$663 per ounce of gold
- Produced 4,178 ounces of gold at a cash operating cost of US$525 per ounce of gold sold.
Since acquiring the Cerro Colorado Gold Mine in September 2006, Sierra has been developing the mine and has, to date, completed a Phase I drill program. Results from the Phase I program were reported early this year (see Company press release dated January 18, 2007).
A 10,000 meter phase II drill program began in April 2007 to allow Sierra geologists to determine the extent of mineralization at Cerro Colorado in and around the current open pit mines. Historical gold and silver resources at the Cerro Colorado Gold Mine are concentrated within five zones, the Sopresa, Breccia Harris, Breccia Central, Abejas and Obra X zones, all of which are located adjacent to and along strike from each other. The Company is currently mining gold from the Sopresa, Breccia Harris, Breccia Central and Abejas zones.
The Phase II drill program at its Cerro Colorado Gold Mine is ongoing and to date the company has completed approximately 4600 meters in 96 holes. This is an exploratory drill program conducted with an open hole "air-track" percussion drill rig in order to efficiently test the rhyolite intrusive body which hosts the known gold mineralization at the Cerro Colorado Mine. Upon completion of this program the Company will have defined mineralized bodies and through a Phase III 1000-2000 meter diamond drill program will be able to calculate NI 43-101 compliant resources.
Under the guidelines of the NI 43-101, the required qualified person for the Cerro Colorado Gold Mine is Stephen Wetherup of Caracle Creek International Consulting ("CCIC"). Stephen is a professional geologist registered in British Columbia, Canada.
Sierra Minerals Inc. is a precious metals producing company focused on acquiring and developing advanced stage gold and silver deposits that have a likelihood of realizing near-term production. The Company's primary focus is Mexico. Sierra is committed to company-wide environmental and corporate social responsibility best practices.