Sierra Gold is engaged in the exploration and development of gold and diamond properties in West Africa. The Birimian greenstone belt of West Africa has had a long history of gold mining and prospecting. The region has been one of the fastest gold producing areas worldwide.
•SGCP currently has one dredge in operation in Zimmi. Doug Evans will be leaving for Sierra Leone early August and will see if we can operate a 2nd dredge during the rainy season.
•We will be starting the new mining season with (3) fifty ton per hour dredges, (1) one hundred ton per hour dredge and two wash plants. All roads have been finished along with compound. This will also allow us to keep equipment near our mining operations.
•We are planning to start building our 2nd 100 ton per hour dredge by the start of December. Estimated manufacturing time is 60 days
•Sierra Leone experiences a hot and humid tropical climate with a wet and dry season. The summer rainy season is between May and October with most rain falling in July and August. Because of the marked seasonality of rainfall the rivers become very swollen in the wet season and may flood extensive areas. However, water levels fall by as much as 26 feet in the dry season when the rivers may be reduced to shallow streams.
•The above conditions will determine the start of the mining season. Please understand that it takes time for the rivers to go down once the rainy season is over. This being considered to give an exact start date for full operations would be irresponsible in my opinion.
•All planting is complete on 1500 acres of land
•Crops planted are rice, sorghum, cassava, peanuts and corn
•We are planning to have two harvests of peanuts
•SGCP has acquired one tractors to increase the size of are agricultural operations
•SGCP has started a program to benefit the local villagers and SGCP. For every sack of produce given to the villagers SGCP will receive 2 sacks in return. This will increase the food supply to the villagers and SGCP will receive a 2 to 1 return.
•The next report on Agriculture will be at harvest time unless something changes. When and if changes accrue we will advise in field report
Carbon Credit Project:
•We are presently waiting for the completion of the biomass PDD by Green Giant Venture Fund. The PDD is 90% complete and we have advised Green Giant Venture Fund of our disappointment in the delay. SGCP will do whatever it takes to make sure this project will continue to move forward in a timely manner.
•With the final arrangements completed for the upcoming mining season and crops in the ground I will be spending the majority of my time working on the carbon credit project. I will update our shareholders once the PDD is complete and we start the validation process. During the validation process we will be working on the forward sale of the project.
In conclusion, this will be the first mining season where we have this amount of mining equipment in country and on or near location. This is the mining season we have been working towards where we have the quality of people, mining concession and the equipment to work them. We are expanding our agricultural operation while involving the people of Sierra Leone with the goal of being profitable with our agricultural operations in 2011. Last but not least we fill strongly in our Carbon Credit projects. The landscape has changed in the carbon market with some of the problems in Europe and lack of movement by the United States Government. This has offered some new challenges but we fill the adjustments that needed to be made have been done. I would like to thank our shareholders for their continued support and look forward to the upcoming mining season.
Source: Sierra Gold, July 27, 2010