FIELD REPORT/CEO COMMENTS
During this period no dredging activities were conducted due to the lack of sufficient operational capital. Minimal artisanal activities were undertaken in order to maintain the company's presence.
The rice harvesting and final processing were completed in January. Subsequent bagging is currently underway.
In December 2012 the company was given notice that it's arrears in back payments would result in loss of its lease for agricultural purposes by years end. An extension to the end of January was negotiated, however funds were not able to be raised and the company has been advised that a letter of the forfeiture of its rights to the property will be forthcoming.
General Comments from the CEO
With regards to the status of the Global Lock, there has been no change since the December Report and the status remains the same. The company is advised that the ongoing investigation issues with Fairhills continues and may go on for some time. A letter from DTCC received February 22, 2013 lays out their position along with potential future timing for a requested hearing for the company, which, based on their letter, is vague and appears will not take place until after a resolution of the Enforcement Action.
Since the Global Lock occurred in the summer period, the company has borrowed in excess of $80,000 against assets to complete 2012 farming activities as well as general operations in hopes of securing future operational financing.
As that has not occurred, the company plans to sell its rice harvest and use those funds to attempt to maintain a minimal agricultural and mining presence as well as maintaining its pink sheet status while the Fairhills issue continues.
FIELD REPORT/CEO COMMENTS
Off season maintenance has been completed on all dredges, however water levels have remained high. This, combined with the situation with DTCC, has restricted any new activity. The company is investigating all possibilities to find a solution to the problem.
The rice harvesting will be completed by mid-month. Again, because of the Global Lock currently in effect, SGC has assumed further debt in order to complete the harvesting and other associated agricultural endeavors. In addition, land lease payments are well overdue and the company has been given a firm date of December 15th to remit the payments or lose a significant portion of leased land. Possible options are being considered.
General Comments from the CEO
With the ongoing DTCC Global Lock situation of SGCs stock as it relates to the SEC issue with Fairhills and more recently, the FBI investigation with Fairhills nothing has changed.
Requests for information and potential hearing status from DTCC have not been responded to and with the flooding problem related to Hurricane Sandy, that is understandable.
Currently shareholders are unable to be issued share certificates because of flooding damage at the DTCC depository. Please go to the company's website (News) for updated information regarding this and the problem of indemnification, which is being addressed by the various agencies.
To clarify for you, the impact of the global lock allows shareholders to sell their shares but they cannot purchase shares nor can they have shares issued.
As regards to the lifting of the Global Lock/Chill status, the company is reliably advised that this issue is highly unlikely to be addressed until the /Fairhills investigation with the SEC/FBI is concluded. (This will be an indeterminate length of time)
SGC has conducted all of its business with Fairhills properly and in good faith, receiving and relying on the legal opinion letters as well as completing all required filings in a timely manner. Sierra Gold, among numerous other Pink Sheet companies have become collateral damage due to both the actions of Fairhills and the subsequent ongoing investigations into the actions of Fairhills Capital and, unfortunately we have no recourse except to wait.
FIELD REPORT/CEO COMMENTS
The water levels in all areas of operations remain at the high levels as of the most recent trip to Sierra Leone. The rains during the daylight hours have been subsiding, however, evening and night rain falls remain persistent and heavy. Currently all dredges remain secured with security in place.
The artisanal washing operations from accumulated gravel will begin next week. Other artisanal activities supported by the company continue, but at seasonal lows.
Weeding activities for all crops are underway. The peanut harvest will begin later in the month but the planned second cropping has been cancelled due to current corporate issues.
General Comments from the CEO
With regard to the DTCC "Chill" issue, the company has received no correspondence relating to a requested hearing or its potential timing from the DTCC. Professional third party opinions/comments suggest a hearing may be slow in occurring or not be scheduled until the "Bronson" issue is settled. This is only conjecture and the company will continue to pursue this issue with DTCC.
As many shareholders are aware, the stock continues to trade but because of the DTCC "Chill" order, the company cannot issue shares. Again, because of the "Chill" order, many outlets for trading are not currently available with possibly the exception through Knight, Benson or others.
Since the company is unable to issue shares for the time being, other funding options are under review to (cover) pay overdue annual agricultural property payments, annual mining licenses as well as ongoing monthly administrative costs.
External entities interested in a relationship with SGC and its properties as referred to in previous reports continue to negotiate while being aware of the company's current situation.
SGC filed its current quarterly financial statements as required, however, in the event that they may not be available for viewing on Pink Sheets, copies may be accessed on the company's website. The company will keep shareholders advised to any progress or status changes as they may occur.
The financials and disclosure documents for the 3 months ended June 30, 2012 have been posted on the "Financial Info" page.
FIELD REPORT/CEO COMMENTS
As is normal for this time of year, dredging activity was shut down and all dredges were secured for the rainy season (mid-July through mid November). Gold production from other sources totaled 35 ounces. Black sands continued to be accumulated from other sources. Testing of black sand samples is continuing in Nevada and British Columbia.
All planting has been completed and a second cropping of peanuts is underway. The company is using the interim time to perform daily weeding activities and will continue through October when harvesting will commence.
General Comments from the CEO
As many shareholders are aware, a "Chill" order was placed on Sierra Gold Corporation by DTCC. The company was made aware of this by a number of shareholder questions during the Labour Day time period. The company has received no formal written notification from DTCC to date in regards to this. Following numerous unreturned telephone calls to their offices to determine reason(s) for this issuance, the company has sent a written request to DTCC to provide the company with a formal explanation as well as a request as to what would be required to satisfy DTCC concerns in order to return to trading status. As Sierra Gold Corporation has always been current with their filings and listings payments to Pink Sheets, it is the company's opinion that the 'Chill" order relates to the trading activities of a Mr. Bronson and Fairhills Capital over which the company has no control. It should be noted that SGC is only one of 10 companies to be affected by this investigation.
The company will post the letter sent to DTCC on its press section of the SGC website and undertake to have the above order removed. Discussions with third party professionals in the securities industry have suggested that until the investigation into Mr. Bronson and Fairhills activities is concluded it is doubtful any action by DTCC will be undertaken to change the current status of all affected companies. The company will vigorously pursue any and all avenues in its efforts to have these restrictions rescinded.
On a more positive note, the discussions with one of the joint venture entities interested in Sierra Gold's agricultural and mining interests is well advanced and Doug Evans will be travelling to Sierra Leone later in September to discuss advancing the processes with the various authorities in Sierra Leone.
INTERIM UPDATE ON BLACK SANDS TESTING
Based on various comments and questions received from shareholders since the last Field Report, we at Sierra Gold Corporation felt it germane to clarify and comment on some activities related to percentages of minerals in both free gold and black sand samples.
Typically, the company will have a small quantity of free gold analyzed periodically as to purity and mix of minerals in the sample. On average the gold will show a concentration of 94-96% with the remaining 4-6% ranging among various other elements. A current sample of an assay of 31.8 grams of free gold is attached below which details the various elements and percentages.
At present, two eight kilogram samples of black sands are in the process of being tested in facilities at Nevada and Vancouver, B.C.
The Nevada facility plans to begin testing sample material in late August using its new patented separation technology. This technology has the ability to separate and collect each element by its atomic weight. The company will report results as it is permitted by non-disclosure restrictions as they become available.
The Vancouver facility has begun sample testing. Initial fire assay tests indicated similar results to SGS Labs previous test results of in excess of one ounce per ton. Following the fire assay testing, a portion of the material was crushed to a -200 mesh and retested by metallic separation. The retesting resulted in similar results on the gold grades, however, PGM elements also indicated similar grades to that of the gold. As well, a number of the strategic minerals showed promising results. In the photo gallery 4 photos have been posted showing:
- the black sands being dried,
- crushed black sand,
- the black sands magnified, and:
- the black sands extremely magnified with gold particulate evident on the individual sample.
The next phase of testing will include further material crushing and the use of the environmentally friendly super acid for grading and potential recovery.
The company hopes that this update clarifies shareholders understanding of ongoing activities regarding black sand collection and testing for future processing and enhanced gold and other element recoveries.
The company will continue to strive to use advanced technology to maximize productivity in order to increase shareholder value.
JUNE-JULY 2012 FIELD REPORT
During the period of mid-May through mid-July 126 ounces of gold were produced from all sources. In addition, for the year to date, 196 pieces of diamonds varying in color, clarity and weight between .05 and .96 carats were produced.
Black sands continue to be accumulated for future processing. In June a 30 kg black sample was brought back from Sierra Leone. 15 kg was forwarded to Vancouver for
testing using the new leaching technology referred to in the May field report and 15 kg
is being forwarded to California for ongoing testing by the patented black sand/nano gold recovery technology previously referred to in past reports.
Currently the dredges are being secured for the rainy season and a number of selected land operations will continue throughout the rainy season.
As reported in the June Press Release 1½ metric tons of Sorghum was sold to SLBC, a subsidiary of Heineken N.V. and 20 metric tons of rice were sold to local sources.
In early July a further 10 metric tons of rice were sold to local sources for a further $6000 and 200 60 kg bags were loaned to local farmers. For each bag loaned to assist farmers with their planting, the company receives 1½ bags in return, following harvesting.
Currently, seeding activities are underway with one half of the rice acreage completed.
The discussions with both entities mentioned in the previous field report that are interested in the company's agricultural and mining activities continue to proceed favorably with their due diligence well advanced.
The company was saddened to hear of the sudden death of the Paramount Chief in Zimmi and sent representatives to and participated in the burial formalities.
The company expresses condolences to the President, HE Mr Koroma on hearing of the death of his mother. Company representatives attended the funeral ceremonies.
MAY 2012 Field Report
During the period of late April through mid-May, 88 ounces of gold were produced from all sources. This remains consistent with production levels given ongoing issues discussed in the April Field report. Black sands also continue to be accumulated for future processing.
Prior to departing for Sierra Leone most recently, the company was engaged in discussions regarding a new technology employing an environmentally friendly and inexpensive process to leach gold from tailings and black sand materials. The company has undertaken to bring the required amount of material from a variety of its operational sites for testing purposes. Should this process prove successful the company would use this process along with others previously discussed to enhance its gold production. In addition, the company would attempt to get exclusivity for the use of the product in West Africa.
Preparations and ploughing are well underway for the 2012 growing season. One third of the sorghum crop harvested from the 2011 season has been transported to SLBL (Sierra Leone Brewing Limited) for processing and sale. SLBL is partially owned by Heineken brewery. The balance of the crop will be used for acreage expansion for the upcoming season as well as loaning seeds to local landowners to assist them with their own production aims.
The company is also beginning the preparation, processing and packaging of half a metric ton of its rice production for sales. This test program will involve a variety of packaging sizes from 60 kg to ½ kg. This program will assist in the determination of post harvesting preparation and packaging costs as well as product turnover timing and ultimate profitability.
The balance of the rice harvest will be used for acreage expansion as well as loans to smaller farmers and local land owners.
Previously the company has referred to discussions with two separate entities interested in both the agricultural and mining interests of SGC. Both parties continue to demonstrate a high degree of interest including recent calls to Sierra Leone.
April Field Report
During the period of late March to present Sierra Gold produced 104 oz. of gold from all sources despite dredge downtime due to mechanical issues and numerous fuel shortages. The company continues to stockpile black sands from all operations for future processing. This processing is expected to commence in late June 2012. The process employs advanced recovery technologies including that of nano gold recovery and has the capability of operating throughout the rainy season.
In keeping with the selective concession expansion goals, a further 4 properties were acquired in April. The aim of these acquisitions is to be able to continue some operations during the rainy season.
Also during this period the company paid its annual SEC listing fee as well as renewing all its mining and dredging licenses.
The harvest from the 2011/12 season is complete and production increased in excess of 30% over the previous year. The company will sell a portion of this year’s production to partially offset costs related to annual fees on its 50 year lease as well as this years planting.
In March an additional tractor was purchased from the Ministry of Agriculture, subsequently refurbished and is now in operation. This acquisition gives the company dedicated equipment on both sides of the river that divides the property. This will provide further efficiencies with a view of increasing yields.
At present, Sierra Gold Corp is in discussions with two separate parties who are interested in entering into an agreement to expand useage and development of the current leases. Should a developmental agreement be reached, it would be beneficial to both Sierra Gold shareholders and the Sierra Leone land owners and local population.
Despite the current weakness in the Carbon Credit markets, Sierra Gold Corp continues to pursue its interests. The seeds from its Kira trees which had successful plantings are being harvested and nursed. When these subsequent seedlings are ready, they will be replanted for the ongoing development of this project. The company aims to develop this project internally for future carbon credit and/or lumber sales.
March Field Report
This report is for the months of Jan and Feb 2012 in regards to the mining efforts of SGCP in Sierra Leone Africa,
There continues to be an ongoing fuel shortage country wide in Sierra Leone which is not something the company can control and has again caused SGC continued operational lost time. In order to mitigate this situation going forward SGC has purchased a 5000 gal fuel Bowser and when possible, the company will be purchasing extra fuel to start stock piling for operational use when there is extra fuel to purchase.
Equipment maintenance is an ongoing issue for any company with supply issues and delays that cause unforeseen down time. SGC does have a regular maintenance program that takes equipment out of service for these purposes. The company has in the past and continues to experience longer delays in supply of specific parts that have failed that were not anticipated . These are parts that are not normally in a regular maintenance program nor stockpiled as they are generally ordered and shipped from other countries. It would add to the extra cost of stocking more parts for all equipment on the chance a particular part may or may not break down. Therefore we try to source these parts that can be sent in the most expeditious manner possible.
With the previously mentioned issues, the result of performance in visible gold recovery has been disappointing at only 48.3 oz. in spite of gold grades being significantly improved. SGC is continuing to stock pile and warehouse its concentrates (black sands).
All crops have been harvested and are being processed and bagged for storage pending sale and/or use for the next season. The company has purchased another tractor from the Ministry of Agriculture which it had been previously renting on an as available basis. This will enhance both planting and harvesting capabilities. The company will have specific harvesting details by the end of March.
While the carbon credit market has softened due to worldwide economic issues, Sierra Gold has continued moving forward with project. As mentioned, previously, the company is harvesting and nursing the seeds from the Kiri trees as they become available. The intent is to expand the tree population and at the seven year mark, or when mature, we will harvest the trees for sale in the Asian markets where Kiri (Palaumia) lumber has high value for its intrinsic designing value.
J.V. AGREEMENT CLARIFICATION
Due to recent overwhelming response, both positive and negative, I wish to take this time to provide some clarification and transparency to the recent JV agreement between ARDC and SGCP.
It is true that I am the CEO of ARDC as well as President of SGCP. ARDC was formed by my Chief Operations Officer and brought to me. I was appointed CEO due to my experience in the public sector and ability to provide contacts.
The agreement between ARDC and SGCP is very simple in nature. SGCP has more land leases than they can effectively mine in the near future. ARDC as a startup has equipment and new funding but limited land holdings.
ARDC will provide all expenses to operate on one of SGCPs concessions that would have otherwise gone unused this season but incurred cost. In return SGCP will receive a 33% profit share up to 500k after ARDC covers its cost.
No funds have been transferred between companies or will until production starts.
For transparency reasons I excused myself from the voting on SGCP's side.
The contract was negotiated by the COO of ARDC and Doug Evans. As the CEO of ARDC it was my responsibility to sign the completed contract.
John Semachko Jr.
President Sierra Gold Corp
Field report January, 2012
Sierra Gold Corporation extracted 36.4 ounces from all locations in Bombalilli, Tonkalilli, Kono, Bo-Kenama and Zimmi districts in December. This brings the year-end total of gold extraction to 404 Troy ounces for 2011 which is up from 229 Troy ounces in 2010, an increase of approximately 75%. The company presently has three dredges in operation and it is anticipated two more will be up and running by the end of January. As stated before in previous field reports, we will have operations running simultaneously on the Pampana, Sewa and Mano Rivers. The previous press release of January 10, 2012 reported on assay results that have been received from SGS Labs to date. The company has submitted additional samples to SGS Labs for assaying and we anticipate results imminently. These results will be published as soon as they are received.
Sierra Gold Corporation is also pleased to report our best rice crop ever at over 1200 acres at an anticipated average of 8 to 10 bushels per acre. The sorghum crop is currently being harvested with an expected return of 35,000 to 40,000 kg of sorghum. The trial garden vegetable planting this season was a success and we intend to expand the program for 2012. Two local restaurants have committed to purchasing the yield as it becomes available.
The company is committed to keeping shareholders aware of our continued efforts to improve Sierra Gold Corporation. It was stated that we are reviewing a number of J.V. agreements in both the mining and agriculture arena in the previous press release. Due to the nature of these negotiations, confidentiality is of the utmost importance. Share holders will be apprised of the status of these agreements as the review and negotiation process continues.
Field Report December 2011
Sierra Gold Corporation announced in a Press Release dated Monday December 12, 2011 that the October and November gold extraction numbers amounted to 59 troy oz. This brings 2011 gold extraction through November to 378 troy oz. This is an increase of over 65% from last year's production of 229 troy ounces of gold.
In regards to diamonds, the company extracted 315 pieces in 2011 which compares to 209 pieces in 2010 or an increase of over 60%.
The mining season did present us with some new challenges. There was a gas shortage countrywide that hindered production for almost 30 days. To protect against this problem Sierra Gold Corp. will keep a larger reserve of fuel for operations. As in all mining operations, equipment breakdown is a constant battle and we will increase the number of spare parts to offset some of our down time.
The results of the assay reports continue to indicate high levels of gold in our samples and Sierra Gold Corp. acknowledges that a portion of the gold is at the micro level and is not attainable for extraction on site. Sierra Gold will be required to transport the concentrates (black sands) to a processing plant, which may be out of country. The company is currently stockpiling this product with the aim of recovering as much of this micro gold as possible. We continue to explore various options in order to have these AU rich sands processed in a way that will show the return on investment that is profitable for all concerned.
In regards to the Pampana River concessions, there is a shakedown process that takes place when moving a dredge to a new location. This entails the breaking down of the dredge, moving it to a new location and reassembling the dredge. This process can take from 2 to 4 days to complete. Once this is done, the operator will make the necessary adjustments and any repairs required so the dredge is ready to do shore line testing. When river levels permit, the dredge will then be ready to be moved to its selected position for full operations.
Mining in Sierra Leone offers many different challenges. Last years activities gave the company much insight into these issues and with this in mind we are confident we will be able to improve/enhance the company's operational effectiveness for the 2012 mining season.
John Semachko Jr.
Sierra Gold Corp
Field report November 2011
- Doug Evans has left for Sierra Leone to prepare for the upcoming mining season and is expected back the middle of December
- Currently, the rivers are still high as we wait for the Harmattan, a hot, dry wind that blows from the Sahara. This commences the roughly 30 day process of lowering the rivers to a level that will enable us to start full scale operations
- Sierra Gold Corporation is starting an in-house awareness campaign to expand our shareholder base.
- At this time Sierra Gold Corporation plans to have 2 operations in the Pampana, 2 operations in Bo and 1 operation in Zimmi.
- We are presently awaiting the results of our assay report and will advise as soon as we receive information from SGS mineral labs.
- All agricultural operations are proceeding as scheduled. During the upcoming Agricultural Festival in November, the company’s various agricultural activities will be visited by a number of various senior government officials.
John Semachko Jr.
Sierra Gold Corp
Field Report SEPTEMBER/OCTOBER
Doug Evans, Chairman and CEO, spent the month of September in Sierra Leone conducting various business activities. He is extremely optimistic with the direction and progress being made by the company and returns with these observations.
The land operations that are ongoing during the end of the rainy season that the company supports throughout the country, produced 18 oz. /au during the month of September.
Assaying of samples of black sand taken from both the Pampana and Sewa Rivers are currently being conducted by SGS Labs in Lakefield Ontario. The results will be published as soon as they become available. Small scale processing of those same samples, for test recovery purposes, will be conducted in late October. The company is continuing with the black sand collection program and to date 14 metric tons have been accumulated for future processing.
The company acquired 4 concessions on the Pampana River North in September. Surface rents were paid and licencing is underway. We are in the process of moving 2 dredges onto these new concessions.
In addition to these activities, the company is negotiations for an additional 4 concessions on the Pampana River North.
Please note that the North Pampana River and the Pampana River North are two separate areas of the Pampana River.
All operations are proceeding as scheduled. First harvesting of the rice crop began on the 14th of October. It is expected that the crop will yield between 10 to 13 bushels per acre. A portion of all crop yields will be used for future crop expansion with the balance being sold locally.
The peanut crop is being harvested and second planting is being considered.
The anticipated yield for sorghum is between 30 to 40 thousand kilos. The company is in discussions with various buyers for this crop. A portion of this crop will also be used for expansion while the remaining yield will be sold.
The maize crop will also be used for future planting and local sales. At this time no expansion is planned.
During the upcoming Agricultural Festival in November, the company’s various agricultural activities will be visited by a number of various senior government officials.
Due to the current financial problems in Europe and the United States the Carbon Credit market is presently soft. We continue to monitor the situation and are putting ourselves in the best possible position to make a move when the Carbon Credit market improves.
John Semachko Jr.
Field report September 8, 2011
- Sierra Gold Corporation from all sources extracted 33 ounces of gold through August. Year to date gold extraction is 301 troy ounces of gold and 315 diamond pieces.
- We are continuing our black sand projects and have one dredge at least in the Pampana North area do to positive results and will be acquiring additional concessions during my visit in September
- Farming operations are proceeding as planned with the second cropping starting
- Sierra gold Corporation continues to monitor our carbon credit project and will be receiving updates from our carbon credit partner as they become available. It must be realized that due to the current financial situation in Europe that the project is proceeding at a slower rate than expected.
- We have added new pictures to our web site per our shareholders request.
Thank you for your continued support
Doug Evans CEO Sierra gold Corporation
Field Report August 2011
During June and July the company had 3 effective weeks of dredging operations due to a variety of mechanical, climatic, supply and other local issues. With the exception of climatic, all other issues have been addressed and rectified to the greatest extent possible.
Recovery from all sources during this period amounted to 78 ounces of gold and 58 carats of diamonds (white, coffee and industrial) all under 1.89 carats.
Currently no dredging activity is underway due to water levels, however two feeder rivers are being considered for testing operations until water levels recede.
Black sand (microscopic minerals) recovery and acquisition operations are underway with the intent of processing up to 20 tons of material by the end of October. Should this prove feasible, it will become a permanent part of Sierra Gold Corps recovery operations.
In preparation for the next mining season the company is acquiring further dredging leases on both the Sewa and Pampana Rivers.
To date rice, peanuts, sorghum and corn have been planted. This year the company aims to double crop peanuts and rice with the goal of having 3,000 acres under cultivation. In addition to the above crops, 10 different garden crops (|onions carrots, tomatoes, etc.) have been planted on 1-2 acre plots each for test marketing and future expansion potential. The farm manager has already secured two buyers for these crops.
In early July the Minister of Agriculture and the Director of Agriculture for the Northern District visited our area of operations and held a meeting with all 5 master farms of which we are one, in the district. The Minister and Director expressed pleasure with the progress and development and indicated to our Farm Manager that we were the largest master farm within the district.
Carbon Credit Activities
Our Joint Venture partner has indicated that the revised PDD is approaching conclusion to meet Carbon Registry requirements and that financing was being pursued. The Kiri trees now growing on the property are showing indication of developing seeds. When they have developed and are harvested they will be nursed for replanting.
Field report June 2011
- Extraction numbers for April and May were 85 Troy Ounces of gold and 117 pieces ranging from .5 to 1.78 cts mix of white, coffee and industrial. These numbers where hampered by fuel shortages in Sierra Leone. The fuel shortages have now been corrected.
- We are currently in June recovering 2 to 3 Troy Ounces total per day from all sources with everything except the B-1 dredge in operation.
- We are currently involved in developing the mineral recovery of black sands and their potential and may have a workable solution by end of summer. At this time we are stock-piling all our black sands pending further processing.
There is no additional information from the last field report concerning agriculture operations or the Carbon Credit program.
MAY - FIELD REPORT
For shareholders who are unaware, the latter part of the month of March and to some extent the month of April saw a fuel crisis grip Sierra Leone. While this happens from time to time, this particular occurrence was unusually long. This issue combined with the fact that government increased the price and changed from the imperial (gallon) to the metric (liter) system complicated things further. It interrupted both our dredging and agricultural activities as well as increasing operational costs. While the company keeps a 200 gallon reserve, at a 50 to 70 gallon per day consumption rate, the reserve is quickly depleted.
In anticipation of the rainy season setting in over the next few months, the company has explored some feed/tributary rivers that show promise for continued dredging operations during these months.
- 4 dredges currently in operation - Zimmi (2), Bo (1) Yele (1)
- Land based artisanal operations are ongoing at various sites
- Currently all operations are producing 1-2 oz per day with an upward trend
- Down payments have been made on a variety of equipment to enhance mineral recovery in river sites where sand overburden is over 20' in depth and constantly shifting.
- Further dredging sites have been acquired and are in the process of being licensed for next year’s activities and expansion.
- Last years harvest was fully completed in January. The gross value of all crops was estimated at $45,000.
- Plowing and subsequent harrowing is underway. The company aims to have 3,000 acres under cultivation this season.
- Last seasons harvest will cover all seeding. The excess is being sold and will be applied to fertilizer costs.
- The peanut planting has commenced and to date 30 acres have been completed.
- This season we plan to double the peanut and rice crops.
- A second tractor has been acquired which the company had completely refurbished and is now operational and in use.
- The company has optioned a significant increase in acreage both in the north and the south of the country for future expansion.
- In the reporting period we continued our work on the Project Design Document’s and began making contacts with potential buyers of carbon offsets.
In concluding this report I would like to thank all our shareholders for the support, constructive thoughts and advice, comments good and otherwise. We are a small but growing company and a lot of larger organizations are taking note of our activities and potential.
April 30, 2011 field report
- Due to encouraging results and in order to take the fullest advantage of these results, it has been decided to move 3 dredges within 100 yards of each other at our Zimmi mining operation. Doug Evans, who is currently in Sierra Leone, has been successful in securing 3 additional mining licenses adjoining this area.
- Dredging operations continue in Bo with one dredge and we have moved another dredge to the Yele area due to favorable test results.
We are presently in the process of preparing the land for upcoming planting season. Doug Evans visited the site this past week and is pleased to pass on that the plowing has already progressed passed expected timelines. SGCP is also in early stage talks with a few select firms to acquire non dilution financing to expand our agricultural operations.
The Company has entered into a Carbon Development Agreement with Bio-Carbon Solutions International Inc (OTC Pinksheets: BICS) for the purpose of securing technical services for:
- the completion of a Project Design Document for the registration of carbon offsets from forestry activities (conservation and afforestation) from 42,000 acres of lands in Sierra Leone, and;
- for fundraising the realization of the carbon project.
Pursuant to the Carbon Development Agreement, the Company shall pay a contingency payment of 10% of the net profits from the sales of the carbon offsets upon their realization.
31 March, 2011 field report
Year end financials and disclosure statement have been completed and are in the process of being filed with the relevant agencies.
As of March 25, 2011 SGCP extracted 105.3 ounces of gold from all project sources and 82 pieces of diamonds (.05-2.3 carats). We expect these numbers to increase significantly as we have now accessed what we consider to be the pay gravel at most sites.
Much of the dredging activity during this quarter has dealt with removing large amounts of lower grade overburden sand which caused far more difficulty than anticipated due to its thickness. However, during this process, a large quantity
of high-grade concentrate has been recovered and retained for future processing
using more sophisticated technologies.
Unfortunately, SGCPs dredge operations project manager contracted malaria in March but is expected to make a full recovery and be back to work in the first week of April.
SGCP has completed all harvesting from the past years planting and has commenced the current seasons preparations. The company expects to use profits from last season’s activities to enhance and expand/vary this season’s crops.
In response to the significant increase in worldwide cost of food supplies, SGCP is in ongoing discussions regarding financing to significantly increase its agricultural operations. It should be noted that this financing does not involve the use of company stock. Our goal is to have 100,000 acres under cultivation within 5 years. I believe our shareholders know that the price of food continues to rise and we believe this trend will continue.
SGCP continues to monitor opportunities in the carbon market. We will watch closely how the international community reacts to the recent tragedy in Japan.
Field report February 9, 2011
Sierra Gold Corp is in the process of changing its domicile to Wyoming from Nevada. The decision to change was based on the fact that Wyoming offers a more favourable tax advantage compared to Nevada. To achieve this in an orderly manner, the corporation was required to end its relationship with Nevada prior to filing the proper paper work with the State of Wyoming. This has now been completed and all paper work has been filed by our attorneys with the Wyoming Secretary of State pursuant to W.S. 17-16-1710 of the Wyoming Business Corporation Act.
Sierra Gold Corp presently has 4 dredges in operation with the 5th dredge expected to be up and running in its' area of interest by mid February. 2 dredges are located in the Bo district and 2 dredges are located in the Zimmi district with 1 more dredge to follow.
Our new J.V. partner arrived the end of January and has been operational since the first of February.
Due to the late end of the rainy season we where unable to start operations as soon as we would have liked. This being said, we have made significant progress in both moving the dredges from the shore to the target areas of interest. And have begun processing the overburden to get to the gravel. The gravel above the bedrock is where you normally will find higher gold grades along with any other associated valuable minerals.
Below are the results of SGS Minerals lab analysis of sand and surface samples taken from the Bo and Zimmi districts. The Bo sample (BO/CON) is concentrate from 2 hours of dredging upper level sand close to the shore. The Zimmi sample (Znew Hand) is from a hand grab sample on the shore line.
CERTIFICATE OF ANALYSIS - Final Report
Doug Evans will be leaving for Sierra Leone February 15th and will return the middle to end of March. Upon his return we will Press release 1st quarter production numbers.
All crops (rice, sorghum, corn and peanuts) have now been harvested from the 1800 acres planted. In addition, the company has received the proceeds from the numerous farmers who participated in its loan programs. Preparations are under way for the upcoming farming season.
Field report January, 2011
Sierra Gold Corp has finalized negotiations and signed a new JV agreement that will add an 8 inch dredge and an experienced dredge operator to our operations. SGCP expects both to arrive within the next 7 days. This coincides with our ongoing plans to expand operations and take advantage of newly attained agreements with Paramount Chiefs in new areas.
One dredge has moved into the deeper river area resulting in six feet of sand overburden having been cleared and processed to date. We anticipate that the targeted gravel will be reached soon as full scale operations are underway. Results of the sand overburden in this location are a 7-10X increase over inshore results.
One of the dredges is undergoing regular maintenance and repairs and is expected to be back in service promptly
Due to recent promising testing results it has been decided to move two of the dredges to new locations. We are optimistic that this move will have positive results.
All crops have been harvested except for sorghum which is currently being harvested. Company Sales for 2010 are being reviewed and the 2011 crop planting schedule is being mapped out.
On the recommendation of Samuel Kargbo, (Manager of Agricultural Operations) the company will commence one acre tests on different vegetable varieties to determine feasibility for future garden crop exporting potential.
Field report December 2, 2010
Before updating on the current status of operations, I would like to address an issue that has caused numerous inquiries from shareholders and interested parties.
Africa Review recently published an article dated December 2, 2010 regarding the oil and mining industries in Sierra Leone. The author of this article was incredibly inflammatory in his comments in regards to Sierra Gold Corporation. Firstly, let me assure you that there is no potential agreement worth billions of dollars currently being discussed or about to be signed between Sierra Gold Corporation and the government of Sierra Leone. The author of this article has never contacted me or Doug Evans to corroborate these comments which are apparently attributed to John Momohs in an editorial published in the Concord Times of Sierra Leone. For those of you that regularly read the field reports and press releases posted on our website, you will recognize these quotes taken from the last press release. These quotes are in and of themselves accurate, but the authors claim implying that Sierra Gold Corporation is a diamond mining company disguised as a gold mining company is totally unfounded and bordering on libel. It is obvious the author, Tamba Jean-Matthew failed to do a thorough investigation of these so called claims. We find his article both insulting and inaccurate. Attempts to email the writer demanding proof of such allegations were unsuccessful. We are currently in consultation with our legal team regarding possible legal action against these false claims and will update you on our next steps.
As anyone who has followed the ongoing endeavors of SGC is aware, the company takes great pride in all aspects of its operations in Sierra Leone. For the record SGCP has provided food (via the farming project), medicine, infrastructure work (local administrators) and funding for education. In all of our operations the local population benefits and receives a percentage from all of our operations.
We are also committed to establishing a carbon credit project that will truly benefit Sierra Leone not only by employing locals and growing new forestation but also by building a thriving industry imbedded in Sierra Leone..
Now on to the Field Report
The first dredge has been positioned in the water and operations are commencing. The second dredge will be in place and operational by mid December with the balance of dredges scheduled to be in operations by the first of the New Year. Our head of dredging has opted to forego a trip out of the country over the holiday season in order to coordinate the operations. Doug Evans, Chairman and CEO will be in Sierra Leone until the middle of December He is committed to enhancing his relationships with the various paramount chiefs and their chiefdoms as landowners and partners in the ongoing mining projects.
The harvesting of the rice and sorghum crop has begun for this season.
We have moved ahead positively and retained the services of a new carbon credit consultant who is more suitably aligned with our future goals for the company. The work has begun internally to continue the development of the carbon offset initiatives in Sierra Leone. The Company has conducted work to establish the benefits of a project for the sale of carbon offsets from its leased lands to the regulated or the voluntary markets in Europe and North America, respectively. In particularly, we have investigated the project development options, offered to us from the different types of Forestry-related methodologies of different protocols for the purpose of creating a carbon business plan that will permit the sale of ex ante carbon credits. Priority was given to begin drafting a project with high potential of success, while eliminating the need for large development costs. This was achieved by using as a template, a Project Development Document created and approved by the UNFCCC for afforestation of degraded lands in China. We anticipate completion of draft PDD by early January.
In addition, field work has been undertaken in Sierra Leone to assess the growth potential of Kiri trees imported as cuttings from Australia. Our preliminary results show poor transplant survival rates, presumably owing to a transit period of 10-12 days which we believe is excessive and deleterious to the survival of plants exacerbated by a lack of water. However on a positive note, of those cuttings that have survived, qualitative analyses suggests that the growth of Kiri trees in Sierra Leone can resemble published fast growth rates for Australia for Kiri trees.
John Semachko Jr.
Sierra Gold Corp
Field report 16 Nov, 2010
Doug Evans left for Sierra Leone on the 11th of November to evaluate current river conditions and finalize operational plans for the upcoming mining season. In speaking with Doug yesterday he said the river are still flooded but the last two days where sunny. Doug also mentioned that showers are predicted for today. These statements offer hope that the rainy season is close to coming to an end. This being said it takes time for the rivers to get to the level where we can start full scale operations. We are anxious as I know our shareholders are to get started and as soon as conditions permit we will begin full scale operations with all four dredges.
Field report OCT 26, 2010
Per my conversation with our head dredge operator on Oct 20th, the rivers are still flooding and it is still raining. Once the rain stops we estimate it will take 30 days for the river’s to be ready for full scale dredging operation.
Projected gold and diamond extraction numbers are based on testing and equipment currently on site in Sierra Leone. The projections shown below do not include rainy season operations and assumes 180 days of a potential 180 to 210 day dry (mining) season and 6 hours of a 6 to 8 hour operational day. Evaluation of our first rainy season operations has not been completed therefore projection numbers are not available. It is my belief that conservative numbers must be used in any projection formula and is the reason why these numbers below were chosen:
A) Four dredges at 25 TPH = 100 Tons per hour
B) 100 TPH x 6 hours per day = 600 Tons per day
C) 600 Tons per day x 180 days = 108,000 tons
D) 108,000 tons @ 1 gram of gold per ton = 108,000 grams
E) 108,000 tons @ .25 carat of diamonds per ton = 27,000 carats in diamonds
Doug Evans will be leaving for Sierra Leone during the first week of November.
Rice and sorghum to be harvested beginning late November. Peanut and Maize crops have been harvested.
Carbon Credit Project: Sierra Gold, for a variety of reasons to move its projects forward, has severed its business relationship with Green Giant Venture Fund. Sierra gold is currently in the process of taking its projects to full validation using the expertise of an accredited Professional in the Carbon Credit industry. Further, the Company is reviewing options to expand its project opportunities within Sierra Leone.
Field Report, September 23, 2010
New pictures taken by Doug Evans while on his latest trip to Sierra Leone in August 2010 as well as shots from the spring have now been uploaded to our website. In addition to being able to visualize conditions, equipment and operations, our shareholders will be able to compare the difference in conditions between the dry and rainy seasons and have a better understanding of how the annual mining schedule is determined.