Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

November 10, 2009 09:30 ET

Sierra Geothermal Advances Its Paymaster District Play

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2009) - Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) today provides an update on its Silver Peak and Alum projects and the exploration activities that form part of its integrated development plan for the Paymaster District geothermal area. The data from these recent, current and near term activities will be integrated with existing datasets to refine a 3D subsurface model to assist in confirmation of targets for production well drilling.

On November 8, 2009, SGP commenced drilling a production assessment-observation well at the Alum project. Well 25-29 is being drilled to a maximum depth of 1,830 meters or 6,000 feet and is targeting multiple zones of high geological interest from 800 to 1,500 meters or 2,620 to 4,920 feet deep. SGP has contracted Ensign Energy Services Inc.'s Ensign 561 rig, under the supervision of 30-year geothermal drilling veteran Mr. Jerry Hamblin of Subsurface Excellence Inc.

On November 3, 2009, SGP completed a program of ten shallow temperature gradient holes at the Silver Peak project. A total of 1,522 meters or 4,990 feet were drilled including 238 meters or 781 feet of core. The maximum temperature recorded was 88 degrees Celsius or 190 degrees Fahrenheit at a depth of 140 meters or 459 feet. The maximum temperature gradient recorded exceeded 500 degrees Celsius per kilometer or 28 degrees Fahrenheit per 100 feet. Water samples were also collected for geochemical analysis and to establish baseline water quality in the area.

Other recent exploration activity within the Paymaster District includes:

  • an airborne hyperspectral remote-sensing survey covering approximately 300 square kilometers or 116 square miles;
  • a high-resolution, ground-based magnetic survey covering over 600 line kilometers or 373 line miles; and
  • a 2D seismic reflection survey covering 19 line kilometers or 12 line miles at the Silver Peak prospect.

Currently, a detailed ground-based magnetotelluric survey focused on the Alum and Silver Peak prospects and a radiometric survey covering 140 line kilometers or 87 line miles at Silver Peak are underway. Within the next week SGP intends to commence a 190 square kilometer or 73 square mile airborne Z-tipper Electromagnetic (ZTEM) survey and additional planned near term work includes further slim-well and core-well drilling, a seismic survey at the Alum project, regional hydrological studies, shallow temperature probe measurements of 2 meters or 7 feet and an airborne hyperspectral thermal infrared remote-sensing survey.

"We are delighted to be able to aggressively pursue the integrated development plan for our Paymaster District after our exploration freeze resulting from the uncertainty created by the 2008-2009 market meltdown. This puts us back on track to become an independent producer of geothermal power by 2012. Particularly encouraging is that the recent temperature gradient drilling results show that the thermal anomaly at Silver Peak is larger and hotter than previous measurements had indicated," said Gary Thompson, President and CEO. "Our exploration and development program is well funded with nearly US$11 million raised since August 2009 and US$10 million in matching grants recently awarded to us by the US Department of Energy."

About The Paymaster District

SGP recognized the area as a district geothermal opportunity many years ago. The projects within the District consist of three prospects: Alum, Silver Peak and Pearl, having a combined probability at the 90% level of generating over 100 megawatts of power. A 100-megawatt geothermal plant provides enough power to supply 80,000 homes.

About Sierra Geothermal Power Corp.

Sierra Geothermal Power Corp. is a renewable energy company focused on the exploration and development of clean, sustainable geothermal power. It is based in Vancouver, British Columbia and listed on the TSX Venture Exchange under the symbol SRA. Its portfolio of geothermal projects located in Nevada and California exceeds 365 square kilometers (90,000 acres) and has a combined total estimated capacity of greater than 500 MW. SGP intends to finance development by utilizing a combination of corporate equity, joint venture partnerships and project debt, with the support of US government grants and loan guarantees. To find out more about Sierra Geothermal Power Corp. (TSX VENTURE:SRA) visit our website at www.sierrageopower.com.

On behalf of the Board of Directors,

Gary Thompson, President, Chief Executive Officer and Director

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements. Forward-looking statements are projections of events, revenues, income, future economic performance or management's plans and objectives for future operations. In some cases you can identify forward-looking statements by the use of terminology such as "may", "should", "anticipates", "believes", "expects", "intends", "forecasts", "plans", "future", "strategy", or words of similar meaning. Forward-looking statements in this press release include statements such as, "The data from these recent, current and near term activities will be integrated with existing datasets to refine a 3D subsurface model to assist in confirmation of targets for production well drilling" and "Within the next week SGP intends to commence a 190 square kilometer (73 square mile) airborne Z-tipper Electromagnetic (ZTEM) survey and additional planned near term work includes further slim-well and core-well drilling, a seismic survey at the Alum project, regional hydrological studies, shallow probe (2 meters, 7 ft) temperature measurements and an airborne hyperspectral thermal infrared remote-sensing survey", and the Company's intent to finance the development of its projects through a combination of corporate equity, joint venture partnerships and project debt with the support of U.S. government grants and loan guarantees. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks inherent in our industry, the challenging capital markets and other risks identified by us in our periodic filings on SEDAR (which can be viewed at www.sedar.com). Any of these risks could cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

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