Sienna Gold Inc
TSX VENTURE : SGP

March 03, 2011 15:42 ET

Sienna Gold Inc Announces That 100% of Warrants Expiring on February 28, 2011 Have Been Exercised

CALGARY, ALBERTA--(Marketwire - March 3, 2011) - Sienna Gold Inc. ("Sienna" or the "Corporation") (TSX VENTURE:SGP) wishes to announce that it has, received $1,433,333.25 from the exercise by shareholders of 5,733,333 warrants which represents 100% of the warrants of this series. The Company wishes to thank these investors for their continued support.

As previously announced, the expiry date of the warrants that were due to expire April 30, 2012 has been accelerated to May 16, 2011. 6,060,402 such warrants were originally issued at an exercise price of $0.18 of which 2,154,507 have been exercised. If 100% of the 3,905,895 outstanding warrants are exercised the Company treasury will receive a further $703,061.10.

These funds together with the $7,000,000 financing announced on February 24, 2011 will be used to achieve the Company's goals which follow:.

To drill approximately 10,000 – 20,000 meters in the next 24 months. This total meterage will be allotted to a three-pronged exploration program on the Igor Project.

  1. Infill drilling on the Domo to enhance the resources that are included in our NI 43-101 report and move them from inferred to measured and indicated.

  2. Drilling of the high grade veins in the Tesoros area to increase and enhance the resources reported in the NI 43-101 report. This program should rapidly add ounces to the resource due to the grade of the veins and the fact that they are outcropping.

  3. Exploration drilling for the porphyry target on the property. In 2008 the Corporation drilled the CA-01b "discovery hole". In addition to returning 218.4 meters at 0.6 g/t gold and 22.3 g/t silver, largely as oxide mineralization, the hole finished in mineralization. The last 2 m assayed 1.7 g/t gold, 61 g/t silver, and 0.44% copper.

This, along with various other indicators, suggests that the Igor project is underlain by a large porphyry copper gold system. The "Big Prize" at Igor is to find and delineate economically viable porphyry mineralization. The focus for this exploration will be south east from the location of the current drilling program along the roughly north-south Callanquitas Trend.

This drilling in Callanquitas will also help outline oxidized gold which in the discovery hole was present over 200 meters of mineralization and which will eventually be incorporated into a resource.

Domo and Tesoro resources.

The Corporation hopes to define an oxidized, leachable and bulk mineable resource equivalent to 1,000,000 oz gold. It has undertaken a feasibility study for small mine utilizing the resources included in the current NI 43-101 report.

A feasibility study is underway for a small mine utilizing the resources included in the current NI 43-101. As part of the current feasibility study an environmental firm has been hired to carry out the environmental impact assessment of the project. This will be completed in approximately 18 months.

Sienna has also commenced a review of the metallurgy from the scoping study prepared in 2008.

The Company has received proposals as to the acquisition of the surface rights, and is presently evaluating them.

This press release was reviewed and approved by Owen Miller (Aus IMM Member No 207275), consultant to Sienna Minerals. (a wholly owned subsidiary of Sienna Gold Inc.), who is a "Qualified Person" according to National Instrument 43-101.

Sienna Gold Inc. is a gold exploration company with property interests in Peru. Its key prospect is the Igor Mine Project, a formerly producing mine that the Corporation plans to put back into production.

Advisory

Certain statements and information contained in this press release, including but not limited to management's assessment of Sienna's future plans and operations, production, reserves, , capital expenditure programs and debt levels contain forward-looking statements. In particular, this press release contains statements concerning the anticipated feasibility study and identification of drilling targets. All statements other than statements of historical fact may be forward looking statements. These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Sienna's control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling and processing problems, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements. Such forward-looking statements although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on. These statements speak only as of the date of this press release. Sienna does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Sienna's business is subject to various risks that are discussed in its filings on the System for Electronic Document Analysis and Retrieval (SEDAR).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sienna Gold Inc.
    John M. Rucci
    President
    (403) 508 2061