Sienna Gold Inc
TSX VENTURE : SGP
BVLAC : SGP

March 17, 2011 14:47 ET

Sienna Gold Inc. Intersects 135.5 Meters of 0.254 g/ton Gold and 47.08 g/ton Silver; Callanquitas Drill Program Extended

CALGARY, ALBERTA--(Marketwire - March 17, 2011) - Sienna Gold Inc. ("Sienna" or the "Company") (TSX VENTURE:SGP)(BVLAC:SGP) is pleased to announce the results of the three latest holes in its current drill program at the Igor project in Peru. The best hole (CA-10-5) produced 135.5m with an average of 0.254 grams per tonne (g/t) gold and 47.08 g/t silver. The results from this campaign have led to a reinterpretation of the geological model in the Callanquitas area and the programming of a further 1000-1500m of drilling which is currently under way. The sixth hole has already penetrated 360m.

The results for the first five holes are presented below (the results from holes CA-10-1 and CA-10-2 were in the new release issued on the February 3, 2011).

Hole   Interval     Length     Weighted average grade  
    (m )   (m )   Gold (g/t )   Silver (g/t )
CA-10-1   426.05 to 426.60     0.55     0.786     5.8  
CA-10-2   12.0 to 47.00     35     0.57     16.43  
    including 32.0 to 40.0     8.00     1.85     21.12  
    188.2 to 204.0     15.8     0.69     56.63  
    including 191.5 to 200.0     8.5     1.17     103.02  
    including 195.2 to 196.0     0.8     4.96     908  
    404.0 to 424.0     20.0     0.65     21.99  
    including 406.9 to 414.1     7.2     1.42     46.40  
    Including 407.8 to 408.15     0.35     12.1     232  
CA-10-3   No economically significant mineralization                    
CA-10-4   No economically significant mineralization                    
CA-10-5   100.5 to 236.0     135.5     0.254     47.08  
    Including 100.5 to 112.5     12.0     0.079     154.42  
    Including 126.0 to 150.0     24.0     0.814     134.87  
    Including 138.5 to 140.0     1.5     6.4     1360  

New Geological Model

Dr. Owen Miller, exploration manager for Sienna, comments, "We are very pleased with the results of the drill program to date. In addition to confirming and extending the known mineralization drilled in 2008 the current program has led to a new geological model for the Callanquitas area.

Drill results, combined with recent and historic surface sampling suggest that mineralization in the Callanquitas area is controlled by a north-south trending structural zone. The structural zone is approximately one kilometer long and open to the north and south."

The crucial pieces of evidence in the new interpretation are:

- recent channel sampling in the far north of the Callanquitas area with values up to 2.73 g/t gold and 71.6 g/t Ag.

- 220 meters to the south, drill hole CA-10-1 intersected a major fault zone approximately 10 meters wide before finishing in 0.55 meters assaying 0.786 g/t gold and 5.8 g/t silver at a depth of 426.6 meters.

- broad zones of significant mineralization intersected in drill holes CA-10-2 and CA-11-05 a further 350 and 500 meteres respectively to the south of CA-10-1.

- approximately 500 mineralized channel and surface samples from recent and historic sampling programs that have delineated a zone extending 1.2 Km. north to south and varying between 100 and 200 meters wide.

(Maps and a more detailed explanation of new geological model will be available next week on the Company's website: http://www.siennagold.com/projects/index.html)

Sampling Methodology

Cores taken from the diamond drill rig are stored in plastic core boxes and transported to the camp for detailed logging. Afterwards, the core is cut on site with a diamond saw.

One half is then sent to an accredited laboratory in various sample lengths. Randy Henkle (PGeol), the Company's independent Qualified Person, completed a chain of custody review to ensure the integrity of all sample data.

Assaying Methodology

The samples are analyzed by ALS Chemex Laboratories in Lima by inductively coupled plasma atomic emission spectroscopy for silver and 33 other elements and a 30 gram fire assay technique for gold. Samples above detection limits were re-assayed using a gravimetric fire assay technique. The specific lab procedures can be found in the Company's 43-101 report on the Igor property.

This press release was reviewed and approved by Dr. Owen Miller (Aus IMM Member No 207275), Manager of Exploration of 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 explore further.

Sienna now trades on the Lima stock exchange (BVLAC:SGP) and activity can be viewed on their web site at www.bvl.com.pe/.

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