Sienna Gold Inc.

Sienna Gold Inc.

May 29, 2012 09:00 ET

Sienna Reports 4.6 Meters (M) at 5.6 Grams Per Tonne Gold (G/T) and 16.8 G/T Silver Within A Longer Interval of 20 M at 1.9 G/T Gold and 76.0 G/T Silver

CALGARY, ALBERTA--(Marketwire - May 29, 2012) - Sienna Gold Inc. ("Sienna" or the "Company") (TSX VENTURE:SGP)(LMA:SGP) is pleased to announce the latest results from new drill holes at Callanquitas, on the Igor project, La Libertad, Peru. The four holes totalled 1254.15 meters (m).

Drill Hole Results

The best results are from Hole CA-12-38, which contains several mineralized structures. The best of these gave 4.6 m at 5.6 grams/tonne (g/t) gold and 16.8 g/t silver within a longer interval of 20 m at 1.9 g/t gold and 76.0 g/t silver. Another structure gave 3.9 m at 3.4 g/t gold and 6.2 g/t silver within a longer interval of 46.7 m at 0.9 g/t gold and 6.4 g/t silver

Drill holes CA-12-36 and CA-12-40 also returned excellent results: 1.8 m at 17.9 g/t gold and 87.6 g/t silver and 5.1 m at 3.6 g/t gold and 13.1g/t silver respectively. Full results are given in the table below.

Drill holes CA-12-36 and 38 are from the oblique section NW4805 that contains drill hole CA-11-01, drilled in the 2010-2011 campaign. This section is shown below. Further maps and cross sections are available on the Sienna Gold website.

Map of Collars and Drill Hole Traces and Section NW4805:

The Callanquitas Structure

Dr. Warren Pratt, consulting geologist and director of Sienna Gold, comments, "The Callanquitas drill program continues to give excellent results. Every drill hole consistently hits the structure where predicted and gold and silver mineralization is present everywhere.

Results from Section NW4805 are particularly interesting because mineralization was cut over a vertical interval of at least 500 m. This is the first section where this is demonstrated unequivocally. Although the intercept in CA-10-01 is short, it is open at depth since this hole was lost due to a major fault.

As can be seen in the figure above, the three holes in section NW4805 define the structure. Further infill drilling is required. We will continue to prioritize those parts of the structure with high gold and silver grades. The objective is still to define the first Inferred Resource for Callanquitas before the end of the year."

Assay results for drill holes CA-12-36 to CA-12-40 (and the best intercept from CA-11-01 issued in press release dated 3 February 2011).

Drill Hole From To Interval(1) Weighted Averages(2)
(m) (m) (m) Gold (g/t) Ag (g/t)
CA-10-01 426.05 426.6 0.55 0.8 5.8
CA-12-36 56 62 6.00 0.4 14.0
CA-12-36 66 78.4 12.40 2.9 15.6
including 74.8 76.6 1.80 17.9 87.6
CA-12-36 94.8 98.6 3.80 0.4 3.3
CA-12-37 155.15 182.90 27.75 0.7 27.4
including 156.95 160.40 3.45 3.0 80.5
including 175.20 176.80 1.60 1.3 4.8
CA-12-37 246.75 254.00 7.25 0.5 18.1
CA-12-38 64.00 80.20 16.20 0.4 3.4
including 76.00 78.00 2.00 1.2 0.8
CA-12-38 148.00 168.00 20.00 1.9 7.0
including 149.60 154.20 4.60 5.6 16.8
including 164.45 166.30 1.85 4.8 18.6
CA-12-38 174.40 221.10 46.70(3) 0.9 6.4
including 177.50 179.00 1.50 1.3 10.7
including 196.20 200.10 3.90 3.4 6.2
including 212.75 213.60 0.85 2.8 11.6
including 215.40 216.35 0.95 2.0 21.5
CA-12-39 8.50 21.40 12.90 0.5 16.8
including 19.40 21.40 2.00 2.2 62.5
CA-12-39 68.00 72.00 4.00 1.7 23.2
including 68.00 70.00 2.00 2.8 43.2
CA-12-39 125.10 134.20 9.10 0.6 7.1
including 131.40 132.40 1.00 3.0 17.7
CA-12-40 99.60 138.20 38.60 0.5 46.0
including 99.60 100.50 0.90 10.0 1132.0
CA-12-40 156.00 181.00 25.00 1.2 22.7
including 167.80 172.90 5.10 3.6 13.1
CA-12-40 185.30 196.35 11.05 0.5 16.2
including 188.70 190.00 1.30 2.7 10.0

(1) It should be noted that these are all angled holes and downhole intervals do not necessarily reflect the true width of the mineralized structure.

(2) Weighted averages were calculated for continuously mineralized intervals using a bottom cut on 0.1 - 0.2 g/t gold, no top cut and minimum internal waste.

(3) This interval contains a 3 m zone of no recovery.

A full list of drill holes and significant intercepts is available on the website:

Exploration Update

Two rigs continue on site: one large tracked rig and a man portable rig. A total of 10,000 m has been drilled to date. The current campaign will now be at least 12,000 m for Callanquitas and 3,000 m for Domo and Tesoros.

A new NI 43-101 resource calculation is planned for late 2012.

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 analysed by SGS Laboratories in Lima by inductively coupled plasma atomic emission spectroscopy for silver and 37 other elements (included Hg and Te) and a 30 gram fire assay technique for gold. Samples above detection limits are re-assayed using a gravimetric fire assay. 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. Warren Pratt (CGeol) 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.

If you wish any further information, please feel free to contact John Rucci at any of the contact points noted above.

John M. Rucci, President

Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Sienna Gold Inc.
    John Rucci
    403-508-2670 (FAX)

    Sienna Gold Inc.
    Suite 1100, 800 6TH Avenue S.W.
    Calgary, Alberta, T2P 3G3
    403-508-2670 (FAX)