Sierra Minerals Inc.

Sierra Minerals Inc.

July 09, 2008 12:09 ET

Sierra Minerals Continues to Strengthen Management Team

New COO Appointed

TORONTO, ONTARIO--(Marketwire - July 9, 2008) -


Sierra Minerals Inc. (TSX:SIM) ("Sierra" or the "Company") is pleased to announce the appointment of Philip Davies as Chief Operating Officer effective immediately. Mr. Davies will be based at the Company's 100% owned Cerro Colorado Gold Mine in Sonora, Mexico and has assumed overall responsibility for mine operations and current exploration and development activities, including overseeing the preparation and completion of the Company's initial National Instrument 43-101 ("NI 43-101") mineral resource estimate on the Cerro Colorado Gold Mine. He will report directly to the new President and CEO, Michael Farrant, based in Toronto.

Appointment of Chief Operating Officer

Mr. Davies is a mining industry executive possessing significant operating, change management and board experience gained from a career that spans in excess of 30 years in diverse minerals. His successes include a track record of increasing mine profitability through various optimization initiatives, beginning at the feasibility stage, continuing through mine planning and design, and culminating in operations that maximized for efficiency and cost effectiveness.

In August 2003, Mr. Davies joined GMA Resources Plc as Operations Manager overseeing gold producing assets in Algeria. Prior to this, Mr. Davies spent five years with Ashanti Goldfields Co. as General Manager at the Siguiri Gold Mine in Guinea, West Africa, where he grew the mine into a 9 million tonne, 300,000 ounce a year open pit operation. Mr. Davies successfully managed all aspects of mining from feasibility through to full production, including exploration, safety and environmental and established and maintained key relationships with local governmental agencies. Mr. Davies has enjoyed other senior operating and consulting roles at operations in Chile, Australia, India, Namibia, Alaska, Panama, Brazil, Papua New Guinea and Malaysia.

Michael Farrant, President and CEO commented on the appointment of Mr. Davies as Chief Operating Officer stating:

"We are extremely pleased to have attracted a mine operator of Mr. Davies caliber to serve in the newly created position of Chief Operating Officer. The success of our strategic growth initiatives at our existing operation is critical to the ultimate success of growing Sierra into a multi-mine producer. Within the coming months, we hope to increase annualized production at Cerro Colorado from 20,000 ounces of gold to 30,000 ounces. We are in the process of preparing an initial NI 43-101 compliant mineral resource estimate for the mine and hope to grow this through continued exploration on the Company's extensive regional land package which lies within economic trucking distance of the existing Cerro Colorado infrastructure. Mr. Davies' extensive accomplishments and experience together with his hands on approach will ensure the successful expansion of Cerro Colorado and the optimization of mining activities. His involvement with daily operations will also aid in the timely preparation and update of the Company's estimated mineral reserve and resource statement and will be invaluable in assisting with the identification of regional opportunities designed to augment existing mining operations. Mr. Davies appointment is part of a commitment to support good assets with good people. It is a pleasure to welcome Phil to the Sierra team."

Commenting on his appointment to Sierra, Mr. Davies stated:

"I am truly excited about the prospects for building a world class mining organization at Sierra. I believe Mexico is a wonderful, mining friendly jurisdiction in which to operate and look forward to ensuring that the Cerro Colorado Mine achieves its full potential. It is a pleasure to be working with a talented group of mine builders and I share the team's vision for growing Sierra into a successful multi-mine Company with superior exploration upside. With many of the costs at the mine fixed, we can significantly increase cash flow and earnings simply by increasing production."

Resignation of Chief Financial Officer

The Company also announces the resignation of Wayne Acton as Chief Financial Officer due to personal reasons and other professional commitments, which included his moving to Costa Rica. Mr. Julian Kemp, Independent Director and Chair of the Audit Committee remarked, "On behalf of the Board, we would like to thank Mr. Acton for his services and wish him well in his future endeavours." President and CEO, Michael Farrant, has actively begun the process of identifying and hiring a new Chief Financial Officer. Mr. Farrant commented, "The Company remains committed to meeting all of its reporting requirements in a timely manner and does not anticipate any problem in doing so."

About Sierra Minerals

Sierra Minerals Inc. (TSX:SIM) is a Canadian based gold production and exploration company. Through its Mexican subsidiary, it owns 100% of the Cerro Colorado Gold Mine in Sonora, Mexico. The Company is currently completing its initial NI 43-101 mineral resource estimate on the property and plans to increase annualized production from 20,000 to 30,000 ounces of gold. In addition, the Company is exploring its extensive regional land package in Mexico which covers over 30,000 hectares. Further information about Sierra Minerals and the Cerro Colorado Gold Mine can be found on the Company's website at


Michael Farrant, President and CEO

Keith Piggott, Chairman of the Board


This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts including the extent of future production from the Cerro Colorado Gold Mine. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Mexico, if any; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties, including those described in the Company's other regulatory filings filed with the Canadian Securities Administrators and available at Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking information.

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