Sierra Minerals Inc.

Sierra Minerals Inc.

June 06, 2007 18:44 ET

Sierra Reports Robbery at Its Cerro Colorado Gold Mine

Theft Represents Two Weeks Production

TORONTO, ONTARIO--(Marketwire - June 6, 2007) - Sierra Minerals Inc. ("Sierra" or the "Company") (TSX:SIM) today reported an armed robbery at its Cerro Colorado Gold Mine in Sonora, Mexico. Three gold bars (roughly 750 oz gold) worth approximately US$502,000 in aggregate were stolen from the secured gold room on the project hours before the armoured truck was due to arrive to transport the bars to a U.S. based refinery. The Company's first priority has been to ensure that all staff and management at the mine site are safe, which has been established, and no injuries were suffered by anyone at the mine. No labour disruption was experienced subsequent to the event.

The gold bars that were stolen represent 14 days' worth of production, at the current annualized production rate of roughly 18,000 gold ounces per annum. This is the first time since the inception of mining operations at Cerro Colorado in 2004 that an incidence of armed robbery has occurred, and the Company is taking the following steps to further tighten security at the mine and to prevent any repeat occurrences of this nature: first, the entire robbery was captured by security video, and that footage is being reviewed internally and will be submitted to federal police authorities. Secondly, the Board is sourcing a US-based gold mine security firm to conduct a safety audit and to make recommendations concerning security enhancements; thirdly, the Company is reviewing the economics of expanded insurance coverage, and finally the Company is immediately implementing some additional security measures on site.

About Sierra

Sierra is a gold producer with one producing mine in Mexico, and an interest in the development of other precious metal exploration and production assets in Mexico and elsewhere in the Americas. Sierra is committed to company-wide environmental and corporate social responsibility best practices.


Certain statements contained in this press release and in certain documents incorporated by reference into this press release constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and "confident" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Sierra believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this press release should not be unduly relied upon. These statements speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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