CALGARY, ALBERTA--(Marketwire - June 14, 2011) -
Sienna Gold Inc. ("Sienna" or the "Company") (
News -
Market indicators) (BVLAC:SGP) is very pleased to announce that it has completed the current drill program at Callanquitas on the Igor project, La Libertad, Peru. This consisted of eight
Diamond drill holes for a total of 4236.9 meters (m).
To view the mineralized intercepts along the Callanquitas structure, please visit the following link:
http://media3.marketwire.com/docs/614sgp.pdf.
The last two drill holes, CA-10-7 and CA-11-08, were drilled to 520.2 and 512.5 m respectively. Three mineralized structures were cut in each. CA-11-8 returned the most significant results: 35.05 m with an average grade of 1.609 grams/tonne (g/t) gold and 243.1 g/t silver; including 3.85 m with an average grade of 13.139 g/t gold and 2112.7 g/t (2.1 kg/t) silver. This intersection also included a 1.4 m long sample with 30.7 g/t gold and 5720 g/t (5.7 kg) silver. All the structures were heavily oxidized.
(see figure above for illustration of the structure)
Results from CA-11-07 and CA-11-08 are presented below. Results from CA-10-1 to CA-10-6 were announced in news releases dated March 17th and April 19th, 2011.
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Hole From To Length Weighted average grade
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Silver
(m) (m) (m) Gold (g/t) (g/t)
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CA-11-07 129.60 155.00 25.4 1.992 17.1
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Including 141.15 151.45 10.30 4.220 39.3
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244.00 268.50 24.50 0.142 25.4
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Including 253.3 256.00 2.70 0.151 92.8
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315.00 316.85 1.85 0.316 34.4
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CA-11-08 135.70 145.70 10.00 0.011 19.7
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171.20 181.85 10.65 0.029 30.2
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206.75 241.80 35.05 1.609 243.1
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Including 230.95 234.80 3.85 13.139 2112.7
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Including 232.05 233.45 1.40 30.700 5720.0
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The Callanquitas Structure
The mineralization at Callanquitas appears to consist of a main, gold-rich, structure with numerous sub-parallel structures of similar widths, but lower grades. The main structure was intersected in five drill holes as detailed below.
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Hole From To Length Weighted average grade
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Silver
(m) (m) (m) Gold (g/t) (g/t)
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CA-10-02 12.00 47.00 35.00 0.575 16.4
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Including 32.00 40.00 8.00 1.855 21.1
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CA-10-05 100.50 236.00 135.5 0.254 47.8
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Including 126.00 150.00 24.00 0.814 134.9
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CA-11-06 142.00 183.30 41.30 1.231 16.9
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Including 159.20 170.50 11.30 3.863 45.5
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CA-11-07 129.60 155.00 25.4 1.992 17.1
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Including 141.15 151.45 10.30 4.220 39.3
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CA-11-08 206.75 241.80 35.05 1.609 243.1
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Including 230.95 234.80 3.85 13.139 2112.7
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Including 232.05 233.45 1.40 30.700 5720.0
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The main Callanquitas structure is approximately 20-40 m wide, extending from surface to at least 200-300 m. Its known strike length has tripled from 300 m to 900 m. The mineralization is open north, south, and at depth. It is important to note that this is only one of several north-south trending mineralized structures at Callanquitas.
Dr. Warren Pratt, Sienna Director, comments: "Holes CA-11-07 and CA-11-08 are very important. They confirm deep oxidized gold and silver mineralization along a well defined steep structure at least 900 m long. Surface rock sampling confirms the structure and suggests that high gold grades occur over a large vertical interval. Furthermore, there is excellent potential for high grade oreshoots, as shown by the local bonanza gold and silver grades. The last three drill holes were added to the original 2500 m campaign as geological understanding improved. They were 100% successful, cutting mineralization where predicted. There is now a high degree of confidence in the geological model."
Exploration Update
Exploration at Igor is advancing, with detailed mapping and sampling to improve the Callanquitas geological model and define new drill targets.
The Company plans 10,000-15,000 meters of
Diamond drilling at Igor over the next twelve months. The goal is to delineate a 1 million ounce gold resource.
Mining Feasibility Study
Based on recent and historical exploration data, the Company has initiated a mining feasibility study of the Igor concession (Domo and Tesoros zones). Environmental and engineering work for an EIA submission is underway and an independent metallurgical review has been commissioned. If these studies and permitting are positive, a 2013 mine start up is anticipated.
Additional drilling at Domo and Tesoros is expected to commence by August 2011. This will upgrade the definition of resources stated in the current 43-101 technical report filed February 12th 2008.
The Company maintains a good relationship with the Callanquitas community and has signed a two year agreement to continue exploration work. The Company is currently negotiating an agreement with the IGOR community.
Sampling Methodology
Core taken from the
Diamond drill rig is stored in plastic core boxes and transported to the camp at Callanquitas for detailed logging. Afterwards, it is cut on site with a
Diamond saw. One half is sent to an accredited laboratory in various sample lengths. Randy Henkle (P.Geol.), 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 for gold. Samples above detection limits were re-assayed using a gravimetric fire assay. The specific lab procedures can be found in the Company's 43-101 report on Igor.
All intercepts cited in this report are measured downhole. Insufficient drillhole information exists at this point to calculate true widths.
This press release was reviewed and approved by Dr. Owen Miller (Aus IMM Member No 207275), Exploration Manager 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 Igor, a former mine.
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, additional drilling, the delineation of additional resources and the start of a mine. 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.
Sienna Gold Inc.
John M. Rucci
President
1-(403) 508-2061
or
Sienna Gold Inc.
Suite 117,339 50th Avenue S.E.
Calgary, Alberta Canada
T2G 2B3 
