Letter from the CEO to the shareholders
Over the last several weeks, numerous observations, requests, suggestions, etc. have been received from a large number of our shareholders.
I would initially like to thank all of you for both your interest and support of Sierra Gold Corporation. At the same time, I would to thank the various entities who supported the company and to a large extent are responsible for where we are today.
First and foremost, let me reiterate that Sierra Gold Corporation is a gold mining company with a variety of projects in Sierra Leone, West Africa. By virtue of the geology of that country, we are also in the diamond mining business. That is our primary business and that is our main focus. We have recently expanded the mining interests and are in the process of licensing the new areas for the upcoming mining season.
In addition to our mining interests, Sierra Gold Corporation has acquired agricultural properties which have been financed and expanded over the past 4 years. This business has a multifaceted aspect in that it helps feed the companies workers, it employs and feeds a significant number of local people in the nearby areas and it will, in time, become a profit source for the company through local sales and export of the products.
Because of our farming land interests, we were approached to consider entering into a Carbon Credit Project. This kind of project is environmentally friendly in addition to creating ongoing work for the local villagers and provides funds to manage the project. Our next step was for Sierra Gold Corporation to approach the landowners, paramount chiefs and local council/government this past summer and we successfully secured their support for the project.
In order to proceed forward with the project, Sierra approached 2 third parties who provided project funding for a participatory interest and we have now reached the stage of project submittal for approval. Should this project be approved as expected, the carbon credits available for the project can be forward sold and we are advised the proceeds of such a transaction would result in eight(8) figure proceeds. These proceeds will allow Sierra Gold Corporation to develop and complete a 20,000 acre Kiri project as well as supporting all of Sierra Golds other activities.
I hope this report clarifies the numerous queries submitted recently by our shareholders.
I would conclude by saying that Sierra Gold Corporation is looking to have a successful and expanded mining and farming season in 2010.
I thank you all again for your continued interest and support of Sierra Gold Corporation. I wish you all a happy and profitable holiday season.
Doug Evans
CEO SGCP
