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Friday, 08/24/2012 11:03:49 AM

Friday, August 24, 2012 11:03:49 AM

Post# of 83462
INTERIM UPDATE ON BLACK SANDS TESTING

Based on various comments and questions received from shareholders since the last Field Report, we at Sierra Gold Corporation felt it germane to clarify and comment on some activities related to percentages of minerals in both free gold and black sand samples.

Typically, the company will have a small quantity of free gold analyzed periodically as to purity and mix of minerals in the sample. On average the gold will show a concentration of 94-96% with the remaining 4-6% ranging among various other elements. A current sample of an assay of 31.8 grams of free gold is attached below which details the various elements and percentages.



At present, two eight kilogram samples of black sands are in the process of being tested in facilities at Nevada and Vancouver, B.C.

The Nevada facility plans to begin testing sample material in late August using its new patented separation technology. This technology has the ability to separate and collect each element by its atomic weight. The company will report results as it is permitted by non-disclosure restrictions as they become available.

The Vancouver facility has begun sample testing . Initial fire assay tests indicated similar results to SGS Labs previous test results of in excess of one ounce per ton. Following the fire assay testing, a portion of the material was crushed to a -200 mesh and retested by metallic separation. The retesting resulted in similar results on the gold grades, however, PGM elements also indicated similar grades to that of the gold. As well, a number of the strategic minerals showed promising results. In the photo gallery 4 photos have been posted showing:
1.the black sands being dried,
2.crushed black sand,
3.the black sands magnified, and:
4.the black sands extremely magnified with gold particulate evident on the individual sample.



The next phase of testing will include further material crushing and the use of the environmentally friendly super acid for grading and potential recovery.

The company hopes that this update clarifies shareholders understanding of ongoing activities regarding black sand collection and testing for future processing and enhanced gold and other element recoveries.

The company will continue to strive to use advanced technology to maximize productivity in order to increase shareholder value.