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Sierra Gold (SGCP) Prospects Are Good as Goldman Sachs Remains Bullish on Gold PDF Print E-mail

                Gold prices over the past week have begun to stabilize and return to their upward trend after a $50 drop following the stock meltdown that started in the Shanghai Index.  While gold prices retreated on the employment news released Friday, the price of gold did log an overall 1% gain for the week ending at $652.  Goldman Sachs remains bullish on gold, with their expectations being that gold prices will breach the $725 an ounce mark in 2007, with the yearly average hovering in the range of $689.  These numbers are predicated on the belief that the dollar will continue its decline and investors will begin to look for a safe haven, which has historically been gold.


                Expectations of widening interest differentials between the United States and the rest of the world will weigh heavily on the dollar’s performance making gold an attractive investment.  Overall demand for gold has remained strong over the past few years, but mining capacity has slipped due to aging equipment and rising development costs.  Sierra Gold could stand to benefit from this as the company has discovered gold deposits on its Pampana North property valued at $588M (Price of valuation is set at $626.50).  Recent company news has suggested that laboratory testing of the property has reported that gold grades in the area are six times greater than initially believed.  In addition to this, there is a hard rock formation which is being tested for the presence of gold and rare earth minerals.

About SGCP:


Sierra Gold Corporation explores and develops gold and diamond properties in Western Africa. The Company owns the mining rights to a Sierra Leone based gold and diamond mining company, Northern Star Resources Ltd. Its mining property is one of Sierra Leone’s richest known alluvial gold mining fields. The property covers 40 sq/km of prime mining concession located south of the Sula Mountains in the Greenstone belt on the North Pampana River, around 120 km east of Freetown, Sierra Leone’s capital. The Company has obtained a mining permit from the local government.

 
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