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Gold/Mining/Energy : Sierra Nevada Gold - SDD.vse -- Ignore unavailable to you. Want to Upgrade?

To: Keith Utz who wrote (20)	2/24/1998 10:17:00 AM
From: rdww	Respond to of 65

Final 1997 Drilling Results from Promontorio Property Sierra Nevada Gold Ltd SDD Shares issued 16,919,193 Feb 20 close $0.19 Mon 23 Feb 98 News Release PROMONTORIO PROPERTY CHIHUAHUA, MEXICO Assay results from drill hole P97-20 on Sierra Nevada Gold's Promontorio Property located in Chihuahua, Mexico have been received. The hole was stopped at 177.0 metres due to technical problems. Another zone was anticipated at 190.0 metres. Estimated Interval Intersect True Width Au Ag Cu Dip Strike (metres) (metres) (metres) gpt gpt % 689 N65 E 159.0-165.0 6.0 4.0 2.77 66.1 7.8 This hole was the deepest intercept of the structure to date and shows no change in the high-grade mineralization at depth. Based on the geology and strong continuity of the mineralized structures, it is anticipated that good values will continue downdip. The major copper districts of Mexico--Cananea and Nacozari, are to the northwest and are approximately 1000 metres lower in elevation. This is an indicator that the Promontorio mineralization could continue to substantial depth. Drilling to date has concentrated on one small area (150 x 150 metres) of the Hidalgo claim. Numerous other drill targets remain to be tested, Placer Dome's Mexican subsidiary Can Mex, drilled 34 reverse circulation holes in 1993/94. A number of these contained good gold values which Sierra has yet to drill. Resource calculation based on 1996/1997 Drill Results on Promontorio Sierra Nevada Gold retained the engineering company of Mine Development Associates, Inc. of Reno, Nevada, to complete a preliminary resource calculation based upon the first 57 drill holes on the Promontorio. Using various copper cutoff grades, the following resource was identified. Dollar values were calculated using U.S. metal prices of: Gold: $300/oz or $9.65/gr Silver $6.50/oz or $.209/gr Copper $.75/lb Cutoff Au Ag Cu Value per % Cu Resource Tonnes gr/t gr/t % tonne 0.5 Indicated 625,000 2.61 65.79 4.04 Inferred 398,000 2.19 59.16 3.87 Total 1,023,000 2.45 63.21 3.97 In-Situ Value $104,826,810 $102.47 1.0 Indicated 449,000 3.21 84.58 5.35 Inferred 288,000 2.81 77.22 5.12 Total 737,000 3.05 81.70 5.26 In-Situ Value $96,021,000 $133.46 2.0 Indicated 329,000 3.75 103.43 6.80 Inferred 182,000 3.42 102.03 7.23 Total 511,000 3.63 102.93 6.96 In-Situ Value $87,682,490 $171.59 Should copper/gold metal prices return to levels of last year, there would be significant improvement to the per tonne and total resource value. Sierra Nevada Gold is extremely pleased with the resource already outlined on the Promontorio and believes we have only "scratched the surface" of what could prove to be a major deposit. The Company will seek a joint venture partner or private financing to continue the development of the Promontorio. On Behalf of the Board of Directors, Bonnie J. Lee President The Vancouver Stock Exchange neither approves nor disapproves of the content of this News Release which was prepared solely at the discretion of Management. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com