SIERRA MINING LIMITED - ASX: SRM

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Description

Sierra Mining Limited was listed on the Australian Securities Exchange in December 2006 and is an exploration company focusing on several key advanced copper/gold projects on Mindanao, in the Republic of the Philippines.

The Philippines

Sierra Philippines Pty Limited has a 40% holding in companies which have interests in several exploration projects in the Republic of the Philippines. The tenements cover a total area of approximately 352.36 square kilometres in the prolific eastern Mindanao mineral belt where epithermal gold, porphyry copper-gold and skarn gold-copper deposits abound. These tenements are located near operating mines and known prospects. Artisanal mining activity is rife in most of the tenements.

Bunawan Project (EP37, MPSA03)

The Bunawan project comprises two tenement applications which collectively cover 88.8km2 of prospective ground approximately 190km north-northeast of Davao adjacent to the Davao – Surigao highway. All of ELA 37 and parts of MPSA 03 (along with many other applications in the area) lie within a timber concession held by PICOP (Paper Industry Corp) who have objected to the applications. Previous timber operations in the project area have exposed copper and gold mineralisation. The tenements are in a highly mineralised area underlain by a thick sequence of andesitic volcanics. There are numerous artisanal workings, both surface and underground throughout the area, as well as a number of small-scale treatment plants. The main production in the area is from the nearby Co-O mine.

Bahayan Project (EP123)

The Bahayan project comprises Exploration Permit Application 123 covering 69.2km2 of ground near the Diwalwal mining camp. High-grade gold veins were discovered at Diwalwal in the early 1980’s, although there has been little modern exploration at Diwalwal and surrounding areas. Production from the low sulphidation epithermal quartz veins at Diwalwal is estimated to have exceeded 8 million ounces of gold. Geologically the steep dipping veins strike west-northwest and occur in highly fractured zones which are deeply oxidized, silicified and chloritised.

Nabunturan Project (EP121, EP80)

The Nabunturan Project comprises two contiguous applications which have a combined area of 65.66 km2. They are located in the Masara Mineral Field, one of most highly mineralised section of the Pacific Cordillera where there are a number of past mines and deposits currently at an advanced stage of development.

Ayan Project (EP000001-06-XI, EP118, EP131)

The project comprises one granted Exploration Permit and two applications for Exploration Permits covering a combined area of 128.7 km2. Exploration Permit No 000001-06-XI was granted on the 18th October 2006. The two applications have been cleared and have priority of application. Native copper and malachite in quartz veins cutting sediments has been reported in Exploration Permit No 000001-06-XI and quartz and base-metal stockwork zones reported in both EPA 118 and EPA 131. Artisanal gold mining is widespread in all three tenement applications.

Papua New Guinea

The Company, through its wholly-owned subsidiary Sierra Mining (PNG) Limited, has two granted exploration licences in highly prospective areas in PNG (EL 1463 - Magavara and EL 1468 - Salumei). Sierra also maintains a 10% interest in Kairiru Mining Limited (a former subsidiary) which holds exploration license EL 1398 covering Kairiru Island. Following a review in 2009, Sierra scaled back all operational activities in PNG and continues to evaluate joint venture proposals for the remaining PNG exploration assets.

Exploration Licence 1463 - Magavara

The Magavara ELA is located in Eastern Papua, in the rugged hinterland south of Collingwood Bay in the Milne Bay Province. Alluvial gold has been worked historically in the region and widespread artisanal mining is continuing at the present day, with new areas identified in recent years. Mineral exploration has been undertaken in the region by a number of companies. Sierra has targeted the Magavara region to apply the current improved understanding of Papua New Guinea’s epithermal gold systems and their deeper-seated magmatic copper-gold relatives to the large copper-gold mineralised hydrothermal system identified by earlier explorers in the Magavara hinterland.

Exploration Licence 1468 - Salumei

The Salumei ELA straddles the Salumei River above its junction with the Korosameri River, in the foothills at the southern edge of the Sepik Plain in the East Sepik Province of Papua New Guinea, approximately 45 km southeast of Ambunti. Sierra has targeted the Salumei area to continue exploration of its gold potential, and to test for possible enriched secondary copper blankets developed over the better copper mineralised locations.

Mine For

gold, copper

Location of operation(s)

Papua New Guinea, Philippines

Address

Level 9, BGC Centre , 28 The Esplanade
PERTH, WA, AUSTRALIA

Phone

(61 8) 9322 6322

Email

Website

http://www.sierramining.com.au

Last Updated

2/02/2011