Sierra Minerals Inc. announced today that the Company has produced 5,447 ounces of gold in the second quarter of 2009 (ended June 30, 2009) at its 100% owned Cerro Colorado mine in Sonora, Mexico. This represents an 18% increase over the fiscal quarter ended March 31, 2009 and on a year-to-date basis, a 6% increase over production in the first half of 2008. Gold production for the first six months of 2009 was 10,046 ounces.
Gross proceeds from the quarter were approximately US$4.7 million on the sale of 5,063 ounces of gold at an average realized price of US$924 per ounce. This represents an increase of gross proceeds of 5% over the fiscal quarter ended March 31, 2009 and a 4% increase over the same period in the prior fiscal year. Gold sales for the six months ended June 30, 2009 were approximately US$9.1 million on the sale of 9,974 ounces at an average realized price of US$917 per ounce. This represents an increase of gross proceeds of 5% over the six months ended June 30, 2008.
Sierra is pleased to announce the appointment of Andres Tinajero, MBA, CMA as the Company’s new Chief Financial Officer (“CFO”) effective July 1, 2009. Mr. Tinajero possesses 13 years of financial management experience and also serves as CFO of Vena Resources Inc. Prior to that, he served as Controller at Lafarge Canada, a $19 billion construction business focused in aggregates, cement, asphalt and ready-mix operations. Mr. Tinajero holds an MBA from Tecnologico de Monterrey (“ITESM”) in Mexico. He is proficient in English and Spanish.
The appointment of Mr. Tinajero follows the resignation of Rebecca Hudson as the Company’s Chief Financial Officer, effective June 30, 2009, to pursue other business activities. The Board of Directors of Sierra wishes to thank Ms. Hudson for her contributions to the Company and wishes her well in her future endeavours.
Michael Farrant, President and CEO of Sierra stated, “On behalf of the management and board of directors of Sierra, I’d like to welcome Andres to the Sierra team. At Cerro Colorado, the operating team led by Phil Davies, continues to do a terrific job advancing the Company’s stated goal of increasing production to an annualized rate of 30,000 ounces of gold. With a solid operating plan now in place and a strengthened balance sheet, it is time to aggressively pursue a corporate transaction aimed at growing the Company’s production profile and mineral resource base. We look forward to keeping our shareholders updated as this process unfolds.”