America Sierra to Purchase California Gold Project

American Sierra Gold says it will buy a 75% interest in Trinity Alps’ Discovery Day gold project in California, US.

American Sierra wants to invest $2m in the project over a two-year period to obtain the share.

The company will also issue two million shares and two million five-year warrants of its stock to the project vendor over the same period.

The gold project controls the whole Knownothing Mining District that covers the Gilta, Discovery Day, Hansen and Knownothing mines and other small mines and prospects.

An ore reserve estimate from Cooksley Geophysical's 1996 study stated a 1,165,000oz of gold total inferred resource out of which 157,000oz were regarded as proven and probable.

American Sierra will need to reassess historical data and execute extra exploratory work on the multiple targets available to make the property's resource mineable.

American Sierra's CEO Wayne Gruden said the project has significant past production history, exploration upside potential and all necessary infrastructure in place.

"Most of the due diligence process for the acquisition has been completed and we expect to sign a final agreement in the near future," said Gruden.

"The turnkey mine and processing facilities, which include a 100 tpd ore mill, are fully permitted for on-site production through 2016 with all environmental impact studies and necessary operational permits completed and approved."