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Sierra Iron Ore - Initial Results on El Creston


News provided by

Sierra Iron Ore Corporation

Oct 03, 2011, 12:54 ET

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VANCOUVER, Oct. 3, 2011 /PRNewswire/ - SIERRA IRON ORE CORPORATION (the "Company") is very pleased to announce the receipt of analytical results from ALS Chemex of samples submitted for analysis from the Company's recent scout drilling program in its El Creston iron property 20km northeast of the city of Choix, Sinaloa, Mexico. In this initial phase of continuing exploration work on the El Creston, Reverse Circulation (RC) drilling was the method chosen to quickly determine geological extensions of known magnetite mineralization for immediate follow-up by core drilling. The highlight of the RC drilling show 6 holes reporting values greater than 30% Fe as shown in the following table.

RC Hole # From (m)     To(m) Sample
Width (m)
AU(g/t)  AG (g/t) CU% FE% PB% ZN%
CRC-01 1.52                10.66 9.14 0.006 0.85 0.0477 35.01 0.0009 0.0252
Including 6.09                  9.14 3.05 0.006 0.65 0.042    57 0.0001 0.0179
CRC-02 1.52                13.71 12.19 0.04 3.58 0.1496 33.42 0.0116 0.035
Including 3.05                  7.62 4.57 0.005 1.2 0.0229 63.36 0.0055 0.0234
CRC-03 0                    13.71 13.71 0.16 3.4 0.0111 25.94 0.0038 0.0235
Including 1.52                 4.57 3.05 0.005 0.5 0.0013 33.3 0.0004 0.0106
including 7.62                10.66 3.05 0.31 8.4 0.0374 38.75 0.004 0.0452
CRC-09 0                      7.62 7.62 0.0346 0.65 0.04578 35.6 0.0038 0.0196
Including 0                      1.52 1.52 0.028 0.5 0.0033 57.2 0.0032 0.0197
including 4.57                  6.10 1.53 0.024 0.8 0.154 54.5 0.005 0.02
CRC-11 32.00              33.52 1.52 0.005 0.5 0.0005 43.5 0.0042 0.0168
Including 7.62                10.66 3.05 0.005 0.5 0.0216 43 0.0007 0.0106
Including 3.05                  6.10 3.05 0.01 0.5 0.0449 35.33 0.0032 0.0128
Including 32.00              33.52 1.52 0.102 4.6 0.11 37 0.001 0.0013
including 35.05              36.57 1.52 0.015 3.6 0.129 44.6 0.0022 0.0229
CRC-26 1.52                 3.05 1.52 0.012 6.1 0.253 30.9 0.0152 0.0778

The iron industry considers 30% Fe content the lowest limit for economic exploitation. However, the low cost of magnetic separation makes concentrations of as low as 10% Fe attractive.

All of the RC samples were submitted as well for a 32-element ICP analysis. No significant values of Au, Ag, Cu, Pb and Zn were encountered.

Duplicates were inserted every 10 sample interval for QA/QC.

The difficulty in recognizing geological boundaries from RC drill cuttings particularly in assigning sampling intervals is a recognized drawback that will be addressed by the company's forthcoming core drilling program.

A map showing the RC drill hole locations is published on the company's website.

The iron skarn geology at El Creston primarily comprises metasomatic replacement of limestone and other calcareous units in volcaniclastics by magnetite occurring as disseminations to stringers to massive tabular bodies, where in places the magnetite exceeds 30m in width. The magnetite bodies appear distributed along the flanks of a broad antiform whose east-west axis extends for more than 1,000m.

Management is very pleased with this initial 1st stage step out drilling preparatory to a continuing core drill program to define the geometry of wide spread magnetite zones in preparation for immediate resource assessment.

Mr. Ruben Verzosa, P. Eng., a Qualified Person (QP) as defined by NI 43-101 has approved the geological content of this Press Release.

On behalf of The Board of Directors of Sierra Iron Ore Corporation.

Paul Lee, Director

This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Sierra Iron Ore Corp. which may cause actual results, performance or achievements of Sierra Iron Ore Corporation to be materially different from the results, performance or expectation implied by these forward looking statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

SOURCE Sierra Iron Ore Corporation

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