Vancouver, British Columbia, April 12, 2012 - Fundamental Research has initiated coverage on Sienna Gold (TSXV:SGP). Analyst Siddarth Rajeev gives the company a speculative buy rating, and a 12 month target price of $0.50, a significant premium to the $0.32 on the day the report was issued.
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Sienna is focusing on the exploration and development of its 100% owned Igor project, located in northern Peru, and comprising about 1,300 hectares. The area surrounding the Igor property hosts several significant deposits.
The La Arena property owned by Rio Alto Mining contains around 1.5 million ounces of gold in the measured and indicated categories. Barrick Gold also operates 2 producing mines in the area. Sulliden Gold's advanced stage project has a recent resource estimate of 1.9 million ounces of gold in the indicated category.
Sienna has identified three primary deposits on their property. The Tesoros and Domo deposits have a combined Indicated resource of 129,000 gold equivalent ounces, and an Inferred resource of 73,000 gold equivalent ounces. Drilling will begin on these two deposits in June, with aims to upgrade the existing NI 43-101 resource.
On completion of the ongoing drill program, the company also aims to define a resource for the Callanquitas deposit by the end of 2012,
Following a visit to the property by Fundamental's analyst, he stated "We believe that there is significant potential to define a deposit in excess of 1 million equivalent gold ounces at Igor."
In mid 2011, investors were cautious on the outlook for mining in Peru after the election of the left wing candidate. The new tax code appears to be reasonably, and Fundamental believes it is positive for people looking to invest in Peru. According to the United States Geological Survey, Peru was the 6th largest producer of gold in both 2010 and 2011, as well as the 2nd largest producer of silver and copper in both years.
Fundamental cautions that in addition to success of drilling and resource expansion, the value of the company depends on commodity prices.
For more information, please visit the company's website www.siennagold.com, or call Sienna's President, John Rucci at 403-508-2061 or email rucci@siennagold.com (mailto:rucci@siennagold.com).
You can obtain a copy of the Fundamental research report at www.researchfrc.com (http://www.researchfrc.com/).
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