News

Sierra Geothermal provides update on Tier One projects

Alexander Richter 19 Dec 2009

Sierra Geothermal Power provides an exploration update on its Tier One projects at Reese River, Alum and Silver Peak, as well as Barren Hills.

In a release, Canadian Sierra Geothermal Power “provides an exploration update on its Tier One projects. The update covers exploration drilling at the Reese River Project, the completion of an observation well at the Alum Project in the Paymaster District as well as other Paymaster District advances, and the completion of an airborne survey at the Barren Hills Project.

In addition, SGP has been informed that Nevada’s Bureau of Land Management has accepted SGP’s lease unitization proposals for all four of SGP’s Tier One projects. Lease unitization gives SGP resource control, during exploration, development and production, over land that adjoins each of the Tier One projects and that is not currently under lease by SGP or other developers. The BLM unitization approval affects a combined 47 square kilometers of currently unleased adjoining lands, for a total unitized and leased land position of 154 square kilometers on our Tier One projects.

“The Reese River exploration program was particularly helpful as it increased the size of the thermal anomally and will help us to target future drilling locations,” said Gary Thompson, President and CEO. “We believe that our short term geothermal exploration program, which is well funded with nearly US$11 million raised since August 2009 and US$10 million in matching grants, will go a long way towards attracting prospective joint venture partners and moving our project to feasibility.”

On the Rees River project, SGP completed a program of 10 shallow exploration holes, with a preliminary analysis confirming size of known thermal anamoly being greater than previously disclosed.

In the Paymaster District the company runs three projects, Alum, Silver Peak and Pearl with an estimated combined capacity potential of generating 110 MW of power. Alum and Silver Peak being Tier One projects and Peak being a Tier Two project.

For Alum and Silver Peak, SGP received US$10 million in matching grants from DOE for the exploration work.

At the Barren Hills project the company completed an airborne Z-tipper Electromagnetic (ZTEM) survey covering 100 square kilometeres, providing information on subsurface resistivity variations, which is useful for planning additional surveys and drilling targets.

Source: Sierra Geothermal Power company release