Sierra Geothermal Power Corp. ("Sierra") (TSX VENTURE: SRA) is
pleased to announce that it has made a geothermal discovery at its
100% owned Alum project in Esmeralda County, Nevada. In addition,
Sierra reports its Q1 2010 financial results and provides an
operational update.
Alum Project
The geothermal discovery comes from Sierra's slim well 26-19,
which is considered to be a geothermal discovery well due to the
levels of permeability and temperature encountered. The drilling of
the slim well 26-19 concluded on May 14, 2010. The well was drilled
to a maximum depth of 1,484 meters or 4,868 feet. The preliminary
bottom hole temperature of 146 degrees Celsius or 295 degrees
Fahrenheit was recorded immediately after drilling stopped. Several
zones of high permeability were encountered between 1,116 and 1,325
meters (3,663 and 4,349 feet, respectively). After coring through
the 209 meter permeable zone, a geothermal water sample was air
lifted and flowed for three days and samples were collected for
analysis. Temperature measurements in the completed well will
continue until thermal equilibrium is achieved.
A temperature profile on the previously drilled well 25-29 was
recorded April 30, 2010, five months after drilling was completed.
The temperature log returned a maximum of 130 degrees Celsius or
266 degrees Fahrenheit at 630 meters or 2,067 feet.
The cost for these wells is shared on a 50/50 basis with the US
Department of Energy (DOE) under the 2009 Geothermal Technologies
Program grant award. The total grant amount from the DOE for the
Alum project was $5,000,000. The Alum project was acquired from
Geo-Energy Partners 1983 Ltd in 2006.
"We are grateful for the financial support that we are receiving
from the DOE in advancing our Alum project, as it has helped us
make a discovery at Alum with less capital than we would have
otherwise employed. Numerous people were employed during the
drilling of these wells, showing that the DOE grant program is
working. We look forward to advancing the Alum project to the next
level which is drilling full sized production assessment wells,"
said Gary R. Thompson, President and CEO of Sierra.
Q1 2010 Financial Results
For the first quarter ended March 31, 2010, Sierra reported a
net loss of $1,436,583 or ($0.01) per share compared to a net loss
of $428,231 or ($0.01) per share for the first quarter ended March
31, 2009. As of March 31, 2010, Sierra had cash of $4,459,286 and
working capital of $3,053,202, compared to cash of $8,260,320 and
working capital of $6,664,549 on December 31, 2009. The full text
of Sierra's unaudited financial statements and management's
discussion and analysis is available on the SEDAR website at
www.sedar.com or at www.sierrageopower.com.
Reese River Project
Sierra recently completed a review and analysis of new
geological, structural, and geophysical data at its Reese River
project in Lander County, Nevada. The integration of these new data
sets into the Reese River conceptual model is the result of
successful collaborations with the University of Nevada, Reno and
the University of British Columbia. New data from detailed geologic
mapping and joint 3D inversion modeling of magnetotelluric and
Z-TEM data highlight an area of complex faulting coinciding with
the change in trend of a major geologic structure in the area. This
structurally complex area (the accommodation zone) may be a zone of
enhanced permeability at depth and is of high geologic interest.
Also, the recent temperature hole 23-03, which was drilled to a
depth of 30 meters, returned a temperature gradient of 1,100
degrees Celsius per kilometer or 61 degrees Fahrenheit per 100
feet. This hole also lies within the inferred accommodation zone.
Recent internally-derived resource estimates for Reese River, using
a Monte Carlo model, indicates 70 MW of power potential. The
increase is based on the recent step out drilling which Sierra
believes has identified a thermal anomaly larger than previously
delineated.
Silver Peak Project
During February/March 2010, core well 38-11 was drilled at
Silver Peak to 1,649 meters or 5,409 feet. This well was the first
deep well at Silver Peak. A recent stable temperature measurement
recorded a bottom hole temperature of 103 degrees Celsius or 217
degrees Fahrenheit.
The costs for these wells are shared on a 50/50 basis with the
US Department of Energy (DOE) under the 2009 Geothermal
Technologies Program grant award. The total grant amount from the
DOE for the Silver Peak project was $5,000,000.
Imperial Valley Properties and Nevada Land Sale Results
Sierra has been notified that the Imperial Valley (Salton Sea)
lands in California, which comprise 3,442 acres, have been leased
by the Bureau of Land Management (BLM) to Western Geothermal
Partners, LLC. The Salton Sea lands are the last parcel of land to
be acquired and paid for under the Cayley Geothermal and Western
Geothermal 2006 agreement. Cayley Geothermal Corp. is a wholly
owned subsidiary of Sierra. At the May 11, 2010 BLM geothermal land
sale Sierra made the winning bids on 4,541 acres adjacent to its
Reese River project, 1,880 acres at Sierra's existing Howard
Project and 2,877 acres in close proximity to its Alum project.
About Sierra Geothermal Power Corp.
Sierra is a Vancouver-based geothermal energy company focused on
the exploration and development of clean, sustainable power in
Western North America. Sierra has 100% control over its 120,000
acre portfolio of geothermal properties in Nevada, California and
British Columbia. Sierra's projects have a combined total estimated
capacity of almost 400MW. One megawatt (MW) is enough to power 800
homes. www.sierrageopower.com
On behalf of the Board of Directors
Gary Thompson, P.Geo, President, Chief Executive Officer and
Director
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release may contain forward-looking statements. All
statements, other than statements of historical fact, included or
incorporated by reference in this news release are forward-looking
statements, including, without limitation, statements regarding
activities, events or developments that Sierra expects or
anticipates may occur in the future. Forward-looking statements can
be identified by the use of forward-looking words such as "may",
"would", "could", "expect", "intend", "plan", "estimate",
"anticipate", "believe" or "continue" or similar words or the
negative thereof. Forward-looking statements in this news release
include statements that Sierra is looking forward to advancing Alum
to drilling full sized production wells, that thermal equilibrium
can be achieved at its Alum slim well 26-19, that the structurally
complex accommodation zone at Reese River may be a zone of enhanced
permeability at depth, that the size of the thermal anomaly at its
Reese River project has increased to 70MW, as indicated by recent
internally-derived resource estimates using a Monte Carlo model,
and that Sierra's projects have a total estimated capacity of
almost 400MW. There can be no assurance that the plans, intentions
or expectations upon which these forward-looking statements are
based will occur. Readers are cautioned not to place undue reliance
on these forward-looking statements, which are not a guarantee of
performance and are subject to a number of uncertainties and other
factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements.
These factors include general economic and market conditions,
availability of working capital, changes in the law, actions of
competitors, drill results, changes in circumstance and Sierra's
ability to implement business strategies and pursue its business
plan. In addition, all forward-looking statements involve risks and
uncertainties, including the risks and uncertainties detailed in
Sierra's filings with the applicable Canadian securities
commissions, copies of which are available at www.sedar.com. We
urge you to carefully consider these factors. All of the
forward-looking statements contained in this news release are
expressly qualified in their entirety by this cautionary statement.
The forward-looking statements included in this news release are
made as of the date of this news release and Sierra undertakes no
obligation to publicly update such forward-looking statements to
reflect new information, subsequent events or otherwise, except as
required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Sierra Geothermal Power Corp. Gary Thompson President
& CEO (604) 683-0332 x 119 Sierra Geothermal Power Corp.
Anthony Srdanovic Investor Relations (604) 683-0332 x 115
asrdanovic@sierrageopower.com www.sierrageopower.com
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