Sutter Gold Mining Inc. (TSX VENTURE:SGM) ("Sutter or the
"Company") is pleased to announce that its Board of Directors have
approved an exploration drilling program of 10,255 feet (3,126
meters) at the Company's Lincoln Mine Project located at Sutter
Creek, California. The objective of the drilling campaign is to
meaningfully expand mineable resources from filling gaps in the
current resource model and testing lateral and higher-up extensions
of known mineralized zones and structures which could extend the
initial mine life significantly beyond the five years indicated in
the Project Preliminary Economic Assessment. Plans are to drill
approximately thirty well-placed, large-diameter (HQ-size)
surface-collared angle core holes covering a strike length of 3,000
feet.
The current development plan is to mine two distinct segments of
the known gold mineralization, the northern Comet segment and the
southern Lincoln segment, both of which are open at their northern
and upper known limits as defined by previous core drilling and
sublevel exploration workings. Some of the best gold grades of the
Lincoln segment are situated at its northern edge, which past
drilling has not closed off. About one-third of the proposed drill
holes will probe that parcel of the property with the objective of
extending the high-grade zone to the north.
The more northerly Comet segment, defined as that part of the
property from portal of the existing mine decline to approximately
100 feet south of the 9 crosscut (1750N - geologic grid, 71,100N -
mine grid), has been only sparsely drilled at the northern 1,000
feet of this segment. Past drill holes in this northern zone, all
collared at the surface, were inclined to the west so that
drill-holes were angled parallel with the major vein system, at a
time when it was believed that the gold-bearing vein structural
trend was east-dipping. It was not until the decline reached the
mineralized Lincoln-Comet vein system in 1989, the main "42 Vein
System", that it became apparent that this ore-bearing structure
dipped to the west. All planned drill-holes will be inclined to the
east to optimally intersect the west-dipping mineralization.
Drill holes will be relatively shallow, averaging slightly less
than 350 feet (105 meters) in length. The drilling program is
expected to extend indicated gold resources beyond their present
limits and to significantly increase the resource base that can be
mined from the current mine plan configuration in this central
4000-feet-long portion of the 3.6-mile-long (5.8 kilometer)
property held by the Company. Exploration on the remainder of
Sutter's properties will be conducted in the future after results
obtained from this program are fully evaluated.
Steve Zahony, VP Exploration, commented, "The approved initial
drilling program will be the first core drilling on the property
since 2007 and is targeted at obvious regions in the resource model
and upward extensions of known mineralization that were
inadequately tested early on, before the actual dip of the veins
was known, and at the gap in the resource model and mine plan
between the Lincoln and Comet portions of the deposit where data
are lacking. While this exploration will take place in the area of
the current mine plan we also have some big picture thinking to do
on exploring targets on the main Mother Lode structure to the
Melones Fault to the east, especially within the Company's current
land package. Regional structures to the west are also being
considered as exploration targets. The application of modern,
systematic exploration offers the potential of making new
discoveries that would be significantly enhanced with an operating
mine in the immediate vicinity."
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/sgm1013fig1.pdf.
Development Update for the Lincoln Mine Project
Surface construction of the site infrastructure has begun with
the removal of the existing temporary multifunction building and
relocation of all tools and supplies. The contract for tree removal
has been issued to Amador Mechanical Inc., a local contractor that
has an excellent history with the company on specialized projects,
including the recent building demolition. Doug Veerkamp General
Engineering Inc., has been selected via bid process for the site
grading, including the construction of the Waste Rock Pile,
Tailings Processing Area, Entrance Facilities and the road to the
Surface Fill Unit.
Previously disclosed September engineering and design milestones
have been achieved (see press release of August 18, 2011). Sutter
has submitted the application to Amador County for the grading
permit necessary to begin the construction of the Tailings
Processing Area, Surface Fill Unit access road and Entrance
Facilities. The application for building permits for the Staff
Services/Shop Building and Mill Facility have been submitted to
Amador County. Construction contract documentation remains in
progress for the buildings, with a separation of foundation and
building contracts due to the approach of the winter rain season
and the resulting critical timing for completion of the
foundations.
Sutter's 2011 year-end milestones include the following:
-- Completion of Entrance Facilities, including the parking and lay-down
areas
-- Completion of Staff Services/Shop building foundation
-- Initiation of Staff Services/Shop Building erection.
-- Completion of Mill Building foundation
-- Initiation of mill equipment installation
-- Completion and award of underground development contract.
-- Initiation of underground development
To date, Sutter has received confirmation letters of interest
for the underground development from several of the six
pre-qualified underground mining contractors. Closure of invitation
to the bidding process will occur October 20, 2011.
About Sutter
Sutter is a growth-oriented exploration and development company
preparing to become a North American gold producer. The Company has
two projects: the Lincoln Project located in Amador County,
California and the Santa Theresa Project located in the Northern
Baja region of Mexico. Currently, the Company's primary focus is
the evaluation and development of the Lincoln Project, beginning
with the shallow portion of the Lincoln-Comet ore zone of the
Lincoln Project, located on the California Mother Lode Gold Belt.
The Lincoln-Comet and Keystone zones have a NI 43-101 compliant
Indicated Resource estimate (completed in February 2008) of 612,400
tonnes (673,600 tons) grading 11.3 g/t Au (0.33 oz/ton) containing
223,000 ounces of gold and Inferred Resources of 2,161,700 tonnes
(2,377,900 tons) grading 6.6 g/t Au (0.19 oz/ton) containing
458,900 ounces of gold.
Sutter currently controls approximately 3.6 miles of the Mother
Lode of Amador County, with 90% of the property still unexplored.
Potential exists both at depth and along strike of the known
mineralized zones on both the footwall and hanging wall. The
120-mile long Mother Lode Gold Belt produced over 13 million ounces
of gold historically with 7.9 million ounces originating from the
10-mile long segment between Jackson and Plymouth where the Lincoln
Project is strategically located. Properties under the Company's
control include seven historic mines with significant historic gold
production totaling over 3.5 million ounces or 27% of the historic
gold production from the Mother Lode. Historic mines located north
and south of the Lincoln Project in the Jackson to Plymouth segment
of the Mother Lode success fully mined gold to depths of 4,500 and
6,300 feet, respectively.
In Mexico, Sutter holds the rights to the geologically similar,
high-grade El Alamo district of northern Baja, where historic
mining to the water table produced mined grades of 30 to 60 g/t
gold. Initial exploration with its joint-venture partner, Premier
Gold, has demonstrated the extension of high-grade veins.
ON BEHALF OF THE BOARD OF DIRECTORS:
James Crombie, President, CEO & Director, Sutter Gold Mining
Inc.
Forward-Looking Statements
This news release contains "forward-looking information" under
Canadian securities law. Any information that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words such as "expect",
"anticipate", "believe", "plans", "estimate", "scheduling",
"projected" or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking information. Forward-looking information
relates to, among other things: the price of silver and gold; the
accuracy of mineral resource and mineral reserve estimates; the
ability of the Company to finance its operations and capital
expenditures; future financial and operating performance including
estimates of the Company's revenues and capital expenditures and
estimated production.
Forward-looking information is subject to a variety of known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ from those reflected in the
forward-looking information, including, without limitation, risks
relating to: fluctuating commodity prices; calculation of
resources, reserves and mineralization and precious and base metal
recovery; interpretations and assumptions of mineral resource and
mineral reserve estimates; exploration and development programs;
feasibility and engineering reports; permits and licenses; title to
properties; recent market events and conditions; economic factors
affecting the Company; timing, estimated amount, capital and
operating expenditures and economic returns of future production;
operations and political conditions; environmental risks; and risks
and hazards of mining operations. This list is not exhaustive of
the factors that may affect any of the Company's forward-looking
information. Forward-looking information about the future is
inherently uncertain, and actual achievements of the Company or
other future events or conditions may differ materially from those
reflected in the forward-looking information due to a variety of
risks, uncertainties and other factors. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described or intended.
Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company's
forward-looking information is based on the assumptions, beliefs,
expectations and opinions of management as of the date of this
press release, and other than as required by applicable securities
laws, the Company does not assume any obligation to update
forward-looking statements and information if circumstances or
management's assumptions, beliefs, expectations or opinions should
change, or changes in any other events affecting such statements or
information. For the reasons set forth above, investors should not
place undue reliance on forward-looking information.
Neither the 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 release.
Contacts: Sutter Gold Mining Inc. Robert Hutmacher Chief
Financial Officer 303 238 1438 ext. 22 303 238 1724
(FAX)bhutmacher@suttergoldmining.comwww.suttergoldmining.com
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