Sutter Gold Mining Inc. (TSX VENTURE:SGM)(OTCQX:SGMNF) ("Sutter or
the "Company") is pleased to announce the commencement of the first
phase of an exploration drilling program at its Lincoln Project at
Sutter Creek, California. Drilling will focus on near-surface
extensions of gold mineralization and the under-explored region
between the Comet and Lincoln segments of the gold resource. The
goal of the drilling program is to expand gold resources and to
explore regions where drilling density is sparse.
"Our exploration team is focused on supporting the efforts to
bring into production the first commercial-scale gold mine in the
Mother Lode in more than 50 years," said Leanne Baker, President
& CEO of Sutter. "We are drilling in areas where resource
additions could become part of the current gold resource envelope
that we intend to mine in the first five years of our current
development plan. In the past six weeks, Sutter has completed most
of the site work required to construct the new mill and other
facilities over the winter / spring period."
Ruen Drilling Inc. of Clark Fork, ID, contractor for the current
drilling campaign, moved on site late last week and initiated
drilling on January 16. Due to ongoing earthmoving and construction
activity at the north portion of the Lincoln segment of the mine
property, drilling will start at the south end and progress
northward, as shown in the schematic below. Thirty angle core holes
have been planned, drilled from sixteen sites.
To view the image associated with this press release, please
visit the following link:
http://media3.marketwire.com/docs/0118SGM.pdf.
The drilling program is divided into two segments to accommodate
construction activities. The initial phase will explore the
southern Lincoln segment and will include much of the unexplored
interval between the Lincoln and the Comet gold zones. Seventeen
angle core holes are planned for this segment, drilled from ten
permitted and completed drill pads. Total planned footage for this
southern tier of holes is 5,900 feet with drill-hole lengths
varying from 200 to 500 feet for an average length of approximately
350 feet. This segment of the drilling program is anticipated to be
completed in sixty work days, averaging 100 feet per day including
rig moves from site to site. The second phase of drilling will
concentrate on the north end or Comet segment of gold
mineralization. Past core holes in this segment of the property
were inclined to the southwest in anticipation of gold bearing
structures dipping northeasterly, the predominant dip or
inclination of the Mother Lode vein system.
Stephen Zahony, Vice President of Exploration, said,
"Underground exploration of the Lincoln-Comet vein system by a
previous company in 1989-1990 found, to its surprise, that the vein
system was southwest dipping. Previous exploratory core drilling
from the surface, with holes extending from northeast to southwest,
would have missed the main southwest-dipping gold mineralized
fissure system. With one exception, all of Sutter's planned drill
holes in the northern tier will be inclined to the northeast." The
one exception will explore the black slate section towards the west
in a region where the slate was not explored by historic
underground workings. Historic exploration and production on the
Mother Lode concentrated on the thick black slate section of the
Mariposa Formation, ignoring the greenstone or meta-volcanic
portion of the formation where Sutter Gold Mining Company's
resources are located.
Upon the completion of the seventeen holes planned for the
Lincoln segment, the drilling program will continue into the
northern Comet section. In the underground exposure of the main
42-Vein system in its northwesterly heading, it appears to have
crossed over the decline and may exist on the west side of the
decline. This is suggested by the old Wabash Mine workings which
worked a vein there. The northernmost drill holes of the second
phase of drilling will concentrate on exploring this region of the
Lincoln-Comet property.
Development Update for the Lincoln Mine Project
With favorable weather in December and receipt of the grading
permit, the Company completed road-building from the mine to the
mill pad and sand plant sites higher on the hill, as well as to the
waste rock pile area. In preparation for the rainy season the mine
site has been winterized and disturbed areas have been
hydro-seeded, roads have been rocked and bermed. The waste rock
pile area is temporarily lined and storm water management features
are installed.
The Company has completed pre-qualification of potential
underground mine contractors, this process left four final
companies eligible to continue in the bidding process. The final
mine level designs were completed in December. Mill equipment
purchases are being evaluated and prepared for delivery in January
and February. The majority of the planned rolling stock purchases
arrived in December.
The material in this news release has been reviewed by Matthew
Collins, COO, a Qualified Person as defined in NI 43-101.
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:
Dr. Leanne M. Baker, 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.
22bhutmacher@suttergoldmining.com www.suttergoldmining.com
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