Sutter Gold Mining Inc. (TSX VENTURE:SGM)(OTCQX:SGMNF) ("Sutter" or
"the Company") is pleased to announce that it has received the
building permit to construct the new mill complex at its Lincoln
Mine Project in the heart of California's Mother Lode gold belt.
The Amador County Building Department issued the key permit on
March 1, 2012.
"This is a critical milestone for our company," said Leanne
Baker, President & CEO of Sutter. "Our site is completely
winterized, our Mine Safety and Health Administration training
program is in place, and we intend to begin excavation work for the
foundation in the next several weeks. As the mill foundation /
building construction proceeds through the summer and fall of 2012,
we plan to work concurrently to prepare and develop the underground
stopes for mining." Sutter's Lincoln Project, upon completion, will
represent the first commercial underground gold mining operation on
the historic Mother Lode in more than 50 years.
Sutter's Board of Directors approved the development of the
Lincoln Project in 2011 based on the positive Preliminary Economic
Assessment ("PEA") provided by Mine Development Associates of Reno,
Nevada, USA. Under the 2011 PEA, gold production in the first five
years focuses on the shallow portion of the Lincoln-Comet vein
zone, and averages 23,000 ounces per year at a cash cost of about
U.S.$700 per ounce before royalties. The mine would operate seven
days per week at an estimated rate of 150 tons per day (tpd), with
the mill rated at 210 tpd operating five days per week. In situ
grade of the resource in the first five years is estimated to
average 0.57 ounces per ton (opt), with dilution bringing the
milled head grade to 0.46 opt. Sutter cautions that mineral
resources that are not reserves have no demonstrated economic
viability. A 30-hole exploration program is underway within the
current mine envelope. Five holes have been completed and await
assay results.
The Company awarded the foundation construction work for the
mill and shop/staff services buildings to DG Granade, Inc. of
Shingle Springs, California after evaluating proposals from seven
qualified firms. DG Granade, Inc. is based in neighboring El Dorado
County. DG Granade, Inc. will use several local suppliers and
subcontractors including Amador Transit Mix, Short Circuit
Electric, JM & Sons for plumbing and A Allbright Steel
Services, Inc. to supply steel for rebar fabrication and
installation. Site grading is being performed by Doug Veerkamp
General Engineering, Inc. The completed Tailings Processing Area is
currently being used for storage and staging.
Purchased mill equipment is being evaluated and refurbished as
necessary. Four 700 CFM XLLE type Ingersoll-Rand air compressors
were delivered in January to the company's shop in Amador County
for inspection by Cisco Air Systems of Sacramento. The Marcy 3 x 3
regrind ball mill has been disassembled for inspection, as well.
Sutter's staff has already replaced the wear parts in the purchased
Pioneer 10 x 36 primary jaw crusher. The coarse ore bin belt
feeders and Denver 24 Sub-A flotation cells are being rebuilt by
Mammoth Mine Services in Denver, Colorado for delivery in April and
July, respectively. The company expects to accept delivery of the
Marcy 6 x 12 primary rod mill in March.
In January, Sutter received two air permits from the Amador Air
District. The first permit is a comprehensive, site-wide "Authority
to Construct," allowing construction and start-up of the planned
mine and mill facilities, mine waste management facilities and
ancillary facilities and improvements. The second permit allows for
installation of back-up power.
The material in this news release has been reviewed by Matthew
Collins, COO, a Qualified Person as defined by Canadian 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 approximately 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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