News Release
Date: June 28, 2005
Trading Symbol: TSX-V:
SGM Ref: 6-2005
The
TSX Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or
accuracy of this release. Page 1 of 2 Sutter Gold Confirms Visible Gold With
Assay Results Vancouver B.C. (TSX-V: SGM) - Sutter Gold Mining Inc.
(“Sutter”) announced that quartz
containing visible gold was recently exposed in a new underground
raise and confirmed by assays. As part of the work program for the Spring and
Summer 2005, the mine has undergone maintenance and rehabilitation work including:
upgrading underground electrical systems, installing new ventilation
pipe, mine
portal reconstruction and ground support maintenance.
The
raise program concentrated in the 1000 Level of the Comet Zone. This work
was undertaken in preparation for future development raising and exploratory core
drilling in the 40 Vein structure later this year. A 30 foot long, 10 foot
wide, by 6 foot raise round was taken at the 1000 Level to create
adequate space
in the back and square-up the back in preparation for development raising in the
40 Vein planned
in the future. At the northern end of this block, a 6 X 8 foot raise is
the planned continuation of the existing 1670 ore pass. All underground
infrastructure is now ready for the development work program in the 40 Vein of
the Comet Zone. According to consulting geologist Mr. Mark Payne, the new work
exposed a broad zone of complex quartz veining where the 43 Vein splays
from the hanging wall of the 40 Vein. Visible gold was noted
in both the 40
and 43 Veins. Free gold exposed in this location ranges from small specks
to thick foils up to one-eighth inch in long dimension. Photographs of this
location will be posted on the Company website in the near future. The 40
Vein shows a horizontal width of 5.4 feet at the north rib of the raise
and 6.0 feet at
the south side, 13 feet above the floor in the 1000 Level drift. Back,
face, and muck grab samples were collected as part of the development sampling
program for the Sutter Gold Project. Assay results received to date (24 each)
for the 40 Vein yielded a weighted average 0.404 ounces per
ton gold across
a 3.4 foot horizontal width for the footwall half of the vein in the 1670 Raise.
The exposed
horizontal width of quartz in the 6 X 8 foot raise averages 5.7 feet. Assay
results for the 2.6 foot width of quartz in the hanging wall section of the 40 vein will
be announced when received. Sampling results for the entire 30 foot long block will be announced
when all assay results have been received. Mark Payne confirmed that these
assays support the assays from drifting at this location in
the 1990s and
the geologic work provided by Pincock Allen & Holt's Prefeasibility Study.
The
Sutter Gold Project development sampling program is planned and supervised by
Mr. Mark Payne, California Registered Geologist 7067, and Qualified Person as
defined in National Instrument 43-101, “Standards of Disclosure for Mineral
Projects.” The Company has implemented a quality
News Release Date: June 28, 2005
Trading Symbol: TSX-V:
SGM Ref: 6-2005
The
TSX Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or
accuracy of this release. Page 2 of 2 assurance/quality control program to ensure
sampling methods and analyses of all samples is conducted
in accordance
with the best possible industry practices, and conforms to National Instrument
43-101. The Company conducts a rigorous QA/QC program, which includes the
routine insertion of blank samples, certified reference standards, and a thorough duplicate
assaying protocol. Due to the coarse gold content of vein mineralization
encountered routinely at the Sutter Gold Project, all samples are
analyzed using
screened metallics fire assay methods at American Assay Laboratory of Sparks,
Nevada.
Sutter Gold Project The
Sutter gold project is situated on a contiguous 535-acre block of mining claims
45 miles east- southeast of Sacramento, California, in the central part of the
121-mile-long Mother Lode gold belt. SGMC's property lies within a 10-mile
section of the Mother Lode belt, which is credited with
production of
7.8 million ounces of gold. The
Sutter gold project has been the subject of considerable modern exploration
activity, most of it centering on the Lincoln and Comet zones, which are adjacent to each
other and together referred to as the Lincoln project. A total of 85,085 feet
of drilling have been accomplished in 190 diamond drill
holes, and
modern underground development consists of a 2,850-foot declined ramp with 2,400
feet of crosscuts plus four raises. SGMC currently holds a conditional
mining/milling permit for the properties allowing 1,000-ton-per-day operations.
Mine
Development Associates (MDA) prepared the NI43-101 Compliant Report for Sutter
and it is available at www.sedar.com. Neil B. Prenn, P.Eng. and Peter A.
Ronning, P.Eng. are both independent of the Company and the authors of the April
2004, NI43-101 report. At that time the Company was
completing an
RTO and the report was done under the company name Globemin Resources Inc.,
which has
subsequently been changed to Sutter Gold Mining Inc. For additional information, please contact:
Mark T. Brown
(604) 687-3520 mtbrown@pacificopportunity.com Hal Herron (307) 856-9271 hal@usnrg.com John Kuehne & Frank Quinby (250) 380-2274 john@smallcap.ca or Frank@smallcap.ca