January 07, 2009
Sutter - Premier Releases Additional High Grade Gold at Santa Teresa including 16.68 gpt (0.49 opt) Across 3.1 Metres
SUTTER GOLD MINING INC. (TSX-V-SGM) is pleased to release the remaining assay results from the initial 32-hole Phase One program drilled at the Santa Teresa Concession in Baja California, Mexico. These new results, with intercepts as high as 21.10 grams per tonne (gpt) or 0.62 ounces per ton (opt) gold across 1.35 metres (m), and 16.68g/t across 3.1m continue to demonstrate the potential of this underexplored district.
Results to date confirm the following:
- Drilling has discovered multiple high-grade veins up to 260 metres along strike from the historic Princessa Gold Mine, whose average production grade exceeded one ounce per ton.
- Results include multiple intercepts in excess of 34.00 gpt (about 1.00 oz/ton) gold between one and three metres within the Princessa structure.
- Twenty-three significant intercepts with length weighted average in excess of 35.00 gpt.
- Structures remain open in all directions
The Santa Teresa Project is located adjacent to and on strike from the past-producing Princessa Mine (the district's largest gold producer), which was mined to a maximum depth of only 110 metres, and whose orebody was known to extend close to the northern boundary of the Santa Teresa Property. Gold production at El Alamo, a 16-kilometre long district, was halted at its peak owing to technological and political circumstances early in the 20th century. Since then, only minimal exploration has taken place, presenting a unique opportunity for SGM and it's joint venture partner Premier Gold Mines Ltd (TSX:PG). Premier has secured the right to earn up to a 65% interest in the Santa Teresa Project from Sutter.
Clayr Alexander, President and CEO of Sutter Gold commented: "Premier's Phase One drill program clearly demonstrates the structural continuity and high-grade potential of this property and its geologic similarity to the Mother Lode district in California. The 2008 drilling campaign has successfully validated the Company's exploration and structural models. Sutter is delighted with the results that Premier and their team have accomplished during the 2008 exploration program."
Table 1 includes all assay results greater than 2.00 gpt gold for holes ST024 to ST032, with assay results greater than 10.00 gpt highlighted in yellow. Several of these contained visible gold upon visual inspection of the core. Drill holes ST024-029 were drilled to test the South structure, while holes ST030-032 tested the main Princessa structure.
Table 1 Significant Results ST024 To ST032
The Santa Teresa Project is accessible by road, and is located approximately 100 kms southeast of Ensenada and about 250 kms south of San Diego, California, USA. A total of some 7,000 metres (22,800 feet) in 32 holes were drilled on Santa Teresa in 2008.
The Premier -- Sutter JV is attracted to the El Alamo District because of a unique history of high mined grades, but little modern exploration. The properties being explored by Premier and Sutter are:
- Located within a proven (some 220,000 ounces of past production) gold district.
- Historical data indicates that mined grades within the district are between 1.00 and 2.00 ounces per ton (opt).
- The majority of district production occurred within 120 metres of surface, but remains open at depth.
- Geologically similar to the historic Mother Lode District of California.
Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating Officer of Premier, is the qualified person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101. A stringent QAQC program utilizing blanks, standards and replicates has been developed by Mark Payne, Consulting Geologist, for the STC joint venture. All sample prep and analysis is being conducted by American Assay Laboratories Inc. of Sparks, Nevada utilizing conventional 1 assay-ton fire assay and 500-gram screen metallic methods.
About Sutter Gold Mining Inc.
Sutter Gold Mining Inc. is a junior gold exploration and development company pursuing the goal of becoming an emerging producer through the evaluation of the development of the Lincoln-Comet zone of the Sutter Gold Project on the California Mother Lode. SGM controls 3.2 miles of the Mother Lode where 90% of the property has not been explored despite the definition of nearly 700,000 ounces of indicated and inferred resource. Unexplored potential exists at depth on the known zones, on both the footwall and hanging wall of the Mother Lode and on the Melones Fault, the principal regional structure giving rise to the Mother Lode that exists on the eastern portion of SGM's property package. In Mexico, SGM holds 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 gpt. Initial exploration in joint venture with Premier Gold has demonstrated the extension of high grade veins.
Clayr Alexander, President, CEO and Director
For additional information, please contact:
Robert Hutmacher, CFO, 303-238-1438 x22