March 06, 2012
Sutter Gold Mining Intersects 4.317 Opt Au In 1.8-Foot Interval And 1.791 Opt Au In 2.1-Foot Interval At Lincoln Project, California
First Assays from Drill Program Extend Gold Zones and Confirm Continuity and Consistency
Vancouver, British Columbia (March 6, 2012) - Sutter Gold Mining Inc. (SGM:TSX-V) (SGMNF:OTCQX) ("Sutter" or "the Company") is pleased to announce exciting analytical results for portions of the first three diamond drill-holes of Phase I drilling program in progress at its Lincoln Mine Project located near Sutter Creek, California. The highest values came from DDH-198, which intersected 4.317 ounces of gold per ton (opt) in a 1.8-foot interval and 1.791 opt in the adjacent 2.1-foot interval. Both DDH-196 and DDH-197 intersected the quartz vein structure which hosts much of Sutter's Lincoln Mine Project gold values, and DDH-197 significantly extends the gold--bearing zone upwards in the southern portion of the Lincoln resource block.
"Our 2012 drilling program is off to a strong start," said Leanne Baker, President & CEO of Sutter. "Our exploration team is focusing on near-surface extensions of gold-bearing zone and the under-explored region between the Comet and Lincoln segments of the gold resource. Results from the first three holes suggest initial success on both fronts."
Phase I of the drilling campaign consists of 17 angle core holes drilling at the central and southern portion of the gold resource zone of which five drill-holes have been completed. Phase II of the program will consist of 11 holes to be drilled in the northern or Comet portion of the Lincoln Project. The initial batch of preliminary analytical results for segments of the first three completed drill-holes were received on March 2, 2012.
DDH-196, the first hole of the drilling program, drilled at an inclination of -65o, intersected 39.9 feet of intense quartz veining within the sericite-carbonate-altered meta-volcanic host from 255.6 feet to 295.5 feet depth. Vein orientations to core axis suggest that the true width of this zone is 30.5 feet, with a weighted average grade of 0.121 oz/ton Au. This broad gold intersection contains an interval at the bottom of the veined zone that would be considered for mining: 3.9 feet true width at 0.329 oz/ton. Individual assay intervals are as follows:
Table 1: DDH-196 Coordinates: 41,884E/70,310N, Elevation 1364ft, N.60E. Azimuth, -65º Inclination
DDH-197, the second hole of the program, drilled from the same site as DDH-196 but at the shallower inclination of 45o, also intersected a broad zone of intense quartz veining in the sericite-carbonate altered meta-volcanic host rock. From a depth of 189.0 feet to 218.9 feet, an interval of 29.9 feet for a true width of 21.1 feet, the weighted average grade of this zone is 0.328 oz/ton Au. This wide gold bearing zone includes three separate strands with grades above 0.4 oz/ton Au. Assay intervals for this segment of DDH-197 are as follows:
Table 2: DDH-197 Coordinates: 41,886E/70,310N, Elevation 1364ft, N.60E. Azimuth, -45º Inclination
DDH-198, the third drill hole for which partial assay results have been received, was drilled further south and from a lower elevation to check the Lincoln structure two hundred feet vertically below the intersection made by DDH-197. DDH-198 made a distinct fissure-vein intersection at down-hole depths of 275.0 feet to 278.9 feet. The true width of this intersection is 3.0 feet at a weighted grade of 2.96 oz/ton Au. Closer to the collar of DDH-198, from a depth of 157.0 feet to 162.0 feet, another structure was intersected with distinct sericite-carbonate hydrothermally altered halo within the meta-volcanic greenstone host. The 3.8 feet true width of this structure returned an assay of 0.462 oz/ton Au. Interval analytical results for DDH-198 are as follows:
Table 3: DDH-198 Coordinates: 41,780E/70,205N, Elevation 1342ft, N.60E. Azimuth, -65º Inclination
These results confirm the consistency and continuity of gold mineralization. DDH-197 significantly extends the gold-bearing zone upwards in the southern portion of the Lincoln resource block.
Quality Assurance/Quality Control and Qualified Person
The exploration activities at the Lincoln project site are carried out under the supervision of Mr. Stephen Zahony, who is the designated Qualified Person under National Instrument 43-101 for the Lincoln project and is responsible for quality control and has verified the data being disclosed herein. He has determined that the laboratory reports matched the drill sample logs and that the quality control assays fall within reasonable limits. QA/QC procedures incorporate blanks and duplicates inserted at the drill and standards inserted after sample preparation. Sample preparation was done by ALS Chemex at its Reno, Nevada laboratory and are analyzed using 50 gram sub-samples, using fire assay with an AA finish. High-grade gold intervals are re-assayed by fire assay with gravimetric finish. For quality control purposes periodic standards, ten percent of the samples, were inserted within the sample group sent for analysis; the laboratory was within a 5% analytical difference in each case of the established value of that standard. The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Mr. Stephen Zahony, Vice-President Exploration of the Company.
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.
For further information, please contact:
Robert Hutmacher, Chief Financial Officer at 303 238 1438 ext. 22
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.
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