October 10, 2012
Sutter Gold Provides Update on Mining, Construction Activities at the Lincoln Project, CaliforniaVancouver, British Columbia (October 10, 2012) - Sutter Gold Mining Inc. (SGM:TSX-V) (SGMNF:OTCQX) ("Sutter" or the "Company") is pleased to announce that underground development is well underway at its Lincoln Mine Project in the heart of California's Mother Lode gold belt. The project is on track for gold production in the fourth quarter of this year, ramping up to full production in the first half of 2013.
"Our mine site has been transformed in the past six months," said Leanne Baker, President & CEO. "The mill building is closed in and equipment is being installed, the shop and staff services building is progressing, and our new Sand Barn and tailings thickener are under construction. We continue to hire for new positions. Most exciting, we are advancing mine development, with two new portals coming on, and new headings being developed off of our main Stringbean Alley decline."
The Company received all necessary Mine Safety and Health Administration ("MSHA") and California Occupation Safety and Health Administration ("CalOSHA") approvals to begin underground development in June of this year. Mine portal construction began in July on the 1300-level and in August at the 1200-level. Mark A. Suden Mining Construction began drilling and blasting in September 2012. As of October 9, 2012, the 1300-level development was more than 30% complete at 101 feet from portal to face. The 1200-level drift development was 25% complete at 91 feet from portal to face. Development at the 1100-level began the same week, with the establishment of a working face at the 1100 cut out in the Stringbean Alley decline. Development of the 900-level is set to begin late in October 2012 whereas the 1000-level development is scheduled to begin in March of 2013.
The mill building is closed in and equipment installation progressing. D.G. Granade, Inc. continues to perform on schedule and has been awarded subsequent contracts for the tailings thickener and Sand Plant buildings. Russell Mechanical, Inc. is currently installing conveyor belts and has completed the coarse ore bin construction. The 6' x 12' Marcy rod mill was set by crane on its pedestals in early July. Lloyd W. Aubry Company, Inc. is currently completing the rod mill bearing, gearbox and motor installation. Mammoth Mine Services, LLC has delivered the belt feeders, scalping screen and disk filter tub, and is currently completing the rebuild of the Denver flotation cells and other milling equipment for on time delivery.
The site is a hotbed of activity, with multiple contractors, Company staff and consultants all working diligently towards completing construction this year. The Company has and continues to upgrade all site utilities in anticipation of the first gold pour in December 2012.
The Company also announces that Mr. Stephen Zahony (age 70), Vice President of Exploration and Geology, will retire from the Company on October 15, 2012. Mr. Zahony has agreed to remain available as a consultant to Sutter. Mr. Zahony led the 2012 exploration drilling project at the Lincoln Project, which met its three goals -- infill drilling to increase near-term gold resources, exploring the zone between the Lincoln and Comet segments of mineralization, and probing for extensions of gold mineralization north of the Comet resource area toward the Keystone zone. The Company controls a contiguous 3.6 mile-long strike length along the trend of the Mother Lode gold system surrounding the Project.
"We wish Steve well in his retirement, and thank him for his valuable contributions as we work to bring the Lincoln Mine Project into production," said Dr. Baker. "He has helped all of us to understand the Mother Lode geology, and we are fortunate to move forward with a mine geology team led by Art Campo, whose experience will stand us in good stead as we begin production and continue to seek to expand our resource base at depth and on our adjacent land holdings."
The material in this news release has been reviewed by Matthew Collins, COO, a Qualified Person as defined in NI 43-101.
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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