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March 09, 2010

Sutter Gold Secures Major Permits And Approvals For Construction And Operation Of The Lincoln Project

- PROVIDES TECHNICAL AND GEOLOGIC UPDATE -

Vancouver, British Columbia, March 9, 2010. Sutter Gold Mining Inc. ("Sutter" or the "Company") (TSX Venture: SGM) is pleased to provide an update on the status of short term permitting and geologic initiatives at the Company's flagship Lincoln Project, located in California's historic Mother Lode Gold Belt, Amador County.

Technical Studies and Initiatives in Progress

Sutter continues to systematically advance the design and permitting work for the Lincoln Project. Concurrently, the Company is updating the resource estimate and project economics necessary to raise financing for construction and development of the remaining facilities and improvements.

HIGHLIGHTS

Permitting Initiatives:

  • California Regional Water Quality Control Board (RWQCB) Waste Discharge Requirements (WDRs)

    Following submission of Sutter's proposed Water Quality Protection Standards, the RWQCB replied with a revised Tentative Monitoring and Reporting Plan (MRP) for the Company's review and comment. The revised MRP includes a reduction in monitoring frequency from quarterly to annually during the pre-mining phase of the project. In February 2010, Sutter responded with comments on the revised MRP to the RWQCB, as required. After review of Sutter's comments, the RWQCB will make appropriate revisions and finalize the MRP. This represents a significant advancement toward construction of the permitted mine waste disposal units for the Lincoln Project.

  • Surface Fill Unit and Waste Rock Storage

    In January, Golder Associates (Golder) of Roseville, California completed preliminary design work and engineering cost estimates for construction of the Waste Rock Pile (WRP), Surface Fill Unit (SFU) and the SFU access road. Golder is on schedule to finalize the design documents for March submission to the RWQCB, and to Amador County to obtain a grading permit.

  • Section 404 Wetlands Permitting

    Following approval and verification of Sutter's wetlands delineation by the US Army Corps of Engineers (USACE), the Company began work on the Section 404 permit application. The Company retained Analytical Environmental Services of Sacramento to provide the associated Section 106 Consultation Services, and in February they completed the first phase of a four-task work program to complete the Section 106 Consultation Process. They are on schedule to complete the balance of their work for incorporation into the Section 404 Permit Application. Sutter has retained Berryman Ecological to prepare the Section 404 Permit Application utilizing engineering design work by Golder. The Company plans to avoid impacts to wetlands to the extent feasible and mitigate remaining impacts consistent with its Conditional Use Permit (CUP) and Mitigation Monitoring Plan.

  • Water Treatment Facility

    The WDRs for the Lincoln Project require collection and treatment of mine waters prior to discharge, to establish discharge limitations. To facilitate this, the Company began fabrication of a new water treatment plant in January to replace the aging plant. Sutter plans to complete fabrication, installation and commission of the new plant in April.

The Company has now secured the major permits and approvals needed to construct and operate the Lincoln Project. These include a Conditional Use Permit issued by Amador County, an environmental review of the project by the County pursuant to the California Environmental Quality Act and WDRs issued by the RWQCB. Collectively these permits and approvals provide the critical components for project construction and operation. In addition, the Company is in the process of obtaining the remaining construction and operating permits and approvals (e.g., grading and building permits, Section 404 Permit, etc.) The Company is on track to obtain the remaining permits and approvals over the next 14 to 20 months, as the Company completes final design, secures project financing and completes construction.

Technical Studies:
  • Updated Geologic Database and 3D Modeling

    Sutter engaged the services of independent geologic consultants Mark Payne, P. Geo. and Bill Mitchell, P. Geo., who have recently completed 58 new vertical cross-section interpretations for the Lincoln-Comet resource. These sections, created at 50 foot horizontal spacing along the mine baseline of N30W, represent a significant advancement of the geologic understanding of the resource. Mine Development Associates (MDA) of Reno, Nevada will use this information in their 3D resource modeling and evaluation. Preliminary evaluation of the resource by MDA indicates general agreement with Sutter's previous resource estimates stated in Payne's 2008 report. Sutter anticipates that a final 3D model will be available for mine planning purposes during Q2, 2010.

  • 2009 Sampling & Mapping Program

    Results of the 2009 Gold Grade Continuity Characterization Sampling Program were consistent with findings of previous geologic studies and will provide increased confidence for grade continuity in resource estimation. The assay results of this study, together with geologic interpretation and comments, will follow in a separate news release. Surveying and geologic mapping of the underground workings has been completed. Final digital map generation and assay overlay is scheduled for completion in Q1, 2010, further supplementing the resource update.

  • Preliminary Economic Assessment

    Sutter engineers and staff are currently compiling unit and capital cost data for the upcoming NI 43-101 compliant preliminary economic assessment, expected in Q2, 2010. Utilizing the aforementioned new geologic cross sections, the upcoming preliminary economic assessment reports will provide significant refinement of previous 3D modeling and internal economic studies.

The Company has completed geologic studies of the resource, and is in the process updating the 3D resource model for mine planning purposes and completion of an updated NI 43-101 compliant preliminary economic assessment for the Lincoln Project.

About Sutter

Sutter is a growth-oriented exploration and development company pursuing the goal of becoming a gold producer. Currently, the Company's primary focus is the evaluation and development of the Lincoln-Comet zone of the Lincoln Project located on the California Mother Lode Gold Belt in Amador County. 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 over three miles of the Mother Lode, with 90% of the property still unexplored. Potential exists at depth on the known mineralized zones on both the footwall and hanging wall of the Mother Lode, and on the Melones Fault, which is the principal regional structure of the Mother Lode that exists on the eastern portion of Sutter's property and mineral holdings.

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:
James Crombie, President, CEO & Director
Sutter Gold Mining Inc.

For further information please contact:

Robert Hutmacher, Chief Financial Officer at 303 238 1438 ext. 22
Email: bhutmacher@suttergoldmining.com
Website at www.suttergoldmining.com

FORWARD LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.

Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.


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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