Vancouver, British Columbia (December 17, 2012) - Sutter Gold Mining Inc. (SGM:TSX-V) (SGMNF:OTCQX) ("Sutter" or the "Company") Sutter Gold Mining is pleased to announce the first gold pour conducted at its Lincoln Mine Project in Amador County, California on Friday, December 14.
"This represents a key milestone for our company, and I wish to thank our Board of Directors, shareholders, management team, employees, and contractors who made it possible," said Leanne Baker, President & CEO. "We still have much to do to achieve commercial production and become cash flow positive in 2013, and we plan to build on the successes of this year. Our new mill has begun the commissioning process, and underground development is proceeding to provide the necessary ventilation and secondary access for the production stopes that will follow."
Mark A. Suden Mining Construction continues to develop secondary access and necessary underground infrastructure for mining with very high quality work. As of December 12, 2012, the 1300-level decline development was 88% complete at 312 feet from portal to face. The 1200-level decline development was 72% complete at 266 feet from portal to face. Development at the 1100-level has reached 138 feet, with the completion of the first crosscut to the 51 vein. The 900-level, which will be the first production level, has begun with 33 feet completed. Raise development will begin in January 2013.
Probe drilling, with the Company's underground core drill, has confirmed that the 1200-level decline is targeted properly. Several unknown quartz veins have been encountered in the 1200-level decline, two of which appear to have mineralization consistent with the gold bearing veins of the Lincoln and Comet resource.
Russell Mechanical, Inc. has completed installing conveyor belts and has completed the ore bin construction and disk filter installation. Conveyor belt training and guarding is underway. Mammoth Mine Services, LLC has delivered and installed the flotation cells and various other mill equipment. The Company and its consultants and contractors are completing the electrical and plumbing work for the processing circuits.
On December 5, 2012, the first rock was crushed, and the first rock was transferred from the coarse ore bins to the fine ore bin on December 12, 2012. The gravity circuit installation is proceeding, with the Gemeni GT-1000 table testing and completion of the Knelson XD20 concentrator installation underway.
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Buried utilities are being installed by Amador Mechanical, Inc. including water, sewer and fire suppression lines. Several significant rain events have occurred which has slowed outdoor construction and delayed some tasks. D.G. Granade is completing the interior finish work on the Shop/Staff Services Building and the Mill Building. Ancillary facilities such as the tailings thickener and the Sand Bunker are in the final stages of completion. The Company, having reached the milestone of the first gold pour during mill circuit testing now looks forward to the first deliveries of gold in Q1 2013.
The Company takes pride in announcing the transition of Mr. Paul Skinner from the role of Chief Metallurgist to Mill Superintendent. Mr. Skinner, qualified by education and vast experience, is well suited to either role and has agreed to accept the supervisory role, overseeing the entire mill and metallurgical laboratory facilities. Mr. Skinner will be supported by Mill Shift Supervisors, Allen Smith and Wayne Murphy and a talented young staff of technicians.
Mr. Art Campo, Chief Geologist, has begun staffing his department with a qualified and energetic cadre of geologists and samplers. The Company continues to add high quality personnel to its site staff.
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 4.6 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 successfully 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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