Vancouver, British Columbia (April 15, 2015) - Sutter Gold Mining Inc. (SGM:TSX-V) (SGMNF:OTCQX) ("Sutter" or the "Company") announces that as a result of a recent review by the British Columbia Securities Commission ("BCSC"), the Company is issuing the following news release to clarify certain technical disclosures made by the Company.
The Company filed a National Instrument 43-101 technical report in respect of its Lincoln Mine gold project in Sutter Creek, California, USA on February 11, 2008 (the "2008 Report"). It subsequently filed a Preliminary Economic Assessment (the "2011 PEA") in respect of the Lincoln-Comet deposits, which represents a portion of the Lincoln Mine gold project, on June 16, 2011. The 2011 PEA disclosed resource estimates for the Lincoln-Comet deposits of 152,000 tons grading 0.401 oz/ton gold in the indicated class and 506,000 tons grading 0.254 oz/ton gold in the inferred class. As the basis for mine planning and design, these values were lesser in quantity and more conservative than the resource estimates for the Lincoln-Comet deposits disclosed in the 2008 Report, which were 511,700 tons grading 0.37 oz/ton in the indicated class and 194,100 tons grading 0.28 oz/ton in the inferred class (the "2008 Resource Estimates"). However, in several news releases issued subsequent to the May 4, 2011 filing of the 2011 PEA, the Company continued to disclose the Lincoln-Comet resource estimates from the 2008 Report, as well as the Keystone and other resources that were reported in the 2008 Report but not used in preparation of the 2011 PEA.
The 2011 PEA included the results of the 2008 Report in the History section, however, it did not include the results in the Mineral Resource Estimate, nor did it support the 2008 Resource Estimates.
In the circumstances, and until a NI 43-101 compliant report supporting the previously disclosed 2008 resource estimates has been accepted by, and filed with, the British Columbia Securities Commission, any such disclosure should not be relied upon.
The Company is currently discussing the preparation of a new or amended report, which would consolidate the 2008 and 2011 resource estimates, with its qualified persons and will promptly disclose any material changes in its resource estimates or results of a PEA that result from the new or amended report.
With respect to disclosure of the 2011 PEA, the BCSC has advised the Company that it did not prominently include mandatory cautionary language in its May 4, 2011 news release announcing the results of the 2011 PEA and in subsequent news releases and other disclosures. Although the May 4, 2011 included cautionary language regarding inferred mineral resources, it and subsequent news releases and Company Management Discussion and Analysis (MD&A) filings did not prominently include the mandatory cautionary language stating that the PEA is based on the evaluation of indicated and inferred mineral resources, is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and that there is no certainty that the preliminary economic assessment will be realized. As such, previous disclosures of the 2011 PEA, including news releases dating back to May 4, 2011 and the Company's MD&A filings should be considered with this cautionary language regarding the preliminary nature and inclusion of inferred as well as indicated mineral resource estimates.
The disclosure in this news release has been reviewed by Neil Prenn, a Qualified Person as defined in NI 43-101.
Sutter currently holds a number of precious metals properties in California, USA, including the permitted Lincoln underground mine near Sutter Creek, California, as well as a new, permitted processing facility, located near the entrance to the Lincoln Mine. In March 2014, the project was put on care and maintenance while certain mineral processing issues are being evaluated and the Company reduced costs due to capital constraints.
For further information, please contact:
Chief Financial Officer
T:303 238 1438
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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