Vancouver, British Columbia (August 16, 20120) - Sutter Gold Mining Inc. (SGM:TSX-V) (SGMNF: OTCQX) ("Sutter" or "the Company") is pleased to present results for Phase II drilling, the second half of its surface diamond drilling campaign at its Lincoln Mine project near Sutter Creek, California.
"Drilling within the Lincoln Mine area of the Mother Lode achieved its three goals of 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 towards the Keystone zone," said Leanne Baker, President & CEO. "We have intersected two previously undiscovered gold-bearing veins, one at shallow depth and a deeper more significant vein system that will be followed up once we are able to access it through underground drilling."
The drilling program was comprised of 22 drill holes for a total of 8,791 feet. While awaiting the final assays, the core rig has been relocated approximately 2.5 miles to the north-northwest of the Lincoln Mine onto the newly optioned property (see news release dated June 21, 2012), a one-mile-long extension of patented claims along the central Mother Lode Gold Belt. Six drill holes have been planned and permitted in this zone, the first of which is already completed. The drill rig may return to the Lincoln Mine area, depending on the last batch of pending assay results of Phase II.
Previous press releases have reported assay results on significant intersections of Phase I drilling from the first drill holes of the program, DDH-196, through DDH-204. That phase was limited to probing the Lincoln or southern segment of gold resources. One westerly directed drill hole of Phase II probed for shallow gold mineralization solely within the Mariposa Slate west of the gold trend on which the mine is being developed. Table 1 and Table 2 below report the results of Phase II, the remaining drill holes of the drilling program through DDH-217.
|Hole #||Section||Easting||Northing||Feet||0-360deg||Deg. fr. Hor.||Feet||Gold-bearing Intersection|
|DDH-205||2050N||41,336.1||71,083.2||1,472.0||60||60||474.8||Unexplored between Comet & Lincoln//None Intersected|
|DDH-206||1950N||41,344.5||70,961.9||1,486.0||60||60||500.8||Unexplored between Comet & Lincoln//None Intersected|
|DDH-207||1700N||41,557.9||70,775.5||1,472.0||60||65||500.0||East Vein w/ 1.8ft @ 1.19 opt Au & 1.4ft @ 0.653 opt Au|
|DDH-208||1700N||41,560.3||70,777.2||1,472.0||60||45||263.0||Upper East Vein w/ 2.7ft @ 0.025 opt Au|
|DDH-209||3350N||40,661.6||72,193.6||1,323.8||60||70||448.0||Lincoln Segment N. Extension//None Intersected|
|DDH-210||3350N||40,661.8||72,193.9||1,326.0||58.5||45||352.0||Lincoln Segment N. Extension//2.1ft @ 0.204 opt Au|
|DDH-211||3350N||40,662.7||72,193.7||1,324.2||240||50||512.0||Drilled West to Cross 250ft of Slate Section//None Intersected|
|DDH-212||3200N||40,724.1||72,041.2||1,351.6||46||50||502.0||Drilled to find location of underground workings|
|DDH-213||3200N||40,728.4||72,046.6||1,352.3||42||50||202.0||Drilled to find location of underground workings|
|DDH-214||1700N||41,439.2||70,721.9||1,437.6||60||63||706.6||East Vein below DDH-207//13.7ft @ 0.137 opt Au|
|DDH-215||1700N||41,439.9||70,722.4||1,437.6||60||58||630.4||Intersected West Vein//1.4ft @ 0.395 opt Au|
|DDH-216||1150N||41,848.4||70,354.9||1,379.1||60||68||352.4||Extend DDH-197 mineralization N.// 8.0ft @ 0.09 opt Au|
|DDH-217||1150N||41,851.0||70,356.2||1,378.9||60||45||312.0||Extend DDH-196 mineralization N./Assays Pending|
Drilling has shown that a portion of the barren intervening area between the Lincoln and Comet segments of the mineable gold resources along the main structural trend, the 42 Vein System, remains barren, at least in the upper probed portions of that area. However, drilling at the southern portion of this area intersected a previously undiscovered west-dipping gold-bearing vein system at shallow depth west of the main vein trend and another significant one east of the main vein zone at greater depth. This latter fissure vein system, dipping vertically to slightly easterly, occurs along the contact zone between the augite-bearing Greenstone to the west and the carbonaceous fine grained argillites and meta-volcanic rocks, the Interbedded Sequence, to the east. The highest assay value returned was 1.19 oz. Au/ton over a down-hole drill interval of 1.8 feet. This vein zone most likely correlates with a gold-bearing east dipping intensely quartz-veined region along the Greenstone-Interbedded Sequence contact exposed in one of the east-extending crosscuts of the underground workings which reached that contact.
The diagram below along Cross Section 1700N shows four recently drilled holes and their intersections of both the West Vein and the gold mineralization discovered along the steeply plunging eastern contact of the Greenstone. This eastern fissure vein system could represent the upper extension of a gold-bearing vein system at greater depth. Further exploration of this vein system will be conducted via underground development headings when the mine reaches those levels. Veins of the central Mother Lode tend to be gold productive when they are steeply dipping, before they begin to flatten and curl easterly to shallower dips and split or horsetail into multiple veins.
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The material in this news release has been reviewed Stephen Zahony, Vice President of Exploration, 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.
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