Vancouver, British Columbia (February 22, 2013) - Sutter Gold Mining Inc. (SGM:TSX-V) (SGMNF: OTCQX) ("Sutter" or "the Company") is pleased to announce the results of its preliminary core drilling campaign at the North Gover Property located at the north tier of its property holdings in Amador County, California. All six drill holes made significant gold intersections, with the best ones as follows: SGD-67 returned 3.016 ounces per ton (opt) over 1.2 feet core interval and 0.338 opt over 2.0 feet core interval within a 14.2 feet intersection calculating to 2.5 feet true width at a weighted average grade of 0.41 opt Au; SGD-66 returned 0.523 opt Au over a 2.0 feet interval within a 23.0 feet gold mineralized intersection calculating to 11.5 feet true thickness at a weighted average grade of 0.142 opt Au; SGD-64 returned 0.312 opt Au over 3.0 feet core intersection compositing to 0.9 foot true width at 0.312 opt Au; SGD-62 returned 0.341 opt Au over a core interval of 3.6 feet within a down-hole vein interval of 6.1 feet calculating to 3.9 feet true width at a weighted average of 0.224 opt Au.
"The early results from North Gover demonstrate the potential that we believe exists for additional gold resources in Amador County, where well over half of the historic Mother Lode gold production took place," said Leanne Baker, President & CEO. "Sutter Gold further consolidated its land and mineral holdings in 2012, and we were able to take advantage of drills already on site from our Lincoln Mine Project exploration program to drill these initial holes. Exploration is a key focus of our team, both on our mining project under the direction of Art Campo, our Chief Mine Geologist, and elsewhere including our substantial Mother Lode holdings, under the direction of Scott Briscoe, our new Senior Exploration Geologist."
The North Gover property, consisting of five conterminous patented mining claims, was acquired in mid-2012. These claims extend Sutter Gold Mining Inc.'s land holdings along the central Mother Lode gold system for an additional one mile to the north of its previous land holdings, bringing the Company's control of the main Mother lode fissure-fault zone to a continuous linear distance of over four miles. Relatively complete old-time underground mine workings maps and exploration data files for the newly acquired five claims are in the possession of Sutter Gold at its Sutter Creek, CA office.
The North Gover property is the southern one-mile-long portion of what was once called the Italian Prospect, an area which had been explored in the past through 53 drill holes by four companies, the latest in 1988 by Meridian Mining Co. The highest grade intersection made by past core drilling was seventeen feet (17.0') down-hole width grading 1.25 oz/ton Au. Within the North Gover property, one particular set of two historic drill holes on Section 8400N, drilled from the same site at different angles of inclination, made intersections of 5 ft of 0.332 opt Au and 10ft of 0.322 opt Au respectively. The two intersections appear in cross section to define a fissure vein dipping easterly at a moderate angle. Because the nearest drill holes were 200 feet north and 200 feet south respectively of the 8400N cross section, it was decided that while the drill rig was available at the Lincoln Mine site, the rig be moved to the North Gover property and six holes would be drilled on two sections, respectively100 feet north and 100 feet south of Section 8400N.
The available Ruen Drilling core rig was moved on site on August 1, 2012 and drilling of the six HQ-size drill holes was completed on August 22, 2012. A total of 1,104 feet were drilled in six holes (SGD-62 to SGD-67) averaging 184 feet per hole. All six holes made gold-bearing intersections of quartz with some
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sulfide minerals. Probably a number of structures of unknown continuity were intersected by the drill holes. More drilling will be necessary to define the significance of the gold-bearing intersections.
Geologist-designated selected intervals of HQ-size core from the drill holes were cut in two by means of a diamond saw and one-half of the drill core was bagged and sent to the assay lab. All sample preparation, fire assays, and chemical analyses were made by ALS Minerals of Reno, NV. Reported assay gold results are from 50-gram sample charges.
Senior Exploration Geologist
Sutter is pleased to announce that Scott Briscoe has joined the staff of the Company as Senior Exploration Geologist. Scott is a native Mother Lode geologist from Placerville who graduated from the University of Nevada, Reno with a Bachelor of Science, Geology. Scott has spent much of his career in the gold and precious metals sector, working in both exploration and production, on surface and underground. His passion for the California Mother Lode and his broad skill set will serve well as he focuses on the Company's large mineral rights package. Having just returned to the USA from Australia where he led a team which accomplished a successful large scale gold discovery, Scott now brings a very modern technical approach towards vein deposit exploration and evaluation. Scott will focus his early attention on the properties immediately adjacent to the Lincoln Mine Project such as the Keystone, where the company has NI 43-101 compliant gold resources.
The material in this news release has been reviewed by Stephen Zahony, Consulting Geologist, a Qualified Person as defined in NI 43-101. SGM wishes to thank Mr. Zahony, who continues to consult for the Company, for his contributions during the 2012 drill program.
Sutter is a near-term gold producer, building Phase One of the new Lincoln Mine Project in the historic California Mother Lode. Ramp-up to full production is planned in the first half of 2013. 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 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. 222
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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