Sutter Gold Mining Inc.

News Releases

November 12, 2008
Sutter Gold Releases Additional High Grade Gold Intersections from Santa Teresa including 24.40 gpt (0.71 opt) Across 2.0 Metres

SUTTER GOLD MINING INC. (TSXv:SGM) is pleased to release full assay results, including several new values, from the initial 23 holes drilled at the Santa Teresa Concession in Baja California, Mexico as provided by operator Premier Gold Mines Ltd. ("PG") who is currently earning a 65% interest in the project from Sutter. These new results, with intercepts as high as 24.40 grams per tonne (g/t) or 0.71 ounces per ton (opt) gold across 2.0 metres (m), and 14.9g/t Au (0.44 opt) across 3.04m continue to demonstrate the potential of this underexplored district.

Results to date, highlighted in Table 1 below, confirm the following:

  • Drilling has discovered multiple high-grade veins up to 260 metres along strike from the historic Princessa Gold Mine, whose average production grade exceeded one ounce per ton.
  • Results include multiple intercepts in excess of 1.0 oz/ton gold and up to 13.98 oz/ton Au (479.31 g/tonne) along core widths of between one and three metres within the Princessa structure.
  • Results from hole ST005, the highest grade to date, occur some 210 metres SE of Princess, and at more than twice the depth of the deepest known mining at Princessa (possibly the entire district) and remains open at depth.
  • Gold-bearing structures remain open in all directions.

The Santa Teresa Project is located adjacent to and on strike from the past-producing Princessa Mine (the district's largest gold producer), which was mined to a maximum depth of only 110 metres, and whose orebody was known to extend close to the northern boundary of the Santa Teresa Property. Gold production at El Alamo, a 16-kilometre long district, was halted at its peak owing to technological and political circumstances early in the 20th century. Since then, only minimal exploration has taken place, presenting a unique opportunity for Premier and it's joint venture partner Sutter Gold Mines Inc. (TSX-V:SGM).

Table 1 includes all assay results greater than 2.00 gpt gold for holes ST001 to ST023, with assay results greater than 10.0 gpt highlighted in yellow. New results are shown in the comment column to the right. Samples on 9 holes, primarily following up earlier intercepts, are pending. Several of these contained visible gold upon visual inspection of the core.

The Santa Teresa Project is accessible by road, and is located approximately 100 kms southeast of Ensenada and about 250 kms south of San Diego, California, USA. A total of some 7,000 metres (22,800 feet) in 32 holes were drilled on Santa Teresa in 2008 up to the end of October.

The El Alamo District is very attractive because of a unique history of high mined grades, but little modern exploration. The properties being explored by Sutter and Premier are:

  • Located within a proven (some 220,000 ounces of past production) gold district.
  • Historical data indicates that mined grades within the district are between 1.00 and 2.00 ounces per ton (opt).
  • The majority of district production occurred within 120 metres of surface, but remains open at depth.
  • Geologically similar to the historic Mother Lode District of California.

Clayr Alexander, President and CEO of Sutter commented: "We are very pleased with the work that Premier and their team have been doing at El Alamo and we are particularly pleased that the project continues to produce excellent results during Premier's earn in period."

Premier has secured the right to earn up to a 65% interest in the joint venture with SGMI at Santa Teresa. Recently, Premier announced that it had signed a Memorandum of Understanding ("MOU") with Compania Minera Quasaro SA DE CV ("Quasaro"), a private, arms-length company, to purchase the "La Victoria Concession" located within the Santa Teresa Concession for the joint venture. Veins currently being explored in the Phase One program may extend along strike into La Victoria.

Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating Officer of Premier, is the qualified person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101. A stringent QAQC program utilizing blanks, standards and replicates has been developed by Mark Payne, Consulting Geologist, for the STC joint venture. All sample prep and analysis is being conducted by American Assay Laboratories Inc. of Sparks, Nevada utilizing conventional 1 assay-ton fire assay and 500-gram screen metallic methods.

About Sutter Gold Mining Inc.

Sutter Gold Mining Inc. is a junior gold exploration and development company pursuing the goal of becoming an emerging producer through the evaluation of the development of the Lincoln-Comet zone of the Sutter Gold Project on the California Mother Lode. SGM controls 3.2 miles of the Mother Lode where 90% of the property has not been explored despite the definition of nearly 700,000 ounces of indicated and inferred resource. Unexplored potential exists at depth on the known zones, on both the footwall and hanging wall of the Mother Lode and on the Melones Fault, the principal regional structure giving rise to the Mother Lode that exists on the eastern portion of SGM's property package. In Mexico, SGM holds 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. Initial exploration in joint venture with Premier Gold has demonstrated the extension of high grade veins on strike and at depth and a second phase of drilling will soon commence.

Clayr Alexander, President, CEO and Director

For additional information, please contact:
Robert Hutmacher, CFO, 303-238-1438 x22

You can view the Next News Releases item: January 7, 2009, Sutter - Premier Releases Additional High Grade Gold at Santa Teresa including 16.68 gpt (0.49 opt) Across 3.1 Metres

You can view the Previous News Releases item: October 7, 2008, Sutter Gold Appoints New CFO and Board Member

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