Projects Overview

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Santa Teresa Concession
In October 2006, Sutter Gold Mining Inc. entered into an exclusive option agreement with The Alamo Group to acquire a 100% interest The Santa Teresa Mineral Concession, located in the historic El Alamo gold mining district, southeast of Ensenada in the Northern Baja region of Mexico. The property is situated adjacent to and on strike with the past-producing Princessa Mine. When mining operations ceased at the Princessa Mine, underground operations extended to a maximum depth of only 110 metres, however, the mine was the district’s largest gold producer of 100,000 ounces at a a grade of up to 2 ounces per ton. At the time of closure, the orebody was known to extend close to the northern boundary of the Santa Teresa Concession. The El Alamo District’s gold production 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 Sutter Gold and its joint-venture partner Premier Gold Mines Ltd. Premier has secured the right to earn up to a 65% interest in the Santa Teresa Project from Sutter Gold.

In March 2007, the SGMI signed a letter of intent with Premier to jointly explore the Company’s Santa Teresa mineral concession. Premier began the initial 32-hole Phase One drill program in January 2008, at the Santa Teresa Concession and completed all 32 drill holes by late October that year for a total of 7,000 meters (22,800 feet). Drilling results have confirmed the following:

  1. Drilling has discovered multiple high-grade veins up to 260 meters along strike from the historic Princessa Gold Mine, whose average production grade exceeded one ounce per ton,
  2. Results include multiple intercepts in excess of 34 grams per tonne (about 1.0 ounce per ton) gold between one and three meters within the Princessa structure,
  3. Twenty-three significant intercepts with length-weighted average in excess of 35 grams per tonne,
  4. Structures remain open in all directions

During the summer of 2008, surface reconnaissance and prospecting has confirmed the presence of intense surface alteration blooms coincident with high-grade vein intercepts at depth, and has identified several new conceptual drill targets located throughout the Santa Teresa Concession.

In January, 2009, Sutter Gold released the assay results from the initial 32 hole Phase 1 program: these results included intercepts as high as 21.10 grams per ton or 0.62 ounces of gold per ton across 1.35 metres and 16.68 g/t of gold across 3.1 metres. These results continue to demonstrate the potential of this underexplored district. The results also confirmed multiple high-grade veins up to 260 metres along strike from the historic Princessa Gold Mine and that all known structures remain open in all directions.