Sutter Announces Extension of Warrants – Provides Lincoln Project Update
Dec 16, 2011
OTC Disclosure News Service
Lakewood, CO –
NEWS RELEASE FOR IMMEDIATE RELEASE: August 9, 2010
SUTTER GOLD ANNOUNCES EXTENSION OF WARRANTS
-PROVIDES LINCOLN PROJECT UPDATE-
Vancouver, British Columbia (August 9, 2010) – Sutter Gold Mining Inc. (SGM:TSX-V) (“Sutter” or the “Company”) is pleased to announce that the Company’s application to extend the expiry date of 12,794,994 outstanding common share purchase warrants by one year has been approved by the TSX Venture Exchange. The warrants were issued by Sutter on August 22, 2008 by way of a private placement and were scheduled to expire on August 22, 2010 and will now expire on August 22, 2011. Each warrant entitles the holder to acquire one common share of the Company at a price of $0.15.
Lincoln Project Update
Sutter’s Management Team (“Management”) continues to systematically advance the planning, permitting and design work for the Lincoln Project (the “Project”). Concurrently, the Company is updating the resource estimate and project economics for the Lincoln-Comet deposit to support a production decision and raise financing for construction and development of the remaining facilities and improvements necessary to bring the Project into production.
Preliminary Economic Assessment
The Company has been advancing studies to support a NI43-101 Preliminary Economic Assessment (“PEA”) for the Project. Sutter prepared a 3D geologic model of the Lincoln-Comet deposit, and has had independent parties review the model. Sutter is completing a Project design for the PEA to mine the shallow or upper portion of the Lincoln-Comet deposit above the existing decline. At this time, Sutter envisions mining of the Project at lower tonnages and higher grades than in past studies. The Company plans to employ overhand cut-and-fill mining methods, utilizing the existing workings and minimum additional level development, as needed for secondary access and material haulage alternatives. The Project benefits from the good metallurgy of the Mother Lode, including historic district gold recoveries of +95%. Sutter plans to employ a simple flow sheet to recover gold first from gravity methods followed by simple concentration to produce a gold concentrate for processing off site. Sutter is utilizing engineering consultants (see Table 1) to supplement its experienced management and staff to design the processing facilities, tailings handling and backfilling to create a state-of-the-art, environmentally sound mining project. Sutter has acquired all foreseeable input cost data for supplies and equipment. The Company plans to complete the PEA in Q4 of 2010.
Table 1: Engineering Consultants and Their Role in the Preliminary Economic Assessment
Additional Technical Studies
Final Metallurgical and Tailings – Sutter is planning a final round of materials testing of tailings products to determine material characteristics necessary for final construction engineering. Final grind analysis and metallurgical balance for the construction engineering of the processing plant will coincide with the production of tailings products needed to supplement the existing metallurgical studies. In addition, this testing will provide gravity and flotation products for further marketing evaluation.
Mine Engineering Sequencing – Using the PEA as the basis Sutter will optimize the development and mining sequence of stope panels and complete the final mine engineering for gold production from the shallow portion of the Lincoln-Comet deposit.
The Project is subject to local, state and federal permitting requirements administered by approximately 20 governmental agencies. The Project requires five (5) major operating permits and approvals and over 30 lesser or minor operating permits and approvals. Sutter has obtained all five (5) major operating permits. In addition, the Company has obtained all minor operating permits and approvals for the project components constructed to date.
Recent Permitting Activities and Accomplishments – In the last year Sutter has made significant progress towards obtaining the remaining permits and approvals for the Project, including critical permit amendments or revisions. These activities have successfully laid the foundation to obtain the remaining permits identified by Management, focusing on completing design work for a number of project elements and other studies necessary to support certain permits and approvals. The Company filed an updated Hazardous Materials Business Plan with Amador County in January, 2010. This spring Sutter completed construction-level designs for two critical mine waste disposal units, the Surface Fill Unit (SFU) and the Waste Rock Pile (WRP), and the SFU access road, submitting the WRP and SFU design documents to the California Regional Water Quality Control Board (RWQCB) for approval. In July the RWQCB approved the SFU design and the Company is responding to comments and providing additional information about the WRP design. Currently, the Company is completing biological and cultural resources studies and preparing an application to obtain permits associated with potential impacts to less than one acre of wetlands. The Company plans to file the application with the US Army Corps of Engineers in Q3 of 2010 and expect to complete the permitting process no later than Q1 2011.
Remaining Permitting Activities –The Company continues to implement Management’s strategic and systematic plan, focusing on 13 critical permitting activities necessary to obtain the remaining permits and bring the Project into production. The Project as envisioned for the PEA has a smaller and more environmentally favorable footprint than that already allowed under the Project’s existing Conditional Use Permit (“CUP”) that includes a 1,000 ton per day mine and mill with cyanide circuit. Management’s strategic approach focuses on obtaining the remaining permits, including permit revisions or amendments required for a smaller-scale operation and concentrate production as well as those identified by management to improve Project economics. Table 2 summarizes the remaining activities, including critical consultants and general timing for required permits and approvals to complete permitting and development and bring the Project to production.
Table 2: Summary of Remaining Permitting Activities, Consultants and Timing
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 the Mother Lode Gold Belt of 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 located on the California Mother Lode Gold Belt in Amador County. 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 successfully 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:
James Crombie, President, CEO Director
Sutter Gold Mining Inc.
For further information please contact:
Robert Hutmacher, Chief Financial Officer at 303 238 1438 ext. 22
Website at www.suttergoldmining.com
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