Sutter Gold Announces Resource Update for Sutter Gold Project -
Wednesday February 13, 6:50 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire -
Feb. 13, 2008) -
Sutter Gold Mining Inc. -
(TSX VENTURE:SGM - News) is pleased to announce an updated
Mineral Resource estimate for the Sutter Gold Project,
in the Mother Lode Gold Belt of California.
The 2008 Mineral Resource estimate includes the results
from 5,945 meters (19,502 feet) of core drilling completed
in 2006-2007, and is the subject of an
NI 43-101 compliant Technical Report
filed yesterday on SEDAR.
The Indicated Mineral Resource base for -
the Sutter Gold Project -
has increased 30 percent from the 2006 Resource estimate,
resulting from the conversion of Inferred Resources to
the Indicated category, and discovery of mineralization
in new zones.
Refer to Table 1 below, which summarizes the updated
Indicated and Inferred Resources for the Sutter Gold Project.
Highlights from the 2008 Mineral Resource update and
Technical Report are summarized as follows:
The 2008 Indicated Resource estimate represents a 29% increase
in ounces and 37% increase in tonnage over the 2006 estimate,
with Indicated Resources for the project reported as
612,364 tonnes (673,600 tons) grading 11.3 g/t (0.33 oz/ton)
containing 223,044 ounces gold.
Several mineralized zones in both the Lincoln-Comet and
Keystone areas remain open down plunge to the southeast
and to depth.
Several new zones were encountered during the 2006-2007 drill
programs, including the Lincoln 10, 20, 28, 31, and 34 veins,
a new shoot at the south end of the Lincoln 61 vein, and
the Keystone 23, and 25 veins.
Fourteen significant exploration drilling targets have been
identified and described in the Technical Report, based
upon continued refinement of the structural geologic
and exploration models for the Sutter Gold Project during 2007.
This finding suggests good potential for continued discoveries
and resource replacement as the project matures.
The 2006-2007 drilling programs provided strong validation
of the geologic model, exploration model, and ability to
convert Inferred Resources to Indicated.
Sampling of half cores from Meridian 1988 Keystone drilling
continued to provide further verification of the historic
drill hole assay data integrity.
The Technical Report included a six-part, $3,000,000 (US)
program to
(1) fund the purchase of 3-D computer modeling capability,
(2) finish digitizing the remaining 25 percent of geologic
maps and cross-sections to complete the wire-frame
3-D modeling of the vein structures and exploration
targets,
(3) modeling the detailed 1914-1919 assay data for the 327,000
tonne (360,000 tons) historic Inferred Resource in
the Keystone 5 vein shoot, below the 300 meter Level of
the Keystone mine,
(4) core drilling 6,700 meters (22,000 ft) to convert
additional Inferred Resources to the Indicated category
in both Lincoln-Comet and Keystone areas,
(5) core drilling 2,100 meters (7,000 ft) to identify new
Inferred Resources in the Lincoln-Comet and Keystone
areas, and
(6) core drilling 600 meters (2,000 ft) to test one deep
target directly beneath the Comet area.
Hal Herron, President and CEO, said, "Management has adopted
a conservative approach to moving our Mother Lode project
forward....and it has paid off.
The increase in both indicated and inferred resources from
our 2007 drill program confirms our geologic intuition of
the grade and continuity of the resource and, as expected,
confirms that our resource is consistent with other historic
underground Mother Lode mines that ran for decades.
Considering that only 10% of our property position has
been explored, management and our consultants are extremely
optimistic going forward....especially with
gold at $+900/ounce."
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Table 1-1
Summary 2007 Mineral Resources Estimate
Sutter Gold Project, All Categories
--------------------------------------------------------------------------
Uncut horiz.
Grade Au width
Tons (oz/ton) (oz) (feet)
--------------------------------------------------------------------------
Indicated Mineral Resources
Lincoln-Comet area 511,700 0.37 188,481 4.4
Keystone area 161,900 0.21 34,563 8.5
--------------------------------------------------------------------------
Total Indicated Resources 673,600 0.33 223,044 5.4
--------------------------------------------------------------------------
Inferred Mineral Resources A (estimated from modern exploration drilling)
Lincoln-Comet area 194,100 0.28 53,986 4.3
Keystone area 559,800 0.20 110,778 26.6
Inferred Mineral Resources B (estimated from pre-1980s historical data)
Keystone area 1,013,000 0.18 183,950 27.1
Central Eureka area 217,000 0.18 39,100 26.5
Lincoln-Wildman-Mahoney 394,000 0.18 71,100 66.8
--------------------------------------------------------------------------
Total Inferred Resources 2,377,900 0.19 458,914 31.6
--------------------------------------------------------------------------
The 2008 Mineral Resource estimate is undiluted, assays are
uncut, a minimum 0.9 meter (3.0 ft) horizontal width was
applied, an average specific gravity of 2.72 (11.8 cubic
feet per ton) was used, and composited underground
development sampling was given equal weight as the
composited drill hole assays within the same resource block,
and a cut-off grade of 4.8 g/t (0.14 oz/ton) was applied to
individual resource blocks.
The 2008 Mineral Resource estimate for the Sutter Gold Project
was completed by Sutter Gold Mining Inc. consulting
geologist and Independent Qualified Person Mark Payne,
P.Geo. Calif. #7076, and published with all support data as
a Technical Report, filed at the website
www.SEDAR.com.
Resources were estimated by manual methods from traditional
vertical longitudinal sections drawn parallel to individual
vein structures.
The long sections were constructed from vertical cross-section
sets drawn perpendicular to the veins at 30 meter (100 ft)
spacing, and plan sets at 15 meter (50 ft) intervals.
Data points across large, geologically-consistent areas within
a vein structure were composited, and hard geologic boundaries
were applied to define the resource blocks, to reduce
the influence of individual wide/high-grade data points
within the vein structure.
Resources were defined according to CIM Definitions for
Mineral Resources, and are compliant with NI 43-101,
Standards of Disclosure for Mineral Projects.
Indicated Mineral Resource blocks enclose at least two
data points or more, with strong geological support for
both geological and grade continuity.
Drill hole intercepts are separated by 30 meters (100 ft)
or less in most areas, with local exceptions where a wider
drill hole pattern showed consistent grade and geological
continuity along a well-defined and geologically-supported
mineralized trend, such as vein or fault junctions.
Inferred Mineral Resource blocks include,
(1) areas of widely-spaced drill hole information, exceeding
60 meters (200 ft) spacing, where geological information
does not clearly define the boundaries or local controls
of mineralization, and
(2) areas without drill hole information extending up to
30 meters (100 ft) beyond Indicated Resource blocks
along a well-defined and well-understood mineralized
trend.
Mark Payne, P.Geo. and Qualified Person for
the Sutter Gold Project has verified and approved the content
of this news release.
About Sutter Gold Mine
The Sutter Gold project contains a 3.2 mile segment of the
Mother Lode belt from which 10 historic mines
produced 2.3 million ounces of gold.
The historic mines bracket a one-mile-long portion of
the Mother Lode belt with no historic gold production
and which contains the Lincoln and Comet zones.
The Lincoln and Comet zones were blind discoveries that
did not outcrop at surface and which represent the first
significant new gold discoveries made along
the Mother Lode belt in the last 50 years.
The Sutter Gold project -
has been the subject of considerable modern exploration
activity, most of it centering on the Lincoln and Comet
zones, which are adjacent to each other and together referred
to as the Lincoln project.
A total of 101,385 feet of drilling have been accomplished
in 230 diamond drill holes, and modern underground
development consists of a 2,850-foot declined ramp with
2,400 feet of crosscuts plus five raises.
The historic gold production was documented in a detailed
report completed by Mark Payne, the consulting geologist
to Sutter Gold and a qualified person as defined by
National Instrument 43-101.
Further information is available at the Company's
Lincoln Project and El Alamo, Mexico gold concession at
suttergoldmining.com.
The TSX Venture Exchange has in no way passed upon the merits
of the proposed transaction and has neither approved
nor disapproved the contents of this news release.
Contact:
Hal Herron
Sutter Gold Mining Inc.
CEO
(307) 851-2742
Email: herron3@yahoo.com
Website: www.suttergoldmining.com
Source: Sutter Gold Mining Inc.
God Bless
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