September 6, 2006
Sutter Gold Announces August 31, 2006 Results in Metric
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 6, 2006) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) announced the first results from its underground diamond drilling program at the project site located in the historic Mother Lode District east of Sacramento, California on Thursday, August 31, 2006. The following release is the same information but re-calculated in metric measurements. Each of the first five underground core holes (see graphic at the end of this release) intersected high-grade gold mineralization with coarse visible gold noted in several of the vein quartz intercepts. Holes 163 - 167 have successfully intersected high-grade values outside the boundaries of the previously estimated resources in several vein structures and encountered strong values in two new veins not previously reported in the 2006 Mineral Resource estimate (March 2006 NI 43-101 Resource Report). The drilling has validated Sutter Gold's structural and ore control models and continued to demonstrate the geological continuity of the Comet veins. The results of the first five holes represents 1,073 feet of the overall 18,000 foot surface and underground program. To date, fourteen underground core holes totaling 3,000 feet have been completed. The surface drilling campaign is presently underway.
The Company is currently drilling hole #15 (out of a total of 24 planned drill holes). Samples are being sent to the assay lab every week. The results of the next five drill holes will be released once the assays results are received and evaluated by the Company's consulting geologist.
Results and Analysis
Results from SGM's five diamond drill holes, located on cross-section lines 1800N, and 2200N are shown in Table 1 below.
Drill Holes 163 - 167 Assay Summary
From To Thickness Grade Vein Thickness Grade
ft(i) Oz./Ton/Au mt gr/tonne
DDH-163
E 41,441.8; N 71,328.0; bear 208 deg, +79 deg, 249 ft
119.0 125.0 6.0 2.092 40 1.86 71.84
122.0 125.0 3.0 4.163 0.93 142.96
DDH-164
E 41,439.7; N 71,328.2; bear 307 deg, +64 deg, 365 ft
82.0 85.0 3.0 0.088 44 0.93 3.02
96.0 111.0 15.0 0.185 42 4.65 6.35
96.0 99.0 3.0 0.219 0.93 7.52
108.0 111.0 3.0 0.289 0.93 9.92
135.9 139.2 3.3 0.088 40 1.02 3.02
240.0 243.0 3.0 0.195 45 0.93 6.70
261.0 264.0 3.0 1.429 unnamed 0.93 49.07
DDH-165
E 41,374.8; N 71,320.0; bear 59 deg, +76 deg, 274 ft
33.0 54.0 21.0 0.465 42 6.51 15.97
including 9.0 0.992 2.79 34.07
57.0 73.0 16.0 0.125 42 4.96 4.29
including 7.0 0.239 2.17 8.21
87.0 90.0 3.0 0.316 44 0.93 10.85
108.0 160.0 52.0 1.616 42 16.12 55.49
including
111.0 114.0 3.0 0.194 0.93 6.66
135.0 138.0 3.0 3.867 0.93 132.79
147.9 160.0 12.1 5.878 3.75 201.85
198.0 205.0 7.0 3.108 40 2.17 106.73
228.0 238.0 10.0 1.208 20 3.10 41.48
DDH-166
E 41,374.5; N 71,324.0; bear 6 deg, -29 deg, 110 ft
40.0 46.0 6.0 0.403 44 1.86 13.84
55.0 61.0 6.0 0.275 31 1.86 9.44
79.0 88.0 9.0 2.173 26 2.79 74.62
DDH-167
E 41,523.0; N 70,945.0; bear 30 deg, -38 deg, 75 ft
62.0 71.0 9.0 2.18 42-47 jct 2.79 74.93
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(i) True vein widths for DDH-165, in which the drill hole crossed
the vein at an acute angle, are approximately 20% of the high grade
intervals, and 50% for intercepts in holes 163, 164 and 166
"The 2006 drill program thus far is producing the results we had hoped for, providing geologic and grade continuity information to support expansion of the Indicated and Inferred Mineral Resources for the targeted veins. The successful identification of strong gold mineralization outside of the present Indicated Resources validates Sutter Gold's models for continuity and lateral extensions of the gold bearing veins. Thus, we are confident that ounces can be moved from the Inferred Resources category (2,697,400 tons @ 0.193 oz/ton containing 521,000 ounces Inferred and 492,900 tons @ 0.352 oz/ton containing 173,000 ounces Indicated, March 2006 43-101 Resource Report) into the Indicated Resources category, which was the primary goal of the Company's $ 1.2 million (Cdn) diamond drill program," stated Mr. Hal Herron, President. "In addition, we have found high-grade mineralization in new areas in the first five holes and are confident that new resources will be added. The proposed drilling program only involves some 10% of the Company's 3.2 miles of property position along the Mother Lode trend, leaving some 90% of the property open for further exploration along strike and at depth. The anticipated results should allow us to move forward with an independent engineering report to support financing to move the project forward."
All core samples from the drilling program are cut in half with a diamond saw, with one half of the core being prepped and analyzed using screened metallics fire assay methods by American Assay Laboratory in Reno, NV. The remaining half core is stored in a secured facility at the Sutter Gold site for future inspection and assay verification. Standards and blanks are inserted into all sample shipments and a minimum of 10 percent of samples are resubmitted for duplicate analysis.
The Sutter Gold 2006 core drilling program is planned and supervised by Mr. Mark Payne, P.Geo. Calif. 7067, the Qualified Person for the Sutter Gold Project, as defined by NI 43-101, and has reviewed this 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 85,085 feet of drilling have been accomplished in 190 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 website at www.suttergoldmining.com.
To view the attached photos, please click on the following links:
Location Map: ccnmatthews.com
Drill Crew: ccnmatthews.com
CONTACT INFORMATION
Sutter Gold Mining Inc.
Hal Herron
CEO
(307) 856-9271
hal@usnrg.com
www.suttergoldmining.com
or
Contact Financial Corp.
Kirk Gamley
President
(604) 689-7422
kirk@contactfinancial.com
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