Resource World Magazine

mining Sutter Gold Mining – a near term gold producer in the California Mother Lode by Brandon Larson The California gold rush began in early 1843 and lasted until 1855, bringing a total of 300,000 people to the area in hopes of finding fortune. In the Sierra Nevada of California the California Mother Lode stretches 190 kilometres from Georgetown to Mormon Bay and ranges from 1.5 to 6 km wide. By 1950, most of the easily accessible surface gold had been collected and more sophisticated techniques, such as hydraulic mining, had to be employed in order to continue mining. Small scale mining has continued in the area, since the end of the California gold rush. Sutter Gold Mining Inc. [SGM-TSXV; SGMNF-OTCQX] is in the process of constructing the first commercial gold mine in the Mother Lode region in over 50 years. Sutter controls a 3.6-mile segment within the most productive 10 miles of the historic Mother Lode Gold Belt, including eight historic mines. The Lincoln Project, which is located in a well established and accessible region, is situated in an area of 551 acres of surface and mineral rights and is approximately 72 km (45 miles) southeast of Sacramento. Exploration is focused on two zones, Lincoln and Comet, with a total of 230 diamond drill holes exceeding 101,000 feet of drilling. In addition, Sutter Gold has entered into a lease agreement to acquire 230 additional acres of exploration land adjacent to the northern boundary of the Lincoln Project and the company's existing 3.6 miles of mineral holdings in the Mother Lode. A 2008 NI 43-101 report showed total indicated resources of 612,400 tonnes grading 11.3 g/t gold (673,600 tons grading 0.33 (uncut) ounces of gold per ton) for 223,044 contained ounces of gold for the Lincoln-Comet and Keystone areas. The report also showed inferred resource of 2,377,900 tons at 0.19 ounces for a total of 458,914 ounces. December 14, 2012 marked a very important milestone for the Lincoln Mine Project as Sutter Gold announced that they had conducted their first gold pour at the site. "This represents a key milestone for our company, and I wish to thank our Board of Directors, shareholders, management team, employees, and contractors who made it possible," said Leanne Baker, President and CEO. "We still have much to do to achieve commercial production and become cash flow positive in 2013 and we plan to build on the successes of [2012]. Our new mill has begun the commissioning process, and underground development is proceeding to provide the necessary ventilation and secondary access for the production stopes that will follow." The mine and mill are still in the testing and commissioning phase. From a press release dated December 17, 2012, the company stated that "the 1300-level decline development was 88% 78 www.resourceworld.com Lincoln Mine Construction – Constructing retaining wall of the 1300 foot Portal. Photo courtesy Sutter Gold Mining Inc. complete at 312 feet from portal to face. The 1200-level decline development was 72% complete at 266 feet from portal to face. Development at the 1100-level has reached 138 feet, with the completion of the first crosscut to the 51 vein. The 900-level, which will be the first production level, has begun with 33 feet completed. Raise development will begin in January 2013." With regards to the mill progress, the conveyor belts have been installed along with construction completed on the ore bins and disk filters and, on December 5, the first rock was crushed. Sutter Gold also holds an interest in a Mexico property, the Santa Teresa Concession, which was acquired through an option agreement from The Alamo Group in October 2006. In March 2007, Sutter Gold signed a letter of intent with Premier Gold Mines Ltd. [PG-TSX] to jointly explore the Santa Teresa Concession. By October 2007 Premier had completed an initial 32-hole drill program for a total of 7,000 metres. Results included intercepts as high as 21.10 g/t gold (0.62 oz/ton) across 1.35 metres and 16.68 g/t gold across 3.1 metres. One of Sutter Gold's strongest assets is their management, led by President and CEO Dr. Leanne Baker. Dr. Baker has a background of mining and finance and holds M.S. and Ph.D degrees in mineral economics from the Colorado School of Mines. Additionally, Dr. Baker has more than 20 years of Wall Street research and banking experience including managing the commodity research team at Philipp Brothers, Inc. n february 2013

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