Sutter Gold Reports Progress at the Lincoln Mine Project

Sutter Gold Mining Inc. (TSXV:SGM,OTCQX:SGMNF) reported progress at its Lincoln Mine Project in Amador County, California: new mill and other surface facilities almost completed at the mill; raise development is progressing to establish secondary escapeways and to provide primary ventilation from the planned main fans at the 1300 level portal.

As quoted in the press release:

Underground development at the 1300 and 1200 level declines has reached completion for the first phase of work. Drifts are advancing on the 1100 and 900 level. A connection between portions of the 1030 sublevel is being driven to establish secondary escape from the 900N production area. In addition, raise development is progressing from the 1100 level to the 1200 level to establish secondary escapeways and to provide primary ventilation from the planned main fans at the 1300 level portal. Completion of secondary escape remains the critical path for the underground mining.

The crushing circuit has been successfully tested, with approximately 400 tons crushed and delivered to the fine ore bin. The rod mill has passed its empty run tests and received its initial rod charge on February 20, 2013. Equipment specific guarding continues and the key mill personnel are finalizing plumbing and electrical details. The tailings thickener is nearing completion and remains the final critical path item for testing of the flotation circuit. SGM expects to begin full mill commissioning in March 2013, processing material stockpiled on the surface from previous bulk sampling campaigns.

Sutter Gold President & CEO Leanne Baker said:

We made significant progress on several key fronts in 2012, and we are working toward becoming cash flow positive at our Lincoln Mine Project before the end of 2013. We have already started the process of closing out our various building permits, with the intention of commissioning the mill and moving into our new shop & staff services building in the near future. Our underground development is progressing, but has fallen behind our previous schedule. We are taking steps to complete the initial development required for ore production to the mill in the second quarter of 2013, now expecting ramp-up to full production in the fourth quarter of 2013.

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