Sutter Gold Mining Inc (SGM)

[NYBob]

Sutter Gold Mining Receives Mill Building Permit On The Lincoln Project, California -




Vancouver, British Columbia (March 5, 2012) -

Sutter Gold Mining Inc.
(SGM:TSX-V, SGMNF:OTCQX) ("Sutter" or "the Company") is pleased
to announce that it has received the building permit to
construct the new mill complex at its
Lincoln Mine Project
in the heart of California's Mother Lode gold belt.
The Amador County Building Department issued the key permit
on March 1, 2012.

"This is a critical milestone for our company," said Leanne
Baker, President & CEO of Sutter.
"Our site is completely winterized, our Mine Safety and Health
Administration training program is in place, and we intend to
begin excavation work for the foundation in the next several
weeks.
As the mill foundation / building construction proceeds through
the summer and fall of 2012, we plan to work concurrently to
prepare and develop the underground stopes for mining."

Sutter's Lincoln Project, upon completion, will represent the
first commercial underground gold mining operation on the
historic Mother Lode in more than 50 years.

Sutter's Board of Directors approved the development of the
Lincoln Project in 2011 based on the positive Preliminary
Economic Assessment ("PEA") provided by Mine Development
Associates of Reno, Nevada, USA. Under the 2011 PEA,
gold production in the first five years focuses on the
shallow
portion of the Lincoln-Comet vein zone, and averages 23,000
ounces per year at a cash cost of about U.S.$700 per ounce
before royalties.

The mine would operate seven days per week at an estimated rate
of 150 tons per day (tpd), with the mill rated at 210 tpd
operating five days per week.
In situ grade of the resource in the first five years is
estimated to average 0.57 ounces per ton (opt), with dilution
bringing the milled head grade to 0.46 opt.
Sutter cautions that mineral resources that are not reserves
have no demonstrated economic viability. A 30-hole exploration
program is underway within the current mine envelope.
Five holes have been completed and await assay results.

The Company awarded the foundation construction work for the
mill and shop/staff services buildings to DG Granade, Inc.
of Shingle Springs, California after evaluating proposals
from seven qualified firms.
DG Granade, Inc. is based in neighboring El Dorado County.
DG Granade, Inc. will use several local suppliers and
subcontractors including Amador Transit Mix, Short Circuit
Electric, JM & Sons for plumbing and A Allbright Steel
Services, Inc. to supply steel for rebar fabrication and
installation.
Site grading is being performed by Doug Veerkamp General
Engineering, Inc.
The completed Tailings Processing Area is currently being used
for storage and staging.

Purchased mill equipment is being evaluated and refurbished as
necessary.

Four 700 CFM XLLE type Ingersoll-Rand air compressors were
delivered in January to the company's shop in Amador County
for inspection by Cisco Air Systems of Sacramento.

The Marcy 3 x 3 regrind ball mill has been disassembled for
inspection, as well.

Sutter's staff has already replaced the wear parts in
the purchased Pioneer 10 x 36 primary jaw crusher.

The coarse ore bin belt feeders and Denver 24 Sub-A flotation
cells are being rebuilt by Mammoth Mine Services in Denver,
Colorado for delivery in April and July, respectively.

The company expects to accept delivery of the Marcy 6 x 12
primary rod mill in March.

In January, Sutter received two air permits from the Amador Air District.
The first permit is a comprehensive, site-wide "Authority to
Construct," allowing construction and start-up of the planned
mine and mill facilities, mine waste management facilities and
ancillary facilities and improvements.
The second permit allows for installation of back-up power.

The material in this news release has been reviewed by Matthew
Collins, COO, a Qualified Person as defined by
Canadian NI 43-101.

About Sutter

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 Amador County, 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,
beginning with the shallow portion of the Lincoln-Comet ore
zone of the Lincoln Project, located on
the California Mother Lode Gold Belt.

The Lincoln-Comet
and Keystone zones have a NI 43-101 compliant Indicated
Resource estimate (completed in February 2008) of 612,400
tonnes (673,600 tons) grading 11.3 g/t Au (0.33 oz/ton)
containing 223,000 ounces of gold and Inferred Resources of
2,161,700 tonnes (2,377,900 tons) grading 6.6 g/t Au (0.19
oz/ton) containing 458,900 ounces of gold.

Mineral resources that are not reserves have no demonstrated economic viability.

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 approximately 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 success fully 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:
Dr. Leanne M. Baker, President, CEO & Director
Sutter Gold Mining Inc.

For further information, please contact:

Robert Hutmacher, Chief Financial Officer at 303 238 1438 ext. 22
Email: [e-mail]
Website:
http://www.suttergoldmining.com



http://www.suttergoldmining.com/s/California.asp#Lincoln



http://www.suttergoldmining.com/i/pdf/MCUpdateCrossSection.pdf



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