Huge news on SGM
Sutter Gold drills 2.173 oz/ton Au over nine feet
2006-09-14 14:13 ET - News Release
Mr. Hal Herron reports
SUTTER GOLD INTERSECTS THREE NEW ZONES IN FIRST FIVE CORE HOLES
Sutter Gold Mining Inc. has discovered three new mineralized zones, plus significant extensions to four shoots hosting previously reported indicated mineral resources.
Assay highlights were reported in Stockwatch on Aug. 31, 2006, for holes 163 through 167. Four of the first five holes targeted three known shoots within the 40 vein and 42 vein, with the intention of upgrading inferred resources to the indicated category. One of the first five holes (166) was unplanned and targeted the north strike extension of barren mineralization cut in the 31 vein (hole 163), which exhibited deformation of late porphyroblastic overgrowths, a feature which has proven to occur within approximately 10 metres of most oreshoots within the Comet veins.
The three new mineralized deposits are described as follows.
The first new discovery lies within a 200-foot-long-by-300-foot-high area along the steeply eastward-dipping 20 vein between cross-sections 2200N and 2400N, identified in holes 164 (23.5 feet at 0.207 ounce per ton) and 165 (10 feet at 1.208 ounces per ton).
The second new zone is located within a 500-foot-long-by-100-foot-high area in the 31 vein between cross-sections 2200N and 2600N, which has been cut in hole 166 (six feet at 0.275 ounce per ton) between previous holes 73 (five feet at 0.145 ounce per ton) and 141 (six feet at 1.616 ounces per ton).
The third zone is an estimated 110-foot strike length of mineralization in the 26 vein, intersected in hole 166 (nine feet at 2.173 ounces per ton), which is untested at depth along a 700-foot unexplored strike length.
Thus far, the step-out drilling has identified extensions to indicated resources in the 40, 42 and 44 veins, and 42-47 vein junction shoot. Mineralization in the 40 vein shoot between cross-sections 2100N and 2400N has been extended an additional 40 feet up dip along a 300-foot strike length. The 42 vein shoot between cross-sections 2100N and 2400N has been extended an estimated 40 feet up dip along a 250-foot strike length. The 44 vein shoot between cross-sections 2100N and 2400N has been extended an estimated 50 feet up dip along a 200-foot strike length. The 42-47 vein junction shoot between cross-sections 1800N and 2100N has been extended an estimated 75 feet down dip along a 250-foot strike length by hole 167.
Holes 163 through 167 have continued to demonstrate excellent geological continuity along the veins of the Comet zone and within the new shoots. Updated mineral resource estimates for these zones will be announced once duplicate fire assay results are obtained and grade continuity can be more firmly established. The geological interpretation for hole 163 through hole 167 suggest the possibility that significant additions to the indicated and inferred mineral resource base for the Comet zone can be expected as the underground drilling program continues.
The Sutter Gold 2006 core drilling program is planned and supervised by Mark Payne, PGeo, California 7067, the qualified person for the Sutter Gold project, as defined by NI 43-101, who has reviewed this release.
The company also issued stock options to its directors, officers, consultants and employees for a total of 1,875,000 options to purchase common shares at an exercise price of 35 cents per share for a period of five years, expiring Aug. 16, 2011.