Sutter Gold Mining Inc.
TSX VENTURE : SGM

Sutter Gold Mining Inc.

July 16, 2007 14:32 ET

Sutter Gold Announces Latest Drilling Results and Commencement of Its 2007 Phase II Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2007) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) today announced the final assay results have been received from its Phase I 2006-07 surface and underground diamond drilling programs at the project site located in the historic Mother Lode District east of Sacramento, California. Positive results to date has lead to the immediate commencement of a Phase II surface and underground program totaling 2,700 meters (9,000 ft.).

Underground Drilling Program

Hole 195 encountered strong gold mineralization with visible free gold in the 41, 40, and 20 Vein structures, including 2.8 meters @ 55.5 g/tonne (9.2 ft @ 1.62 oz/t) in the 41 Vein, 4.0 meters @ 8.9 g/t (13.1 ft @ 0.26 oz/t) in the 40 Vein, and 1.9 meters @ 7.9 g/t (6.2 ft @ 0.23 oz/t) in the 20 Vein. This hole successfully pin-pointed the position of the east-dipping 20 Vein, which limits the up dip extent of the gold mineralization in the west-dipping Comet Vein system. This was the final hole of the 2006 underground drill program and it should add significant new resources to all three of these vein structures.

The underground drill program has been completed. Assays have now been received for all thirty-three underground holes totaling 2,750 meters (9,000 ft). The drilling continued to validate Sutter Gold's structural and ore control models and demonstrated excellent continuity of the Comet veins.

Surface Drilling Program

Assay results from the last five surface drill holes have been received. Holes KDH-25 and KDH-28 intersected strong intervals of mineralization in the Keystone 5 Vein target, while hole KDH-26 hit a caved stope in the projected position of the K5 Vein and was unable to pass through. Hole KDH-27 was captured within a near-vertical fault and veered sharply away from the target and was abandoned at shallow depth.

Hole KDH-25 intersected 12.2 meters (40.2 ft) of vein quartz grading 2.1 g/tonne (0.06 oz/ton) gold from 282.1 to 294.4 meters (925.3-965.5 ft) in the Keystone 5 Vein, which included a higher grade interval at the footwall side of the structure with 0.9 meters (3.0 ft) grading 6.2 g/t (0.18 opt) from 292.5 to 293.4 meters (959.5-962.5 ft). Hole KDH-28 intersected 3.6 meters (12.0 ft) of highly-mineralized ribboned vein quartz containing coarse free gold at both the hanging and footwall sides of the vein grading 1.7 g/t (0.05 oz/t) from 336.9-340.5 meters (1105.0-1117.0 ft), including 0.9 meters @ 3.1 g/t (3.0 ft @ 0.09 oz/t). Hole KDH-26 encountered a narrow void (stope or drift) in the position of the Keystone 23 Vein, then another caved stope in the position of the K5 Vein. Several feet of sulfide replacement mineralization encountered at the hanging wall side of the K23 Vein stope included 2.6 meters @ 1.0 g/t (8.7 ft @ 0.03 oz/t) from 354.9-357.5 meters (1164.0-1172.7 ft).

The goal of the Phase I 2006 surface drilling program was to further define a portion of the historic Inferred Mineral Resource within the Keystone 5 Vein, with the goal of upgrading that portion of it to the Indicated Mineral Resource category. A total of eight surface core holes were completed in the 2006 drilling program, totaling 2,460 meters (8,067 ft).

Results and Analysis

Results from SGM's most recent diamond drill holes are shown in Table 1 below.



Drill Hole 195, and KDH-24 through KDH-28 Assay Summary

Visible
Interval width(i) Au Interval width(i) Au Au in
Hole# (m) (m) (g/tonne) (ft) (ft) (oz/ton) Vein Core
---------------------------------------------------------------------------
DDH-195 E 41,261.0; N 71,475.0; bear 203 deg, +83 deg, 76.5m (251 ft)
25.0 - 82.0 -
27.8m 2.8m 55.5 g/t 91.2 ft 9.2 ft 1.62 oz/t 41 Au
50.8 - 166.5 -
61.1m 10.3m 4.8 g/t 200.5 ft 34.0 ft 0.14 oz/t 40 Au
including
57.1 - 187.4 -
61.1m 4.0m 8.9 g/t 200.5 ft 13.1 ft 0.26 oz/t 40 Au
62.1 - 203.8 -
64.0m 1.9m 7.9 g/t 210.0 ft 6.2 ft 0.23 oz/t 20 Au
---------------------------------------------------------------------------
KDH-24 E 39,337.7; N 74,663.8; bear 206 deg, -64 deg, 241m (792 ft)
5.2 - 17.2 -
6.2m 1.0m 5.5 g/t 20.5 ft 3.3 ft 0.16 oz/t K13
22.0 - 72.0 -
22.9m 0.9m 1.7 g/t 75.0 ft 3.0 ft 0.05 oz/t
216.7 - 710.9 -
221.0m 4.3m 3.1 g/t 724.9 ft 14.0 ft 0.09 oz/t K5
including
219.0 - 718.5 -
221.0m 2.0m 5.5 g/t 724.9 ft 6.4 ft 0.16 oz/t K5
---------------------------------------------------------------------------
KDH-25 E 39,103.4; N 74,822.0; bear 240 deg, -82 deg, 304m (998 ft)
282.1 - 925.3 -
294.4m 12.2m 2.1 g/t 965.5 ft 40.2 ft 0.06 oz/t K23/K5
including
285.1 - 935.2 -
286.1m 1.0m 4.5 g/t 938.5 ft 3.3 ft 0.13 oz/t K23
and
292.5 - 959.5 -
293.4m 0.9m 6.2 g/t 962.5 ft 3.0 ft 0.18 oz/t K5
---------------------------------------------------------------------------
KDH-26 E 39,323.0; N 74,669.5; bear 314 deg, -86 deg, 373m (1225 ft)
32.2 - 105.5 -
36.7m 4.5m 3.8 g/t 120.5 ft 15.0 ft 0.11 oz/t K13
including
34.9 - 114.5 -
36.7m 1.8m 8.2 g/t 120.5 ft 6.0 ft 0.24 oz/t K13
354.9 - 1164.0 -
357.5m 2.6m 1.0 g/t 1172.7 ft 8.7 ft 0.05 oz/t K23
---------------------------------------------------------------------------
KDH-27 E 39,353.8; N 74,672.9; bear 200 deg, -85 deg, 66m (218 ft)
3.8 - 12.5 -
13.9m 10.0m 1.0 g/t 45.5 ft 33.0 ft 0.03 oz/t
15.4 - 50.5 -
16.9m 1.5m 1.7 g/t 55.5 ft 5.0 ft 0.03 oz/t
24.2 - 79.5 -
29.7m 5.5m 1.7 g/t 97.5 ft 18.0 ft 0.05 oz/t K13
55.2 - 181.0 -
56.1m 0.9m 1.0 g/t 184.0 ft 3.0 ft 0.03 oz/t
62.5 - 205.0 -
64.5m 2.0m 1.4 g/t 211.4 ft 6.4 ft 0.04 oz/t
---------------------------------------------------------------------------
KDH-28 E 39,709.5; N 74,548.4; bear 201 deg, -84 deg, 366.8m (1203 ft)
82.3 - 270.0 -
83.5m 1.2m 1.7 g/t 274.1 ft 4.1 ft 0.05 oz/t
136.6 - 448.0 -
142.1m 5.5m 1.0 g/t 466.0 ft 18.0 ft 0.03 oz/t K13
146.6 - 481.0 -
147.5m 0.9m 1.0 g/t 484.0 ft 3.0 ft 0.03 oz/t
336.9 - 1105.0 -
340.5m 3.6m 1.7 g/t 1117.0 ft 12.0 ft 0.05 oz/t K5 Au
including
338.7 - 1111.0 -
339.6m 0.9m 3.1 g/t 1114.0 ft 3.0 ft 0.09 oz/t K5 Au
---------------------------------------------------------------------------
(i) True vein widths for DDH-195 are 30-50%, and KDH - 24 to KDH - 28 are
approximately 75-100% of the reported intervals.


"The widely-spaced pattern of holes testing the Keystone 5 Vein target has confirmed excellent geological and grade continuity within a portion of the historic Inferred Mineral Resource documented within the South Spring Hill workings of the Keystone Mine. Five holes consistently encountered strong mineralization in the K5 Vein, with widths varying from 1 to 12 meters (3.0-31.2 ft) within a grade range of 3.1 to 9.9 g/tonne (0.09 - 0.29 oz/ton), and two holes encountered wide stopes. Coarse free gold was noted in three of the six holes. A simple arithmetic average for six drill intercepts through the K5 structure yields 3.6 meters (12.0 ft) grading 6.5 g/tonne (0.19 oz/t) along a 240 meter strike and 120 meter dip length (800 X 400 ft). Though the 2006 drill holes were widely spaced, detailed historic descriptions of geological and grade continuity were consistently confirmed across a broad area and an Indicated Mineral Resource can be estimated for this portion of the historic Inferred Mineral Resource in the K5 Vein. The 2006 drill program produced results that support the expansion of the Indicated Mineral Resource base for the project as well as providing essential geologic data for mine plan development. Further, with the overall results of the 2006 program quite positive, the Phase II diamond drill program was initiated on July 13, 2007," stated Mr. Hal Herron, President.

All core samples from the drilling program are sawn in half, 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 101,385 feet of drilling have been accomplished in 230 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 Lincoln Project and El Alamo, Mexico gold concession at www.suttergoldmining.com.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

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