Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

March 21, 2007 15:59 ET

Sutter Gold Drilling Hits at Keystone

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2007) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) today announced the latest assay results from its surface and underground diamond drilling programs at the project site located in the historic Mother Lode District east of Sacramento, California. Holes 186 through 189, and Hole KDH-23 have continued to discover gold mineralization in both the Lincoln and Keystone areas of the project.

Surface Drilling Program

Hole KDH-23 intersected 9.5 meters (31.2 ft) of strong gold mineralization grading 6.2 g/tonne (0.18 oz/ton) from 356.8 to 366.3 meters (1170.2-1201.4 ft) in the Keystone 5 Vein, which included a higher grade interval at the footwall side of the structure with 4.9 meters (15.9 ft) grading 9.9 g/t (0.29 opt) from 361.4 to 366.3 meters (1185.5-1201.4 ft). Coarse visible gold was noted at two locations within that higher grade interval in ribboned vein quartz. Hole KDH-23 is the deepest intercept drilled thus far in the Keystone 5 Vein in this program. The K5 Vein was intersected approximately 60 meters (200 feet) down the dip, and 60 meters northward along strike from hole KDH-21 (see Jan 5, 2007 news release) and demonstrates the geological and grade continuity of the Keystone 5 Vein through the historic Inferred Mineral Resource within the K5 Vein (455,000 tonnes @ 7.2 g/t; 500,000 tons @ 0.21 oz/t). Hole KDH-23 is the third of nine planned surface core holes to further define a portion of the historic Inferred Mineral Resource within the K5 Vein, with the goal of upgrading it to the Indicated Mineral Resource category. Seven of the nine proposed surface core holes have been completed to date. Approximately 2,070 meters (6,800 ft) of the planned 2,750 meter (9,000 ft) surface drill program has been completed. Assays for Hole KDH-24 are expected soon.

Underground Drilling Program

Core drilling from underground drill stations continues to demonstrate continuity of the vein structures and mineralization between the Comet and Lincoln Zones. Holes 186 through 189 were part of a five-hole fan array drilled eastward from the 2710 East cross-cut, at the lowest level of the workings, to test northward extensions of several west-dipping gold-quartz veins associated with a favorable bench in the meta-volcanic/meta-sediment contact which hosts the high-grade 9 Vein of the Lincoln Zone. Hole 68, drilled by Meridian Gold in 1989, had encountered several vein structures positioned above the 9 Vein, including 2.7 meters @ 5.8 g/t (9.0 ft @ 0.17opt), 1.5 meters @ 5.5 g/t (5.0 ft @ 0.16 opt), and 0.9 meters @ 5.1 g/t (3.0 ft @ 0.15 opt). Holes 186-189 have demonstrated continuity for these new zones northward from the Lincoln into the Comet area, which were not previously included in the 2006 Sutter Mineral Resource estimate. Assay results for Holes 190 through 193 will be released once the assay results are received and evaluated by the Company's consulting geologist.

The underground drill program has been completed. Assays have now been received for twenty-seven of the thirty-three underground holes representing 1,800 meters (7,300 ft) of the total 2,750 meters (9,000 ft). The drilling continues to validate Sutter Gold's structural and ore control models and to demonstrate continuity of the Comet veins southward into the Lincoln area.

Results and Analysis

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

Drill Holes 186 - 189, and KDH-23 Assay Summary

width Au width Au
Interval (i) (g/ Interval (i) Au in
Hole# (m) (m) tonne) (ft) (ft) (oz/ton) Vein Core
DDH-186 E 41,840.5; N 70,601.5; bear 50 deg, -45 deg, 107m (351 ft)
10.7 - 35.0 -
11.7m 1.0m 4.1 g/t 38.2 ft 3.2 ft 0.12 oz/t
45.6 - 149.5 -
46.5m 0.9m 4.1 g/t 152.5 ft 3.0 ft 0.12 oz/t
69.2 - 226.9 -
70.2m 1.0m 3.8 g/t 230.1 ft 3.2 ft 0.11 oz/t
DDH-187 E 41,842.0; N 70,605.0; bear 42 deg, -3 deg, 70m (231 ft)
25.3 - 83.0 -
26.2m 0.9m 1.0 g/t 86.0 ft 3.0 ft 0.03 oz/t
32.3 - 106.0 -
33.3m 1.0m 1.4 g/t 109.3 ft 3.3 ft 0.04 oz/t
DDH-188 E 41,848.5; N 70,594.8; bear 110 deg, -45 deg, 85m (279 ft)
7.6 - 25.0 -
10.4m 2.7m 0.3 g/t 34.0 ft 9.0 ft 0.01 oz/t Au
36.4 - 119.5 -
37.3m 0.9m 4.1 g/t 122.5 ft 3.0 ft 0.12 oz/t
DDH-189 E 41,849.8; N 70,594.0; bear 106 deg, +20 deg, 141m (461 ft)
33.8 - 111.0 -
34.7m 0.9m 4.1 g/t 114.0 ft 3.0 ft 0.12 oz/t
37.5 - 123.0 -
38.4m 0.9m 4.8 g/t 126.0 ft 3.0 ft 0.14 oz/t Au
125.6 - 412.0 -
127.4m 1.8m 1.7 g/t 418.0 ft 6.0 ft 0.05 oz/t
136.6 - 448.0 -
139.3m 2.7m 1.0 g/t 457.0 ft 9.0 ft 0.03 oz/t Au
KDH-23 E 39,086.0; N 74,804.7; bear 8 deg, -80 deg, 518m (1,700 ft)
346.5 - 1136.5 -
349.4m 2.9m 1.4 g/t 1146.0 ft 9.5 ft 0.04 oz/t K23 Vn
351.2 - 1152.0 -
354.9m 3.7m 1.7 g/t 1164.0 ft 12.0 ft 0.05 oz/t
356.8 - 1170.2 -
366.3m 9.5m 6.2 g/t 1201.4 ft 31.2 ft 0.18 oz/t K5 Vn Au
361.4 - 1185.5 -
366.3m 4.9m 9.9 g/t 1201.4 ft 15.9 ft 0.29 oz/t K5 Vn Au
(i) True vein widths for KDH - 23 are approximately 90% of the reported
intervals, and approximately 80 to 100% for intercepts in Holes 186
through 189.

"Hole KDH-23 was our third surface drill hole, and it intersected the down dip periphery of the historic Inferred Resource in the Keystone 5 Vein. The 2006/7 drill program continues to produce 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. We are confident that ounces can be moved from the Inferred Resources category (2,697,400 tons @ 0.193 oz/ton containing 521,000 ounces Inferred and 492,900 tons @ 0.352 oz/ton containing 173,000 ounces Indicated, March 2006 43-101 Resource Report) into the Indicated Resources category, which was the primary goal of the Company's $ 1.2 million (Cdn) diamond drill program," stated Mr. Hal Herron, President. "The proposed drilling program only involves some 10% of the Company's 3.2 miles of property position along the Mother Lode trend, leaving some 90% of the property open for further exploration along strike and at depth."

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 website at

Contact Information