Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

March 07, 2005 12:41 ET

Sutter Gold Makes Water Discharge Permitting Progress


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SUTTER GOLD MINING INC.

TSX VENTURE SYMBOL: SGM

MARCH 7, 2005 - 12:41 ET

Sutter Gold Makes Water Discharge Permitting Progress

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 7, 2005) - Sutter Gold
Mining Inc. (TSX VENTURE:SGM) is pleased to provide an update on its
efforts to change its water discharge permit and its filing activities
supporting the project's water discharge permit, before the California
Regional Water Quality Control Board (CRWQCB).

Permit Filing

In January 2005 a permit was filed with the CRWQCB to allow Sutter Gold
to store its de-watered tails at a dry stacked surface fill unit as well
as utilize mill tailings for mine backfill. This permit change will save
the project substantial cost in comparison to building a traditional
tailings facility. In response, to the permit filing a two page comment
letter, was received from the Board's staff. Sutter Gold has responded
to or addressed all the comments of the Board's staff. Management
anticipates that the permit application will be heard by the Board on
April 28, 2005.

This permit is the final major permit required for the project. During
the time the permit filing is being reviewed by the State of California,
management will be evaluating gravity / flotation mills for acquisition,
performing additional geologic modeling and mine engineering at the mine
site.

Mr. Hal Herron, Sutter's CEO said, "The Company's environmental
consultants have been working diligently with the CRWQCB staff to answer
their questions prior to submitting our final permit application. I am
cautiously optimistic that we will obtain the permit at the April 28th
Board meeting. The receipt of this permit will help to accelerate the
project's development."

About The Sutter Gold Mine

The Sutter Gold project is situated on a contiguous 535-acre block of
mining claims 45 miles east-southeast of Sacramento, Calif., in the
central part of the 121-mile-long Mother Lode gold belt.

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 85,085 feet of drilling have been
accomplished in 190 diamond drill holes, and modern underground
development consists of a 2,850-foot declined ramp with 2,400 feet of
crosscuts plus four raises. SGMC currently holds a conditional
mining/milling permit for the properties allowing 1,000-ton-per-day
operation.

SGMC plans to begin further exploration work and the construction of a
new raise to comply with U.S. Mine Safety Health Administration
regulations and improve ventilation. Mine Development Associates ("MDA")
or Reno, Nevada, prepared the NI 43-101 property report which is
available at www.sedar.com. The Company plans to update its historical
resource estimate to the NI 43-101 standards. The MDA NI 43-101 report
of April, 2004 was prepared by Neil B. Prenn, P. Eng, and Peter A.
Ronning, P. Eng. who are both independent of the Company.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Sutter Gold Mining Inc.
    Frank Quinby
    Investor Relations
    (250) 380-2274
    info@smallcap.ca
    or
    Sutter Gold Mining Inc.
    John Kuehne
    Investor Relations
    (250) 380-2274
    info@smallcap.ca
    or
    Sutter Gold Mining Inc.
    Harold Herron
    CEO
    (307) 856-9271
    hal@usnrg.com
    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.