Amador County – Sutter Creek City Council heard a report from Sutter Gold Mining Incorporated last week, which wanted to answer some questions raised recently.

David Cochrane, vice president for environment, health and safety for Sutter Gold Mining, said some people wonder why they picked the unincorporated area near Sutter Creek.

He said the Mother Lode vein is 120 miles long, and historically has produced 13 million ounces of gold. Of that, 7.8 million ounces came out of this 10-mile segment, south of Sutter Creek to north of Amador City. Sutter Gold Mining owns 3.6 miles of the property’s mineral rights, owning land or leasing mineral rights.

It will be the first commercial underground mine in operation here since Central Eureka Mine closed in 1958. He said Jackson’s Kennedy Mine dug to 6,400 feet, and a Plymouth mine went down to 4,700 feet. “Ours will be shallow in comparison,” about 500 feet.

Cochrane said the company can produce gold economically at a cost of about $704 an ounce. Core drilling, to sample rock began in January and will last another 30 days, he said. Mayor Linda Rianda asked about the purpose of core drilling. Cochrane said it allows them to build a three-dimensional model of gold and veins underground, so they can “expand our resource.” It fills in the gaps of data they already have. A 2-and-a-half inch diameter cylinder of rock is geologically analyzed. They look for content of 22/100ths ounces of gold per ton, to crush and extract gold.

The company plans to have a 50-year project, and expects to get 110,000 ounces of gold in the first year. The discovery began in 1983, “so we’ve got 30 years of permitting and planning.”

He said the first five years will create 100 jobs, and they expect an $8 million payroll. The mine will pay a gold tax of $5 per ounce to the state, to be used as the state sees fit for mine cleanup projects. They will also pay royalties of several hundred thousand dollars a year the first five years, for mineral leases.

He shared designs of the mine facility, and Councilman Tim Murphy said they did a good job working with the county on it. Murphy also asked about mine tours.

Cochrane said “the days of going underground during active mining are over.” There is not a lot of room for folks to get around down there. State and federal regulators, and the insurance company do not want non-miners in active mines. He said Sutter Gold does have a goal to return some part of the mine back to tours, but not during the working phase.

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.