Amador County – Sutter Gold Mining Incorporated announced Monday that it has completed a Preliminary Economic Assessment of its Lincoln Gold Mine project in Sutter Creek, saying it “indicates positive economic potential” for the former Sutter Gold Mine.
The Lincoln-Comet portion of the project was assessed by the independent engineering firm, Mine Development Associates of Reno, Nevada. Sutter Gold Mining announced the results Monday, but included cautionary notes about “forward-looking information,” saying such assessment “are not statements of historical fact.”
It also said “mineral resource figures referred to in this press release are estimates, and no assurances can be given that the indicated levels of gold will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices.”
The analysis estimated a “pretax cash flow” of $12.2 million to as much as $26.2 million, based on production of 22,300 ounces of gold annually, and market pricing. It also estimated an “internal rate of return” of 20-50 percent.
The “Preliminary Economic Assessment is based on a mine plan containing 244,800 tons of potentially mine-able material,” an “initial startup capital of $19.9 million with working capital of $3.2 million,” and an “underground mining operation” with a “five-year mine life processing 150 tons per day, 360 days per year.”
Chief Operating Officer Matt Collins said the results are “very encouraging, and support what Sutter Gold Mining has believed and worked toward for many years,” which is “that the Lincoln Mine Project has the potential to be a profitable gold mining venture, while maintaining a low-impact environmental footprint.”
Collins said the company looks “forward to developing a new gold mine in the historic California Mother Lode that will provide the cornerstone to further development of the company’s already significant resource base.”
Sutter Gold Mining controls roughly 3.6 miles of the “Mother Lode Gold Belt” in Amador County, and the company last October said 90 percent of the property is still unexplored, and they believe the potential exists for gold “at depth” and above, at “known mineralized zones.”
The 120-mile long Mother Lode Gold Belt produced more than 13 million ounces of gold historically, with 7.9 million ounces originating from the 10-mile segment between Jackson and Plymouth, where the Lincoln Project is located.
Sutter Gold Mining, based in Vancouver, British Columbia, is looking to resume hard rock gold mining in Sutter Creek, where the operation could create as many as 150 jobs in two or more years.
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
