Sutter Gold Implements Cost Cutting Measures and Provides Development Update

Sutter Gold Mining Inc. (TSX VENTURE:SGM)(OTCQX:SGMNF) ("Sutter" or the
"Company") announces the implementation of several cost-cutting measures in
response to recent gold market volatility and uncertainty in financing markets.
RMB Australia Holdings Limited ("RMB" or the "Lender"), which has funded
development and construction costs at Sutter's Lincoln Mine Project in the
California Mother Lode for the past five years and continues to do so, requested
cost reductions as a condition of further funding under the extension and
increase of the bridge loan announced on May 23, 2013. An affiliate of RMB is
also a 48% shareholder of Sutter Gold's common shares. 


Sutter has implemented immediate changes to senior management, reduction of
mine-site workforce, and refined the Lincoln Project development plan. The
immediate effect of these changes will be to reduce ongoing costs and to focus
the remaining workforce at the mine site on completion of specific, well defined
capital projects. 


Management Changes (effective July 1, 2013):

Mr. Richard A. Winters, President of RMB Resources Inc. and a Director of Sutter
since July 2008, has been appointed Interim President and CEO. RMB Resources,
the wholly-owned resource merchant banking division of the FirstRand Group of
South Africa, provides equity and debt financing to small and mid-sized resource
companies globally outside South Africa.


The Board of Directors wishes to thank Dr. Leanne Baker, who served as President
and CEO since November 2011, for her efforts as CEO during her tenure. She will
continue as a member of the Board. 


The Board would also like to thank Mr. Matthew Collins for his efforts as Chief
Operating Officer since September 2009. 


The Board of Directors was also recently re-appointed at the AGM by the
shareholders and is comprised of Mr. Mark T. Brown (Chairman), Dr. Leanne Baker,
Mr. James Crombie, Mr. David Fennell, Mr. Allen Winters and Mr. Richard Winters.
Mr. Robert Hutmacher has been re-appointed as Chief Financial Officer.


Workforce Reductions

Approximately one-third of the current staff positions have been eliminated at
the Lincoln Mine site. The remaining personnel will continue with execution of
the next phase of planned development at the Project. 


"These decisions were difficult but prudent in the current market environment,"
said Chairman Mark Brown. "Our Board of Directors and financial team are working
with Mr. Winters and RMB to ensure that the Lincoln Mine Project has the best
long-term chance of success. We will continue to take actions that support the
most cost-effective ways of moving the project forward and to make decisions
that are in the best interests of all of our shareholders." 


Reduction in Interest Rate on Short Term Credit Facility

In concert with the Company's cost cutting efforts, RMB has agreed to reduce the
interest rate on the existing Secured, Short Term Credit Facility (see press
release of May 23, 2012). Beginning July 1, 2013, the interest rate on the
Facility will be reduced from Libor plus 15%p.a. to Libor plus 10%p.a. This
measure will reduce interest burden and direct increased funding for the next
phase of development at the Lincoln Project.


Development Update

As a result of these actions, RMB has agreed to continue funding the next phase
of development at the Lincoln Project. This phase of work involves final close
out of the outstanding building permits on the surface facilities, including the
administration and shop building, mill, sand barn and tailings thickener. The
mill, currently 95% complete, will be completed and commissioned with the
processing of approximately 1,500 tons of mined material currently stockpiled at
the mill and 1,500 tons of new mined material forecast to be produced from
continuing underground development. Revenues generated from the mill
commissioning will be used to partially offset ongoing development costs.


Underground development will resume in the near term. The plan for this next
phase of underground development will involve approximately 1,850 feet of
underground development. The object of the plan is to develop the mine
sufficiently in order to:




--  Achieve regulatory compliance for production mining operations with the
    completion of raise work required for the establishment of secondary
    egress as well as ventilation; and 
--  Allow access to and mining of the initial stope panels as well as
    enhance the deposit model through the additional exposure of the ore
    body.



Sutter personnel will execute the planned work on the surface facilities while
underground development will be executed by Mining Construction Inc., the local
mining contractor that has performed all prior development and mining at the
Lincoln Project. All work contemplated under this phase of development is
scheduled to be completed by the end of October 2013, following which subsequent
work plans will be assessed and decided upon.


Rick Winters, interim President and CEO, commented, "These cost cutting measures
and focused, objective driven ongoing development reflect a required, higher
level of discipline in managing the Lincoln Project's advancement going forward.
The core team of professionals at the Project are capable and committed to the
efficient execution of the next phase of work and the success of the Lincoln
Mine. The actions and continued funding by RMB is a significant indication of
the strong support from our lender and major shareholder in the current,
extremely difficult junior mining sector."


About Sutter

Sutter has two projects: the Lincoln Project located in Amador County, on the
California Mother Lode Gold Belt, and the Santa Theresa Project located in the
Northern Baja region of Mexico. Currently, the Company is completing the mill
construction and underground development of the Lincoln Mine Project, beginning
with the shallow portion of the Lincoln-Comet ore zone. The Lincoln-Comet and
Keystone zones have a NI 43-101 compliant Indicated Resource estimate (completed
in February 2008). Sutter currently controls approximately 3.6 miles of the
Mother Lode of Amador County, with 90% of the property still unexplored. 


In Mexico, Sutter holds the rights to the geologically similar, high-grade El
Alamo district of northern Baja. 


Forward-Looking Statements

This news release contains "forward-looking information" under Canadian
securities law. Any information that express or involve discussions with respect
to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always, using words
such as "expect", "anticipate", "believe", "plans", "estimate", "scheduling",
"projected" or variations thereof or stating that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur or be
achieved, or the negative of any of these terms and similar expressions) are not
statements of historical fact and may be forward-looking information.
Forward-looking information relates to, among other things: the price of silver
and gold; the accuracy of mineral resource and mineral reserve estimates; the
ability of the Company to finance its operations and capital expenditures;
future financial and operating performance including estimates of the Company's
revenues and capital expenditures and estimated production. 


Forward-looking information is subject to a variety of known and unknown risks,
uncertainties and other factors that could cause actual events or results to
differ from those reflected in the forward-looking information, including,
without limitation, risks relating to: fluctuating commodity prices; calculation
of resources, reserves and mineralization and precious and base metal recovery;
interpretations and assumptions of mineral resource and mineral reserve
estimates; exploration and development programs; feasibility and engineering
reports; permits and licenses; title to properties; recent market events and
conditions; economic factors affecting the Company; timing, estimated amount,
capital and operating expenditures and economic returns of future production;
operations and political conditions; environmental risks; and risks and hazards
of mining operations. This list is not exhaustive of the factors that may affect
any of the Company's forward-looking information. Forward-looking information
about the future is inherently uncertain, and actual achievements of the Company
or other future events or conditions may differ materially from those reflected
in the forward-looking information due to a variety of risks, uncertainties and
other factors. Although the Company has attempted to identify important factors
that could cause actual results to differ materially, there may be other factors
that cause results not to be as anticipated, estimated, described or intended.
Accordingly, readers should not place undue reliance on forward-looking
statements or information. The Company's forward-looking information is based on
the assumptions, beliefs, expectations and opinions of management as of the date
of this press release, and other than as required by applicable securities laws,
the Company does not assume any obligation to update forward-looking statements
and information if circumstances or management's assumptions, beliefs,
expectations or opinions should change, or changes in any other events affecting
such statements or information. For the reasons set forth above, investors
should not place undue reliance on forward-looking information. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Sutter Gold Mining Inc.
Robert Hutmacher
Chief Financial Officer
303 238 1438 ext. 222
303 238 1724 (FAX)
bhutmacher@suttergoldmining.com
www.suttergoldmining.com
Sutter Gold Mining (TSXV:SGM)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024