CP: Sutter Gold to proceed with California project after positive assessment

Sutter Gold Mining Inc. (TSXV:SGM) said Wednesday it will go ahead with mine and mill construction at the company’s Lincoln gold project in California, according to a report by Canadian Press:

The decision follows completion of an independent preliminary economic assessment that indicated “positive economics” for the project near Sutter Creek, Calif., using a base gold price of US$1,100 an ounce.

The project will be financed through a $20 million prepaid gold facility from RMB Australia Holdings. Sutter has agreed to deliver a total of 53,027 ounces to RMB, at a price of approximately $950/oz.

An NI 43-101 reported, completed in 2008, shows 223,055 contained ounces of gold for the Lincoln-Comet and Keystone areas. The total inferred resources are 2.161 million tonnes grading 6.6 g/t gold, for 458,914 contained ounces of gold.