Investors Betting Millions On Sierra Gold Mine

July 19, 2011 10:40 PM

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AMADOR COUNTY (CBS13) — A group of investors is betting millions the gold rush isn’t over in the Sierra Foothills. They’re spending more than $20 million to get a mine in Amador County back up and running.

The mine goes about 650 feet underground and it’s about to get a whole lot deeper.

They’ve done the research, and Sutter Gold Mining Inc. says there’s a lot of gold in the rocks. The light-colored quartz will guide miners to veins of gold and the potential for a billion dollars.

“We’ll be mining about a third to half ounce of gold per ton,” said company spokesman David Cochrane.

The untapped, underground territory is about to get blasted.

“The miners will drill holes, set charges and blast it down,” said Cochrane.

David says an astonishing 20 tons of gold lies within their 3.6 mile stretch of land. At today’s rate of about $1,600 an ounce, that’s over $1 billion of valuable rock.

“They say only 10 percent of the entire Motherlode has been explored, so there’s a lot of potential in this region,” said Holly Boitano, a fifth generation Motherlode miner. “I just have gold fever so it’s kept me here.”

That gold fever is kicking off a new gold rush and creating 100 new jobs.

“The profit potential is the drive. There’s a huge profit potential here,” said Boitano.

An Australian bank is willing to loan Sutter Gold Mining Inc. $20 million to dig into that potential. They expect to pay it all back in gold, of course.

“It’s a great opportunity to return gold production to the Motherlode,” said Cochrane.

They’ve spent nearly 20 years researching, sampling, and getting permits to meet California’s tough environmental standards, and now Sutter Gold Mining Inc. finally got the funds to find out what these rocks are really worth.

They’ll spend the next year digging out more tunnels, drilling, and blasting. They expect to pour their very first gold bar by summer of 2012.

The original gold rush ended for the Motherlode in the mid 1900′s when the value of gold dropped to $35 an ounce, according to Sutter Gold Mining officials.

So at today’s rate of about $1,600 an ounce, the company says exploring for gold is well worth the investment.

Investors Betting Millions On Sierra Gold Mine

David Howard

Our family took a mine tour here several years ago. They have a great mine ready to go. If I were younger I would apply for a job with them. I’m planning to buy stock in the operation. I own a placer mine myself and have discovered four gold lodes in the last few years, one of which assayed out at 3 ozs./ton.
http://goldtent.org/?p=75715 Poster's Paradise » ipso_facto

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Stealth force

@ Murray Rosner
There are 35840 ounces in a ton. At $1,600 an ounce thats $57,344,000 per ton x 20 tons is $1,146,880,000. Thats one billion, one fourty-six million, eight hundred eighty thousand.
Stealth force

Correction, I forgot to use try ounces So it is actually 32,666 troy ounces x $1,600= $52,265,600 x 20= 1,045,312,000
Thaddeus

20 to 1 odds they stick the environmental costs of the operation to the tax payer.
HPS

Is it NOT that anything over 6′ down belongs to the government?? and just who’s land is this on? IF it’s government land or even state land they should be paying TAXES on all the natural resources they take from the peoples land.. seems we have A LOT of mines on federal and state land that is being mined BUT those mining it don’t pay taxes on it.. while we CHARGE oil companies for ever barrel of oil it take out of the ground.. someone is getting paid off at the top..

Brian Mader

No…private property is private property, no matter how deep. (Geez what a dumb question.) You also come across as a raving socialist…just saying…
Gary

Politely now, there are surface rights, and then there are mineral rights. Either can be owned by private persons, corporate entities, or the government. Usually, surface rights extend to 100′ from the surface, and mineral rights are everything below. Sutter owns or leases the mineral rights to 3.6 miles along the Mother Lode strike. And yes, they will be paying taxes.

hps

I do know that different states have different laws.. but as you said they will be paying taxes.. I just find it strange that there are companies taking minerals out of Federally (which would be land owned by ALL the populace) held land out west that DON’T pay taxes on their mining activities..

Vaag

Sounds like a typical PUMP AND DUMP story. Walk away fast.

TedJ

DING! DING! We have a winner! It must be a slow news day, Casey Anthony searches and $1 Billon gold mines in California are in the news. The fact that an Australian bank is loaning them $20 million is substantial but it also means the company is already leveraged $20 million. Consider these questions before you “invest” in this company. What will their production capabilities be? Is the record high price of gold going to go up or down by 2013? Will this operation produce anything by 2013? Will the CA EPA shut them down at any point? Will the first $20 million cover their start up costs? Will they need to borrow more to even produce anything?

Ken

Yeah, a 600k oz mine is not newsworthy. PLenty of better opportunities out there.

Steve

I live in the area and people still prospect in the American River as a weekend hobby. When we go rafting, we’ll sometimes see people panning and digging on the river banks. One guy I talked to said he takes in a few hundred dollars a weekend, b/c the price of gold is so high right now. There’s still quite a bit of gold up there, but it wasn’t profitable to search for it again until very recently. Now, everyone is a weekend 49′er.

BTW, what’s with all the freaky right-wing talk on this thread? Oh, wait, Drudge linked to this story.

Mikey

WWHHHAAAAAAAAAAAAAAAA!!!!!

Gary

Dead wrong. I have been following this project for awhile, and SGM’s Use Permit is for 50 years. As long as the gold price stays up, which it will, they’re not going anywhere. Believe it or not, this is the real deal.
me

It will never happen.
The enviro-nazi’s will file lawsuit after lawsuit to hold the operation up.
It’s irrelevant if the lawsuit has merit or not – they are nuisance lawsuits, and you have to respond and spend millions in lawyer fees, until you tire of the harassment and just give up.
Dave

Gold miners mine investors, NOT gold.
http://goldtent.org/?p=75968 Poster's Paradise » Now from a Midas Icon

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jackie

Blasting, I do not like the sound of that, who ok’d this blasting, take that blasted blasting apparatus back to Australia and leave it there. Hiel California!
http://www.archive.orbusmax.com/?p=413 ORBUSMAX ARCHIVES » Links From 7/21/11

[...] starts for Cottage Grove coach, teacher accused of sex abuse… Investors Pour Millions Into Northern California Gold Mine ‘Worth A Billion’…&#823… Update: Randy and Evi Quaid Win Their Extradition Fight, Can Stay in [...]
http://thecryptojournalist.wordpress.com The Cryptojournalist

Great cheap investment for an Ozzie company.

http://rhymeandreasonable.com

Also, love the phrase Motherload
http://sierrafoothillsreport.com/2011/07/22/emgold-redux-in-amador-county/ Emgold redux in Amador County « Jeff Pelline's Sierra Foothills Report

[...] The rest of the article is here. [...]
jackie

My youngest brother has been scuba diving for gold up in those hills oops mountains for years he hasn’t struck it rich yet but makes enough to pay his expenses so he doesn’t have to have a full time job and he would rather do that than clean his garage or mow his lawn, his yard looks like the Baja jungle. He certainly has never harmed the landscape searching for his gold.
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