Sutter Gold Mining Inc. announced that it has received the building permit to construct the new mill complex at its Lincoln Mine Project in the heart of California's Mother Lode gold belt. The Amador County Building Department issued the key permit on March 1, 2012. The company's Board of Directors approved the development of the Lincoln Project in 2011 based on the positive Preliminary Economic Assessment (PEA) provided by Mine Development Associates of Reno, Nevada, USA. Under the 2011 PEA, gold production in the first five years focuses on the shallow portion of the Lincoln-Comet vein zone, and averages 23,000 ounces per year at a cash cost of about $700 per ounce before royalties. The mine would operate seven days per week at an estimated rate of 150 tons per day (tpd), with the mill rated at 210 tpd operating five days per week. In situ grade of the resource in the first five years is estimated to average 0.57 ounces per ton (opt), with dilution bringing the milled head grade to 0.46 opt. The company cautions that mineral resources that are not reserves have no demonstrated economic viability. A 30-hole exploration program is underway within the current mine envelope. Five holes have been completed and await assay results. The company awarded the foundation construction work for the mill and shop/staff services buildings to DG Granade Inc. of Shingle Springs, California after evaluating proposals from seven qualified firms. DG Granade Inc. is based in neighboring El Dorado County. DG Granade Inc. will use several local suppliers and subcontractors including Amador Transit Mix, Short Circuit Electric, JM & Sons for plumbing and A Allbright Steel Services Inc. to supply steel for rebar fabrication and installation. Site grading is being performed by Doug Veerkamp General Engineering Inc. The completed Tailings Processing Area is currently being used for storage and staging. Purchased mill equipment is being evaluated and refurbished as necessary. Four 700 CFM XLLE type Ingersoll-Rand air compressors were delivered in January to the company's shop in Amador County for inspection by Cisco Air Systems of Sacramento. The Marcy 3 x 3 regrind ball mill has been disassembled for inspection, as well. The company's 's staff has already replaced the wear parts in the purchased Pioneer 10 x 36 primary jaw crusher. The coarse ore bin belt feeders and Denver 24 Sub-A flotation cells are being rebuilt by Mammoth Mine Services in Denver, Colorado for delivery in April and July, respectively. The company expects to accept delivery of the Marcy 6 x 12 primary rod mill in March.