Gold Mining Halted in Amador County
February 28, 2014
Due to problems with milling processes, Sutter Gold Mining Inc. is temporarily suspending operations at its Lincoln Mine Project near Sutter Creek in Amador County. When Sutter Gold announced the Lincoln project two years ago it said the site could yield up to 680,000 ounces of gold. The site is the first commercial underground gold mine operation in California's Mother Lode region in more than 50 years.
However, during the past year the project has been cripples by changes in management, skittish investors pulling out due to the declining price in gold and concerns about the stability of the mining equipment at the site.
Sutter Gold is now saying it will cost nearly $1.2 million to remove water, move equipment, improve ventilation systems and install other necessary equipment to make the mine safe and ready for operation.
To date, Sutter Gold has processed 1,000 tons of stockpiled ore, way short of its goal of 3,500 tons. Rick Winters, interim president and CEO told the Sacramento Bee, "There is no sense operating the mill and incurring additional costs until we have addressed the issue".
Sutter Gold did not say how many miners would be affected by the temporary suspension.