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Northern California Gold Mine To Shift From Tourism To Digging

SUTTER CREEK (CBS/AP) - A Northern California gold mine that has been a tourist attraction for years could go back to mining as high gold prices boost the promise of profits.

Sutter Gold Mining Inc. has lined up $20 million in financing to restart operations. The deal could close as early as next week.

Chief financial officer Bob Hutmacher said Friday that the 400-foot-deep hard-rock mine near Sutter Creek, in the Sierra foothills, has secured state permits but needs local construction approvals. If all goes as planned, mining could start next summer.

The mine opened in 1989 but has mainly hosted tour groups since the 1990s. The owners say gold prices, topping $1,500 an ounce, make mining economically attractive again.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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