COEUR D'ALENE, Idaho, June 3, 2014 (GLOBE NEWSWIRE) -- New Jersey Mining Company ("NJMC" or the "Company") (OTC:NJMC) today announced that its first completed drill hole from the underground workings of the historic McKinley Mine has intercepted additional high-grade gold.
Following its recent channel sampling program at the McKinley Mine, NJMC developed a small, low-cost, core drill system particularly useful in tight underground spaces. The drill system was deployed at McKinley to test mineralized zones both from surface and from within the historic underground workings. NJMC is now planning a more comprehensive underground drill program to characterize and extend at least five known mineralized gold zones. The Company's near-term goal is to delineate a mineable tonnage which would be evaluated for processing at its New Jersey Mill in Kellogg.
The first completed hole of the current program was drilled to a depth of 23.3 feet (7.1 meters) and intercepted high-grade mineralization from 9.07 to 17.43 feet (2.76 to 5.31 meters). The 8.36-foot (2.55-meter) interval returned a weighted average grade of 1.36 ounces per ton (opt) gold (46.48 grams per ton (gpt) gold) including a 5.09-foot (1.55-meter) interval grading 2.00 opt gold (68.6 gpt gold). All assays were performed by ALS Chemex.
NJMC CEO Del Steiner stated, "Our ownership of the New Jersey Mill allows us to focus on smaller deposits often overlooked or uneconomic to others. Our small space drill is especially useful in the cramped quarters often encountered in historic mine workings or where surface access is limited or difficult. While our drill system does not replace core drilling with larger rigs, it will allow us to perform inexpensive preliminary drill tests to determine if the expense of a larger drill rig is warranted at a particular target location."
The McKinley Mine has 3,900 feet of underground workings on four levels with two entrances, most of which are in good condition, providing sampling access to gold-mineralized zones. Recent underground channel sampling has indicated the widespread presence of high-grade gold. Highlights include a 14-foot continuous channel that returned a weighted average of 1.37 opt gold (4.3 meters of 47 gpt gold). (See NJMC press releases dated March 10 and March 25 for more details.)
In 2013, NJMC acquired an exclusive exploration and mining lease on the McKinley Project, which covers several historic mines and prospects, including the McKinley Mine, on roughly 4,250 acres of private land near the town of Lucile in central Idaho. NJMC has a 12-month option to purchase the McKinley Mine, located on 62 acres within the overall land package.
About New Jersey Mining Company
New Jersey Mining Company (NJMC) is located in North Idaho's Silver Valley where it built and is the majority-owner and operator of a fully-permitted 360-tonne per day flotation mill and concentrate leach plant. The Company is actively engaging clients for custom milling contracts while also pursuing its own small-scale production opportunities.
With its mill ownership, in-house expertise, and strategic relationships, NJMC has a unique ability to focus on the acquisition and development of smaller gold deposits in historic mining districts. The Company also owns a 47.88-percent interest in the Golden Chest LLC which controls the Golden Chest Mine, a former gold producer with more than 12,000 feet of underground workings. Golden Chest LLC has leased a portion of the Golden Chest Mine to Juniper Resources, with gold production expected to commence later this year.
The Company's common stock trades on the OTC Market under the symbol "NJMC."
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Such statements are based on good faith assumptions that New Jersey Mining Company believes are reasonable but which are subject to a wide range of uncertainties and business risks that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.