COEUR D'ALENE, Idaho, Nov. 16, 2015 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCQB:NJMC) (“NJMC” or the “Company”) announced today that it has commissioned data compilation and scoping studies at the Golden Chest Mine in Murray, Idaho. The Company holds a 47.88-percent interest in the Golden Chest and recently signed an Option Agreement giving it the right to purchase the remaining interest in the project.
NJMC CEO Del Steiner stated, “Juniper and SMD were outstanding partners at the Golden Chest. Upon their decision to exit, we worked closely to ensure that the mine was left with future production in mind, as it was our intention to pursue ownership consolidation and to consider the possibility of resuming production ourselves. We were familiar with the near-term production possibilities of the mine, and now we have actual production records, drilling, and additional modeling to incorporate into our future plans.”
The scoping study is focused on near-mine mineralization, including areas that were included in the Juniper mine plan but were not mined, as well as other accessible, drill-tested areas. NJMC intends to use resulting information to develop a small-scale mining plan, with a production target of 2,000 to 3,000 tons of ore per month. All future ore production would be processed at the New Jersey Mill.
NJMC is now leaching approximately 10 tonnes of flotation concentrate for Juniper, produced from ore mined in the Skookum Shoot, in the Concentrate Leach Plant (CLP) at the New Jersey Mill. The purpose of the leaching project is to confirm that the Skookum concentrate is as leachable as previous flotation concentrates produced from the Golden Chest. Additionally, an improved leaching process that employs a Carbon-in-Leach finishing tank is being tested, with the potential to reduce process time and increase gold recovery. Early indications are that the Skookum concentrate is amenable to leaching and electrowinning of pregnant leach solution is underway. Results from this project will be used to design an improved CLP for future processing of Golden Chest concentrates.
The compilation study will seek to integrate all modern exploration data from the Golden Chest property and across the Murray area. This includes work by Cominco in the 1970’s and Newmont in the 1980’s, exploration data produced by NJMC, the global resource and other data presented in the NI 43-101 Technical Report generated by the Golden Chest LLC (our JV with Marathon Gold) and the recent high-quality information provided by Juniper. Besides remaining mineralization in and around the main Skookum Shoot, there is substantial exploration potential in on-strike extensions such as the Paymaster zone, and in areas of past exploration and historic production to the north.
The studies are being conducted by a team of experienced geologists knowledgeable with regard to Silver Valley deposits and mine operations. Results are expected by mid-December.
Finally, the Company announced today that its President, John Swallow, has extended the Company a line of credit, beginning with an initial $250,000 tranche. Amounts drawn from this line of credit will accrue interest at a rate of 5-percent.
Mr. Swallow stated, “In times like these, it is important for us to advance the Company in areas over which we have control. We have a great team and this line of credit will allow us to move forward with studies and other preparations for possible small-scale production at the Golden Chest, without excessive dilution or financing under less than favorable terms.”
In September 2013, the Skookum Shoot portion of the Golden Chest Mine was leased to Juniper Resources LLC (“Juniper”) which, through its affiliate companies, spent approximately US$7 to US$9-million to develop a state-of-the-art gold mine that began producing ore in late-2014. In September 2015, Juniper ceased mining operations and terminated its lease, forfeiting the remaining mineralized material and mine infrastructure. NJMC processed Golden Chest ore at its New Jersey Mill during the Juniper Lease, earning cash from milling fees and its share of a 2-percent NSR royalty on gold production.
About New Jersey Mining Company
New Jersey Mining Company is headquartered in north Idaho where it built and is the majority-owner and operator of a fully-permitted, recently upgraded, 360-tonne per day flotation mill and concentrate leach plant. The Company is manager and 47.88-percent owner of Golden Chest LLC, which owns the Golden Chest Mine, an historic lode gold producer on patented claims near Murray, Idaho. 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.
Such factors include, among others, the risk that anticipated production levels are not attained, the risk that the mine plan changes due to rising costs or other operational details, the risk that different portions of the mineral deposit respond differently to processing, the risk that Juniper’s internal engineering studies are incorrect, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver and a sustained lower price environment, as well as other uncertainties and risk factors. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. NJMC disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.