COEUR D'ALENE, Idaho, Aug. 30, 2016 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCQB:NJMC) (“NJMC” or the “Company”) announced today that it has completed its acquisition of GF&H, a private company that holds 374 acres of patented mining claims near NJMC’s Golden Chest Mine Project near Murray, Idaho. The GF&H land package includes claims just south of the mine property and on-strike with the Idaho Fault.
Modern exploration at the Golden Chest property, including nearly 30,000 meters of drilling, has revealed seven NW-trending ore shoots that demonstrate strong periodicity, consistent width and spacing, along the Idaho Fault. Most historic production at Golden Chest came from the northernmost of these shoots, the Katie-Dora and the Klondike. Mineralization potential remains in unmined portions of the northern shoots as well as in the Joe Dandy and Paymaster shoots on the south end of the property.
Recent modeling by NJMC indicates potential for additional mineralization even further south onto the GF&H claims that extend into Ophir Gulch, which adjoins other historic high-grade gold producing properties near the Golden Chest.
NJMC initially purchased a controlling interest in GF&H in 2014, for the strategic location and mineral potential of the claims, as well as for their excellent potential for timber harvesting and for land swaps given their location within and near USFS and BLM land.
The Company has also provided an operations update for its Golden Chest Mine.
NJMC has commenced small-scale open pit mining at Golden Chest, stockpiling its first ore on-site, prior to its shipment to the Company’s nearby New Jersey Mill. The starter pit at Golden Chest contains an estimated 13,000 tonnes of mineralized material with potential for expansion. Furthermore, work toward dewatering of the underground mine workings at the Golden Chest is underway. With the mine fully permitted, the Company can resume underground mining operations immediately following dewatering and any needed rehabilitation.
NJMC President John Swallow stated, “We have firmly believed in the district-scale potential of the Golden Chest property for a long time, therefore it was always our plan to advance the property package following Juniper’s lease on the Skookum Shoot. The acquisition of GF&H and purchase of Marathon’s portion of Golden Chest LLC were logical steps toward our goal of consolidating ownership and resuming operations at the mine. In addition to its proximity to our workings and its prospects for hosting gold mineralization, the claims also have good potential for timber harvesting and we plan to take advantage of that in the coming months.”
Company management believes the Golden Chest property has district-scale production potential for the longer term, not only near the recently constructed mine, but in areas of past exploration and historic production. A compilation study recently integrated all available modern exploration data from the property and across the Murray area. This includes work by Cominco, Newmont, NJMC, Golden Chest LLC, and recent mine lessee Juniper.
Golden Chest LLC completed a NI 43-101 technical report in 2012 and published an updated NI 43-101 compliant open pit Resource Estimate the following year. The 2013 Resource Estimate includes 4.63-million tonnes grading 1.71 grams per tonne (gpt) gold (totaling 254,000 ounces of gold) in the Measured and Indicated categories and 3.86-million tonnes grading 1.80 gpt gold (totaling 223,000 ounces of gold) in the Inferred category. The mine development performed by Juniper in 2014 and 2015 was based largely upon the work completed by Golden Chest LLC.
About New Jersey Mining Company
New Jersey Mining Company is headquartered in north Idaho, where it is deploying its mining and milling expertise to build a portfolio of advanced-stage assets with near-term cash flow potential and leverage to higher gold prices. Company assets were developed with more than $50-million of investment dollars from NJMC and other companies.
NJMC built and is majority owner and operator of a 360-tonne per day flotation mill and cyanide leach plant. The Company is also 100-percent owner of the Golden Chest Mine project, an historic lode gold producer that was recently expanded, modernized, and operated by a world-class lessee. NJMC also holds a 50-percent interest in the Butte Highlands Gold Project.
The NJMC management team believes ownership interests in a mill and two mines set NJMC apart from other junior resource companies. The team has participated in prior financings and purchased NJMC stock in the open market and now owns more than 15-percent of NJMC common stock.
The Company’s common stock trades on the OTC-QB Market under the symbol “NJMC.”
For more information on New Jersey Mining Company, please contact:
Del Steiner, Chairman & CEO
Email: dsteiner@newjerseymining.com
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 complications arise during the dewatering of the underground workings, the risk that the Company is unable to obtain sufficient funds necessary to resume underground mining at the Golden Chest, the risk that gold recovery percentages are lower than expected, the risk that the gravity gold circuit is not operational or does not improve gold recovery, the risk that oxidization levels remain the same or increase as the pit deepens, 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.