KELLOGG, Idaho, Jan. 11, 2011 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce that it has signed a Definitive Agreement with United Mine Services, Inc., a subsidiary of United Mining Group, Inc. (UMG.TO) forming a joint venture that will expand the New Jersey flotation mill in order to process silver ore from the nearby Crescent silver mine as well as ore from the Company's mines.
UMG will pay all the expansion costs, estimated to be $2.3 million, to expand the mill to a nominal processing rate of 15 metric tonnes per hour or 10,000 metric tonnes per month (mtpm). UMG will have the right to 7,000 mtpm with NJMC retaining the right to the remaining 3,000 mtpm. Either party may use the other's milling capacity, if the other party is not using it.
The agreement calls for NJMC to be the mill operator and own 66% of the joint venture. NJMC will receive a fixed per tonne fee for acting as the manager of the milling operation. Long lead time items such as the ball mill and cone crusher are expected to be ordered this month, and the initial schedule calls for the mill expansion to be completed in the first quarter of 2012. Fred Brackebusch Company President commented, "The New Jersey Mill Joint Venture will be beneficial to both NJMC and UMG by reducing operating and capital costs for processing ores from both companies."
New Jersey Mining Company is involved in exploring for and developing gold, silver and base metal resources in the Coeur d'Alene Mining District of northern Idaho. New Jersey Mining Company has a portfolio of mineral properties in the Coeur d'Alene Mining District including, the Golden Chest mine – a joint venture with Marathon Gold Corporation, the Toboggan exploration project – a joint venture with Newmont Mining Corporation, and the Niagara copper-silver deposit.
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. Factors that could cause actual results to differ from those anticipated are discussed in New Jersey Mining Company's periodic filings with the Securities and Exchange Commission.
Further information about New Jersey Mining Company and its properties can be found at the company's website at www.newjerseymining.com .