KELLOGG, Idaho, Sept. 28, 2011 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce the drill intercept of 21.6 meters of 5.07 g/t gold (true thickness) in drill hole GC 11-34 from a core drilling program underway at the Golden Chest mine in Murray, Idaho. The open pit resource drilling continues to show good intercepts of near-surface gold mineralization as displayed in the table below. The Golden Chest is owned 50% by NJMC and 50% by Marathon Gold Corporation (TSX:MOZ) and NJMC is the operator.
Fred Brackebusch, President of New Jersey Mining commented, " The definition drilling being conducted for the open pit resource is yielding results better than I expected based on Newmont's widely spaced reverse-circulation drilling done in 1988 and 1989. A new resource estimate is planned to be completed by the end of this year."
All grades in this release are uncut, and all thicknesses are estimated true thicknesses
Highlights:
- GC 11-34 returned 5.07 g/t gold over 21.6 m (true thickness) from 25.8 to 71.1 meters including 10.8 g/t gold over 3.8 meters (true thickness) at 45.9 meters down the hole.
- GC 11-33 returned 3.00 g/t gold over 19.9 m (true thickness) from 22.0 to 55.1 meters including 16.1 g/t gold over 2.5 meters (true thickness) at 26.5 meters down the hole.
- GC 11-39 returned 1.94 g/t gold over 29.1 m (true thickness) from 3.4 meters down the hole.
- GC 11-28 returned 1.86 g/t gold over 13.3 m (true thickness) from 33.0 meters down the hole.
| Table 1 – Significant Drill Intersections at the Golden Chest Mine | ||||||
| DDH | Resource Target | From (m) | To (m) | Core Width (m) | True Thickness (m) | Gold (g/t) |
| GC 11-33 | Open Pit | 22.0 | 55.1 | 33.1 | 19.9 | 3.00 |
| includes | 26.5 | 30.6 | 4.1 | 2.5 | 16.1 | |
| GC 11-34 | Open Pit | 25.8 | 71.1 | 45.3 | 21.6 | 5.07 |
| includes | 45.9 | 53.8 | 7.9 | 3.8 | 10.8 | |
| GC 11-38 | Open Pit | 33.0 | 54.2 | 21.2 | 13.3 | 1.86 |
| GC 11-39 | Open Pit | 3.4 | 47.6 | 44.2 | 29.1 | 1.94 |
| includes | 3.4 | 18.7 | 15.3 | 10.1 | 5.06 | |
| GC 11-42 | Open Pit | 4.9 | 28.0 | 23.1 | 23.1 | 0.49 |
| GC 11-43 | Open Pit | 77.3 | 93.9 | 16.6 | 16.6 | 0.86 |
| GC 11-44 | Open Pit | 86.6 | 95.5 | 8.9 | 8.4 | 0.54 |
| Open Pit | 103.2 | 113.9 | 10.7 | 10.1 | 0.35 | |
| GC 11-45 | Open Pit | 99.5 | 130.1 | 30.6 | 24.9 | 0.46 |
| Note that hole numbers missing in the sequence above may have already been released, are in the process of being logged by geologists, or are awaiting assay analysis. | ||||||
Surface core drilling at the Golden Chest is still focused on drilling out the open pit target on a 25 m by 25 m grid that extends for 250 meters north-south and approximately 150 meters east-west. It is expected that this grid drilling will be completed in early October, and then drilling will focus on stepping out from the grid in at least 50 meter increments. Two drill rigs are currently working on the open pit resource drilling and have completed approximately 7,600 meters to date. The joint venture partners plan to complete at least 10,000 meters of drilling this year. Drilling will continue on surface until the weather no longer permits it.
An NI 43-101 report is in preparation which will include open pit and underground resources. The resource estimation is scheduled to begin in November, 2011 and be completed by the first quarter of 2012.
The Golden Chest Mine
The Golden Chest Mine is located two miles east of Murray, Idaho within the gold belt of the Coeur d'Alene Mining District. The mine has over 3,900 meters of underground workings and has the permits necessary to drill and operate on the deposit. The property includes 24 patented mining claims and 70 unpatented mining claims covering 497 hectares. The patented claims that cover the mine workings have mineral and surface rights enabling the JV to work easily on the mine property.
All of the samples were analyzed by American Analytical of Osburn, Idaho, an ISO certified laboratory. Samples were analyzed using lead collection fire assay with a gravimetric finish. A series of known assay standards are submitted with each drill hole as part of a quality assurance- quality compliance program.
About New Jersey Mining Company:
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 New Jersey Mine which includes a fully-permitted flotation mill and a concentrate leach plant.
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.