KELLOGG, Idaho, Jan. 10, 2012 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce the drill intercept of 42.5 meters of 1.48 g/t gold (true thickness) in drill hole GC 11-86 from a core drilling program underway at the Golden Chest mine in Murray, Idaho. The Golden Chest is owned 50% by NJMC and 50% by Marathon Gold Corporation (MOZ.TO) and NJMC is the operator.
"The 2011 exploration program at the Golden Chest successfully demonstrated that the property has robust gold grades and thicknesses in near-surface veins that are attractive in an open pit mining scenario. Additionally, the 2011 drilling extended the Idaho vein underground resource at depth and the mineralization remains open ended at depth and along strike. A total of 11,300 meters were drilled in 2011. We look forward to larger drilling program in 2012 as there is excellent potential to increase the open pit and underground resource of this property," commented NJMC Vice President Grant Brackebusch.
All grades in this release are uncut, and all thicknesses are estimated true thicknesses.
Highlights:
- GC 11-86 returned 1.48 g/t gold over 42.5 meters from 47.5 meters to 106.1 meters. This hole was drilled on the 4650N section which is 100 meters north of Idaho Hill, where most of the open pit resource drilling was completed in 2011, which is encouraging for expanding the open pit resource area.
- GC 11-80 returned 5.60 g/t gold over 8.0 meters from 25.5 meters down the hole. This hole was a 50 meter step-out hole to the north of the Idaho Hill area.
- GC 11-75 returned 2.21 g/t gold over 18.0 meters from 6.6 meters to 24.6 meters and another interval of 0.48 g/t gold over 11.5 meters from 42.1 meters to 53.6 meters.
- GC 11-84 returned two near-surface intervals of gold mineralization over 500 meters north of Idaho Hill.
- NI 43-101 resource estimation work is underway using the 11,300 meters of drilling completed this year. The resource is expected to be completed in the first quarter of 2012.
| Table 1 – Significant Drill Intersections at the Golden Chest Mine | ||||||
| DDH | Section |
From (m) |
To (m) |
Core Width (m) |
True Thickness (m) |
Gold (g/t) |
| GC 11-69 | 4500N | 23 | 28.2 | 5.2 | 1.6 | 1.23 |
| 4500N | 43.1 | 51.4 | 8.3 | 2.6 | 0.97 | |
| GC 11-70 | 4525N | No significant intercepts | ||||
| GC 11-71 | 4525N | 4.1 | 6.8 | 2.7 | 2.7 | 1.39 |
| 4525N | 26 | 36.8 | 10.8 | 10.8 | 0.58 | |
| GC 11-72 | 4525N | 12.2 | 15.7 | 3.5 | 1.6 | 1.55 |
| GC 11-73 | 4550N | 21.2 | 29.7 | 8.5 | 1.5 | 0.55 |
| 4550N | 37 | 53 | 16 | 2.8 | 1.35 | |
| GC 11-74 | 4600N | 7.2 | 18.2 | 11 | 7.9 | 0.46 |
| GC 11-75 | 4450N | 6.6 | 24.6 | 18 | 18 | 2.21 |
| 4450N | 42.1 | 53.6 | 11.5 | 11.5 | 0.48 | |
| GC 11-76 | 4450N | 56.6 | 85 | 28.4 | 24.3 | 0.75 |
| GC 11-77 | 4475N | 133.6 | 135.6 | 2 | 2 | 3.23 |
| GC 11-78 | 4550N | 7 | 12.5 | 5.5 | 5.5 | 0.56 |
| GC 11-79 | 4350N | 80.3 | 96.4 | 16.1 | 13.5 | 2.34 |
| GC 11-80 | 4600N | 25.5 | 34 | 8.5 | 8 | 5.6 |
| GC 11-81 | 4600N | 31 | 43.9 | 12.9 | 7.1 | 0.54 |
| 4600N | 52.3 | 56 | 3.7 | 2 | 0.89 | |
| 4600N | 81.1 | 106 | 24.9 | 13.7 | 0.46 | |
| GC 11-82 | 4650N | 7 | 10.3 | 3.3 | 3 | 0.63 |
| GC 11-83 | 5030N | 37.8 | 44.3 | 6.5 | 4.7 | 0.5 |
| Hit Void Before Target | ||||||
| GC 11-84 | 5030N | 37.9 | 55.4 | 17.5 | 15.8 | 0.7 |
| 5030N | 66.2 | 77.8 | 11.6 | 10.5 | 1.56 | |
| including | 67.6 | 69 | 1.4 | 1.3 | 10.4 | |
| GC 11-85 | 4575N | 26.3 | 48.6 | 22.3 | 22.3 | 1.22 |
| GC 11-86 | 4650N | 47.5 | 106.1 | 58.6 | 42.5 | 1.48 |
| GC 11-87 | 4650N | 34.2 | 52.2 | 18 | 18 | 0.75 |
| GC 11-88 | 4575N | 46 | 52.4 | 6.4 | 6.1 | 0.52 |
| 4575N | 75.9 | 102.5 | 26.6 | 25.3 | 0.55 | |
The 2011 exploration and development program at the Golden Chest mine achieved some important goals including compiling and verifying historic data, carrying out a total of 11,300 meters of diamond drilling, and completing an NI 43-101 qualifying report. The success of the 2011 program has justified a resource estimation which is now underway and scheduled for completion in the first quarter of 2012. During the first quarter of 2012, drilling is expected to be focused on underground mineralization and then moving on to defining and exploring open pit potential mineralization as weather conditions permit.
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 515 hectares. The patented claims that cover the mine workings have mineral and surface rights enabling the joint venture 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.