COEUR D'ALENE, Idaho, March 02, 2016 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCQB:NJMC) (“NJMC” or the “Company”) announced today that it has signed a Memorandum of Understanding (MOU) to modify the Operating Agreement that governs management of the Butte Highlands Gold Project (“Butte Highlands”), a high-grade, underground gold mine near Butte, Montana.
NJMC and Highland Mining LLC each hold a 50-percent interest in Butte Highlands Joint Venture LLC (“BHJV”) which owns Butte Highlands. Highland Mining is funding all mine development costs through to commercial production with NJMC’s share of those costs to be repaid from proceeds of future mine production. Highland Mining is a wholly-owned subsidiary of Montana State Gold Company LLC (“MSGC”).
The non-binding MOU calls for NJMC, based on agreed to budgets and financing, to assume control of permitting and other day-to-day management functions at Butte Highlands, most of which will be led by NJMC Vice-President Grant Brackebusch. The Company and Highland Mining LLC have agreed to then formalize the MOU and execute a definitive agreement for purposes of moving the project forward and financing it into production.
NJMC President John Swallow stated, “Our business plan is to strategically develop and/or acquire assets that have the potential to provide cash flow for our shareholders and this is another step in that direction. We recently met with our joint venture partner and together we outlined a ‘big picture’ plan, from permitting and engineering to financing and eventual production. As we and our partner clearly possess complementary skill sets, we agree that we can and should move forward in a logical and professional manner, building upon the outstanding development work performed to-date at Butte Highlands.”
Highland Mining Manager Sima Muroff added, “We are excited to have NJMC as our new partner at Butte Highlands. John and the NJMC team have a proven track record of entrepreneurial spirit, successful operations, and a commitment to their shareholders. Together, we look forward to developing a solid working relationship as we advance Butte Highlands toward production, creating sustainable jobs and other tangible benefits to the Butte community.”
More than $30-million has been invested at Butte Highlands since 2009, including more than 4,500 feet of underground development and construction of surface facilities, all of which are on private lands owned by BHJV. Construction at Butte Highlands was completed primarily by Small Mine Development Corporation, which also constructed a modern gold mine at NJMC’s Golden Chest property.
NJMC also announced today that it is developing plans to resume production at its Golden Chest Mine this summer. The Company purchased and took delivery of an underground dump truck and an underground loader last week and expects to lease a variety of now-idle underground mining equipment and vehicles from BHJV. NJMC will provide further updates on its preparations and plans at Golden Chest as they are finalized.
The Golden Chest Mine produced ore from late-2014 until September 2015, all of which was processed at the New Jersey Mill. Upon the cessation of operations, NJMC maintained the project with resumed production in mind, supported by production records and all drilling and modeling data. A recent scoping study assessed the production readiness of near-mine mineralization, including areas that were included in the mine plan but were not mined, as well as other accessible, drill-tested areas. NJMC seeks to develop a small-scale mining plan at Golden Chest with a production target of 3,000 tonnes per month.
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.
The Company built and is majority-owner and operator of a fully-permitted, recently upgraded, 360-tonne per day flotation mill and concentrate leach plant. The Company is also 100-percent owner of the Golden Chest Mine, an historic lode gold producer that was recently expanded, modernized, and operated by a world-class lessee; and holds a 50-percent interest in the Butte Highlands Gold Project, where more than $30-million has been invested to-date.
Ownership interests in a mill and two mines, all of which are fully permitted, set NJMC apart from other junior resource companies.
The Company’s common stock trades on the OTC-QB 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.