KELLOGG, Idaho, March 15, 2010 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce that it has completed a private placement of 3,115,000 Units at $0.17 per Unit for gross proceeds of $529,550. Proceeds are planned to be used to start gold and silver production at the New Jersey mill in Kellogg with ore mined from the Company's Silver Strand and New Jersey mines.
Each Unit consists of one share of common stock plus one warrant with each warrant exercisable into a share of common stock at a price of $0.30 until January 31, 2013. Pennaluna & Co. of Coeur d'Alene, Idaho, acted as the placement agent for the offering.
Proceeds will be used to start gold and silver production at the New Jersey mill where a crew is already working on minor modifications and improvements to the concentrate leaching circuit. The New Jersey mill is capable of producing gold-silver dore' bars by using direct-electrowinning of a pregnant solution. Processing operations are planned to start in April with material from exploration drifting on the Coleman vein at the New Jersey mine. A mining crew has already started work on the Coleman vein with several rounds blasted already.
Mobilization to the Silver Strand mine is planned for early May as stipulated by the operating permit with the USFS. It is expected that about one month of preparation work will be required before shipment of ore to the mill begins. The plan calls for mining about 4,000 tonnes from an ore block above the No. 3 Level. Current prices for gold and silver make the economics of mining at the Silver Strand attractive as the ore is relatively high grade at 361 grams per tonne (gpt) silver and 5.43 gpt gold.
The Company is currently searching for potential joint venture partners to fund the development of its Golden Chest mine. The Company has developed a mine plan with a budget of about $3 million that would complete the ramp to the Idaho vein and start mining a higher grade portion of the vein in six months at an annual rate of 10,000 ounces of gold per year. Ore would be shipped to the fully-permitted New Jersey mill in Kellogg. Concurrent with mining, a surface and underground core drilling program of 10,000 meters would commence. The objective of the mine plan would be to determine if the construction of a large flotation mill at the Golden Chest, capable of producing 50,000 ounces of gold per year, can be justified.
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 Toboggan project, the Niagara copper-silver deposit, the Golden Chest project, the New Jersey mine, and the Silver Strand mine. The New Jersey mine includes a fully-permitted flotation mill and 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.
Further information about New Jersey Mining Company and its properties can be found at the company's website at www.newjerseymining.com .