KELLOGG, Idaho, July 13, 2011 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce the drill intercept of 29.6 meters of 1.56 g/t gold (true thickness) in drill hole GC 11-16 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 (TSX:MOZ) and NJMC is the operator. All drill intersections in this release are undiluted.
"These most recent drill results from the Golden Chest mine as part of our 2011 exploration program are exciting, and represent solid results for a potential open pit resource. The mineralization is near surface and essentially follows the slope of the hillside, so the amount of waste to be removed would be low," said Phil Walford, President and CEO of Marathon Gold. "We remain on track for NI 43-101 compliant resource by year end."
Highlights:
- GC 11-16 returned 1.56 g/t gold over 29.6 m (true thickness) from near 4.3 meters down the hole.
- GC 11-17 returned 1.18 g/t gold over 38.0 m (true thickness) from 9.3 meters down the hole.
- GC 11-19 returned 1.29 g/t gold over 24.9 m (true thickness) from 32.1 meters down the hole.
- Visible gold was observed in each of the open pit holes detailed in this release.
- GC 11-09 returned 7.23 g/t gold over 2.9 m (true thickness) in further underground drilling of Idaho vein.
- GC 11-10 returned 6.77 g/t gold over 2.4 m (true thickness) in further underground drilling of the Idaho vein.
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 11-09 | U/G Idaho Vein | 156.1 | 159.0 | 2.9 | 2.9 | 7.23 |
| GC 11-10 | U/G "H" Vein | 91.5 | 92.2 | 0.7 | 0.4 | 12.0 |
| U/G Idaho Vein | 191.0 | 195.8 | 4.8 | 4.5 | 4.74 | |
| includes | 192.0 | 194.7 | 2.7 | 2.4 | 6.77 | |
| GC 11-14 | Open Pit | 5.6 | 25.8 | 20.2 | 14.5 | 1.38 |
| includes | 16.7 | 17.2 | 0.5 | 0.36 | 20.90 | |
| 31.8 | 45.8 | 14.0 | 10.1 | 0.59 | ||
| GC 11-15 | Open Pit | 13.5 | 45.2 | 31.7 | 30.0 | 0.60 |
| includes | 35.5 | 36.2 | 0.7 | 0.66 | 11.40 | |
| GC 11-16 | Open Pit | 4.3 | 36.3 | 32.0 | 29.6 | 1.56 |
| includes | 13.9 | 16.5 | 2.6 | 2.4 | 8.30 | |
| GC 11-17 | Open Pit | 9.3 | 61.4 | 52.1 | 38.0 | 1.18 |
| includes | 32.0 | 36.6 | 4.6 | 3.4 | 3.36 | |
| GC 11-18 | Open Pit | 34.0 | 37.4 | 3.4 | 2.4 | 7.70 |
| includes | 34.7 | 35.7 | 1.0 | 0.7 | 23.47 | |
| 53.7 | 65.7 | 12.0 | 8.6 | 0.58 | ||
| GC 11-19 | Open Pit | 32.1 | 70.8 | 38.7 | 24.9 | 1.29 |
| includes | 56.2 | 59.0 | 2.8 | 1.8 | 8.66 | |
Initially, the open pit resource drilling appears to confirm the open pit potential of the property indicated by historic reverse-circulation drilling completed by Newmont in the late 1980's. In the drilling completed so far, most of the holes have intersected a series of veins or stacked veins, predominantly in the hanging-wall of the Idaho fault.
Surface core drilling at the Golden Chest is now 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. Drill holes GC 11-14 through GC 11-19 were drilled from the southern end of the grid and the plan is for drilling to progress to the north. Two drill rigs are currently working on the open pit resource drilling with a goal of completing the drilling in time for a year-end NI 43-101 resource estimate.
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.
Underground rehabilitation of the No. 3 level is underway in the northern part of the mine, the Katie-Dora area, and about 120 meters of drift have been repaired in preparation for an underground winter drilling program.
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.
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.