KELLOGG, Idaho, Sept. 7, 2011 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce the drill intercept of 29.2 meters of 5.15 g/t gold (true thickness) in drill hole GC 11-41T 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 well as the potential for very high grade veins in the hanging-wall of the Idaho fault as displayed by GC-11-41T which included a 0.9 meter interval (true thickness) of 137 g/t gold. The Golden Chest is owned 50% by NJMC and 50% by Marathon Gold Corporation (TSX:MOZ) and NJMC is the operator.
Phillip Walford, President and CEO of Marathon commented: "We are very pleased with the continuing results from Golden Chest Mine and the 2011 exploration program. These results are better than expected and are demonstrating the potential for a robust open pit resource. The work is on target for an underground and open pit resource by year end, followed by a 43-101 compliant report."
All grades in this release are uncut, and all thicknesses are estimated true thicknesses
Highlights:
- GC 11-41T returned 5.15 g/t gold over 29.2 m (true thickness) from 18.0 to 58.0 meters including 137.0 g/t gold over 0.9 meter (true thickness) at 21.1 meters down the hole. Many grains of visible gold were observed in this interval.
- GC 11-32 returned 2.96 g/t gold over 14.8 m (true thickness) from 12.3 meters down the hole.
- GC 11-37 returned 1.51 g/t gold over 27.9 m (true thickness) from 21.0 meters down the hole.
- GC 11-26 returned 1.48 g/t gold over 26.6 m (true thickness) from 19.2 meters down the hole.
| Table 1 – Significant Drill Intersections at the Golden Chest Mine | ||||||
| DDH | Resource Target | From | To (m) |
Core Width (m) |
True Thickness (m) |
Gold (g/t) |
| (m) | ||||||
| GC 11-26 | Open Pit | 19.2 | 64.9 | 45.7 | 26.6 | 1.48 |
| includes | 28.2 | 31.2 | 3 | 1.75 | 12 | |
| GC 11-27 | Open Pit | 62.4 | 77.9 | 15.5 | 12.4 | 0.59 |
| GC 11-29 | Open Pit | 73.9 | 102.5 | 28.6 | 19.5 | 1.58 |
| GC 11-30 | Open Pit | 91.2 | 112.2 | 21 | 15.4 | 1.3 |
| GC 11-31 | Open Pit | 4.5 | 10.5 | 6 | 6 | 1.68 |
| GC 11-32 | Open Pit | 12.3 | 29 | 16.7 | 14.8 | 2.96 |
| GC 11-36 | Open Pit | 7.2 | 28.2 | 21 | 12.8 | 0.44 |
| GC 11-37 | Open Pit | 21 | 50 | 29 | 27.9 | 1.51 |
| includes | 21 | 33.8 | 12.8 | 12.3 | 2.64 | |
| GC 11-41T | Open Pit | 18 | 58 | 40 | 29.2 | 5.15 |
| includes | 18 | 30.4 | 12.4 | 9 | 14.3 | |
| includes | 21.1 | 22.3 | 1.2 | 0.9 | 137 | |
| includes | 41.5 | 58 | 16.5 | 12 | 1.68 | |
| DDH05-01 | Open Pit | 3.6 | 23.3 | 19.7 | unknown | 1.16 |
| 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. | ||||||
DDH05-01 was drilled by NJMC in 2005, but was not assayed until recently because the targets at the time were high-grade veins amenable to underground mining. This intercept is significant because it occurs in an area 380 meters north of the current drilling. Drillhole GC 11-36 is also notable because it was collared in the footwall of the Idaho vein in a quartzite unit of rock, yet it indicates potentially economic levels of gold outside of the Idaho vein envelope.
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. 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 with a goal of completing 10,000 meters of drilling this year.
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.
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.