COEUR D'ALENE, Idaho, Aug. 20, 2014 (GLOBE NEWSWIRE) -- New Jersey Mining Company ("NJMC" or the "Company") (OTC:NJMC) today provided a corporate update with the following highlights:
- NJMC partner Juniper Resources ("Juniper") has commenced mine development at the Golden Chest with ore delivery at the upgraded New Jersey Mill expected in October;
- NJMC has purchased a controlling interest in GF&H, a private company with patented ground near the Golden Chest Mine;
- NJMC has assays pending from its central Idaho projects, with 15 short underground holes drilled at the McKinley Mine and rock chip samples collected from Eastern Star. A 2,900-foot trenching program has also been completed at Eastern Star.
Mine Development Underway at the Golden Chest
Juniper has commenced development at the Golden Chest Mine with substantial site preparation and surface infrastructure completed, including more than 20 meters of drifting for the new No. 3 decline. Juniper expects to begin mining next month and with ore shipments to the New Jersey Mill expected in October. Photos documenting Juniper's progress can be viewed at the NJMC Golden Chest Photo Gallery at http://newjerseymining.com/photo-gallery-golden-chest/.
The Golden Chest Mine is held by Golden Chest LLC which is owned 52.12-percent by Marathon Gold Corporation and 47.88-percent by NJMC. In September 2013, Golden Chest LLC entered into a 39-month Mining Lease with Juniper, granting it exclusive rights to develop and mine the Skookum Shoot portion of the property.
Upgrades at the New Jersey Mill
Significant upgrades have been made at the New Jersey Mill with the gravity circuit now complete and video monitoring equipment installed. NJMC is also expanding its tailings facility to allow for increased storage capacity and is planning additional automation features at the mill.
NJMC built and is the majority-owner and operator of a fully-permitted 360-tonne per day flotation mill and concentrate leach plant located in North Idaho's Silver Valley just two miles east of Kellogg along Interstate 90.
NJMC Purchases Controlling Interest in GF&H
NJMC has purchased a controlling interest in GF&H, a private company that holds 374 acres of patented mining claims near the Golden Chest Mine, for $100,000. Two of the claims are located just south of the Golden Chest and on-strike with the Idaho Fault. The purchase was made for the strategic location and mineral potential of the claims, as well as for their excellent potential for timber harvesting and for land swaps given their location within and near USFS and BLM land.
Underground Drilling at the McKinley Mine
NJMC recently developed a small, low-cost, core drill system particularly useful in tight underground spaces. The "small space" drill system is being used at McKinley to characterize and extend at least five known mineralized gold zones. Fifteen short underground holes have been completed with several core samples submitted to the lab and logging and sampling of remaining drill core nearly complete. Drilling and underground mapping continue at McKinley.
As reported in June, the first completed hole of the current program intercepted an 8.36-foot (2.55-meter) interval that returned a weighted average grade of 1.36 ounces per ton (opt) gold (46.48 grams per ton (gpt) gold). The Company's near-term goal at McKinley is to delineate mineable tonnage for possible processing at its New Jersey Mill. The McKinley project covers approximately 4,250 acres of private land north of Riggins and includes a 12-month option to purchase the historic McKinley Mine, located on 62 acres within the overall land package.
Trenching Underway at the Eastern Star Project
At the Eastern Star project, assays are pending from recent rock chip sampling and a 2,900-foot trenching program has been completed. The Company also reports making a scheduled $125,000 payment and now owns 11 of the 13 patented project claims outright.
NJMC has confirmed the widespread presence of high-grade gold within mineralized quartz vein material on the property with 12 of 27 collected samples returning gold values exceeding 0.16 opt (5.5 gpt) with five of those exceeding 0.5 opt (17.1 gpt) and two samples from a previously un-prospected area returning gold values of 1.57 opt (53.8 gpt) and 2.01 opt (68.9 gpt). The Elk City Mining District is an historic gold mining region dating back to the 1860s that once supported more than 20 mines, including the Eastern Star, along with placer dredging operations. NJMC purchased the Eastern Star project from Premium Exploration Inc. in April.
More information regarding NJMC's projects can be found on the Company website at http://newjerseymining.com/.
Photos documenting progress at all NJMC project locations can be viewed at the NJMC Photo Gallery at http://newjerseymining.com/photo-gallery/.
About New Jersey Mining Company
New Jersey Mining Company (NJMC) is located in North Idaho's Silver Valley where it built and is the majority-owner and operator of a fully-permitted 360-tonne per day flotation mill and concentrate leach plant. The Company is actively engaging clients for custom milling contracts while also pursuing its own small-scale production opportunities.
With its mill ownership, in-house expertise, and strategic relationships, NJMC has a unique ability to focus on the acquisition and development of smaller gold deposits in historic mining districts. The Company also owns a 47.88-percent interest in the Golden Chest LLC which controls the Golden Chest Mine, a former gold producer with more than 12,000 feet of underground workings. Golden Chest LLC has leased a portion of the Golden Chest Mine to Juniper Resources, with gold production expected to commence later this year.
The Company's common stock trades on the OTC 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.