SOURCE: New Jersey Mining Co

July 08, 2010 12:16 ET

New Jersey Mining Company Begins Drilling at Toboggan Project

KELLOGG, ID--(Marketwire - July 8, 2010) -  New Jersey Mining Company (OTCBB: NJMC) is pleased to announce that core drilling has commenced at the Toboggan project at the Gold Butte prospect. The Toboggan project is a gold exploration joint venture between New Jersey Mining Company and Newmont North America Exploration Limited (Newmont), a subsidiary of Newmont Mining Corporation, which covers an area of 38 square miles north of Murray, Idaho.

Drilling at Gold Butte in 2009 intercepted a pyritic quartz vein along a fault structure at a shallow depth of 24 meters that assayed 2.51 grams per tonne (gpt) gold over 4 meters including a higher grade section of 1 meter of 7.15 gpt gold. The goal of this summer's drilling will be to make multiple intercepts of the mineralized structure to define the strike and dip of the structure so that a projection of where the structure intercepts a more favorable quartzite unit at depth can be made as well as to more accurately assess the grade of the vein.

Reverse circulation drilling is also planned for the Mineral Ridge and Golden Reward prospects, but the timing of the drilling is dependent upon an approved plan of operations from the U. S. Forest Service which is expected in late summer or early autumn.

Drilling is also planned for the Progress prospect in 2010. The Progress is a gold-tellurium showing where soil sampling has delineated a zone with anomalous gold-in-soils that is 350 meters long by 80 meters wide. Old adits and trenches have exposed gold mineralization and a sample taken from the dump of one of the adits assayed 73.7 grams per tonne (gpt) gold, 92.5 gpt silver and 54.6 gpt tellurium. A one meter wide chip sample was obtained in one of the adits by NJMC's field geologist that assayed 12.9 gpt gold, 11.4 gpt silver and 10.6 gpt tellurium.

At the Golden Chest, miners have completed the repair work necessary to begin an exploration crosscut to explore a high grade drill intercept announced on June 24. The intercept in DDH 10-01 was 27 centimeters of 864.48 gpt gold. Since the intercept is about 7 meters above the No. 3 level, a crosscut is being driven 16 meters to the west to the down-dip projection of the high grade vein. Once the crosscut intercepts the vein, drifting on the vein will commence in preparation for driving a raise up to the intercept. The crosscut is expected to intercept the vein by the end of July.

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.

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