SOURCE: New Jersey Mining Co

New Jersey Mining Co

September 11, 2012 08:00 ET

New Jersey Mining Company Extends High Grade Gold Interval at the Golden Chest Mine

KELLOGG, ID--(Marketwire - Sep 11, 2012) - New Jersey Mining Company (OTCBB: NJMC) is pleased to announce the drill intercept of 10.8 g/t gold over 7.0 meters (true thickness) in drill hole GC 12-134. This high grade interval was part of a longer intercept of 4.41 g/t gold over 20.6 meters from a drilling program completed in May 2012 at the Golden Chest mine in Murray, Idaho. The Golden Chest is owned 50% by NJMC and 50% by Marathon Gold Corporation and NJMC is the operator. 

"High grade shoots are being revealed by the drilling program. Presently, drilling is relatively shallow and the mineralization would be amenable to open pit mining, but as the shoots extend down dip they would be the source for underground mining", said Fred Brackebusch, President and CEO of New Jersey Mining Company.

Highlights:

  • GC 12-134 returned 4.41 g/t gold over 20.60 meters from a depth of 154.4 meters and included a higher grade interval of 10.8 g/t gold over 7.0 meters.
  • GC 12-133 returned 9.65 g/t gold over 7.7 meters from a depth of 184 meters and included a higher grade interval of 30.3 g/t gold over 2.4 meters true thickness.
  • Both GC 12-133 and GC 12-134 are approximately 30 meters south of GC 11-02 (33.0 g/t gold over 2.6 meters) indicating the presence of a newly discovered high-grade shoot. The new shoot has been named the Skookum shoot. 
  • GC 12-142 returned 1.53 g/t gold over 17.0 meters from a depth of 56.3 meters. This intercept is outside of the existing open pit resource in the northern Katie-Dora area, thus indicating the potential to increase the open pit resource.
  • A total of 7,900 meters of drilling have been completed since the last NI 43-101 resource estimate.

The table below presents the balance of the drill results from the core drilling program at the Golden Chest mine which was completed in May of this year.

Table 1 -Drill Intersections at the Golden Chest Mine

                             
DDH   Section   Design   From
(m)
  To
(m)
  Core
Width (m)
  True
Thickness (m)
  Gold
(g/t)
GC 12-125   4220 N   Step-out   128.3   134.2   5.9   4.1   2.44
including   128.3   129.7   1.4   1.0   8.80
GC 12-126   4220 N   Step-out   93.1   96.8   3.7   3.4   0.86
GC 12-127   4220 N   Step-out   74.8   75.8   1.0   1.0   1.50
GC 12-128   4250 N   Step-out   No significant intercepts.
GC 12-129   4250 N   Step-out   No significant intercepts.
GC 12-130   4250 N   Step-out   167.2   183.6   16.4   11.9   2.04
including   170.4   175.2   4.8   3.5   6.18
GC 12-131   4700 N   Infill   137.1   156.0   18.9   16.0   0.45
GC 12-132   4700 N   Infill   133.0   154.0   21.0   17.7   0.44
GC 12-133   4470 N   Infill   122.5   127.2   4.7   3.4   0.46
184.0   194.7   10.7   7.7   9.65
including   188.9   192.2   3.3   2.4   30.3
GC 12-134   4470 N   Infill   21.0   24.3   3.3   2.8   1.22
    142.2   166.2   24.0   20.6   4.41
including   154.4   162.5   8.1   7.0   10.8
GC 12-135   4700 N   Infill   82.5   87.3   4.8   3.2   0.70
121.0   131.0   10.0   6.7   1.0
GC 12-136   4725 N   Infill   105.4   124.0   18.6   8.9   1.41
156.0   161.6   5.6   2.7   0.57
GC 12-137   5125 N   Step-out   112.2   121.7   9.5   8.4   1.56
GC 12-138   4975 N   Infill   66.2   85.5   19.3   17.3   0.83
GC 12-139   5050 N   Step-out   203.7   204.6   0.9   unknown   10.7
GC 12-139 was terminated before main target due to poor ground conditions.
GC 12-140   4975 N   Infill   18.8   31.2   12.4   11.0   0.71
GC 12-141   5100 N   Step-out   92.9   105.7   12.8   11.4   0.46
GC 12-142   4975 N   Infill   56.3   73.8   17.5   17.0   1.53
including   64.2   65.8   1.6   1.5   10.4
GC 12-143   5075 N   Step-out   36.7   38.4   1.7   1.5   1.60
                             

*All grades in this release are uncut, and all thicknesses are estimated true thicknesses.

The vein intercept in GC 12-133 is approximately 50 meters down-dip from the GC 12-134 intercept. The results from drill holes GC 12-133 and GC 12-134 indicate that a high-grade gold shoot, the Skookum, is present within the Idaho vein in a previously unexplored area. The Skookum shoot is nearly 500 meters south of the historic Katie-Dora underground workings where most of the historic high-grade underground gold production occurred. 

Drilling was suspended in May of this year to conserve capital. The Joint Venture partners took this opportunity to complete core logging and sampling, mapping of the surface and underground geology, excavation of prospecting trenches, and property-wide geologic reconnaissance. Additionally, environmental monitoring activities have started. An additional 7,900 meters of drilling has been completed at the Golden Chest since the first 43-101 resource estimate which was based on 10,200 meters of drilling. 

About 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 515 hectares. The patented claims that cover the mine workings have mineral and surface rights enabling the joint venture 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. A series of known assay standards are submitted with each drill hole as part of a quality assurance- quality compliance program.

The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms, such as "measured," "indicated," and "inferred resources," that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are cautioned not to assume that any or all of measured, indicated or inferred resources are economically or legally mineable or that these resources will ever be converted into reserves. U.S. investors are urged to consider closely the disclosure in our Form 10-K and Form 10-Q.

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 360 tonne per day flotation mill and a concentrate leach plant. In an effort to boost awareness of our company among gold stock investors, we are working with the Gold Stocks 360 web site to display highlights of our fundamentals at http://www.goldstocks360.com.

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.

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