SOURCE: New Jersey Mining Co

April 12, 2012 11:56 ET

New Jersey Mining Company Intersects 12.4 g/t Gold Over 5.2 Meters at the Golden Chest Mine

KELLOGG, ID--(Marketwire - Apr 12, 2012) - New Jersey Mining Company (OTCBB: NJMC) is pleased to announce the drill intercept of 5.2 meters of 12.4 g/t gold (true thickness) in drill hole GC 12-107 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 (MOZ-TSX) and NJMC is the operator.

"Drilling at the Golden Chest mine continues to be successful in expanding the resource potential. The open pit holes are infill and in an area of inferred resource, and the underground targeted holes are expanding the strike length of the Idaho vein system in an area not previously drilled. These are very good results for the 2012 program and with extensive drilling to follow, we anticipate consistent encouraging results," said Phillip Walford, President and CEO of Marathon Gold.

Highlights:

  • GC 12-107 returned 12.4 g/t gold over 5.2 meters from a depth of 74.3 meters to 79.5 meters, and 7.74 g/t gold over 2.5 meters from 107.1 meters to 109.6 meters. This hole was drilled on the 4175N section which extends the gold mineralization nearly 100 meters to the south of previous drilling.
  • GC 12-106 returned 8.22 g/t gold over 3.9 meters from 153.4 meters to 158.6 meters down the hole, and was also drilled on the 4175N section.
  • GC 12-117 is the southernmost hole drilled on the property and it extends the gold mineralization 300 meters south of historic drill holes. This hole returned 3.56 g/t gold over 5.1 meters of true vein thickness indicating the gold-system is still strong.
  • The first NI 43-101 resource estimate was completed in early March and showed an Indicated plus Inferred resource of 8,085,000 tonnes at a grade of 1.46 g/t gold for a total of 380,300 ounces.

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

Table 1 -Drill Intersections at the Golden Chest Mine

DDH Resource Type Section From (m) To (m) Core Width (m) True Thickness (m) Gold (g/t)
GC 11-101 Open Pit 4780N 5.3 28.0 22.7 16.5 1.15
GC 11-102 Open Pit 4700N 43.2 56.7 13.5 12.4 1.26
GC 12-103 Open Pit 4750N 5.3 29.6 24.3 20.0 1.14
GC 12-104 Underground 4100N 37.4 39.5 2.1 1.6 4.93
and 99.4 105.6 6.2 4.6 1.81
GC 12-105 Underground 4100N 71.3 73.2 1.9 1.9 1.17
GC 12-106 Underground 4175N 128.0 129.2 1.2 0.9 7.95
and 153.4 158.6 5.2 3.9 8.22
GC 12-107 Underground 4175N 74.3 79.5 5.2 5.2 12.39
and 107.1 109.6 2.5 2.5 7.74
GC 12-108 Underground 4050N Less than 1.0 g/t over 2.0 meter minimum mining width.
GC 12-109 Underground 4050N 34.2 39.8 5.6 5.6 2.37
including 34.2 36.0 1.8 1.8 6.37
and 78.6 79.2 0.6 0.6 5.37
GC 12-110 Underground 4000N 107.0 110.0 3.0 2.2 3.87
GC 12-117 Underground 3950N 94.0 101.2 7.2 5.1 3.56

Underground intercepts were calculated using a 1.0 g/t cutoff over a minimum mining width of 2.0 meters. Note that hole numbers missing in the sequence above are in the process of being logged by geologists or awaiting assay analysis

The assay results from the holes drilled on the 4175N section and to the south indicate that the gold system is still robust which increases the potential to add to the total gold resource at the Golden Chest. The drilling completed by the partners to date has demonstrated the gold mineralization has a strike length of at least 1.1 kilometers, and is open to the north and south. Currently, there are two core drills operating on the surface at the Golden Chest which are targeting the extension of mineralization to the south and down dip. Once the snow melts, the rigs will be moved to the high-grade Katie-Dora area to target the extension of the open pit resource to the north.

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 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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