KELLOGG, Idaho, Nov. 9, 2005 (PRIMEZONE) -- New Jersey Mining Company (OTCBB:NJMC) is keen to announce that its diamond drilling contractor has mobilized to the Golden Chest mine in Murray, Idaho this week to commence a drilling program to further define a gold zone discovered last year with a high-grade drill intercept on the Idaho vein. A four-hole program with 610 meters of drilling is planned at the Golden Chest, where the company holds a 500-acre land position.
Idaho Vein Target
Last year, NJMC completed a four-hole drilling program, of which the highlight was DDH04-6, which was drilled through the Idaho vein deeper than any previous drilling and intercepted a 20.8 meter zone containing four veins that assayed 4.26 grams of gold per tonne (gpt), including a higher grade section of 5.8 meters that assayed 10.68 gpt gold. A one-meter sample length of the high-grade section assayed 35.8 gpt and gold was visually identified. A preliminary calculation of the true width of the entire zone was 13.3 meters, or about 64 percent of the drilled intercept. Additionally, a fifth vein was intercepted five meters above the zone and assayed 7.27 gpt gold over 0.5 meters.
Previous drilling by Newmont Mining in the late 1980s targeted gold mineralization amenable to open pit mining, so the drillholes were relatively shallow and were not drilled into the Idaho vein below the No. 3 Level, where it appears the gold grade is significantly higher. NJMC's management feels that a substantial gold resource (+1.5 million ounces) suitable for a 1,500 tonnes per day underground mine could be defined on the Idaho vein because of its large dimensions and the excellent gold grade discovered last year. The Idaho vein system outcrops impressively in large quartz promontories that are 30 meters in width, and 256 meters above the gold zone drilled by DDH04-6. Most of the open pitable resources drilled by Newmont are part of the Idaho vein system or zone, which could be mined in conjunction with underground resources.
Because mining experience at the Golden Chest shows that veins are relatively uniform on dip, the first hole will be drilled about 30 meters down dip from the 2004 intercept. Two additional holes will then be drilled to either expand the strike length or to explore further down dip. If the continuity of the Idaho vein system appears good, a new ramp will be considered to access the deeper gold mineralization.
Current Mining Operations
Ore is being produced from the Katie vein approximately 500 meters north of the Idaho vein described above and in a similar structural setting as the Idaho vein. The mining operation is performing well and according to management's expectations, with about 400 tonnes per month grading from 11 to 15 grams/tonne gold. The operation is generating about $25,000 per month cash, which is being used for exploration and corporate expenses. There is potential to expand the mining operation by locating more reserves in parallel veins or in additional shoots. One short drillhole will be drilled to test for a parallel footwall vein, called the Dora vein, which has historic production.
The Golden Chest mine is operated under a mining lease with Metaline Contact Mines (OTCBB:MTLI).
New Jersey Mining Company is involved in exploring for and developing gold, silver and base metal ore resources in the Coeur d'Alene Mining District of northern Idaho. The company has a portfolio of mineral properties in the Coeur d'Alene Mining District including the New Jersey mine, the Silver Strand mine, the Golden Chest mine, the CAMP project, the Scotch Thistle project, and the Silver Button project.
This release contains certain forward-looking statements within the meaning of the Federal Securities Laws. Such statements are based on assumptions that the company believes are reasonable but which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in the company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB for the year ended December 31, 2004.
Further information about New Jersey Mining Company can be reviewed on the Web site of the Securities and Exchange Commission at www.sec.gov or on the company's Web site at www.newjerseymining.com.