KELLOGG, Idaho, Sept. 14, 2006 (PRIMEZONE) -- New Jersey Mining Company (OTCBB:NJMC) has located and staked a new gold occurrence not far from the Golden Chest mine near Murray, Idaho. The new property, which is 7 kilometers northeast of the Golden Chest mine, has been named the Gold Butte prospect.
Initial surface sampling of mineralized rock yielded ore grade assays ranging from 3.63 to 18.65 grams/tonne gold with an average of 9.65 grams/tonne. Preliminary interpretation of the geology indicates the presence of a shear zone in the crest of an anticlinal fold in Prichard formation. The zone outcrops over a strike length of 200 meters and 120 meters of vertical extent. Breccia and hydrothermal alteration are evident.
Soil sampling indicates gold mineralization continues at least an additional 70 meters to the north where a 75-meter wide zone returned anomalous gold assays. Trace element geochemistry shows a slightly different signature than the Golden Chest mineralization, but it is clear that the gold mineralization is derived from a buried intrusive in the area.
Exploration planned for the remainder of the 2006 field season includes more soil sampling and a suite of geophysical tests to help determine the extent of the mineralized zone along with the dip of the structure. A core drilling plan will be submitted to the U.S. Forest Service so that drilling can be scheduled in 2007.
Company President Fred Brackebusch said, "The finding of the Gold Butte deposit is a success for our exploration program in the Golden Chest area. We anticipate finding more prospects because our reconnaissance exploration program is showing widespread gold mineralization in the Murray area."
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, and several other exploration prospects.
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, 2005.
Further information about New Jersey Mining Company can be reviewed on the website of the Securities and Exchange Commission at www.sec.gov or on the company's website at www.newjerseymining.com