KELLOGG, Idaho, Jan. 3, 2007 (PRIME NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce it has staked a large geophysical anomaly in the Murray district not far from the Company's Golden Chest mining operation and Niagara copper-silver deposit. The new prospect has been named the CA Prospect. The geophysical anomaly was discovered in 1984 by Cominco American Inc. (now Teck Cominco), and covers an area of two square kilometers.
Cominco discovered the anomaly using CSAMT, a method used to determine the electrical resistivity of the ground. Initially a reconnaissance survey was used to detect the anomaly, and then a more detailed CSAMT survey was conducted over the anomaly in 1985 confirming that a large conducting body exists in the area. Data from this survey indicated the depth to the conducting body was from 450 to 670 meters below the surface.
In the mid 1980s Cominco American was exploring the Murray area for a Sullivan-type polymetallic deposit which is a seabed-type deposit located in the northern part of the Belt Basin. These types of seabed deposits are also thought to be the source of the silver, lead and zinc deposited later in veins in the Coeur d'Alene Mining District. The Sullivan mine in southern British Columbia produced over 150 million tonnes of silver, lead, and zinc ore which has a value of about $50 billion at today's metal prices.
A 1985 Cominco geophysical report recommended that the CA target be drilled: "From this first pass interpretation, it is apparent that the data shows a good quality conductor that fits the Sullivan type model parameters, the geologic interpretations, and presents a target worthy of drilling to test for a polymetallic sulfide deposit." To the company's knowledge, the anomaly was never drilled.
NJMC filed an operational plan in December 2006 with the U.S. Forest Service to drill at least 2,000 meters at the CA prospect from three planned drill sites which are located on existing roads. The company also plans to hire a consulting geophysicist to re-evaluate the data using the improved techniques available today.
"With the staking of the CA prospect, the staking of the Gold Butte earlier this year, and the recent addition of the Niagara copper-silver deposit, we are beginning to see the potential of the Murray area for hosting major gold, silver and base metal deposits," said company President Fred Brackebusch.
The company's strategy in the Murray district is to discover enough resources to justify the construction of a large flotation mill (2,500 tpd) that would process ores from the company's properties in the area. Currently the company has about 6.7 million tonnes of resources at the Golden Chest and Niagara, combined. Plans also include drilling at the Niagara deposit to confirm and increase resources, driving an underground ramp at the Golden Chest to expose the deep Idaho vein gold mineralization, and to drill the Gold Butte deposit, also located in the Murray district.
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 Niagara copper-silver deposit, the Golden Chest mine, the New Jersey mine, the Silver Strand mine, and several other exciting 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