KELLOGG, Idaho, Feb. 18, 2009 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) announces that it completed three drillholes on its Niagara copper-silver deposit near Murray, Idaho. With the new drilling data, the Company updated the block model and completed ultimate open pit design exercises. The third drillhole added over 2 million tonnes to the mineral resource, primarily because of its location in expanding the area of the mineralization. The third hole intercepted 19.4 meters of Revett stratabound copper-silver mineralization grading 0.51% copper, 25 grams per tonne (gpt) silver and 0.029 gpt gold. The results of the first two of the three holes were previously announced. All three holes intercepted mineralization that was similar to grades of historic drilling in the 1970's.
The total resource calculated in the block model increased to 17.8 million tonnes grading 15.5 gpt silver and 0.39% copper. Gold was not analyzed in the historic drilling, but the recent drilling indicates that gold content might average about 0.1 gpt.
Open pit simulation studies showed that 81.5% of the resource could be mined in a pit with a stripping ratio of waste to ore of 3.37. The pit would contain 7.5 million ounces of silver and 125 million pounds of copper and an un-estimated amount of gold. A copper price of $3 per pound would be required for acceptable economics.
Fred Brackebusch, CEO, commented: "There is potential for further expansion of the Niagara resource in the upper Revett formation. Open pit design work shows that the resource could be amenable to low cost open pit mining."
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. The Company has a portfolio of mineral properties in the Coeur d'Alene Mining District including the Toboggan Project which is a gold exploration joint venture with Newmont Mining Corporation, the Niagara copper-silver deposit, the Golden Chest mine, the New Jersey mine and mill, and the Silver Strand mine.
Cautionary Note to Investors -- The U.S. Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that the company can economically and legally extract. We use certain terms in this news release, such as "resource" that the SEC guidelines strictly prohibit us from including in our filings with the SEC. Investors are urged to consider the disclosure in our Form 10-KSB and Form 10-QSB. Copies of these filings can be viewed at the SEC's website: www.sec.gov.
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, 2007.
Further information about New Jersey Mining Company and its properties can be found at the company's website at www.newjerseymining.com.