KELLOGG, Idaho, Feb. 2, 2012 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce that an exploration crosscut in the northern part of the Golden Chest mine has intersected a vein that assayed 29.4 g/t gold across a true thickness of 1.4 meters. The Golden Chest is owned 50% by NJMC and 50% by Marathon Gold Corporation (MOZ-TSX) and NJMC is the operator.
The exploration crosscut is located in the northern part of the mine known as the Katie-Dora area, and the new vein was found at a distance of approximately 12 meters from the existing ramp. The purpose of the crosscut was to follow-up on a small diameter core hole that achieved very poor sample recovery through a quartz zone, but indicated high-grade gold may be present. Visible gold and abundant sulfides including galena, pyrite, and chalcopyrite were present in the intensely fractured quartz vein as revealed by the crosscut. The Katie-Dora area of the Golden Chest hosted the bulk of the historic production with reported grades of up to 17 g/t gold. This area has seen very limited core drilling in the past but will be a focus of this year's exploration program.
Current plans are to extend the crosscut to a potential second vein indicated by the previous drilling and then drift on the first vein to determine its strike length. Chip samples will also be collected along the entire length of the crosscut, since quartz stringers and pyrite are present throughout the crosscut, in order to determine if the entire zone may be amenable to bulk mining.
On January 25th, the core drilling program for 2012 commenced with two drill rigs on the surface, and as much as 20,000 meters of drilling is planned for this year. The primary focus of this year's drilling will be to extend the pit resource to the north into the Katie-Dora area. Additional drilling targets include: the extension of the open pit resource south of Idaho Hill, the expansion of the Idaho vein underground resource, the down-dip extension of the high-grade Katie-Dora veins below the No. 3 level, and exploration of the southward extension of the Idaho fault onto the Joe Dandy claim.
The initial 43-101 resource estimate for the Golden Chest is expected to be completed by Micon International Limited in the first quarter of 2012.
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. 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.
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.
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.