COEUR D'ALENE, Idaho, Dec. 12, 2013 (GLOBE NEWSWIRE) -- New Jersey Mining Company ("NJMC" or the "Company") today provided a corporate update with the following highlights:
- Juniper Resources ("Juniper") has exercised its Option to lease the Skookum Shoot of the Golden Chest Mine;
- NJMC recently processed 865 tonnes of ore from the Dixie area of central Idaho, demonstrating the value of the Company's mill as a regional processing center;
- The Company completed a private placement of its equity securities, raising $1.05-million;
- The Company anticipates filing Form 10 with the SEC by year-end and desires to be a current reporting company.
Juniper Exercises Option
The Golden Chest Mine is located near Murray in northern Idaho and is owned 52.12-percent by Marathon Gold Corporation ("Marathon") and 47.88-percent by NJMC. Pursuant to the Option, Juniper paid $50,000 at signing which was divided on a pro-rata basis between Marathon and NJMC. Juniper then conducted a definition drill program of 2,545 meters and had until November 30, 2013 to exercise the Option.
The Option exercised by Juniper called for an advanced royalty payment of $200,000 (received) to be divided between Marathon and NJMC on a pro-rata basis, along with quarterly payments of $125,000 due to the property vendor for the duration that Juniper mines the Skookum Shoot. It also calls for quarterly 2-percent net smelter returns (NSR) royalty payments, to be divided between Marathon and NJMC, also pro-rata. Juniper has indicated that it intends to begin driving a ramp into the Skookum Shoot in the spring.
The agreement with Juniper allows NJMC and Marathon to continue exploration activity on all other parts of the property. NJMC is actively evaluating areas with the potential to host high-grade ore outside of the Juniper area to provide feed to its mill, including areas of past production and of past drilling and modeling. Details regarding NJMC's exploration efforts will be the subject of a forthcoming press release.
NJMC CEO Del Steiner stated, "We are pleased that Juniper has exercised its Option to mine at Golden Chest and we look forward to processing their ore at our mill. However, we recognize that milling our own ore has the most profit potential and therefore we are conducting our own exploration at Golden Chest, in search of high-grade zones with near-term mining and milling possibilities. We believe that owning and operating a mill within an active mining district has us well-positioned to generate returns for our shareholders."
Ore Processing Update
The Company recently processed 865 tonnes of ore from a property located in the Dixie area of central Idaho, more than four hours from its Kellogg mill, demonstrating its value as a regional processing center. The NJMC mill has the potential to economically process ore from mines and prospects within a wide radius of mining camps in Montana, Idaho, and Washington, generating positive cash flow for the Company while enhancing its project evaluation capability.
Completed Private Placement
The Company recently completed a private placement of its equity securities, raising approximately $1.05-million. Mr. Steiner commented, "The management team added to its own stock positions, through personal investments in the offering, to demonstrate its commitment to the Company and confidence in executing its business plan. We are committed to keeping overhead in check and aligning our personal interests with our shareholders, not in extended contracts and bloated salaries, but in the success of NJMC."
Form 10 Filing
The Company anticipates filing the Form 10 with the SEC prior to year-end. As part of the requirement of the Form 10, the Company's auditor recently completed reviews on prior quarterly financial statements. The Company is in the process of improving corporate disclosure, through timely filings and other publicly available materials, in anticipation of becoming a current reporting company as quickly as possible.
About New Jersey Mining Company
The new management team at New Jersey Mining Company (NJMC) is implementing a new business plan. NJMC is located in North Idaho's Silver Valley where it built and owns a fully-permitted 360 tonne per day flotation mill and concentrate leach plant. The mill underwent a $3.2-million expansion in 2011 in exchange for a milling agreement that guarantees NJMC 3,000 tonnes of ore per month plus all unused and excess capacity. The Company is actively pursuing its own small-scale production opportunities.
The Company also owns a 47.88-percent interest in the Golden Chest Joint Venture (GCJV), which controls the Golden Chest Mine, a historical gold producer with more than 12,000 feet of underground workings. Since 2003, more than $6-million has been spent on exploration, drilling, and development at the Golden Chest Mine, including more than $5-million by Marathon Gold since 2010. The GCJV recently leased a portion of the Golden Chest Mine to Juniper Resources, a mine development and production company.
The Company trades on the OTC Markets under the symbol "NJMC".
Forward Looking Statements
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.