KELLOGG, Idaho, July 9, 2008 (PRIME NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) announces that it has signed a definitive agreement with Silverstar Mining Corp.(OTCBB:SLVM) under which the parties created a joint venture to mine and explore at the Silver Strand mine east of Coeur d'Alene, Idaho.
Silverstar agreed to pay NJMC $500,000 for 50% interest in the Silver Strand mine property and each party then will contribute their 50% interest to the joint venture. Silverstar has made initial payments of $270,000 and has until July 31, 2008 to complete the acquisition of their 50% interest from NJMC. In addition Silver Star will refund NJMC for 50% of the reclamation bond which is approximately $61,000. NJMC will be the manager of the joint venture and both parties will contribute 50% of the costs and receive 50% of the revenues.
The Silver Strand project is a seasonal underground mining operation permitted under a Plan of Operations by the U.S. Forest Service. According to the Plan of Operations, mine operations are permitted from May 1 to October 31 of each year. Work planned in 2008 will include completing a new adit and commencement of production from a proven and probable reserve block containing 6,900 tonnes grading 5.43 grams per tonne (gpt) gold and 361 gpt silver. Ore will be processed at the New Jersey mineral processing facility located near Kellogg.
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, the Niagara copper-silver deposit, the Golden Chest project, the New Jersey mine, and the Silver Strand mine.
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 .