KELLOGG, Idaho, Sept. 10, 2010 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) announced in June that it intercepted a high grade banded vein in the hangingwall of the Idaho fault at the Golden Chest mine near Murray, Idaho. The intercept in Hole 10-01 was 0.27 of a meter of 864.48 grams per tonne (gpt) gold at a depth of 58 meters below the surface. In addition, Hole 10-01 intercepted other mineralization including the Claggett vein in the footwall of the Idaho Fault. The Claggett vein intercept was 0.9 meter grading 14.7 gpt gold.
Because the high grade intercept is within 10 meters of underground workings it was decided to explore the area by driving mine openings from the nearby ramp. A 17 meter crosscut was driven through the Idaho fault zone and several quartz veins were crossed. The veins were then followed by drifting on them for 10 meters. Finally, a raise was driven up dip about 12 meters on the veins toward the high grade intercept. Extremely difficult ground conditions and a high rate of groundwater inflow were encountered in the raise, making the operation unsafe to continue.
The veins which were explored contain base metal sulfides and occasional grains of visible gold. The aggregate thickness of the veins is about 0.7 of a meter. Gold grades ranged from 1 gpt to over 15 gpt, averaging about 4 gpt.
The Idaho fault is a thrust fault which appears to be the main conduit for gold-bearing solutions that formed the various veins. The larger veins are generally in the footwall of the fault in a quartzite unit. In this case, gold-bearing veins are near the upper strand of the fault and thus offer additional potential for exploration. The best choice of methods to explore the fault zone is to drill short core holes from underground openings. Plans are being made to conduct underground and surface drilling at the Golden Chest to increase the resource base. Further exploration depends on obtaining the necessary funding to proceed.
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 Toboggan project, the Niagara copper-silver deposit, the Golden Chest project, the New Jersey mine, and the Silver Strand mine. The New Jersey mine includes a fully-permitted flotation mill and 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.
Further information about New Jersey Mining Company and its properties can be found at the company's website at www.newjerseymining.com.