KELLOGG, Idaho, Oct. 26, 2011 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCBB:NJMC) is pleased to announce the drill intercept of 30.8 meters of 2.05 g/t gold (true thickness) in drill hole GC 11-52 from a core drilling program underway at the Golden Chest mine in Murray, Idaho. The Golden Chest is owned 50% by NJMC and 50% by Marathon Gold Corporation (TSX:MOZ) and NJMC is the operator.
Fred Brackebusch, CEO of NJMC, commented, "The 2011 drilling has successfully outlined the open pit resource on the southern part of the Idaho vein. I also expect an open pit resource to the north on the Katie-Dora system."
"Thus far, the core drilling efforts at Golden Chest have proven to be very rewarding for Marathon since these intercepts are even better than expected, in both grade and thickness, than previous widely spaced reverse circulation and diamond drill holes. Drilling to date and geological work this year has demonstrated that the open pit potential goes beyond the limits of the historic open pit resource. Subsequently, we expect to undertake another drill program next year to define the full open pit potential. The new NI 43-101 compliant resource, expected in the first quarter of 2012, is the first step in expanding the Golden Chest deposit", stated Phillip Walford, President and CEO of Marathon Gold Corp.
All grades in this release are uncut, and all thicknesses are estimated true thicknesses
Highlights:
- GC 11-52 returned 2.05 g/t gold over 30.8 m (true thickness) from 67.7 meters down the hole including 7.56 g/t gold over 5.7 m (true thickness) from 75.1 to 82.0 meters down the hole.
- GC 11-53 returned 1.74 g/t gold over 33.1 m (true thickness) from 36.8 meters down the hole.
- GC 11-49 returned 1.69 g/t gold over 30.8 m (true thickness) from 67.7 meters down the hole.
- GC 11-40 returned 1.00g/t gold over 30.9 m (true thickness) from 11.7 meters down the hole.
The majority of the holes in this release, including GC 11-52, are near 4500 North which is 200 meters north of where the open pit resource drilling started this year thus indicating the strength of the Idaho vein system. GC 11-52 also intercepted tungsten mineralization in the form of the mineral scheelite and assayed 1.79% tungsten over 4.8 meters (true thickness).
| Table 1 – Significant Drill Intersections at the Golden Chest Mine | ||||||
| DDH | Resource Target | From | To (m) | Core | True | Gold (g/t) |
| (m) | Width (m) | Thickness (m) | ||||
| GC 11-40 | Open Pit | 11.7 | 42.7 | 31.0 | 30.9 | 1.0 |
| GC 11-46 | Open Pit | 5.1 | 20.4 | 15.3 | 14.9 | 1.1 |
| GC 11-47 | Open Pit | 99.7 | 130.2 | 30.5 | 29.2 | 0.7 |
| GC 11-48 | Open Pit | 117.7 | 137.6 | 19.9 | 17.0 | 1.1 |
| GC 11-49 | Open Pit | 67.7 | 100.5 | 32.8 | 30.8 | 1.7 |
| includes | 79.0 | 80.9 | 1.9 | 1.8 | 11.0 | |
| GC 11-51 | Open Pit | 124.0 | 134.0 | 10.0 | 6.7 | 0.4 |
| GC 11-52 | Open Pit | 67.7 | 105.0 | 37.3 | 30.8 | 2.1 |
| Includes | 75.1 | 82.0 | 6.9 | 5.7 | 7.6 | |
| GC 11-53 | Open Pit | 36.8 | 82.0 | 45.2 | 33.1 | 1.7 |
| and | 94.9 | 116.9 | 22.0 | 16.1 | 0.5 | |
| GC 11-54 | Open Pit | 53.2 | 56.7 | 3.5 | 3.4 | 4.5 |
| and | 67.3 | 90.0 | 22.7 | 22.0 | 0.6 | |
| GC 11-55 | Open Pit | 33.7 | 41.8 | 8.1 | 6.4 | 0.8 |
| and | 76.4 | 104.0 | 27.6 | 21.8 | 0.7 | |
| GC 11-57 | Open Pit | 123.5 | 149.2 | 25.7 | 14.1 | 1.0 |
| GC 11-59 | Open Pit | 25.0 | 30.3 | 5.3 | 5.1 | 2.7 |
| Note that hole numbers missing in the sequence above may have already been released, are in the process of being logged by geologists, or are awaiting assay analysis. | ||||||
Surface core drilling at the Golden Chest on the 25 m by 25 m grid has been completed. Drilling will now focus on 50 meter step out holes along strike to the north and south where the mineralization is open-ended. Drilling will continue on surface until the weather no longer permits it. Two drill rigs are currently working on open pit resource drilling and have completed approximately 9,000 meters to date. The joint venture partners plan to complete at least 10,000 meters of drilling this year.
An NI 43-101 report is in preparation which will include open pit and underground resources. The resource estimation is scheduled to begin in November, 2011 and be completed by 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 497 hectares. The patented claims that cover the mine workings have mineral and surface rights enabling the JV 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.