New Jersey Mining Company Announces
High Grade Intercept of 33.0 g/t Gold Over 2.6 Meters at Golden Chest Mine
KELLOGG,
IDAHO - Wednesday, March 16, 2011 -- New Jersey Mining Company
(OTCBB:NJMC) and Marathon Gold Corporation (MOZ-TSX) are
pleased to announce the initial results from their core drilling program
underway at the Golden Chest mine in Murray, Idaho. All drill intersections in this release
are undiluted.
Surface
core drilling through the Idaho vein, in an area north of the current reserve,
returned 33.0 grams per tonne (g/t) gold over 2.6 meters (m) true thickness
including 0.9 m of 62.6 g/t in GC-11-2.
Visible gold was observed in this Idaho
vein intercept. Five surface
drill holes have been completed to date with each intercepting the Idaho
vein, and extending the vein to the north and down-dip into areas where no
previous drilling has taken place.
Assays are pending for holes GC-11-3 to GC-11-5.
An
underground drilling program is also underway at the project about 400 meters
north of the surface drilling in an area of the mine known as the Katie-Dora
area. Drilling here in GCU-11-2
returned 103.4 g/t over 0.8 meters through the Katie vein. The underground drilling is
focused on exploring for high-grade ore shoots in the northern part of the mine
where existing workings provide excellent access to explore the Idaho
fault corridor.
- GC-11-2
returned 33.0 g/t gold over 2.6 m (true thickness) in an area north of the
existing reserve and down-dip of the main level - the No. 3 level.
- GC-11-1
returned 6.25 g/t gold over a 4.4 m (true thickness) further north of the
GC-11-2 intercept, and within the 230m gap between the Idaho vein reserve
and the Katie-Dora area where no previous drilling has occurred.
- A
hanging wall vein above the Idaho vein was intercepted by both GC-11-1 and
GC-11-2, grading 4.90 g/t gold over 1.3 m and 7.83 g/t gold over 1.1 m,
respectively.
- GCU-11-2
intercepted 103.4 g/t gold over 0.8 meters only 5.9 meters from the
existing ramp.
- GC-11-3
intercepted the Idaho vein about 158 meters vertically below the No. 3
level and is the deepest
intercept to date on the Idaho vein.
Assays are pending.
Table 1 - Initial
Drill Results at the Golden Chest Mine
DDH
|
Vein
|
From(m)
|
To (m)
|
Core Width (m)
|
True Thickness (m)
|
Gold (g/t)
|
GC-11-1
|
H/W
|
56.1
|
57.4
|
1.3
|
unknown (1)
|
4.90
|
|
Idaho
|
165.7
|
170.3
|
4.6
|
4.4
|
6.25
|
GC-11-2
|
H/W
|
55.4
|
56.5
|
1.1
|
unknown (1)
|
7.83
|
|
Idaho
|
152.3
|
154.9
|
2.6
|
2.6
|
33.00
|
GCU-11-2
|
Katie
|
5.9
|
6.7
|
0.8
|
unknown (1)
|
103.4
|
(1) True
thickness cannot be calculated until more vein intersections are drilled.
Grant
Brackebusch P.E., Vice President of New Jersey Mining Co. commented," The
gold grade of GC-11-2 is the highest drilled to date on the Idaho
vein, and both intercepts of the Idaho
vein are significant as they indicate that the vein is extending at depth in a
mining district known for its deep-seated orebodies."
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.
Golden Chest LLC operates the mine and is owned 50% by NJMC and 50% by MOZ. A surface and underground drilling
program of at least 10,000 meters is planned for 2011 with the goal of
producing a NI 43-101 compliant resource estimate for the property.
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 21 unpatented mining claims covering 206 hectares. The patented
claims that cover the mine workings have mineral rights and surface rights
enabling the JV to work easily on the mine property.
Gold mineralization
can be found along at least 1,500 meters of strike length along the Idaho
fault on the property. The veins in the north end of the mine were historically
mined at higher grades, estimated to have been 17 g/t gold, whereas the Idaho
vein in the south end of the mine was thicker but lower in grade (175 m on the
main level grading 6.71 g/t gold). The lowest major level of the Golden Chest
mine is the No. 3 level, which is near the valley bottom elevation. The drilling to-date has only probed the
Idaho vein about 160 meters below this level in a district known for hosting
orebodies that outcrop on surface and continue at depth for 2,500 meters.
The Idaho vein has
an SEC compliant proven and probable underground reserve of 242,000 tonnes
grading 5.10 g/t Au containing 40,000 ounces (ozs) of gold. The Idaho vein
outcrops and a measured and indicated open pit resource of 1.2 Mt grading 1.35 g/t Au has been estimated
with an additional inferred resource of 5.5 Mt grading 0.98 g/t gold.
There are two drills
working on site, one on surface and one underground. The surface drill will
move up slope to drill the open pit resource in the Idaho
vein when the snow is gone sometime in the second quarter. The underground
drill will continue to drill in the northern half of the mine where there is
high grade potential.
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.
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.
For more information
on New Jersey Mining Company, please contact:
Grant Brackebusch,
Vice President
Phone:
1.208.783.1032
Email: ir@newjerseymining.com
Website: www.newjerseymining.com
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.
The United
States Securities and Exchange Commission
permits mining companies, in their filings with the SEC, to disclose only those
mineral deposits that a company can economically and legally extract or
produce. We use certain terms, such as "measured,"
"indicated," and "inferred resources," that the SEC
guidelines strictly prohibit us from including in our filing with the SEC. U.S.
investors are cautioned not to assume that any or all of measured, indicated or
inferred resources are economically or legally mineable or that these resources
will ever be converted into reserves. U.S.
investors are urged to consider closely the disclosure in our Form 10-K and
Form 10-Q.