In the summer of 2006, NJMC located and staked a new gold exploration prospect about 7 kilometers northeast of the Golden Chest property. The property has been named the Gold Butte and consists of 12 unpatented lode mineral claims or about 240 acres wholly owned by NJMC. Initial surface sampling of mineralized rock yielded ore grade assays ranging from 3.63 to 18.65 gpt gold and averaged 8.86 gpt gold.

Looking northwest to the Gold Butte mineralized zone and historic workings.

Geology

Preliminary geologic interpretation of the prospect indicates the presence of a zone of pyritic, silicified breccia parallel to the axial plane of a small fold in the Prichard Formation, on the east limb of the north-trending Trout Creek Anticline.

The mineralized zone outcrops over a strike length of at least 200 meters and has a vertical extent of 120 meters. Soil sampling indicates the zone may continue north for at least another 400 meters, with a width of 75 to 90 meters. Newmont Exploration examined the property in 1985 and reported gold values up to 64 ppm from this north-trending zone, and estimated the size of the mineralized zone to be 61 meters in width and 305 meters in length. Evidence suggests that the zone could contain 10 million tonnes.

NJMC's soil sampling also indicates anomalous concentrations of molybdenum, tellurium and antimony. Bear Creek Mining geologists, who apparently visited the property in 1981, suggested that the breccia could be the relatively shallow expression of a molybdenum porphyry-related breccia pipe.

A geophysical survey completed by NJMC Director Ivan Linscott in September of 2006 had excellent correlation with the soil sampling and indicates the zone may be dipping to the east. Below is a photograph of the Gold Butte property showing the results of the geophysical survey with the projected outline of the mineralized zone.

Aerial photo of Gold Butte showing the results of the geophysical survey

Historic workings on the property consist of a network of roads and trails accessing a series of 5 portals spaced vertically on the hillside, along with some bulldozer trenches and miscellaneous prospect pits. Two old drillhole collars were found, but the orientation of these historic drillholes indicates that they probably would not have intercepted the mineralized zone.

Exploration Plans

A Plan of Operation (POO), which includes diamond core drilling, has been submitted to the United States Forest Service (USFS) for the 2007 field season. The exploration plan calls for 1,200 meters of core drilling as well as additional soil sampling.