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KELLOGG, IDAHO. New Jersey Mining Company
(Symbol: NJMC - OTC Bulletin Board) has leased additional
mineral property adjacent to the New Jersey mine, where it's
majority shareholder, Mine Systems Design, Inc. (MSD), has
completed a diamond drilling program. A wide, silicified zone
with significant gold values was intercepted.
The drilling program was designed to test a broad induced
polarization/resistivity geophysical anomaly found about a
year ago. The first drill hole [01-1] was drilled at -60 degrees
due east to a depth of 152 meters(m) in order to intercept
the heart of the anomaly. A wide, silicified zone with significant
gold values was intercepted at approximately the location
indicated by the geophysical survey. The zone has been named
the Grenfel zone. The following assay results were obtained:
|
From Depth, meters
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To Depth, meters
|
Interval, meters
|
Gold, grams per tonne
|
|
86.9
|
97.0
|
10.1
|
0.5
|
| Including |
|
3.7
|
1.1
|
|
104.3
|
114.9
|
10.6
|
0.7
|
| Including |
|
1.8
|
2.1
|
A second drill hole[01-2] was drilled vertically from the
same location as 01-1 to a depth of 190 meters. A quartzitic
member of the Prichard formation was intersected but no gold
mineralization was observed. Geologic interpretation indicates
that the second hole was not drilled deep enough to intersect
the gold-bearing zone.
The Grenfel zone discovered in Hole 01-1 is a new find that
has not previously been known. The zone is a different style
of disseminated mineralization rather than a solid quartz
vein represented by the Coleman veins, and it represents a
strong hydrothermal system. A cross fault appears to separate
the new zone from the Coleman quartz veining. Management is
encouraged by the results of the drilling program as it indicates
the presence of a large mineralizing system at the New Jersey
mine. Exploration of the Grenfel zone on dip and strike is
needed to possibly discover higher grade sections. The gold
content shown in Hole 01-1 would nearly meet economic criteria
for open pit mining.
NJMC plans to pursue a private placement with qualified investors
to fund an exploration program that would explore the new
Grenfel zone as well as the Coleman quartz veins at the New
Jersey mine. The program is also planned to pursue exploration
targets at the Silver Strand mine, the Lost Eagle prospect
and the Teddy prospect. The Coleman vein system has a proven
and probable reserve of 80,830 metric tonnes at a grade of
4.46 grams of gold per tonne.
The lease agreement with MSD enlarges NJMC's land position
at the New Jersey mine by some 66 acres, north of existing
land holdings. NJMC issued 1,000,000 shares of restricted
Rule 144 stock to Mine Systems Design, Inc. in exchange for
the lease which calls for a 3% NSR royalty limited to 10%
of net profits.
New Jersey Mining Company is involved in exploring for and
developing gold, silver and base metal ore resources in the
Coeur d'Alene Mining District of northern Idaho. The Company
has a portfolio of five mineral properties in the Coeur d'Alene
Mining District: the New Jersey mine, the Silver Strand mine,
the Lost Eagle prospect, the CAMP project and the Wisconsin-Teddy
project.
Disclaimer: This press release may contain
forward-looking statements within the meaning of Section 27A
of the Securities Act and Section 21E of the Exchange Act. Forward-looking
statements are inherently subject to risks and uncertainties,
many of which cannot be predicted with accuracy, and some of
which might not even be anticipated. | 
