KELLOGG, IDAHO. New Jersey Mining Company (Symbol: NJMC - OTC Bulletin Board) started exploration drilling last week at its Lost Eagle prospect located near Murray, Idaho. Two holes each about 150 meters in depth are planned to investigate a geophysical anomaly discovered last year. The Murray district has produced over 300,000 ounces of gold, mostly from placers, since 1880, yet no major lode deposits have been discovered in the area to date.

The Lost Eagle prospect is a quartz vein carrying sulfides that outcrops in the Revett formation. The Company’s Silver Strand gold-silver mine also occurs in Revett formation, thus offering a similarity. Electron microprobe analysis has shown that the silver and gold-bearing minerals of the Lost Eagle prospect are gold and silver tellurides. The averages of eight grab samples taken at the Lost Eagle discovery site were 16.3 grams/tonne gold and 159 grams/tonne silver with the lowest grade at 4.0 grams/tonne gold and 24 grams/tonne silver.

Gradient Geophysics of Missoula, Montana collected induced polarization/resistivity (IP) data over three 300 meter long lines at the Lost Eagle in November 2002. The line located over the discovery site indicates a distinct IP anomaly which is interpreted to be a zone of sulfides with quartz veining. The results imply the gold-silver vein system extends to depth and it possibly widens at depth. This anomaly is the target of the hole currently being drilled.

An IP line 100 meters west of the discovery site shows the vein splitting or branching out. A second drillhole is planned to explore this IP anomaly.

Earlier this month, the Company submitted a Plan of Operations to the US Forest Service for a seasonal underground mining operation at the Silver Strand. A mining rate of 500 to 1,000 tonnes per month is planned with the ore being shipped to the New Jersey mill in Kellogg for processing. Resource calculations indicate that ore will average 10.3 grams gold equivalent per tonne. About 40% of the equivalent grade is from silver. It is expected that the permitting process may take up to six months or more to complete.

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 project, the CAMP project and the Wisconsin-Teddy project.