KELLOGG, IDAHO. New Jersey Mining Company (OTCBB:NJMC) has started to order equipment and select contractors for the addition of a flotation circuit to its New Jersey mill located near Kellogg. The company is adding a flotation circuit including the necessary dewatering equipment so that the production of gold and silver from the from the Silver Strand mine can commence once permits are received from the U.S. Forest Service.

Ore from the Silver Strand contains 5.43 grams per tonne (gpt) gold (0.158 opt) and 361 gpt silver (10.5 opt). The New Jersey mill currently has a capacity of 100 tonnes per day but a flotation circuit is necessary to produce a bulk sulfide concentrate from the Silver Strand. A concentrate bin has been ordered and bids on a pressure filter and flotation cells are being finalized. Construction of the building that houses the flotation cells is expected to commence shortly.

Production from the New Jersey mine open pit would also be profitable because of the present high gold price. Although cyanidation would provide higher recoveries, acceptable recoveries of 80% are achieved with flotation according to metallurgical testwork. No permitting is required to commence production at the New Jersey mill or open pit. In fact, about 2,000 tonnes of ore was previously blasted and is ready to be processed in the mill. It is expected that production could commence by June 2004 from both mines. If permitting delays occur with the Silver Strand mine, production could still be achieved from the fully-permitted New Jersey open pit mine.

A ramp is being planned at the Golden Chest mine to explore a high grade gold intercept encountered during Newmont Gold’s exploration program. Newmont’s RVC-2 intercepted 0.66 ounces per ton (23 gpt) over 10 feet (3.05 meters) at a depth of 115 feet below the surface. A design for the ramp is being finalized and the project will go out for bid soon.

A deep drilling program is also planned at the Golden Chest to validate management’s theory that the gold mineralization was mobilized by a deep heat source and there is reason to believe that multiple gold veins could exist at depth. Two drillholes about 460 meters in depth are planned. Drilling and driving the ramp will commence once snow levels have started to recede, most likely mid-March. Production of gold from this ramp project could also be achieved in 2004. No environmental permitting is required to commence production at the Golden Chest mine.

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 six mineral properties in the Coeur d'Alene Mining District: the New Jersey mine, the Silver Strand mine, the Golden Chest mine, the Lost Eagle project, the CAMP project and the Wisconsin-Teddy project.