|
Kellogg, Idaho. New Jersey Mining Company (OTCBB:NJMC) announces that it has
signed an initial letter agreement to acquire the mineral rights to the Niagara
copper-silver deposit located near Murray, Idaho. The deposit is a Revett copper-silver
deposit with an inferred resource of 2.7 million tonnes that grades 0.93% copper
and 37.8 grams per tonne silver (1.10 ounces per ton). The Niagara copper-silver
deposit is located near the forks of Eagle Creek about 7 kilometers northwest
of the Company’s Golden Chest mine. An exploration program completed by Earth
Resources Company on the property in the 1970's identified a larger resource of
16.4 million tonnes grading 0.49% copper and 24.3 gpt silver. The program included
8 drillholes and 6 trenches on the outcrop of the mineralized strata. Earth Resources
also completed metallurgical testwork that indicated conventional flotation will
achieve recoveries of 94% for copper and 90% for silver. Preliminary economic
studies by Earth Resources contemplated an underground mine that mined the higher
grade core (2.7 million tonnes) of the deposit at a rate of 800 tonnes per day. Company
President Fred Brackebusch commented, “The addition of the Niagara property significantly
increases the Company’s silver resource base. Our strategy in the Murray District
is to find enough resources to justify the building of a flotation mill processing
more than 500,000 tonnes per year. The addition of the Niagara resources to about
3 million tonnes at the Golden Chest brings the total amount of resources to a
level that may allow the construction of such a flotation plant. Our job now is
to conduct additional drilling and feasibility analyses to determine if the resources
can be economically mined and processed.” Previous geologic reports indicate
that the high grade core could be reasonably expected to increase to 4 million
tonnes at 1.2% copper and 44.6 gpt silver with more drilling on closespaced centers
of 100 meters. The agreement on the Niagara deposit was reached with a private
party and covers nine unpatented claims. Terms of the agreement call for an exploration
period of five years, and during or at the end of the exploration period NJMC
can decide to enter a mining agreement. Upon entering a mining agreement, NJMC
could exercise an option to buy 90% of the royalty P.O. Box 1019 . Kellogg, Idaho
83837 . Phone (208) 783-1032 interest for $2.5 million or NJMC could decide to
pay the full Net Smelter Royalty of 3% on any production with annual minimum royalty
requirements. On completion of the final agreement, which is expected before the
end of this year, NJMC will issue 30,000 shares of restricted common stock plus
$4,500. During the subsequent five-year exploration period, the required annual
payments are 30,000 shares and $3,000. 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 mineral properties in the Coeur d'Alene Mining District including the New Jersey
mine, the Silver Strand mine, the Golden Chest mine, and several other exploration
prospects. This release contains certain forward-looking statements within
the meaning of the Federal Securities Laws. Such statements are based on assumptions
that the Company believes are reasonable but which are subject to a wide range
of uncertainties and business risks. Factors that could cause actual results to
differ from those anticipated are discussed in the Company's periodic filings
with the Securities and Exchange Commission, including its annual report on Form
10-KSB for the year ended December 31, 2005.
Download
this press release as a PDF document | 
